Q4 2020 Maxlinear Inc Earnings Call
Greetings and welcome to match linear for Q4 2020 earnings Conference call. At this time, all participants are in a listen only mode of Cui.
The Mr session will follow the formal presentation, if anyone should require operator assistance during the conference. Please press star zero on your telephone keypad. Please note. This conference is being recorded I would now let's turn the conference over to your host Brian Nugent. Thank you you may begin.
Thank you operator, good afternoon, everyone and thank you for joining us on today's conference call to discuss Mac for the years fourth quarter 2020 financial results.
Today's call is being hosted by Dr. Kishore, <unk>, CEO, and Steve Litchfield, Chief Financial Officer, and Chief Corporate strategy Officer.
After our prepared comments, we will take questions on.
Our comments today include forward looking statements within the meaning of applicable securities laws, including statements relating to our guidance for first quarter 'twenty 'twenty, one revenue revenue growth expectations in our principal target markets GAAP and non-GAAP gross margin GAAP and non-GAAP operating expenses tax expenses and effective.
Tax rate and the interest and other expense. In addition, we will make forward looking statements relating to the trends opportunities and uncertainties in various product and geographic markets, including without limitation statements concerning opportunities arising from our recently completed acquisitions of Intel's home gateway business and the.
Then on semi growth opportunities for our wireless infrastructure and connectivity markets.
And opportunities for improved revenues across our target markets. These forward looking statements involve substantial risks and uncertainties, including integration and employee retention risks associated with the acquisition as well as risks of rising more generally in our business from competition global trade and export restrictions.
Potential supply constraints the impact of the COVID-19 pandemic, our dependence on a limited number of customers average selling price trends and risks that our markets and growth opportunities may not develop as we currently expect and that our assumptions concerning these opportunities may prove incorrect more information on vs and other.
Risks as outlined on the risk factors section of our recent SEC filings, including our form 10-K for the year ended December 31 2019.
And our form 10-K for the year ended December 31, 2020, which will be filed in the coming days.
Any forward looking statements are made as of today and Max on here has no obligation to update or revise any forward looking statements the for.
Fourth quarter 2020 earnings release is available in the Investor Relations section of our website at Max one of your Dot com.
In addition, we reported certain historical financial metrics, including net revenues gross margins operating expenses income or loss from operations interest and other expense income taxes, net income or losses, and net income or loss per share on both the GAAP and non-GAAP basis, we encourage investors to review of the detail.
Reconciliation of our GAAP and non-GAAP presentations in 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 charges, including stock based compensation and its associated tax effects.
Non-GAAP financial measures discussed today do not replace the presentation of Max of the nearest GAAP financial results. We are providing this information to enable investors to perform more meaningful comparisons of our operating results in a manner similar to management's analysis of our business.
Lastly, this call is being webcast and a replay will be available on our website for two weeks.
And now let me turn the call over to Keith starts in group C.
Oh of Max on here. Thank you, Brian and good afternoon, everyone. Our Q4 financial results were strong and highlight record revenues of.
24% sequentially record cash flow from operations of $74 $3 million non-GAAP gross margin of 57, 8%.
While our Q4 results and Q1 guidance were impacted by the challenging and intensifying semiconductor manufacturing supply chain constraints.
We are taking every possible measure we can to ensure that our customers are minimally impacted.
It is our top priority later in the call Steve will outline our revised reporting categories, but in Q4 of our broadband access revenue stood at 58 per cent.
The structure of it 10% industrial and multi market, 15% and connectivity at 18%.
Now turning to some of the queue for business highlights and the broadband access and market demand remains very strong driven by our company specific drivers of continued strong MSL deployment and subscribers broadband consumption trends.
In Q4, we continued to ramp and gain box level market share the flagship DOCSIS 3.1 U S cable MSL platform.
Additionally, we are benefiting from increasing associate the front end platform content.
And by the continuing DOCSIS three point of an upgrade cycle throughout 2020.
Our new broadband access and Wifi I suppose the assets have added significant debt two or all free and expanded assumed the market because not all the docs is but also our teng PON fiber and other broadband access gateway.
