MaxLinear Inc MXL reduced its second-quarter earnings and sales guidance Tuesday as a result of the U.S. ban on American companies selling technology to the Chinese company Huawei.
MaxLinear cut its second quarter sales guidance from a range of $83 million to $88 million to a range of $80 million to $85 million vs. a $91.03-million estimate.
On May 15, the Trump administration added Huawei to a list of companies that U.S. firms can no longer trade with unless they have a license. The "entity list" bans Huawei from acquiring technology from U.S. firms without government approval.
Huawei is a growing customer of multiple MaxLinear products that address several applications in the communications network infrastructure markets, the company said in a Tuesday press release.
“While total sales to Huawei have not been material to MaxLinear in the past, as a large strategic customer of MaxLinear’s newer network infrastructure products, Huawei represents a source of strong revenue growth projections for the current year," according to MaxLinear.
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