Marvell 2Q profit, revenue fall short of estimates
SANTA CLARA, Calif. (AP) — Chip maker Marvell technology Group Ltd. said Thursday that its second-quarter net income fell by more than half as revenue declined but research and sales costs rose.
The results fell short of forecasts. Marvell's shares dropped by 87 cents, or 7 percent, to $11.41 in after-hours trading.
Net income in the three months through July 28 fell to $93.1 million, or 16 cents per share, compared with $192.4 million, or 31 cents per share, a year ago.
Excluding the cost of compensating executives with stock and other items, adjusted earnings came to 24 cents per share, below the 27 cents expected by analysts polled by FactSet.
Revenue fell 9 percent to $816.1 million from $897.5 million. Analysts were expecting revenue of $852 million.
CEO Sehat Sutardja said the second-quarter results were affected by a slowing economy, which hurt end demand for its storage and mobile products. However, the company's solid-state drives, hard disk drives and wireless connectivity products grew by double-digit percentages from the previous quarter, he said.