MaxLinear posts Q4 loss, says good times are ahead amid DOCSIS 3.1 rollout

While posting a net loss of $8.5 million for the fourth quarter, network gear vendor MaxLinear predicted good times ahead with the cable industry's broad rollout of DOCSIS 3.1-based services.

"At the Consumer Electronics Show in early January, we demonstrated our multi-gigabit DOCSIS 3.1 modem gateway CPE platform. We expect major cable operators to ramp shipments of DOCSIS 3.1 data gateways in the second half of 2016," MaxLinear CEO Kishore Seendripu said during his company's earnings call, according to a Seeking Alpha transcript. "We believe that this upgrade cycle will generate solid revenue growth over the next several years."

MaxLinear reported a 4 percent gain in revenue to $98.9 million. Full year revenue was up 126 percent, largely due to the company's purchase of Entropic a year ago. Operator revenue increased 10 percent in the quarter.

"I think our cable data business is pretty healthy," Seendripu added. "We did not see the growth we had expected in the past quarter, but we have good strong backlog in Q1, so we feel pretty good. The business is growing. We are also seeing some momentum associated with the lesser channel account as well, not at the expense of the growing number of channel – 24-channel boxes. And I don't think we will need a bridge. I think as we grow 24-channel market share and the 32-channel boxes, it nicely transitions to DOCSIS 3.1 in the second half of 2016."

Seendripu also said that MaxLinear is seeing strong sales of MoCA platform products to both cable and satellite operators.

"And we also announced our new products on MoCA 2.0 bonded for 1.2 gigabit MoCA," he said. "And there's a very, very strong reception for that, and we are also seeing with a lot of good design win momentum. And we feel very excited that, over the next couple of years or so, MoCA will become another $100 million business for us. At this point, it's hard to exactly field the timing of it; it's so platform-specific. And then that's the most exciting part for me, because it's very, very important that the strategic technology we acquired from Entropic. And then our engineering is combined to deliver the world's first multi-gigabit MoCA."

For more:
- visit the MaxLinear investor relations page
- read this Seeking Alpha transcript
- read this Multichannel News story

Related articles:
Comcast rolls out DOCSIS 3.1-powered gigabit network in Atlanta, Chicago, Detroit, Miami and Nashville
MaxLinear delivers 100% revenue surge in Q2, sees sweet spot in gigabit-speed DOCSIS 3.0 modems
MaxLinear reports 3% revenue gain on surging DOCSIS 3.0 gateway business

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