Marvell Technology Turns To Profit In Q2; Sees Q3 Results Down Sequentially

(RTTNews) - Marvell Technology (MRVL), a provider of storage, cloud infrastructure, Internet of Things, connectivity and multimedia semiconductor solutions, reported Tuesday that its net income for the second quarter was $51.31 million or $0.10 per share, compared to last year's loss of $771.94 million or $1.49 per share.

On a non-GAAP basis, net income for the second fiscal quarter of 2017 was $92 million, or $0.18 per share, compared to $39.40 million or $0.07 per share a year ago.

On average, 22 analysts polled by Thomson Reuters expected earnings of $0.11 per share for the quarter. Analysts' estimates typically exclude special items.

Net revenues for the second quarter were down approximately 12 percent to $626.40 million from $710.82 million last year. Analysts were looking for revenues of $629.96 million for the quarter.

Sequentially, revenues grew 16 percent.

Storage revenue increased 13 percent sequentially, reflecting higher HDD and SSD demand. Networking revenue grew 12 percent sequentially due to continued strength in enterprise networking demand.

Mobile and wireless revenue grew 21 percent sequentially, mainly driven by seasonal game console production ramps.

Matt Murphy, President and CEO, said, "We experienced a seasonally strong second quarter, driven by solid demand from customers across storage, networking, and wireless end markets."

Looking ahead for the third quarter, the company expects earnings per share in the range of $0.03 to $0.08, adjusted earnings per share in the range of $0.08 to $0.13, and revenue to be flat to down 4 percent from the second quarter.

Analysts expect earnings of $0.14 per share on revenues of $642.55 million for the quarter.

Gross Margins are expected to be in the range of 52 percent to 54 percent.