CARLSBAD, Calif. : MaxLinear, a leading provider of RF, analog, digital and mixed-signal integrated circuits, today announced financial results for the third quarter ended September 30, 2022.
Third Quarter Financial Highlights
GAAP basis:
- Net revenue was $285.7 million, up 2% sequentially andup 24% year-over-year.
- GAAP gross margin was 58.6%, compared to 58.7% in the prior quarter, and 56.5% in the year-ago quarter.
- GAAP operating expenses were $115.5 million in the third quarter 2022, or 40% of net revenue, compared to $125.3 million in the prior quarter, or 45% of net revenue, and $106.0 million in the year-ago quarter, or 46% of net revenue.
- GAAP income from operations was 18% of revenue, compared to income from operations of 14% in the prior quarter, and income from operations of 10% in the year-ago quarter.
- Net cash flow provided by operating activities was $61.8 million, compared to net cash flow provided by operating activities of $123.4 million in the prior quarter, and net cash flow provided by operating activities of $84.1 million in the year-ago quarter.
- GAAP diluted earnings per share was $0.35, compared to diluted earnings per share of $0.40 in the prior quarter, and diluted earnings per share of $0.12 in the year-ago quarter.
Non-GAAP basis:
- Non-GAAP gross margin was 62.0%. This compares to 62.3% in the prior quarter, and 61.3% in the year-ago quarter.
- Non-GAAP operating expenses were $80.4 million, or 28% of revenue, compared to $84.3 million or 30% of revenue in the prior quarter, and $74.4 million or 32% of revenue in the year-ago quarter.
- Non-GAAP income from operations was 34% of revenue, compared to 32% in the prior quarter, and 29% in the year-ago quarter.
- Non-GAAP diluted earnings per share was $1.05, compared to diluted earnings per share of $1.11 in the prior quarter, and diluted earnings per share of $0.75 in the year-ago quarter.
Management Commentary
“In the third quarter, we demonstrated strong execution with revenue up 2% sequentially andup 24% year-over-year. In particular, both Wi-Fi and ethernet delivered substantial sequential and year-over-year growth, while gateway access and wireless infrastructure contributed to solid year-over-year growth. Our connectivity category more than doubled year-over-year, driven by our differentiated Wi-Fi6 feature set, and we continue to be on a firm trajectory to deliver at least $200 million of Wi-Fi revenue in 2023. Our quarterly results included strong cash flow from operations of approximately $62 million and non-GAAP gross margin of 62.0%. We are looking forward to our pending merger with Silicon Motion, and are excited for the future growth opportunities of our comprehensive product portfolio,” commented Kishore Seendripu, Ph.D., Chairman and CEO.
Fourth Quarter 2022 Business Outlook
The company expects revenue in the fourth quarter 2022 to be approximately $285 million to $295 million. The Company also estimates the following:
- GAAP gross margin of approximately 55.5% to 58.5%;
- Non-GAAP gross margin of approximately 59% to 62%;
- GAAP operating expenses of approximately $114 million to $120 million;
- Non-GAAP operating expenses of approximately $77 to $83 million; and
- GAAP and non-GAAP interest and other expense of approximately $5 million.
Webcast and Conference Call
MaxLinear will host its third quarter financial results conference call today, October 25, 2022 at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time). To access this call, dial US toll free: 1-877-407-3109 / International: 1-201-493-6798. A live webcast of the conference call will be accessible from the investor relations section of the MaxLinear website at https://investors.maxlinear.com, and will be archived and available after the call at https://investors.maxlinear.com until November 9, 2022. A replay of the conference call will also be available until November 9, 2022 by dialing US toll free: 1-877-660-6853 / International: 1-201-612-7415 and Conference ID#: 13733502.
