MaxLinear, Inc. (MXL) Bundle
A Brief History of MaxLinear, Inc.
MaxLinear, Inc. (MXL) has undergone significant changes and growth leading up to 2024. The company primarily operates in the semiconductor industry, focusing on the development of integrated circuits for broadband communications, data center, and industrial applications.
Financial Performance Overview
As of September 30, 2024, MaxLinear reported net revenue of $81.1 million for the third quarter, a decrease from $135.5 million in the same period of 2023. For the nine months ended September 30, 2024, total net revenue was $268.4 million, down from $567.9 million year-over-year.
| Period | Net Revenue (in thousands) | Gross Profit (in thousands) | Net Loss (in thousands) |
|---|---|---|---|
| Q3 2024 | $81,102 | $44,080 | $(75,785) |
| Q3 2023 | $135,530 | $73,944 | $(39,829) |
| 9M 2024 | $268,361 | $143,534 | $(187,360) |
| 9M 2023 | $567,910 | $317,124 | $(34,647) |
Operating Expenses
Operating expenses have also seen fluctuations, with total operating expenses for Q3 2024 amounting to $110.8 million, compared to $91.8 million in Q3 2023. The increase is attributed to higher research and development costs and restructuring charges.
| Expense Type | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Research and Development | $52,604 | $66,306 |
| Selling, General and Administrative | $30,154 | $25,402 |
| Restructuring Charges | $26,828 | $54 |
Liquidity Position
As of September 30, 2024, MaxLinear had cash and cash equivalents of $148.5 million and total liabilities of approximately $895.3 million, with total stockholders' equity reported at $556.9 million. The company's working capital stood at $159.7 million.
| Item | Value (in thousands) |
|---|---|
| Cash and Cash Equivalents | $148,476 |
| Total Liabilities | $895,303 |
| Total Stockholders' Equity | $556,872 |
| Working Capital | $159,663 |
Debt Obligations
MaxLinear's total indebtedness as of September 30, 2024, was $125.0 million, primarily from a senior secured term loan. The company also has an undrawn revolving credit facility of up to $100.0 million.
| Debt Type | Amount (in thousands) |
|---|---|
| Senior Secured Term Loan | $125,000 |
| Revolving Credit Facility | $100,000 |
Recent Strategic Developments
In 2023, MaxLinear terminated its merger agreement with Silicon Motion, which was initially set to enhance its market position in the semiconductor space. The decision was influenced by unmet conditions and a material adverse effect on Silicon Motion.
The company is now focusing on optimizing its operational structure post-merger termination and adjusting its strategy in response to market demands and economic conditions.
A Who Owns MaxLinear, Inc. (MXL)
Ownership Structure
As of 2024, MaxLinear, Inc. (MXL) has a diverse ownership structure comprising institutional investors, mutual funds, and individual shareholders.
Major Shareholders
The following table summarizes the major shareholders of MaxLinear, Inc. as of September 30, 2024:
| Shareholder | Number of Shares (in thousands) | Ownership Percentage |
|---|---|---|
| BlackRock, Inc. | 8,956 | 10.6% |
| The Vanguard Group, Inc. | 7,938 | 9.5% |
| FMR LLC (Fidelity) | 5,144 | 6.1% |
| State Street Corporation | 4,772 | 5.7% |
| Invesco Ltd. | 3,612 | 4.3% |
| Other Institutional Investors | 32,885 | 39.3% |
| Retail Investors | 20,000 | 24.0% |
Stock Performance
As of September 30, 2024, the stock performance of MaxLinear, Inc. has shown volatility influenced by market trends and company financials. The following table outlines key stock metrics:
| Metric | Value |
|---|---|
| Current Stock Price | $16.50 |
| 52-Week High | $30.45 |
| 52-Week Low | $12.00 |
| Market Capitalization | $1.39 billion |
| P/E Ratio (TTM) | N/A (Net Loss) |
| Dividend Yield | 0% |
Recent Financial Overview
MaxLinear's financial performance for the third quarter of 2024 includes:
| Financial Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Revenue | $81.1 million | $135.5 million |
| Gross Profit | $44.1 million | $73.9 million |
| Net Loss | $(75.8) million | $(39.8) million |
| Research & Development Expenses | $52.6 million | $66.3 million |
| Operating Expenses | $110.8 million | $91.8 million |
Conclusion on Ownership Dynamics
The ownership of MaxLinear, Inc. is characterized by significant institutional ownership, which plays a vital role in influencing company policies and strategic directions. The diverse shareholder base ensures a balanced governance structure.
MaxLinear, Inc. (MXL) Mission Statement
Company Overview
MaxLinear, Inc. (MXL) is a leading provider of communication systems-on-chips (SoCs) utilized in broadband, mobile, and wireline infrastructure, data centers, and industrial applications. The company is a fabless integrated circuit design entity, focusing on high-speed communication systems that integrate various functionalities into single silicon-die solutions.
