Marvell Technology Inc (MRVL)

[Lakers_w]

Heard MRVL won multiple Skus w/ 88W8688 WLAN and Bluetooth 2.0+EDR at NOK. It will be ramped up in 2H07. BRCM also won multiple Skus w/ 11g+Bluetooth, Bluetooth+AM/FM stereo at NOK as well. They are the new Bluetooth/Wifi duopoly at NOK like ALTR/XLNX.

Furthermore, most 50 U.S. states will mandate hand-free handset for autos for safety reason. NY, CA,... did. CA will enforce it early '08. S2 would know about this.

Many countries do the same. This is an enormous mkt for Bluetooth. iPod wil have Bluetooth. Blackberry will have 11g.

IMHO, after the option probe is cleared up around E.R. time, MRVL may raise guidance for Q3. Q2 guidance should be good too due to APPL, RIMM, NOK, Palm, WDC, Fujitsu, 11n, digital TV biz. Q3 and Q4 '07 are when MRVL really hits its stride. I expect MRVL will be in the mid 20's then. MRVL upside is all about new product cycles.

Of course, LBO is possible too. With the large number of design wins, excellent cash flow, well-diversified, strong balance sheet, great engineering teams MRVL emerges as the next BRCM plus application processor, baseband biz. BRCM hardly has any design win in cell phone baseband nor appl processor biz at all.