Marvell Technology Inc (MRVL)

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09:07 MRVL Marvell: Anticipate solid April quarter; key continues to be XScale profitability - AmTech (14.21 )

AmTech says MRVL is due to report its April quarter after the close. Firm anticipates MRVL to hit the upper-end of its rev guidance of $775-$785 mln. Firm believes a key metric to watch is margins to see whether MRVL will continue on its path to improved profitability. They believe this quarter is the first where some (~5-10%) of its XScale business will be using TSMC as a foundry as opposed to INTC. Firm is modeling a 49.1% gross margin, up from 48.7% last quarter and 48.3% from two quarters ago. For its outlook, they anticipate its July quarter guidance to look for sequential rev growth in the 3-4% range driven by XScale and WiFi.