Mission Statement
MaxLinear's mission is to deliver innovative, high-performance products that enable seamless connectivity across various markets, including broadband, data center, and industrial sectors. The company aims to enhance customer experiences by providing integrated solutions that drive efficiency and reduce costs.
Financial Performance
As of September 30, 2024, MaxLinear reported net revenue of $81.1 million for the third quarter, a significant decrease from $135.5 million in the same quarter of 2023. For the nine months ended September 30, 2024, net revenue totaled $268.4 million, down from $567.9 million in the prior year.
| Financial Metrics | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Revenue | $81.1 million | $135.5 million | $268.4 million | $567.9 million |
| Gross Profit | $44.1 million | $73.9 million | $143.5 million | $317.1 million |
| Net Loss | $(75.8) million | $(39.8) million | $(187.4) million | $(34.6) million |
| Basic Net Loss per Share | $(0.90) | $(0.49) | $(2.25) | $(0.43) |
Operational Highlights
For the nine months ended September 30, 2024, MaxLinear's operating expenses totaled $325.7 million, up from $313.6 million in the same period of 2023. This increase was driven by a rise in research and development and restructuring charges.
| Operating Expenses | 9M 2024 | 9M 2023 |
|---|---|---|
| Research and Development | $173.9 million | $204.3 million |
| Selling, General and Administrative | $100.2 million | $97.8 million |
| Restructuring Charges | $50.3 million | $9.1 million |
Market Position and Strategy
MaxLinear is focused on expanding its addressable markets through the development of innovative products in advanced semiconductor process nodes, including 16nm and 5nm technologies. The company aims to penetrate existing markets more deeply while addressing challenges in broadband communications and high-speed optical interconnect signals.
Customer Concentration
In the third quarter of 2024, one customer accounted for 25% of MaxLinear's net revenue, while the top ten customers collectively represented 71% of total revenue. This illustrates a significant concentration risk that the company continues to manage.
Debt and Equity Structure
As of September 30, 2024, MaxLinear had a net carrying amount of long-term debt of $122.8 million, with an effective interest rate of approximately 7.9%. The total stockholders' equity was reported at $556.9 million, down from $686.3 million at the end of 2023.
| Debt and Equity Metrics | As of September 30, 2024 | As of December 31, 2023 |
|---|---|---|
| Long-term Debt | $122.8 million | $122.4 million |
| Effective Interest Rate | 7.9% | 7.6% |
| Total Stockholders' Equity | $556.9 million | $686.3 million |
Conclusion on Mission Alignment
MaxLinear's mission to provide innovative, high-performance communication solutions is reflected in its strategic focus on expanding market presence and improving product offerings. Despite recent financial challenges, the company's commitment to enhancing connectivity and reducing costs remains steadfast.
How MaxLinear, Inc. (MXL) Works
Company Overview
MaxLinear, Inc. (MXL) is a leading provider of communications and data infrastructure semiconductor solutions. The company focuses on high-performance analog and mixed-signal integrated circuits for broadband, connectivity, and infrastructure applications.
Financial Performance
As of September 30, 2024, MaxLinear reported a net revenue of $81.1 million for the third quarter, a decrease of 40% compared to $135.5 million in the same quarter of 2023. For the nine months ended September 30, 2024, the total net revenue was $268.4 million, down from $567.9 million in 2023.
| Period | Net Revenue (in thousands) | Change ($) | Change (%) |
|---|---|---|---|
| Q3 2024 | $81,102 | $(54,428) | (40%) |
| Q3 2023 | $135,530 | - | - |
| 9M 2024 | $268,361 | $(299,549) | (53%) |
| 9M 2023 | $567,910 | - | - |
Cost Structure
The cost of net revenue for Q3 2024 was $37.0 million, resulting in a gross profit of $44.1 million. The gross margin for the quarter was approximately 54%. For the nine-month period, the cost of net revenue was $124.8 million, yielding a gross profit of $143.5 million.
Operating Expenses
Operating expenses for Q3 2024 totaled $110.8 million, up from $91.8 million in Q3 2023. This increase was driven by higher research and development costs, which were $52.6 million compared to $66.3 million year-over-year. Selling, general, and administrative expenses were $30.2 million in Q3 2024, compared to $25.4 million in the same period of 2023.
| Expense Type | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Research and Development | $52,604 | $66,306 |
| Selling, General and Administrative | $30,154 | $25,402 |
| Total Operating Expenses | $110,823 | $91,762 |
Net Loss
MaxLinear reported a net loss of $75.8 million for Q3 2024, compared to a net loss of $39.8 million for Q3 2023. For the nine months ended September 30, 2024, the total net loss was $187.4 million, compared to a net loss of $34.6 million in the previous year.
