NEW YORK (TheStreet) -- Shares of MaxLinear (MXL) were gaining 11.3% to $12.12 on heavy trading volume Tuesday after the semiconductor company revised its second quarter guidance to reflect the contribution of Entropic, which it recently acquired.
MaxLinear said it now expects to report revenue of $68 million to $72 million for the second quarter. Analysts surveyed by Thomson Reuters expect MaxLinear to report revenue of $62.12 million for the second quarter.
The company said it expects a gross margin of about 57.5% in the second quarter plus or minus 2%.
"We are seeing strong follow-through of demand across the range of our expanded technology and market-leading broadband data and video product portfolio," Chairman and CEO Kishore Seendripu, Ph.D. said in a statement. "This demand is being primarily driven by tier-one operators across the globe, who continue to invest in higher-bandwidth and richer multimedia content delivery platforms."
About 2 million shares of MaxLinear were traded by 10:54 a.m. Tuesday, above the company's average trading volume of about 287,000 shares a day.
TheStreet Ratings team rates MAXLINEAR INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate MAXLINEAR INC (MXL) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and weak operating cash flow."