Our connectivity business, comprising the Mifi Ethernet Moca and G. HN grew strongly in Q4 aided by the exemption of Moca two five shipments to our flagship U S telco customer and two of new Canadian telco.
We also realize the full quarter impact of or Wi Fi on Ethernet business as well.
We are still in the early stages of penetrating the connectivity opportunities in our own large cable msos and telcos and shows the platforms.
Initially the piece of our investments continues to open up exciting new growth opportunities in connectivity.
The Wifi Alliance recently selected RMB six explore platform.
And then the official access point Testbed for the emerging Wifi six E market.
Our leaves six ex sports illusion of enabled routers and gateways to deliver for 0.8 Gigabits per second in the six gigahertz band.
One of the user experience is support of the 200.
Just ex client simultaneously and the <unk>.
<unk> total net book efficiency for high bandwidth and low latency.
The expansion to of Tri band Wifi fixed configuration of six of your spectrum combined with legacy of 2.4 gigahertz and five gigahertz band deliveries of three fold increase indeed of capacity.
We're needing stimulus drives the Ethernet roadmap development initiatives and look forward to share any more details in the coming weeks.
And all because of data center, we are seeing meaningful progress towards mass production ramp up of our founder Jim Pam four DSP.
The 'twenty 'twenty, one and our tier one Hyperscale data center customer. We also had a strong early traction and ongoing adoption of the 100 G Bam for offerings by tier one customers both.
Both under the important G basketball markets continue to of a tremendous growth outlook.
And we will dominate the cloud and edge data the deployment over the next several years.
We are on track sample on Keystone family, you'll find nanometer Cmos agent the G band for the products in mid 2021.
Keystone solidifies the ability to capitalize the secure optical Ethernet growth opportunity in the data center market within the industry, leading product we have multiple customers already starting of module designs in the preparation for the chips return.
Turning to wireless infrastructure market as expected Q4 revenue declined due to the low 839 of weak impacting on the wireless backhaul business.
How low our bookings reported strong Q1 remark.
Our customer on Newport infection point to strong growth throughout 2021, Inc.
Why do you buy the access we have received strong positive feedback on our view of 14 nanometer Cmos five G RF transceiver.
Which is the industry's first <unk> massive mimo solution.
In addition, we are moving aggressively to integrate our highly differentiated and critical design.
And the critical digital pre distortion of nano semi IP technology.
All of our next generation probably the platforms.
During Q4, we also joined the <unk> or on Alliance, which is reshaping the radio access network industry.
And the more intelligent open virtualized and fully interoperable mobile networks.
For the announced that MTI is using our transceiver remote radio units targeting opened on deployments for for Gn by G applications.
Well the high performance analog business into the 'twenty 'twenty, one with lean channel inventory levels, and improving attach rate funnel and exciting new product development the position us for growth in 2021 and beyond.
Specifically, increasing power management attach rates across our broadband infrastructure applications.
We'll drive incremental content on our existing platform.
The recently announced the new high D. C. D C power modules focus on powering SPE DSP in the Soc the high current Covid in memory supply of the yields and then other fight the transceivers long haul optical transceivers and cable infrastructure at <unk>.
We are very excited about the organic infrastructure initiatives combined with our recent acquisitions of a greatly expanded our Tam, which now spans both the high growth and high value of broadband connectivity and network infrastructure applications. As a result, the confidence of driving strong profitable growth in 2021 and beyond.
Let me turn the call over to Mr. Steve Litchfield, Our Chief Financial Officer, and Chief Corporate strategy Officer.
Thank you Kishore.
I will first review our Q4 2020 results and then further discuss our outlook for Q1 2021.
First of Kishore alluded to and consistent with our prior updates we are revising our reporting to align with changing end market conditions on our go forward business priorities and growth opportunities. We will report for category and the infrastructure. This will be an unchanged category with the products that you have seen from us on the path.
With our high performance analog data center and wireless infrastructure products.
Revenue from this category was $17 9 million in Q4, and $76 2 million in fiscal 2020 versus $85 4 million in fiscal 2019.
Our broadband category includes our prior connected home category, plus the SSD business from Intel but.
But this category excludes wired connectivity.
