MaxLinear (NYSE: MXL) reported Q2 EPS of $0.09, $0.01 better than the analyst estimate of $0.08. Revenue for the quarter came in at $65.2 million versus the consensus estimate of $65.25 million.

Second Quarter Financial Highlights

GAAP basis:

• Net revenue was $65.2 million, up 5% sequentially, and down 21% year-on-year.
• GAAP gross margin was 50.2%, compared to 49.6% in the prior quarter, and 53.4% in the year-ago quarter.
• GAAP operating expenses were $55.5 million in the second quarter 2020, or 85% of net revenue, compared to $50.9 million in the prior quarter, or 82% of net revenue, and $47.0 million in the year-ago quarter, or 57% of net revenue.
• GAAP loss from operations was 35% of revenue, compared to loss from operations of 32% in the prior quarter, and loss from operations of 4% in the year-ago quarter.
• Net cash flow provided by operating activities was $9.3 million, compared to $6.6 million in the prior quarter, and $12.4 million in the year-ago quarter.
• GAAP diluted loss per share was $0.30, compared to diluted loss per share of $0.21 in the prior quarter, and diluted loss per share of $0.03 in the year-ago quarter.

Non-GAAP basis:

• Non-GAAP gross margin was 63.7%. This compares to 63.8% in the prior quarter, and 63.9% in the year-ago quarter.
• Non-GAAP operating expenses were $32.6 million, or 50% of revenue, compared to $31.7 million or 51% of revenue in the prior quarter, and $32.8 million or 40% of revenue in the year-ago quarter.
• Non-GAAP income from operations was 14% of revenue, compared to 13% in the prior quarter, and 24% in the year-ago quarter.
• Non-GAAP diluted earnings per share was $0.09, compared to diluted earnings per share of $0.07 in the prior quarter, and diluted earnings per share of $0.22 in the year-ago quarter.

Management Commentary

“In the second quarter, revenue results were in line with our recent preliminary revenue guidance, gross margin was strong, and operating expenses were tightly managed to below the mid-point of our guidance. Our business showed solid improvements due to stronger-than-expected revenues in broadband driven by demand uptick, as well as analog product sales recovery. The work-from-home environment has strongly benefited our connected home business owing to noticeable inflection in bandwidth demand at home. The infrastructure business also saw meaningful quarterly improvements over previous results, supporting our positive outlook on the new product ramps. Finally, the high-performance analog products selling into our industrial, multi-market segment recovered extremely well in the quarter with impressive results,” commented Kishore Seendripu, Ph.D., Chairman and CEO.

“Additionally, MaxLinear’s acquisition of Intel’s Home Gateway Platform Division is on track to close during the current quarter ending September 30, 2020,” continued Dr. Seendripu.

GUIDANCE:

MaxLinear sees Q3 2020 revenue of $72-76 million, versus the consensus of $70.54 million.

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