This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Marvell Beats Despite Profit Plunge

Updated with information on new products and third-quarter guidance

SANTA CLARA, Calif. ( TheStreet) -- Chipmaker Marvell (MRVL - Get Report) blew past analysts' estimates in its second-quarter results, despite taking a revenue and profit hit.

Marvell posted sales of $640.6 million, down 24% on the same period last year but well above analysts' estimate of $619.83 when it reported after market close.

The silicon specialist also grew its sales 23% sequentially, raising hopes that tech spending is on the rebound.

"We are pleased with the results," said Dr. Sehat Sutardja, Marvell's CEO, in a statement. "Our sequential revenue growth reflects an improving economy and the acceptance by customers of our new and existing products."

New products represented about 5% of Marvell's total revenue, said Sutardja, during a conference call to discuss the results, but predicted that this will reach 10% during the third quarter.

Excluding items, Marvell earned 18 cents on net income of $118.7 million, compared to 24 cents a share and net income of $154 million in the prior year's quarter. Analysts surveyed by Thomson Financial had expected earnings of 14 cents a share.

For the third quarter, Marvell expects revenue between $680 million and $730 million, well above analysts' estimate of $647.05 million. Excluding items, the chipmaker forecasts earnings between 18 cents and 26 cents a share, above Wall Street's 17 cent estimate.

Marvell has enjoyed an uptick in its stock during recent months, buoyed by increasing confidence in the semiconductor space.

Tech bellwether Intel (INTC - Get Report), for example, recently posted strong second-quarter resutlts and has been attracting positive attention from analysts.

Marvell, which competes with LSI (LSI), ST Microelectronics (STM) and Texas Instruments (TXN), reported GAAP earnings of 9 cents a share on net income of $58.5 million, down from 11 cents a share and $71.4 million in the prior year's quarter.

The company's shares rose 42 cents, or 2.9%, to $15.05 in extended trading.

Written by James Rogers in New York

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
FSL $40.19 -1.40%
INTC $30.90 -1.20%
MRVL $14.93 1.60%
AAPL $123.84 -0.47%
FB $81.31 -1.10%


DOW 17,640.66 -135.46 -0.76%
S&P 500 2,055.90 -11.99 -0.58%
NASDAQ 4,864.6240 -36.2610 -0.74%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs