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MRVL - MRVL Falls 7%: FYQ2 Rev, EPS Miss

By Tiernan Ray

Chip maker Marvell Technology Group (MRVL) this afternoon reported fiscal Q2 revenue and earnings per share that missed analysts’ estimates, citing the effect of global economic weakness.

Revenue in the three months ended in July fell 9%, year over year, and rose 2% from the prior quarter, to $816 million, yielding EPS of 24 cents, lower than the average estimate for $853 million and 26 cents.

Gross margin in the quarter, on a non-GAAP basis, fell to 53.6% from the prior quarter’s 54.5% and from 57.9% in the prior-year period.

CEO Sehat Sutardja remarked that “Our results in the second quarter were affected primarily by the slowdown in the macro-economic environment that impacted our storage and mobile end markets.”

However, he added, “Despite the soft near-term demand environment, we are maintaining good profitability and continue to deliver shareholder value through our share repurchase and dividend programs.”

He noted the success of the company’s “solid-state drive” controller chips, its chips for 500-gigabyte hard drives, and its wireless connectivity products.

Marvell shares this afternoon are down 80 cents, almost 7%, at $11.48.

Marvell Technology Group Ltd. Reports Second Fiscal Quarter 2013 Financial Results