MaxLinear reported a 100 percent revenue increase to $70.8 million in the second quarter, gains the pay-TV chip vendor expects to further increase later this year as hot sales of DOCSIS 3.0 modems to cable companies continue.
In fact, the company said third-quarter revenue could surge as high as $94 million.
"Specifically, cable data revenue grew in mid-teens percentage sequentially, driven by the continued adoption of higher 24 channel-count DOCSIS 3.0 modems and gateways to operators in North America and Europe. Consistent with the increasing demand for higher bandwidth offerings, we are also seeing growing interest in our family of 32 channel DOCSIS 3.0 receiver solution," said MaxLinear CEO Kishore Seendripu to investors, according to a Seeking Alpha transcript.
Seendripu noted last week's product announcement from MaxLinear partner Hitron, which debuted a DOCSIS 3.0 32-channel modem for commercial deployment in North America. Suddenlink and GCI have already signed on to deploy the device.
Last week, Suddenlink, the seventh-largest US cable operator, revealed plans to upgrade nearly all its cable systems for 1 Gbps service during the next three years.
"Recent operator and OEM customer engagements suggest that there could be a meaningful 32-channel opportunity over the next 12 to 18 months in advance of DOCSIS 3.1 deployment," Seendripu said.
Despite the company's surging revenue -- which also increased 99 percent on a sequential basis -- MaxLinear lost $30.6 million in the second quarter, mostly due to various charges relating to its recent purchase of Entropic Communications.
MaxLinear acquires Entropic for $287M
MaxLinear reports 3% revenue gain on surging DOCSIS 3.0 gateway business
Hitron debuts DOCSIS 3.0 modem with gigabit speeds