MaxLinear, a maker of silicon for DOCSIS modems and gateways, anticipates a busy third quarter of 2020.
In addition to riding "tailwinds" originating from its cable data business as people continue to conduct business from home during the pandemic, the chipmaker also expects to wrap up its acquisition of Intel Corp.'s home gateway business in the period.
Speaking on the company's recent Q2 2020 earnings call, MaxLinear CEO Kishore Seendripu said he expects to close MaxLinear's proposed $150 million acquisition of Intel's home gateway business sometime in the third quarter, noting that the regulatory hurdles have been cleared.
The acquisition will put MaxLinear in a position to expand its DOCSIS modem and gateway business and present a hungrier competitor to Broadcom. The deal also allows MaxLinear to boost its position in the PON customer premises equipment (CPE) market and to enter the Wi-Fi chip business as next-gen Wi-Fi 6 and 6e technologies start to take hold.
Meanwhile, MaxLinear expects a solid third quarter as demand for cable data silicon picks up steam. MaxLinear anticipates Q3 2020 revenues to be in the range of $72 million to $76 million, up 13.5% on a sequential basis, with a 20% rise in its connected home division. That guidance does not include the still-pending acquisition of Intel's home gateway business.
"We are benefiting from the demand for greater bandwidth at home in a transformative work-from-home environment that we believe is an emerging long-term trend," Seendripu said.
According to the latest data from the NCTA COVID-19 Dashboard, which tracks data from several large and midsized US cable operators, peak upstream traffic has climbed 23.6% since, March 1, and 9.4% on the downstream side.
Seendripu noted that demand for cable data products is coming from a broad set of MSOs, especially in North America. "We are seeing, in general, a very healthy booking for Q3 and beyond. So we feel very good that the recovery is in progress right now."
For more color on MaxLinear's quarterly results and product plans underway for next-gen DOCSIS gateways, please see this story at Light Reading: Cable data 'tailwinds' set to carry MaxLinear to strong Q3
— Jeff Baumgartner, Senior Editor, Light Reading, special to Broadband World News