Chipmaker MaxLinear Beats Q1 Views, Guides Up

MaxLinear beat analyst estimates on Thursday for the chipmaker's first quarter and guided much higher than views for sales in the current period. MaxLinear stock surged 33.6% in overnight trading.

The Carlsbad, Calif.-based company earned an adjusted 22 cents a share on sales of $137.2 million in the March quarter. Analysts surveyed by FactSet had expected MaxLinear earnings of 18 cents a share on sales of $134.6 million. In the year-earlier period, MaxLinear lost 5 cents a share on sales of $95.9 million.

For the current quarter, MaxLinear guided to sales of $165 million, based on the midpoint of its outlook. Wall Street was modeling Q2 revenue of $137.1 million. In the same period last year, MaxLinear generated sales of $108.8 million.

MaxLinear makes radio frequency, analog, digital and mixed-signal integrated circuits.

"Q1 marks the start of a multiyear growth phase for MaxLinear, led by accelerating momentum in optical data center connectivity," Chief Executive Kishore Seendripu said in a news release. "Revenue grew 43% year over year, with infrastructure growing more than 130% to become our largest end market."

Multiple hyperscale cloud computing companies are using MaxLinear's optical data center products to scale up their artificial intelligence platforms, Seendripu said.