MaxLinear: Back On Track
Darspal S Mann
Darspal S Mann
Steady Growth Set To Gain Pace At MaxLinear
Darspal S Mann
Darspal S Mann
Thu, Mar. 24, 12:27 PM
- MaxLinear (MXL -4.8%) is selling off after Microsemi, historically a rival in the telecom infrastructure chip market, announced it's selling its RF/microwave, embedded security, and custom microelectronics businesses to embedded processing system maker Mercury Systems for $300M.
- Mercury declared the deal "nearly doubles the size of our RF and Microwave business, adding new capabilities, scale and synergies." TheFly observes MaxLinear recently stated in a recent presentation (.pdf) its "Infrastructure & Other" business, for which Microsemi and several others are named rivals, only accounts for 8%-10% of its revenue (see page 13). However, the company also suggested the business has stronger growth prospects than its other segments, and is a priority area for investments.
Mon, Feb. 8, 5:41 PM
Nov. 4, 2015, 12:44 PM
Nov. 3, 2015, 5:38 PM
Sep. 16, 2015, 12:45 PM
Jun. 9, 2015, 11:52 AM
- With its $287M acquisition of home networking/satellite antenna IC vendor Entropic on the books as of April 30, MaxLinear (NYSE:MXL) expects Q2 revenue of $68M-$72M and net income (non-GAAP) of $12M.2H15 revenue and net income are respectively expected to total $175M-$185M and $36M.
- CEO Kishore Seendripu: "We are seeing strong follow-through of demand across the range of our expanded technology and market-leading broadband data and video product portfolio. This demand is being primarily driven by tier-one operators across the globe, who continue to invest in higher-bandwidth and richer multimedia content delivery platforms."
- He adds MaxLinear has "made substantial progress towards achieving our target of $20 million in operating cost synergies."
- Shares have jumped to new 52-week highs. William Blair and Deutsche have responded to the guidance with positive notes. Blair: "[T]he operating expense synergies achieved to this point are significantly better than expected, and we be lieve there are still more to come ... we remain bullish n MaxLinear's prospects as we progress through 2015 given the company's competitive advantage and multiple product cycle tailwinds."
Jun. 9, 2015, 9:17 AM
Jun. 8, 2015, 9:16 AM
May 18, 2015, 2:10 PM
- Many chip stocks are turning in healthy gains amid a 0.7% gain for the Nasdaq after the NY Post reported Altera (up 6.2%) has resumed buyout talks with Intel.
- Also possibly helping: China's big-3 carriers have announced major data tariff cuts. Brean has argued the cuts are a positive for RF chipmakers Skyworks (SWKS +5.7%), Qorvo (QRVO +4.2%), and Avago (AVGO +1.9%); the companies benefit from rising 4G phone sales.
- Aside from the aforementioned companies, today's gainers include Synaptics (SYNA +4.8%), Himax (HIMX +2.3%), and Silicon Motion (SIMO +2.3%), each of whom also has Chinese mobile exposure. Other winners include Atmel (ATML +3.7%), Microsemi (MSCC +2.6%), InPhi (IPHI +2%), Intersil (ISIL +2.5%), Silicon Labs (SLAB +2.5%), IDT (IDTI +2.3%), and MaxLinear (MXL +3.5%).
- Chip ETFs: SOXX, SMH, XSD, PSI, SOXL, USD, SOXS, SSG
Feb. 3, 2015, 5:37 PM
Feb. 3, 2015, 4:45 PM
- Broadband/consumer electronics RF chipmaker MaxLinear (NYSE:MXL) is acquiring satellite/home networking chipmaker Entropic (NASDAQ:ENTR) for $287M ($181M net of cash). The price is equal to $3.01/share, representing an 11% premium to Entropic's Tuesday close.
- Entropic shareholders will get $1.20/share in cash and 0.22 MaxLinear shares for each share they own. They'll own 35% of the post-merger company.
- MaxLinear: "The acquisition will add significant scale to MaxLinear's analog/mixed-signal business, expanding its addressable market and enhancing the strategic value of MaxLinear's offerings ... MaxLinear sees immediate cross-selling opportunities and longer-term platform integration opportunities with Entropic's leading MoCA [home networking] technology."
