Marvell Technology Inc (MRVL)

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08:36 MRVL Marvell: Strong RIMM results and guidance bode well for MRVL - Oppenheimer (11.23 ) -Update-

Oppenheimer says RIMM reported F4Q08 (Feb) results that were ahead of expectations, and gave very strong guidance looking into the May quarter, particularly on unit shipments. Firm believes this bodes well for MRVL, which is the primary supplier of baseband ICs for Blackberry smartphones (Note that MRVL) counts RIMM as its only non-HDD 10% customer). In the near term, firm notes MRVL is focused on addressing the margin issues by migrating RIMM from baseband devices fabbed at INTC to more cost efficient designs fabbed at TSMC. The company has already begun production at TSMC, though for the next few months most of what Marvell ships will be from INTC's fabbed inventory, which MRVL has accumulated over the past two quarters.