Marvell Dips Despite Earnings Beat

The broadband technology company posts a 58% rise in revenue.
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Marvell Technology

(MRVL) - Get Report

swung to a profit on a 58% rise in revenue as the broadband chipmaker made inroads in data storage and had solid performance in its core network market.

The company earned $12 million, or 8 cents a share, compared with a loss of $7.7 million, or 6 cents a share, last year. Revenue was $215.3 million in the latest quarter, compared with $135.9 million a year ago.

Excluding inconvenient items like acquisition expenses, amortization and the cost of compensating employees with stakes in the company, Marvell had pro forma earnings of $35.1 million, or 25 cents a share. The number is primarily useful because of its comparability to analysts' estimates, which were for pro forma earnings of 24 cents a share in the quarter.

Marvel saw its net inventory swell to $77.0 million at Nov. 1, 2003, from $39.7 million at Feb. 1. The shares, which closed regular trading Wednesday at $42, about 10% below their 52-week high, were recently crossing on Instinet at $38.76.

"Our continued growth is being fueled by our market share gains in the data storage market and our leadership position in driving the adoption of gigabit Ethernet," Marvell said. "During the quarter we continued to improve our profitability and strengthen our balance sheet."