CARLSBAD, Calif. - MaxLinear, Inc. (NASDAQ:MXL), a prominent provider of integrated circuits, reported a challenging first quarter with a significant year-over-year (YoY) revenue decline and provided a softer-than-expected outlook for the second quarter of 2024, sending its shares down 4.5%.
In the first quarter, MaxLinear's revenue fell to $95.3 million, a decrease of 62% YoY and slightly below the previous quarter's figure. This was, however, marginally above the analyst consensus of $94.21 million. The adjusted loss per share was -$0.21, which was a cent better than the expected -$0.22. Last year, the company posted adjusted earnings of $0.74 per share.
The company's GAAP gross margin also declined to 51.7% from 56.5% in the same quarter last year. On a non-GAAP basis, the gross margin stood at 60.6%, which was relatively stable compared to 60.3% YoY.
MaxLinear's CEO, Kishore Seendripu, Ph.D., expressed optimism despite the downturn, stating, "We believe our revenue has bottomed and is now poised for sequential growth throughout 2024." He highlighted the company's strong fiscal discipline and the potential for positive cash flow and financial leverage as growth accelerates.
Looking ahead, MaxLinear anticipates second-quarter revenue to be between $90 million and $110 million, which is below the analyst consensus of $105.3 million, sparking concerns among investors and contributing to the stock's decline. The company also expects GAAP and non-GAAP gross margins to be approximately 52.5% to 56.5% and 58.5% to 61.5%, respectively.
The softer revenue outlook for the second quarter, coupled with the decline in the first quarter's revenue compared to the same period last year, has evidently weighed on investor sentiment, as reflected in the stock's post-earnings drop.
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