Marvell Shares Tank As Accounting Firm Resigns

(RTTNews) - Marvell Technology Group Inc. (MRVL)shares tanked in the extended trading hour on Monday after the chip maker said its accounting firm resigned.

In a SEC filing, Marvell said PricewaterhouseCoopers had resigned as the company's independent registered accounting firm on October 20.

Marvell said that PwC's audit reports did not contain an "adverse opinion" for audits of the past two fiscal years.

PwC advised the company to expand the scope of its 2016 audit to Marvell's senior management level, controls over cash reserves, control over identification, communication and approval of related party transactions and the adequacy of financial reporting resources.

Last month, Marvell Technology had disclosed an internal investigation into its accounting.

The investigation is focused on the approximately 7 to 8 percent of revenue recognized in the second quarter of fiscal 2016 that, based upon the original customer request date, would have been received and earned in the third quarter of fiscal 2016 and is now no longer available for receipt in that quarter. Such percentage represents an increase over the prior four quarters and is indicative of softening demand for certain of the company's products.

MRVL closed Monday's trading at $9.45, down $0.12 or 1.20%, on the Nasdaq. The stock further dropped $1.26 or 13.39% in the after-hours trade.