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.
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