MaxLinear Trims Third Quarter Revenue Outlook

Shares of MaxLinear Inc. (MXL) dipped as much as 18 percent during today’s session, the most intraday since March 24, after the co. which makes products that enable the display of broadband video in a wide range of electronic devices, cut its fiscal third-quarter sales forecast to no more than $18.6 million, citing the uncertainty in the current semiconductor market.

MaxLinear said it now expects revenue for the quarter ended September 30, 2010 to be between $18.4 million and $18.6 million, compared with prior guidance between $20.0 million and $20.5 million (Analysts on average were estimating revenue in the mid 20s).

“Although we experienced quarter-over-quarter revenue growth, revenues in each of our consumer, cable, automotive, and mobile segments fell short of our beginning of the quarter estimates and our purchase order backlog at mid-quarter”, MaxLinear CEO Kishore Seendripu said in a statement. “As the quarter concluded, customers either reduced the amount of purchase orders within lead time or requested rescheduling of shipments. We believe that these shortfalls are related to the uncertainty in the current semiconductor market, leading us to revise our revenue guidance.”

MXL shares fell $1.39, or 12.24 percent, to $9.97 at 11:54 p.m. ET in New York Stock Exchange trading.

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About Ron Haruni 1068 Articles
Ron Haruni is the Co-Founder & Editor in Chief of Wall Street Pit.

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