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MaxLinear Cuts Guidance In Further Collateral Damage From Huawei Ban

Tanzeel Akhtar

MaxLinear Inc (NYSE: MXL) reduced its second-quarter earnings and sales guidance Tuesday as a result of the U.S. ban on American companies selling technology to the Chinese company Huawei.

MaxLinear cut its second quarter sales guidance from a range of $83 million to $88 million to a range of $80 million to $85 million vs. a $91.03-million estimate. 

On May 15, the Trump administration added Huawei to a list of companies that U.S. firms can no longer trade with unless they have a license. The "entity list" bans Huawei from acquiring technology from U.S. firms without government approval.

Huawei is a growing customer of multiple MaxLinear products that address several applications in the communications network infrastructure markets, the company said in a Tuesday press release. 

“While total sales to Huawei have not been material to MaxLinear in the past, as a large strategic customer of MaxLinear’s newer network infrastructure products, Huawei represents a source of strong revenue growth projections for the current year," according to MaxLinear. 

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