Communications Chip IPO: MaxLinear

| About: MaxLinear, Inc. (MXL)

MaxLinear (NYSE:MXL), a provider of semiconductor solutions for broadband communications applications, is expected to price its IPO this week.

Business Overview (from prospectus)

We are a provider of highly integrated, radio-frequency analog and mixed-signal semiconductor solutions for broadband communications applications. Our high performance radio-frequency, or RF, receiver products capture and process digital and analog broadband signals to be decoded for various applications. These products include both RF receivers and RF receiver systems-on-chip, or SoCs, which incorporate our highly integrated radio system architecture and the functionality necessary to demodulate broadband signals. Our initial products have principally been incorporated into, and our revenue has been largely attributable to, mobile handsets in Japan, in-vehicle entertainment devices in Japan and set top boxes in Europe. As we have expanded our product portfolio, however, we have developed products that enable the display of broadband video in a wide range of additional electronic devices, including cable boxes, digital televisions, personal computers and netbooks. We combine our high performance RF and mixed-signal semiconductor design skills with our expertise in digital communications systems, software and embedded systems to provide highly integrated semiconductor devices that are manufactured using low-cost complementary metal oxide semiconductor, or CMOS, process technology.

Offering: 5.4 million shares at $11 -$13 per share. Net proceeds from the issue will be used for paying off debt obligations, fund working capital requirements and acquire complementary businesses, products, services or technologies.

Lead Underwriters: Morgan Stanley (NYSE:MS), Deutsche Bank (NYSE:DB)

Financial Highlights:

Net revenue for the year ended December 31, 2009 was $51.3 million as compared to $31 million in 2008...Gross margin was 67% for the year ended December 31, 2009 as compared to 60% for 2008...Research and development expense for 2009 was $19.8 million as compared to $14.3 million for 2008...Net income or the year ended December 31, 2009 was $4.3 million as compared to net loss of $1.9 million for 2008...


We compete with both established and development-stage semiconductor companies that design, manufacture and market analog and mixed-signal broadband RF receiver products. Our competitors include companies with much longer operating histories, greater name recognition, access to larger customer bases and substantially greater financial, technical and operational resources. Our competitors may develop products that are similar or superior to ours. We consider our primary competitors to be companies with a proven track record of supporting market leaders and the technical capability to develop and bring to market competing broadband RF receiver and RF receiver SoC products.

Our primary competitors include Analog Devices, Inc. (NYSE:ADI), Broadcom Corporation (BRCM), Entropic Communications, Inc. (NASDAQ:ENTR), Maxim Integrated Products (NASDAQ:MXIM), Inc., Microtune, Inc. (TUNE), Newport Media Inc., NXP B.V., Silicon Laboratories Inc. (NASDAQ:SLAB) and Xceive Corporation. In addition, we believe that a number of other public and private companies, including some of our customers, are developing competing products for digital TV and other broadband communications applications.

Additional Resources: