Marvell Retreats on 4Q Miss, Guidance
Marvell Technology (NASDAQ:MRVL) tumbled 8% Friday morning a day after the chip maker disclosed fiscal fourth-quarter results that failed to impress and warned of a decline in mobile sales.
The tech company said it earned $222.9 million, or 33 cents a share, in the quarter ended January 29, compared with a profit of $204.8 million, or 31 cents a share, a year earlier. Excluding one-time items, it earned 40 cents a share, trailing consensus calls and coming in at the low end of its earlier forecast.
Sales increased 6.9% to $900.5 million, missing the Street’s view of $923.9 million and again matching the low end of its earlier view.
"While the results for our fourth quarter continue to be affected by seasonal declines in our mobile and wireless end markets, we are well positioned with competitive products to take advantage of the trends in the coming years,” CEO Sehat Sutardja said in a statement.
Looking ahead, Marvell said it sees fiscal first-quarter sales of $800 million to $850 million and non-GAAP EPS of 30 cents, “plus or minus a couple of pennies.” Analysts had been calling for EPS of 35 cents on stronger sales of $868.75 million.
In a conference call after the results were posted, Clyde Hosein, Marvell’s chief financial officer, warned fiscal 2012 “will be challenging for us.” The company also warned of a plunge of more than 20% in mobile and wireless sales this quarter.
Meanwhile, Marvell said its board of directors has signed off on a plan to buy an additional $500 million of stock, doubling its share repurchase efforts.
Yet shareholders focused on the cautious guidance and disappointing results, sending Marvell’s stock 8.13% lower to $16.81 Friday morning. The stock has slid 1.7% so far in 2011 and lost nearly 10% over the past year.