Revenue from this category was $113 3 million in Q4, and $244 4 million in fiscal 2020 versus $119 3 million in fiscal 2019.
Our connectivity category includes primarily our moca and G HN products and Wi Fi on Ethernet revenues from the NFL transaction.
Revenue from this category was $34 4 million in Q4, and $70 7 million in fiscal 2020 versus $33 4 million in fiscal 2019.
Industrial and multi market includes the previously reported revenue plus component of revenues from the <unk> acquisition.
Revenue from this category was $29 2 million in Q4, and $87 3 million in fiscal 2020 versus $79 1 million in fiscal 2019.
In terms of the Q4 trends on revenue of $194 7 million, our broadband business was up 38% sequentially driven by a full quarter impact of the broadband and Wi Fi business for mentor.
As well as continued strong demand from cable products, owing to the work from home dynamic content increases and share gains our connectivity business was also up 43% given the acquisition, but was also above our expectations driven primarily by the strength of the Wi Fi demands.
Our infrastructure business declined 17% sequentially, driven by wireless backhaul and high performance analog weakness consistent with our expectations.
We do expect the recovery in Q1 as I'll detail in a moment.
Our industrial multi market business was up 1% sequentially with expected softness in HPA offset by the full quarter impact of the broadband and Wi Fi assets component related revenue.
GAAP and non-GAAP gross margin for the fourth quarter were approximately 42, 7% and 57, 8% of revenue respectively. This compares to GAAP gross margin guidance of 40% to 44% and non-GAAP gross margin guidance of 56% to 59% the <unk>.
Delta between GAAP and non-GAAP gross margins on the fourth in the fourth quarter reflects the amortization of $18 5 million of inventory fair value adjustments and $10 7 million of acquisition related intangible assets as well as the <unk> 3 million of stock based compensation and accruals related to our two.
And 'twenty bonus flow.
Fourth quarter GAAP operating expenses were approximately $106 7 million, which was up quarter over quarter due to the full quarter impact of the two acquisitions that closed in Q3, partially offset by decreases in the acquisition integration cost and related restructuring costs.
GAAP operating expenses included stock based compensation and stock based bonus accruals of $23 5 million combined.
Amortization of purchased intangible assets of $6 2 million and ex acquisition cost of $1 2 million.
Non-GAAP operating expenses were $75 8 million up $14 8 million sequentially due primarily to the impact of the two acquisitions that closed during the Q3.
Moving to the balance sheet and cash flow statement of cash flow generated from operating activities in the fourth quarter of 2020 was $74 3 million versus 16 point.
6 million used in the third quarter of 2020.
Our loan balance stood at $370 million factory now on the retirement of $17 2 million. During the Q4, we have subsequently paid down another $20 million during Q1.
We remain consistent in our intentions around uses of cash with priorities on debt pay down and strategic acquisitions.
Our days day sales outstanding for the fourth quarter was approximately 32 days compared to 61 days on the prior quarter.
Our inventory turns were $4 four compared to $5 two in Q3 of.
These metrics are impacted by the timing of purchase price accounting and relative size of the Q3 acquisitions.
This leads me to our guidance.
Currently expect revenue in the first quarter of 2021 to be approximately 200 million to $210 million up 5% sequentially at the midpoint of the guidance range.
We expect broadband revenues to be up modestly with growth driven primarily by cable front ends and the SFC we.
We expect infrastructure revenue to be up significantly primarily driven by wireless backhaul, we expect our industrial multimarket revenues to be flat to slightly up while connectivity will be flat to slightly down.
Like much of the industry, we are working closely with our suppliers to address current supply constraints on the market as these constraints have become a challenge in delivering to our current customer demand.
We saw limitations in Q4 and continue to see impacts in the first half of 2021, which could impact the mix.
We expect first quarter GAAP gross profit margin to be approximately 51, 5% to 53, 5% of revenue and non-GAAP gross profit margins to be approximately 57, 5% to 59, 5% of revenue.
The 70 basis points from the previous quarter at the midpoint of the range. As a reminder, our gross profit margin percentage forecast could vary plus or minus 2%, depending on product mix and other factors.
We continue to fund strategic development programs targeted.