| Period | Net Loss (in thousands) |
|---|---|
| Q3 2024 | $(75,785) |
| Q3 2023 | $(39,829) |
| 9M 2024 | $(187,360) |
| 9M 2023 | $(34,647) |
Cash Flow and Liquidity
For the nine months ended September 30, 2024, MaxLinear reported net cash used in operating activities of $(17.5) million. The company's cash and cash equivalents as of September 30, 2024, were $148.5 million, down from $188.4 million at the end of 2023.
| Cash Flow Type | 9M 2024 (in thousands) | 9M 2023 (in thousands) |
|---|---|---|
| Net Cash Provided by (Used in) Operating Activities | $(17,457) | $59,945 |
| Cash and Cash Equivalents | $148,476 | $188,356 |
Debt and Financing
As of September 30, 2024, MaxLinear had total indebtedness of $125.0 million under the Initial Term Loan, which is due in full on June 23, 2028. The company has a Revolving Facility of up to $100.0 million, which remained undrawn as of the reporting date.
| Debt Type | Principal Amount (in thousands) | Maturity Date |
|---|---|---|
| Initial Term Loan | $125,000 | June 23, 2028 |
| Revolving Facility | $100,000 | Undrawn |
Market Position and Customer Base
MaxLinear primarily serves customers in the broadband and connectivity markets, with a significant portion of its revenue derived from a limited number of key customers. In Q3 2024, one customer accounted for 25% of total net revenue, while the top ten customers collectively represented 71% of net revenue.
How MaxLinear, Inc. (MXL) Makes Money
Overview of Revenue Streams
MaxLinear, Inc. generates revenue primarily through the sales of integrated circuits (ICs) and intellectual property (IP). The company operates in several segments, including broadband, connectivity, infrastructure, and industrial/multi-market applications.
| Segment | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) | Change ($ thousands) | Change (%) |
|---|---|---|---|---|
| Broadband | $32,275 | $34,416 | $(2,141) | (6)% |
| Connectivity | $12,726 | $15,025 | $(2,299) | (15)% |
| Infrastructure | $23,046 | $49,985 | $(26,939) | (54)% |
| Industrial and Multi-Market | $13,055 | $36,104 | $(23,049) | (64)% |
| Total | $81,102 | $135,530 | $(54,428) | (40)% |
Financial Performance
For the nine months ended September 30, 2024, MaxLinear reported a net revenue of $268.4 million, a decline from $567.9 million for the same period in 2023. This decrease is attributed to macroeconomic conditions affecting customer demand.
Customer Concentration
A significant portion of revenue is derived from a limited number of customers. For the three months ended September 30, 2024:
- One customer accounted for 25% of net revenue.
- The top ten customers collectively represented 71% of net revenue.
For the nine months ended September 30, 2024:
- One customer accounted for 13% of net revenue.
- The top ten customers collectively represented 64% of net revenue.
Geographical Revenue Distribution
In the nine months ended September 30, 2024, 72% of net revenue was derived from sales to Asia, with 37% specifically from Hong Kong.
Cost of Revenue and Gross Profit
| Period | Cost of Revenue (in thousands) | Gross Profit (in thousands) | Gross Margin (%) |
|---|---|---|---|
| Q3 2024 | $37,022 | $44,080 | 54% |
| Q3 2023 | $61,586 | $73,944 | 55% |
| 9M 2024 | $124,827 | $143,534 | 53% |
| 9M 2023 | $250,786 | $317,124 | 56% |
Operating Expenses
MaxLinear's operating expenses for the nine months ended September 30, 2024, totaled $325.7 million, compared to $313.6 million in 2023. Major components include:
- Research and Development: $173.9 million
- Selling, General and Administrative: $100.2 million
- Restructuring Charges: $50.3 million
Net Income and Losses
For the three months ended September 30, 2024, MaxLinear reported a net loss of $75.8 million, compared to a net loss of $39.8 million for the same period in 2023. For the nine months ended September 30, 2024, the net loss was $187.4 million, compared to a loss of $34.6 million in 2023.
Intellectual Property Revenue
MaxLinear also generates revenue from intellectual property sales, which accounted for a material portion of revenue recognized during the nine months ended September 30, 2024. Specific amounts are not detailed in the findings but are included in total revenue calculations.
Debt and Financing
As of September 30, 2024, MaxLinear's long-term debt was approximately $122.8 million, with an effective interest rate of 7.9%. The company has a senior secured term loan facility and a revolving credit facility, both of which are available for general corporate purposes.
Future Outlook
MaxLinear anticipates that revenue and gross profit margins may fluctuate due to changes in customer demand, product mix, and macroeconomic conditions. The company's ability to recover will depend on improving sales in key markets and effectively managing inventory levels.
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Article updated on 8 Nov 2024
Resources:
- MaxLinear, Inc. (MXL) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of MaxLinear, Inc. (MXL)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View MaxLinear, Inc. (MXL)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.