For the current quarter, the company forecast per-share earnings of 23 cents to 27 cents and revenue of $850 million to $890 million. Analysts polled by Thomson Reuters most recently expected 24 cents and $845 million
By Tess Stynes
Marvell Technology Group Ltd.'s (MRVL) fiscal second-quarter earnings fell 34% as the chip maker was hurt by higher costs as well as slightly weaker margins and revenue.
For the current quarter, the company forecast per-share earnings of 23 cents to 27 cents and revenue of $850 million to $890 million. Analysts polled by Thomson Reuters most recently expected 24 cents and $845 million, respectively.
Marvell, which makes chips and parts for hard drives, networking equipment and mobile devices, has posted lower earnings in recent quarters. Ahead of the earnings, some analysts expected that the company would benefit from market share gains in hard-disk drives and improvement in the wireless segment would offset continuing weakness in the personal-computer market.
"Our results in the second quarter were at the high-end of our guidance mainly due to better demand and share gains in our storage end market and strong double digit growth in our mobile and wireless end markets," Chairman and Chief Executive Sehat Sutardja said.
Many of Marvell's customers are introducing new devices, Mr. Sutardja said, and the company expects future growth will be driven by areas including mobile handsets, tablets, connectivity products and smart home devices .
For the period ended Aug. 3, Marvell reported a profit of $61.8 million, or 12 cents a share, down from $93.1 million, or 16 cents a share, a year earlier. Excluding stock-based compensation and other items, adjusted earnings were down at 23 cents from 24 cents. Revenue decreased 1.1% to $807.1 million.
The company had projected per-share profit of 17 cents to 21 cents and revenue of $770 million to $810 million.
Gross margin fell to 52.2% from 53.2%. Operating expenses were up 7.3%, including an 11% increase in research-and-development costs.
Shares were up 2.2% at $13.25 in recent after-hours trading. Through the close, the stock is up 79% this year.