MaxLinear Inc (MXL) Reports Q3 2023 Financial Results
MaxLinear Inc (NASDAQ:MXL) reported a net revenue of $135.5 million in Q3 2023, a decrease of 26% sequentially and 53% year-over-year.
GAAP gross margin was 54.6%, compared to 55.9% in the prior quarter, and 58.6% in the year-ago quarter.
GAAP operating expenses were $91.8 million in the third quarter 2023, or 68% of net revenue.
GAAP diluted loss per share was $0.49, compared to diluted loss per share of $0.05 in the prior quarter, and diluted earnings per share of $0.35 in the year-ago quarter.
MaxLinear Inc (NASDAQ:MXL), a leading provider of radio frequency (RF), analog, digital, and mixed-signal integrated circuits, announced its financial results for the third quarter ended September 30, 2023, on October 25, 2023. The company reported a net revenue of $135.5 million, a decrease of 26% sequentially and 53% year-over-year. The GAAP gross margin was 54.6%, compared to 55.9% in the prior quarter, and 58.6% in the year-ago quarter.
Financial Performance
On a GAAP basis, the company's operating expenses were $91.8 million in the third quarter 2023, or 68% of net revenue, compared to $108.8 million in the prior quarter, or 59% of net revenue, and $115.5 million in the year-ago quarter, or 40% of net revenue. The GAAP loss from operations was 13% of net revenue, compared to a loss from operations of 3% of net revenue in the prior quarter, and income from operations of 18% of net revenue in the year-ago quarter.
MaxLinear's net cash flow used in operating activities was $12.8 million, compared to net cash flow provided by operating activities of $30.6 million in the prior quarter, and net cash flow provided by operating activities of $61.8 million in the year-ago quarter. The GAAP diluted loss per share was $0.49, compared to a diluted loss per share of $0.05 in the prior quarter, and diluted earnings per share of $0.35 in the year-ago quarter.
Non-GAAP Basis
On a non-GAAP basis, the company's gross margin was 60.8%, compared to 61.0% in the prior quarter, and 62.0% in the year-ago quarter. Non-GAAP operating expenses were $75.1 million, or 55% of net revenue, compared to $82.5 million or 45% of net revenue in the prior quarter, and $80.4 million or 28% of net revenue in the year-ago quarter. Non-GAAP income from operations was 5% of net revenue, compared to 16% in the prior quarter, and 34% in the year-ago quarter. Non-GAAP diluted earnings per share was $0.02, compared to $0.34 in the prior quarter, and $1.05 in the year-ago quarter.
Management Commentary
In the third quarter, we delivered $135.5 million in revenues. Our infrastructure category was up 1% sequentially and 40% year over year, primarily driven by the expanding roll-out of multi-band millimeter wave and microwave 5G wireless backhaul platform solutions. Even as we navigate a challenging demand environment with fiscal discipline and operational efficiency, our solid execution and innovative product offerings are enabling us to maximize strategic business opportunities across all our end markets. In 2023, we continue to lay important groundwork in Wi-Fi, ethernet, fiber broadband access gateways, and wireless and optical datacenter network infrastructure, which will be the foundation for potential future growth, commented Kishore Seendripu, Ph.D., Chairman and CEO.
Q4 2023 Business Outlook
For the fourth quarter of 2023, MaxLinear expects net revenue to be approximately $115 million to $135 million. The company also estimates a GAAP gross margin of approximately 52.5% to 55.5%, and non-GAAP gross margin of approximately 59.5% to 62.5%. GAAP operating expenses are expected to be approximately $125 million to $135 million, and non-GAAP operating expenses of approximately $72 million to $78 million.
Explore the complete 8-K earnings release (here) from MaxLinear Inc for further details.
This article first appeared on GuruFocus.
