Marvell Technology says PC and storage weakness hurt its 1st-quarter revenue, and shares slide
Chipmaker Marvell Technology slashed its revenue forecasts Friday, saying weak results from the PC and storage markets and reduced demand from emerging markets are hurting its business.
The company now expects to report $710 million to $740 million in revenue, far below its previous estimate of $810 million to $830 million, for its fiscal first quarter that ends May 2. Marvell also withdrew its guidance for net income, profit margin, and operating expenses.
FactSet says analysts expected $814.7 million on average. The company reported $957.8 million in revenue in the first quarter of its last fiscal year.
Marvell Technology Group Ltd. stock fell 81 cents, or 5.7 percent, to $13.49 in aftermarket trading.
The Santa Clara, California, company will report its first-quarter results on May 21.