MaxLinear has been involved in an arbitration initiated by Silicon Motion Technology Corp. (NASDAQ: SIMO ) since October 2023, following MaxLinear's termination of its agreement to acquire Silicon Motion. Silicon Motion is seeking payment of the $160 million acquisition termination fee plus damages. A substantial cash payment to Silicon Motion, if Silicon Motion prevails in the arbitration, would put pressure on MaxLinear's B3 CFR. The stable outlook is based on the expectation of a modest recovery in revenues from the currently depressed level over the next 12 to 18 months. The outlook also considers the risk that the Silicon Motion arbitration could require MaxLinear to make a settlement payment to Silicon Motion. While the potential settlement payment timing and magnitude is unknown, MaxLinear has some capacity to address this due to the large cash balance ($118.6 million as of December 31, 2024), which is expected to grow over the coming quarters due to increasing cash generation.