Shares of MaxLinear (NYSE:MXL) have popped today, up by 14% as of 12:20 p.m. EDT, after the company raised its guidance for the second quarter. The analog chipmaker said it is benefiting from the broad shift to remote work caused by the coronavirus pandemic.
Revenue in the second quarter is now expected to be in the range of $65 million to $65.5 million, compared to the prior forecast of $60 million to $64 million in sales.
"During the second quarter, our business has shown solid improvements with stronger-than-expected revenues driven by a broadband demand uptick as well as analog product sales recovery," CEO Kishore Seendripu said in a statement. "While we have seen some negative COVID-19 related impacts, the work-from-home environment has strongly benefited our connected home business owing to noticeable inflection in bandwidth demand at home."
Seendripu also added that the infrastructure segment was seeing "meaningful quarterly improvements." The tech company did not update other aspects of its guidance, but better-than-expected revenue could translate into stronger profitability. The outlook provided at the end of April called for adjusted gross margin of 63.5% to 64%.
MaxLinear will report full second-quarter results on July 23. The company still expects to close its $150 million acquisition of Intel's Home Gateway Platform segment, announced back in April, during the third quarter.