Thu, Apr. 30, 4:41 PM
Mon, Feb. 9, 4:16 PM
Sun, Feb. 8, 5:35 PM
Tue, Feb. 3, 5:37 PM
Tue, Feb. 3, 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
Oct. 30, 2014, 4:29 PM
Sep. 9, 2014, 12:46 PM
Jul. 31, 2014, 4:44 PM
May. 1, 2014, 12:48 PM
Apr. 30, 2014, 4:52 PM
Feb. 6, 2014, 4:32 PM| Comment!
Oct. 30, 2013, 5:49 PM
Oct. 14, 2013, 5:53 PM
- William Blair's Anil Doradla thinks a possible streaming deal between Netflix and cable providers could be a boost to mixed-signal chip maker MaxLinear (MXL +1.5%). With front-end tuners used for broadband making up almost 70% of revenue, MaxLinear stands to gain as increases in over-the-top data consumption and multi-screen content delivery lead to the need for greater bandwidth capabilities in set-top boxes.
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.
Oct. 4, 2013, 5:23 PM
- The settlement agreement between MaxLinear (MXL -1%) and Silicon Laboratories (SLAB +0.8%) is a worldwide, non-exclusive, royalty-free cross-licensing agreement covering the patents related to the 2 companies' litigation.
- MaxLinear will make a one-time payment of $1.25M to Silicon Labs as part of the agreement. (8-K)
- Previous: MaxLinear and Silicon Labs settle patent dispute
MXL vs. ETF Alternatives
MaxLinear Inc is a fabless semiconductor company. It is engaged in providing integrated, radio-frequency and mixed-signal integrated circuits for broadband communications and data center, metro, and long-haul transport network applications.
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