Marvell Technology Slips To Loss In Q2 - Quick Facts

(RTTNews) - Marvell Technology Group Ltd. (MRVL) reported that its net loss for the second-quarter was $382.43 million and $0.74 per share, compared to net income of $138.87 million and $0.27 per share in the prior year.

Net revenue for the quarter declined to $711.33 million from $961.55 million in the same quarter last year.

Analysts polled by Thomson Reuters expected the company to report earnings of $0.11 per share and revenues of $721.90 million for the quarter. Analysts' estimates typically exclude special items.

The company also announced that the Audit Committee of the Company's Board of Directors is conducting an independent investigation of certain accounting and internal control matters in the second quarter of fiscal 2016.

The investigation has 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.

This was particularly the case in the storage end market where, as a result of a weaker global economy and a slow-down in the PC market, the Company saw weaker than expected demand for HDD products as the overall total available market declined.

The Audit Committee's investigation to date has revealed no material issues regarding the Company's 2016 second quarter financial results, and the Company believes the investigation will have no material impact on its previously issued financial statements.

The Audit Committee is also reviewing certain aspects of the Company's internal control over financial reporting, including controls for the establishment of reserves for litigation and whether senior management's operating style resulted in an open flow of information and communication to set an appropriate tone for an effective control environment.

The Company's review of such internal controls is ongoing and may ultimately affect management's conclusion of the effectiveness of internal control over financial reporting as of the end of the second quarter of fiscal 2016.