Delivering strong top line growth in 2021, and beyond with particular focus on infrastructure and connectivity initiatives and our stated goal of increasing the operating leverage on the business.
We expect Q1 2021, GAAP operating expenses to decrease approximately $2 million quarter on quarter to a range of $103 million to 107 nine share.
Driven mainly by the reduction in the integration related activities.
Actually offset by seasonal payroll step up in headcount additions.
We expect Q1, 2021, non-GAAP operating expenses to be down approximately $2 million sequentially to a range of 72 million for 76 million.
We expect GAAP tax expense to be approximately zero and non-GAAP tax rate of 6%.
We expect GAAP interest and other expense to be for $3 million to for $5 million.
And non-GAAP interest and other expense to be for $4 million to for $2 million.
In closing there.
Pleased to report improving dynamics in all of our businesses based on the strengthening product cycles improved market dynamics and share our.
Our infrastructure efforts and Pam four and <unk> continued to set up well with meaningful growth coming in 2021 and beyond as production platforms begin to ramp.
We're also pleased with both the near term customer traction and development milestones on our Wi Fi business.
Our intent and supporting customers through a dynamic market environment with the accelerating demand and intensifying supply constraints.
We remain focused on maintaining strong profitability and cash flow generation, while continuing to execute on our integration efforts as well as our organic infrastructure development.
With these profitable growth initiatives, we believe we are uniquely positioned to.
To deliver strong leverage in our business in 2021.
With that I'd like to turn the call back over to the operator for questions.
At this time, we'll be conducting a question and answer session. If you'd like to ask the question. Please press star one on your telephone keypad.
Total indicate your line is on the question queue.
First of all to people like term of your question from the queue for participants using speaker equipment. It may be necessary the pickup your handset before pressing the star keys one of them. Please the people for questions.
Our first question comes from the line of tore Svanberg with Stifel. Please proceed with your question.
Thank you on.
Congratulations on the results.
First question is on visibility I mean, I assume you guys are pretty booked up.
But the the type.
But perhaps can you talk of it about visibility beyond the March quarter.
And also as it relates to the capacity or you take.
Taking some actions to perhaps expand the capacity at this point.
Hey, George Thanks for joining us so absolutely visibility is extremely good right now on bookings.
At record levels, and we really did have a tremendous quarter yeah. The supply constraints are a bit challenging for us and we're trying to do our best of resolve them as quickly as possible.
Are there actions there is lots of actions I mean, there's.
Numerous things that our operations teams have been working on I do think I mean.
There's lots of speculation as to how long this will continue.
We have <unk>.
Certain issues that are going to have a bigger impact on the first half of the year Q1, and Q2, and then but I also think that there'll probably be some restrictions that even.
Limit some abilities, even in the second half of the year. So I can't give you specific actions. It's the long list that we're working diligently to reconcile so.
Tori also having said that you know.
The guidance contemplates those those dynamics and so you know all of the bookings on an incredibly strong we really measure of our business performance based on throughput of our revenues and so.
We had temporary net in the matter as well. Meanwhile, like I said in my section of the call.
For making sure the customers of the supply many of the topmost priority and we are taking every measure to ensure that they.
They are not in the position that they cannot be successful.
And then as my follow up you are in.
<unk> indicated that infrastructure is going to be up strongly.
Especially with the wireless backhaul ramping could.
Could you elaborate a little bit on debt is that a.
Specific program or is it multiple customers and the any any any regions of milk.
So on the wireless backhaul side right I mean.
It would be it would be now of fully absorbed the Huawei impact is what ive concluded and so really resuming strong growth back in queue, but he's really indicating of upsetting design ins. We have done that so didn't key customers tier one customers that are beginning to ramp primarily on our RF transceivers and at the same time, we're also seeing Inc.
The demand for our backhaul modem products. So I think that it's not one customer it's multiple customers with.
With the exclusion of of Huawei and the makes me to the unfortunately of huge ER revenue loss for us, but that's now in the rearview of matter Okay.
Just want to squeeze one last one in.
You look at time of Wi Fi I assume are still in the very early innings of that upgrade cycle right.
Oh, yes climbed to Wi Fi.
Now all of these markets play out for us you're starting.
