Boston, MA 09/10/2014 (wallstreetpr) – MaxLinear, Inc. (NYSE:MXL) announced that it expects the revenue in the third quarter to come in a range of $32 million to $33 million, against the prior range guidance of $36.5 million to $38.0 million. The prior gross margin guidance range of 62.0% to 62.5% is revised to 61%.
Push-out shipments
MaxLinear, Inc. (NYSE:MXL) stated that the company entered the third quarter with strong performance. However, there are many instances where the cable and satellite customers want to push-out the shipment in the next quarter. It can result in a sequential decline of 25% in the cable revenues. It is much higher as against the previous expectations of sequential decline of 2% to 5% in cable revenues. The push-outs of shipments are mainly connected with the cable modem and gateway solutions. 24-channel DOCSIS 3.0 segment now has got ample channel inventory built-up and, therefore, delays can create problems for the company.
The future ahead
Dr. Kishore Seendripu, President and the CEO of MaxLinear, Inc. (NYSE:MXL), said that the financial guidance for next quarter will be disclosed with the operating results of third quarter 2014. However, there are signs of a slower product ramp in segment of Satellite gateway platforms. Any slowdown will force the management to revise the revenue guidance for the upcoming fourth quarter 2014. It can also go the other way if the management can improve the performance in coming months.
The long-term growth
Dr. Seendripu further said that MaxLinear will face the near-term challenges in the operations. However, the long-term growth story of MaxLinear in cable and satellite markets remains intact. The focus of MaxLinear will stay on business expansion into new addressable markets in the industry which are beyond the existing operations of terrestrial, cable and satellite TV applications. MaxLinear, Inc. (NYSE:MXL) also disclosed that it will be a part of the Deutsche Bank Conference to be held on September 11, 2014 in Las Vegas.