- The company also highlights Entropic's portfolio of 1.5K patents and patent applications. $20M/year in cost synergies are expected in year 1; the deal is expected to close in Q2.
- Separately, MaxLinear is affirming its Q4 revenue guidance (earnings arrive on Feb. 9), and guiding for FQ1 revenue of $34M-$35M, above a $33.7M consensus. Entropic, which has been struggling in recent quarters, has just posted a slight Q4 beat and guided for Q1 revenue of $45M-$46M, above a $40M consensus.
- MXL +3.6% AH. The chip industry has been rapidly consolidating over the last 18 months.
Dec. 29, 2014, 8:05 AM
- Needham Quinn Bolton is turning more cautious on chip stocks following a blistering 2014: Skyworks (NASDAQ:SWKS), RF Micro (NASDAQ:RFMD), TriQuint (NASDAQ:TQNT), Cavium (NASDAQ:CAVM), M/A-COM (NASDAQ:MTSI), and MaxLinear (NYSE:MXL) have been downgraded to Hold, and Ambarella (NASDAQ:AMBA) downgraded to Underperform.
- Bolton often cites valuation. Regarding Skyworks, he notes shares are "up 161% YTD in 2014, vs. 30.3% for the SOX Index and 15.1% for the NASDAQ Composite, and trading above [Needham's] prior price target of $70, or 14x our CY16E non-GAAP EPS estimate."
- Likewise, Bolton notes RF Micro and TriQuint, who will be jointly known as Qorvo starting on Jan. 1, have exceeded his respective targets of $16.50 and $27.50 (12x 2016E EPS), and would prefer to see if a buying opportunity emerges in 1H15. Cavium is trading above Needham's $58 target (based on a DCF valuation model).
- Regarding Ambarella, he cites not only valuation, but also a belief the video processor vendor could underperform in 2015 due to slowing revenue growth, gross margin pressure, and price pressure from top customer GoPro. "A more challenging cable outlook and a push-out in the ramp of its satellite gateway and ODU opportunities" are cited as reasons for downgrading MaxLinear.
- SWKS -1.2% premarket. RFMD -1.1%. TQNT -1.9%. AMBA -3.5%.
- Last Friday: Chip industry growth expected to slow following strong 2014
- Bullish opinions: Brean, Rosenblatt
Sep. 9, 2014, 12:46 PM
May 1, 2014, 12:48 PM
Oct. 7, 2013, 9:26 AM
- BlackBerry (BBRY) has been upgraded to Neutral by Macquarie following a weekend report indicating the company is in talks to sell part or all of the company to Cisco, Google, SAP, and others. Shares +4% premarket.
- IBM and Informatica (INFA) have been cut to Equal Weight by Barclays. IBM -1.4%.
- Twitter (TWTR) has been started with a Buy and $50 PT by SunTrust ahead of its IPO. The PT implies a $25B valuation.
- Infosys (INFY) has been upgraded to Buy by BNP Paribas.
- MaxLinear (MXL) has been upgraded to Outperform by JMP following news the chipmaker has settled its patent dispute with Silicon Labs.
- Citrix (CTXS) has been upgraded to Overweight by Barclays.
- Splunk (SPLK) has received a two-notch downgrade to Underperform by Credit Agricole. Needham cut shares to Hold last week. Shares -2.3%.
- PT Telekomunikasi Indonesia (TLK) has been cut to Neutral by Credit Suisse.
Feb. 5, 2013, 5:17 PMMaxLinear (MXL): Q4 EPS of $0.02 in-line. Revenue of $24.8M (-11% Y/Y) misses by $0.7M. Shares +1.11% AH. (PR) | Feb. 5, 2013, 5:17 PM
MaxLinear, Inc. provides radio-frequency analog and mixed-signal semiconductor solutions for broadband communications applications. It provides integrated, radio-frequency analog and mixed signal semiconductor solutions for broadband communications applications. The company's radio-frequency... More
Industry: Semiconductor Equipment & Materials
Country: United States
Other News & PR