Some of you know consumer retail shelf divides and then it goes into the handsets and and then finally makes all of it makes its way into the operating platform right and so many of the early phase, but having said that the Wi Fi succeed already contemplates.
The new bands and things get hurt it's really effectively try then however, there are changes in the in the way. It works that's involved the baseband. So we're really in the early fees all of the access point and the lunar.
As you know of Tri band.
Across the board, whether it's client side of exercise, so and will be the great position.
The execute on that because we as I said, we've already got the certification of the Wifi succeed.
And we feel good on a very good position and we will have the best Silicon we can for the platform.
In the timely manner.
Excellent congrats again.
Thanks.
Our next question comes from the line of Alessandra Vecchi with William Blair. Please proceed with your question.
Hi, just a couple of questions Steve of any chance you can give us some color on how you view of the growth rates for the different segments going forward.
Hey, Alex.
So we in our prepared remarks, we did.
Include kind of Directionally, what we saw it come in I mean, I do think infrastructure is going to be exceptionally strong.
In Q1 is as that business recovers I mean.
Post the weakness that we saw in Q4 Kishore just spoke about the the backhaul, but I mean, we also see some of the HPA business is recovering and so there's other components of.
Of that debt, we'll definitely see pick up in Q1.
Broadband I do you mentioned that as well see some modest improvements there in Q1, which is really counter to what we typically see we usually would see a weaker Q1, and so I see that slightly.
The slightly up and then.
On the connectivity, probably flat to slightly down and we had an exceptionally strong quarter in Q4, and so we've just got a little bit of digestion of happens there, but I'm really excited about that business. Some of the growth that we would expect to see throughout the year.
The industrial Multimarket.
A week Q for which we had talked about previously right, but frankly going into 2021 I see the channel inventory levels have come down quite a bit demand has definitely picked up so so I see that probably flagged the slot flat to slightly up in <unk>.
Q1 so.
Some of the reiterating from our prepared remarks, but hopefully that's helpful.
Yeah that is but I was actually sorry, I should've been clearer of it's actually thinking more on.
On the term basis.
Particularly maybe for the connectivity market.
Yeah.
Okay, Yes, my apologies, if I misunderstood that I mean look connectivity.
The connectivity and the infrastructure are both really big.
The investments that we've made we expect to see substantial growth, they're big markets right, whether it be Wi Fi driving some of the connectivity markets Ethernet I mean, there is a big growth drivers.
Should should grow solid double digit growth for a while to come especially with these newer products that are coming out I mean, the same thing applies on the infrastructure side.
Where we've you know we've.
<unk> been talking about similar market dynamics with some of the newer products.
And I don't think I mean with regard to the broadband.
The segment as well I mean, that's.
Probably reflect back on some of our commentary that we've made throughout the year I mean, that's still kind of of low to potentially of mid single digit grower and then industrial multimarket would be consistent with what we've said historically you know growing around the rate of GDP.
Okay. That's very helpful. Thank you.
And then just on a more housekeeping question can.
Can you can you just update us on on how to think about operating expenses as we progress through the through the year should we sort of continue to expect our opex down in Q2, and then continue to migrate down a little debt or is there any change to your previous commentary there.
Yes, so look I mean.
Give you a little bit of color.
Because theres some of some moving parts I mean, we don't like the guide of more than one quarter out just the kind of given the changing world that we live in.
That being said the.
Look we've got a lot of integration efforts that are ongoing we've mentioned the.
Some of the transitional expenses that we have between us and Intel that that continues.
You know throughout Q1.
And so those those will start to come out in Q1, and so we will start to see some improvements in the back half of the year due to and so we do have some masked expenses debt.
We will contribute in Q2 and to some degree in Q3. So we will see that pick up and then hopefully by the end of the year.
We will see more of the Intel expenses and some of the some of our integration efforts really pay off and you'll see it.
Kind of the exited the year for.
Pretty good.
<unk>.
I think you'll see some nice improvements throughout the year on the Opex side.
Great. Thank you.
I'll pass it along to the next person right.
Great.
Our next question comes from the line of Quinn Bolton.
Needham <unk> company, please share with your question.
Hey, Kishore Keith congratulations on the on the nice results on the outlook I guess, the my first question Steve.
You talked about the supply constraints and it certainly sounds like it's limited in your ability perhaps in the near term wondering if you think you're leaving some revenue on the table as the result of the supply constraints in Q1.
And I assume that most of that debt demand probably is non perishable and so to the extent youre, leaving some demand on the table on Q1 does that pushed into Q2, and Q3 and sets you up potentially for higher sequential growth through the year or would.
Would you still expect sort of a pause in the broadband and connectivity businesses. After a strong Q for Q1.
Pause kind of in Q2.
Yeah, Glenn I mean, so clearly where the.
On working very hard on the supply constraints it absolutely love it.
Kind of our guidance in Q1.
I mean, you know your specific question does that pushed out.
I think the reality of the probably tell us.
So I think we're going to.
We will do all of that we can will that mitigate so my.
We've talked a little bit about typical seasonality and kind of what's going on in the world today I think we.
I think of a lot of folks had kind of anticipated seeing that slowdown happen in Q2 per your comment right in that.
We would typically see the seasonal softness in Q1, but it seems to be shipped in the Q2.
Which I think we don't disagree with we've seen incredible demand over the last six to nine months and so it would be logical to see somewhat of a pause the supply constraints pushing out.
We'll mitigate some of that I do I do agree with that.
Great and then your commentary around your lead customer on the 400 G ramps it seems to be kind of increasingly.
Increasingly on.
Optimistic just maybe I'm reading too much into your town, but it seems like you guys are more excited about that opportunity. What's the lead you need to kind of you know the the more bullish statements around you know kind of the timing and perhaps size of that ramp at the lead customer.
So I think that you know.
From our point of view.
Taking far longer than it should ever have so it seems of the bottlenecks at the lead the operator customer.
The data to the customer.
You know it will allow them to qualify you know the the whole and dropped qualification process that the port.
Each module when the true it seems it's our turn to get our module vendors through the process now so the fact that euro debt.
Fees.
And then the bottleneck is open up so we feel optimistic that when the real ramp.
This momentum will be of participating that the also I think in general if you look at the design of makes all of the optical high speed. The good data to the market you know the increasing consolidation that's going on in the marketplace really.
Proves the thesis that you know.
A hype of form and aggressive you know high technology capability.
Mixing of the capability that we bring to bear is really the call for the day.
And so we feel very good about where we are positioned not just with the 400 gig offering but also with.
Well the 100 gig and then will be the world's first wanted to do a finance the Cmos keeps you on product as they call. The 800 gig product and nobody will have the product and they're going to be a lot of derivatives to the product whether it is plug of middle market or go back page upticks that maybe of train five years from now I think the very very well position of having our portfolio has finally come to be true.
Of A&P become very interesting to everybody.
Thank you Kishore.
Our next question comes from the line of Ananda Baruah with loop capital markets. Please go with your question.
Hey, good afternoon.
Congrats on the thousands out there the good start to the year. Thanks for taking the question.
Kishore, Steve can we can we just go back to the comments you made a moment ago about.
Sort of anticipate per phasing of in anticipation of.
Q2 June Q, maybe slowdown in the broadband trends, maybe that gets offset to some degree by.
By the releasing of the supply constraints.
With love kind of effects just around the world.
Why the view of key to slow down the actually developed in the first place.
Again, one of the questions I was getting at here the thoughts on like through the year from from the at home trends, but I'd just love the contacts the leads to the right.
Thought process. The two key there is the simple.
The meaningful slowdown and then I have a follow up off of that.
Hello.
None of the.
I guess I'm not sure.
Kind of where you're coming from so the Q2, so we're seeing significant strength on the broadband side.
And and I think you know that business is performing extremely well demand has been extremely good and so we've been very pleased with that.
The market was a was is kind of anticipating.
On that to slow down a bit which I think we would we would not disagree with that at all that being said the demand continues to be extremely strong and we talked a lot about.
The content increase remember that our content increases going up on the <unk>.
Order I mean.
Typical of some of these boxes are running at 15 to $20 and now you're seeing these things you know our content has the potential to capture up to $30 and even in some cases above that so that's extremely positive the share gains is the other one.
That.
