MaxLinear, Inc

Greetings, and welcome to the next linear first quarter 2025 earnings call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce Leslie Green of Investor Relations. Please go ahead.

Thank you, Joe. Good afternoon, everyone, and thank you for joining us on today's conference call to discuss Max Lanier's first quarter 2025 financial results. Today's call is being hosted by Dr. Kishore Sindhiput, CEO, and Steve Litchfield, Chief Financial Officer and Chief Corporate Strategy Officer. After our prepared comments, we will take your questions. Our comments today include forward-looking statements within the meaning of applicable securities laws, including statements relating to our guidance for the second quarter of 2025, including revenue, GAAP and non-GAAP gross margin, GAAP and non-GAAP operating expenses, GAAP and non-GAAP interest and other expense, GAAP and non-GAAP income tax, and GAAP and non-GAAP diluted share count. In addition, we will make forward-looking statements relating to trends, opportunities, execution of our business plan, and potential growth and uncertainties in various product and geographic markets, including without limitation, statements concerning the future financial and operating results, opportunities for revenue and market share across our target markets, new products, including the timing of production and launches of such products, demand for and adoption of certain technologies, and our total addressable market. These forward-looking statements involve substantial risks and uncertainties, including risks outlined in our risk factors, section of our recent SEC filings, including our Form 10-Q for the quarter ended March 31, 2025, which we filed today. Any forward-looking statements are made as of today, and MaxLinear has no obligation to update or revise any forward-looking statements. The first quarter 2025 earnings release is available in the Investor Relations section of our website at maxlinear.com. In addition, we will report certain historical financial metrics, including but not limited to gross margin, operating margin, operating expense, and interest in other expense on both a GAAP and non-GAAP basis. We encourage investors to review the detailed reconciliation of our GAAP to non-GAAP presentations and the press release available on our website. We do not provide a reconciliation of non-GAAP guidance for future periods. because of the inherent uncertainty associated with our ability to project certain future changes, including stock-based compensation and its related tax effects, as well as potential impairments. Non-GAAP financial measures discussed today are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures. We are providing this information because management believes it is useful to investors as it reflects how management measures our business. Lastly, this call is also being webcast and a replay will be available on our website for two weeks. And now let me turn the call over to Dr. Kishore Sindhripu, CEO of MaxLinear.

Thank you, Leslie, and good afternoon, everyone. Our Q1 results reflect the continued growth and recovery of our business. We exceeded the midpoint of our guidance with $95.9 million in revenue, non-GAAP gross margin of 59.1%, and a meaningful reduction in operating expenses. We not only expect to be profitable on a non-GAAP basis in Q2, but also, most importantly, to be able to generate positive free cash flow in Q2. In total, in Q1, we made strong progress towards our return to profitability and are solidly executing with new product wins in high-speed data center interconnects, on Wi-Fi and Ethernet. We are also seeing meaningful improvement in our customer order rates and backlog, which gave us confidence that we can continue to deliver growth in 2025 and 2026. Now, looking at our key markets. In infrastructure, the increasing demand for high-speed data is driving significant growth and design activity around high-speed interconnects in data centers, cloud infrastructure, and next-generation telecom networks. We continue to make strong progress with product calls across multiple customers for our 5-nanometer Keystone PAM4 DSP product. At the Optical Fiber Conference, we demonstrated nearly a dozen Keystone-powered optical and active electrical cable modules for OSFP switches. We also highlighted a reverse gearbox application using Keystone from one of the world's leading module makers, as well as a half-retimed active electrical cable wide cable solution, also using Keystone. Our products were featured in demos at the booths of several partners, which are in various forms of production or qualification stages. We are also pleased to showcase the live demo of our Rushmore 1.6 terabit 200 gigabit per lane PAM-4 DSP. Like Keystone, our Rushmore family of PAM-4 TIAs and DSPs for 1.6 terabit interconnections offers superior power and performance advantages. This continues the basis of our competitive differentiation and design win success. We anticipate additional qualification and rollout for 800 gigabit and 1.6 terabit data center applications throughout 25 with exciting revenue growth in 2026. In wireless infrastructure at the Mobile World Congress, we demonstrated a highly integrated Sierra radio system on chip as a complete open RAN macro radio unit solution. It seamlessly interoperated with all major GAN power amplifier suppliers, utilizing MaxLinear's proprietary digital brain distortion technology. Our wireless 5G access single-chip radio SOCs and our millimeter wave and microwave backhaul transceivers and modems are essential for supporting increasing mobile usage and data rates, as well as new functionalities such as edge AI. We believe we are positioned strongly for content growth and share gains this year as service provider capital expenses improves and as our continued design wins at tier one customers begin to ramp later this year. Also within our infrastructure revenues, our Panther family of hardware storage accelerator SOCs is strongly positioned within the data center, enterprise storage applications, and the edge of the network with multiple design wins with major customers. and value-added resellers across key geographies. It enables optimized cost, power, performance, and efficiency of storage and compute server systems by offloading complex tasks that otherwise require long and costly CPU cycles to execute in software. It provides unique and best-in-class capabilities around data compression, integrity, and security with support for 200 gigabits per second throughput and the lowest latency essential for AI applications. Shifting to broadband and Wi-Fi connectivity, in the near term, we feel increasingly confident in the ongoing recovery of the broadband and connectivity markets. Now, with several quarters of improvement behind us, we're excited to begin the ramp of our single-chip integrated fiber, PON, and 10-gigabit processor gateway SOC plus tri-band Wi-Fi 7 single-chip platform solution with the second major tier 1 North American carrier later this year. This is both a major win and a significant validation of our technology and competitive positioning in the fiber pawn market. We expect that it will drive meaningful growth for our fiber revenues in 2026 and give us a strong foothold to continue to expand our presence in pawn. Overall, bookings have continued to strengthen, and we are seeing incremental growth in demand for our cable data DOCSIS products, as well as our Wi-Fi and Ethernet solutions. With a broad portfolio of newly refreshed products ramping into this market and a healthier demand environment, we expect continued growth in these categories throughout the balance of the year. In conclusion, we view Q2 and 2025 as a year of strong growth and return to profitability transition as we begin to drive growth in strategic areas of our product portfolio and enjoy the incremental tailwind of the ongoing recovery in our core markets. Investments made in high-value categories such as high-speed interconnect for the data center, multi-gigabit bond access, Wi-Fi connectivity, Ethernet, storage accelerators, and wireless infrastructure are resulting in strong product traction with Tier 1 customers and partners. We believe these positions as well to accelerate our growth as these markets continue to gain traction in 2026. With that, let me turn the call over to Steve Litchfield, our Chief Financial Officer and Chief Corporate Strategy Officer. Steve?