The best post of the month. MRVL wafer start increases significantly at TSMC. Some folks here might be able to double-check my assertion.
IMHO, MRVL will beat $710 MM Q3 rev guidance, and guide Q4 rev higher ($753M consensus) . Biz is very strong in the face of low expectation ($710M rev, low 48% GM)
GM will improve from Q3 to Q4 as Xscale moved to TSMC.
R&D expense as a % of rev will decrease precipitously.
Mgmt has shown a willingness to cut cost and head count. Layoff has happened. Another round will happen in Jan 08. They will most likely talk about it at CC.
A majority of MRVL biz is done outside of the U.S. and more consumer oriented than enterprise. That makes it more resistant to the U.S. spending slowdown.
If mgmt states when Xscale becomes profitable, stock will jump for sure.
MRVL has everything setup for a gap-up. I believe MRVL will be north of $19 after ER as it 's trading near 2-yr low in contrast to HPQ, AAPL, RIMM, GOOG, AMZN which have been trading near all-time high.
Smart Money will pile into MRVL starting tomorrow.