It has continued to go well for US I think if you look over the last 18 to 24 months I mean, we've struggled on the on the share we dropped kind of below that typical 50 per cent level.
And so we've been regaining that and so a lot of these numbers.
It may appear like they're stronger than what was expected, but this is really making up share gains that we debt we have executed on as well as bringing on these content increases. So these are substantial gains that we're excited about we think continue I think this also adds to our enthusiasm on broadband as well as connect.
Pivoting over the long time long term growth rate of the business right.
And.
And that's what we've kind of broken out this way. So you can see that connectivity piece in particular.
That'll demonstrate kind of of the growth in Wi Fi as well as the Ethernet going forward.
So one thing I want to point on that we are in the early pays off for connectivity attach toric, the RF Soc platforms and many of the our Wi Fi product as just charge of attaching onto this platform so but at the very very important point. So we expect our growth to come from Bom content increase quite meaningfully.
Oh and the share gains of very very important factor so I think.
Some of the some of the the.
Thing that could be mixed in this in this scenario of supply constrained in some of the presumed expectation of the order bookings really misses. The fact that we're growing through share gains and content increase and no unusual events that are of one time event for us. This is going to be a steady drumbeat of growth in both broadband access and connectivity for Maxim.
Yeah.
And yeah and I appreciate that in the city, because really what I'm trying to just get nature of it that I have the clear view of cause I totally there on the kind of debt increase out of the share of game aspect of the story and <unk>.
And then so for the sort of the market component.
Are you guys is it is inc.
No you are not giving a june quarter guidance, but I wanted to make sure. The distinction unclear on the thinking between Inc. Is the Max the linear perspective that there will be a slowdown in June quarter from at home.
Or is that is it sort of gets as it become just sort of the accepted perspective or are there. Some of your main at the end of the telling you. The hate-listen dishes vacuum of what's going to take place and I don't mean to be long winded, but I think the longer we get into the you know we're in February now and at home is not slowing down yet.
Right until I, just wanted to I wanted to see if there's something that you're actually seeing that's causing you to say hey, listen guys. We think the start in like April you know, which is the only like eight weeks away right birthdays, yeah, we just sort of saying.
Hey, Hey, listen like senior sooner or later, it's kind of start to slow down and we think the June quarter. It could happen I know on the long winded, but I wanted to make sure I'm clear on this on the distinction.
Behind that so that June quarter on it.
So another I mean, so you're.
Really the best way to answer this is that we're not going to answer and we're not going to give guidance for Q2.
Demand is exceptionally strong we expect that to continue throughout the year.
And we're really pleased actually with the content that we've been able to capture of the share gains that we've been able to capture and so.
I look at this is there's kind of a new normal at Max linear if you will right I mean, what we've kind of viewed historically for the whole world has changed we're able to capture a tremendous amount of of this bond now that we've never had access to historically right and so that's really been the game change.
And we're working closely I mean, kishore talked a little bit about the customers earlier, but.
The content increase and the opportunity to the we have going forward.
Is incredible for Max linear.
That being said I mean low.
Look we're going to we're going to keep working through the supply constraints and we're going to do our best for our customer to be able to address that demand level that we can hit.
I think I wonder once once again harking back to the thing our growth stories very company specific drivers of growth.
And we are going to.
The you know guide based on those specific on those specific let's forget Steve mentioned look very positive and the.
And the regarding the bombard it leads to a whole different dialogue with customers no strategic partnerships on the the future.
The investment needs on the air side, and the of partnering with us and the in the consolidated World We.
We deal with the usual places in terms of in this marketplace.
That's very helpful. Thank you guys.
Our final question comes from the line of Tim So of course with Northland capital markets. Please share with your question.
Okay.
Okay.
At long last.
Well just to summarize.
There was this pandemic everyone started working from home cable subscribers went through the roof.
And that might normalize just to address the previous.
20 minutes on the question there, let me move on to a couple of my own and maybe I'll make it a little clear do you expect Q1 to be your peak revenue quarter in 2021.
Yeah.
Hey, Jim.
Gotcha, Thanks for joining the same thing.
Look we're very excited about the position of June as we've been talking about I. Appreciate your comments are well well well well made.
