Boston, MA 05/01/2014 (wallstreetpr) – The Q12014 reporting of MaxLinear, Inc. (NYSE:MXL) was marred with losses. However, performance in the latest quarter showed improvement from a year earlier performance. Revenue, earnings and cash flow position all held up nicely in the quarter as the management exudes optimism for the future.
MaxLinear is a provider of radio-frequency and mixed signal communication devices. The company announced improvement in design contracts and success with new brand launches. However, it needs to capture more markets and curb expenses to achieve profits.
The company expects to benefit from a robust communications industry. Strong growth in the uptake of electronic gadgets such as mobile, tablets, televisions and so on, is expected to feed the company’s revenue coffer as it boasts competitive RF technology.
MaxLinear’s solutions are used in broadcast, cellular and cable markets. With increasing attention on energy efficiency, the company has a special focus on energy efficient RF solutions that are likely to attract widespread interest in wireless and wireline applications.
Design win in China
In what can be seen as a market expansion, MaxLinear, Inc. (NYSE:MXL) recently announced a cable chip design win in China. The company landed a contract from Shenzhen Skyworth Digital Technology. The contract involves the design of front-end digital cable receivers that will feature in Shenzhen’s products. Shenzhen provides high-speed data cable modems and an array of other electronic products for use in small offices and residential.
Executive comment
Commenting on the Q1 performance, MaxLinear CEO Kishore Seendripu said the quarter witnessed record high revenue that reflected improvement in market conditions and strengthening product shipment. The quarter also showed a compelling increase in designs and success of new brands. Therefore, the company expects to push forward to establish itself as the leading provider of RF solutions especially in the broadband front-end.
Q1 earnings in summary
MaxLinear, Inc. (NYSE:MXL) reported a net loss of $0.9 million or 2 cents per diluted share. That compared with a net loss of $2.6 million or 8 cents per diluted share in Q42013 and a net loss of $2.3 million or 7 cents per diluted share in Q12013. Therefore, although the company remains soaked in losses, significant and consistent improvement in the bottom-line can be noticed.
Revenue in the quarter was up 22 percent to $32.5 million. Cash flow position came in at $4.1 million, up from $2.8 million in Q42013 and $0.8 million in Q12013.
MaxLinear, Inc. (NYSE:MXL) expects Q22014 revenue to come between $34.5 and $36 million.
