MaxLinear (NYSE: MXL) reported Q1 EPS of $0.07, in-line with the analyst estimate of $0.07. Revenue for the quarter came in at $62 million versus the consensus estimate of $62.63 million.

Non-GAAP basis:

• Non-GAAP gross margin was 63.8%. This compares to 64.6% in the prior quarter, and 63.5% in the year-ago quarter.
• Non-GAAP operating expenses were $31.7 million, or 51% of revenue, compared to $30.0 million or 43% of revenue in the prior quarter, and $35.7 million or 42% of revenue in the year-ago quarter.
• Non-GAAP income from operations was 13% of revenue, compared to 22% in the prior quarter, and 21% in the year-ago quarter.
• Non-GAAP diluted earnings per share was $0.07, compared to diluted earnings per share of $0.16 in the prior quarter, and diluted earnings per share of $0.19 in the year-ago quarter.

Management Commentary

“In the first quarter, revenue results were in line with our recent preliminary revenue guidance, gross margin was strong, and operating expenses declined on continued operating discipline. We continue to execute well on our 400 and 100Gbps PAM4 fiber optic data center products, which are expected to ramp this year in an expanding work-from-home market environment that is straining data center capacity. In the 5G wireless access market, which is a focus area for us, our new RF transceiver product introductions are particularly suited for the early stage 5G network rollout. We feel very encouraged by these new product areas of growth and the stabilization of our connected home broadband data market due to much needed bandwidth upgrades inside homes and the network itself,” commented Kishore Seendripu, Ph.D., Chairman and CEO.

“We also recently announced plans to acquire Intel’s Home Gateway Platform Division in the third quarter of this year. These assets add significant scale to our entire business while enabling us to provide compelling WiFi products and expanded broadband product offerings with tremendous growth opportunities that we will discuss in the near future,” Dr. Seendripu continued.

“Finally, the recent outbreak of COVID-19 has brought disruptions and uncertainty to the global business environment. While we continue to assess its impact on our business, we are taking every prudent measure to ensure the health and safety of our worldwide employees, as well as our customers and partners in this challenging environment,” Dr. Seendripu added.

Second Quarter 2020 Business Outlook

The company expects revenue in the second quarter 2020 to be approximately $60 million to $64 million. The Company also estimates the following:

• GAAP gross margin of approximately 49.0% to 49.5%;
• Non-GAAP gross margin of approximately 63.5% to 64.0%;
• GAAP operating expenses of approximately $54.0 million to $55.0 million; and
• Non-GAAP operating expenses of approximately $32.5 million to $33.5 million.

For earnings history and earnings-related data on MaxLinear (MXL) click here.