Look execution is going extremely well right now and are in a pretty difficult environment right demand levels that the company has never seen and but we're doing a great job I mean kishore as previous comments about the customer right now we really the.
The game has changed tremendously in and so our relationships of the customers. It really improved and we're very excited about the market and the opportunity that we have a force on the broadband the the Intel side, but but frankly you know we're also continuing to move nicely along on the infrastructure outlook right. I mean, this has been a long investments.
Michael and so we're very optimistic going into 2021 about our optical opportunities as well as the <unk> opportunities.
Got it so let's dig into some of those quickly I went well first of kind of.
Kind of housekeeping, but what's important I wonder if you could address.
10% customers for <unk>.
Part of the quarter of the year in terms of in the aggregate or individual concentration or whatever you're willing to share.
Yes, yes.
We did have 310% customers in the quarter.
Okay, that's it [laughter].
That's fair enough.
And then final one for me you mentioned somewhere along the line.
Opportunities relative related to 10 gig PON.
And you know.
I assume.
Refers to kind of of the CPE or client side of the wire, but maybe not on I think there might be some infrastructure opportunities for hearing a lot.
About growth in 10 gig PON here in 'twenty, one and I'm wondering how how material the driver that could be for you guys. In addition to what Youre doing in cable.
So it could be.
The great uses of the intense coupons, we're just starting to ramp and ship. It got the major design wins and those design wins and ramps in the happened throughout the.
'twenty one 'twenty two and you know so it's as you pointed it can be a very meaningful broadband growth story for Max linear having said that the revenue they're all in the CEB client side.
We don't have any infrastructure and jeep on offering.
So I think that's for the answer your question on that so we totally agree that the Tianjin bond is going to be on phenomenal growth story for years to come out of the telco the upgrade their networks.
The cooperated last the last it's a conductor of it if you will right. So so I think we're really excited that we have it would be one of the world's premier gateway platform for Paul on applications and even as we speak the shipping actually and that's where the demand is quite substantial and we're trying to manage our supply situation on that front as well.
Okay.
Great. Thanks, very much and the congrats on the results and outlook.
We do have another question from the line of Richard Shannon with Craig Hallum Keys suite of your question.
Well hi, guys. Thanks for taking my question I apologize for any background noise you met all of the public here I guess the two part question on Pam for first of all can you give us a sense of when you're expecting to see the the contributions and revenues from your 100 gig Pam four and then just wanted to clarify on the 800 gig five nanometer price you're talking about are you, saying you're the first one in the market with those sampling.
Or if not for any kind of discuss the competitive environment as you're seeing it right now so.
So as we see the competitive environment right now on the agent 800 gigabit Pam four DSP.
Finance or we expect to be the first ones to be sampling in the marketplace. So that that gives us the nice flagship leadership advantage and edge with respect to the day. This is the folks.
And so.
We don't know the based on our knowledge right.
Who else is going to be there in that timeframe.
So on the on the timing for the 100 gig Pam for we expect it all to be in the same timeframe of around 400 gig because they are in the same design cycle the quality qualification by the niche and though.
Are they maybe different Oems.
You'll make because it would be shipping those I just wanted to note. The 100 gig is not just data is in the market. It is going to have a larger application.
Just the then directly to the data since the Bulks.
The other.
Oems you know would be who would be buying these kinds of product.
Okay, Great. That's all for me guys. Thank you.
Great. Thanks for June.
So with that.
Go ahead please.
I was just kind of simple, but that we reached the end of our question and answer session now I'll turn the floor back over to management for any closing remarks.
Alright. Thank you operator, we will be participating in the following upcoming conferences. The Morgan Stanley TMT Conference on March 3rd the.
Six of the ninth annual Technology Conference on March 10, Luke capital the inaugural Investor Conference on March 11 to 12 throughout 2021 conference of the March 16th.
Wanted to remind everyone that all of these conferences of the virtual but we hope to kind of as many of you there.
With that being said the thank you all for joining us today, and we look forward to reporting on our progress to you next quarter. Thank you very much.
This concludes today's conference call you May now disconnect. Your lines at this time. Thank you for your participation and have a wonderful day.
Yeah.
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