NEW YORK (TheStreet) -- Investors bid up shares of Marvell Technology (MRVL) - Get Report Friday after the company said a batch of new products would likely lead to better-than-expected results in its second quarter.
After the closing bell Thursday, the maker of chips and data storage parts said it was expecting second-quarter earnings of 38 cents to 43 cents a share and revenue of $900 million to $930 million -- better than the consensus expectation of 36 cents a share on revenue of $864.76 million.
Shares of Marvell were trading Friday afternoon at $19.23, up 7.8%, on volume of more than 21 million shares. Daily turnover has averaged 14.3 million shares over the last three months.
Marvell -- Wait to Buy
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Marvell executives said new product releases in the second quarter, and new customers, would drive its results, rather than growth in its traditional end markets.
The company expects revenue from new products to increase to more than 20% of its total revenue in the second quarter, up from 16% in the first quarter.
Marvell said its first-quarter top line rose 64% to $856 million -- above the average estimate of $845 million -- helped particularly by new products in the mobile phone and wireless spaces. First-quarter net income was $206 million, or 30 cents a share, compared with a net loss of $111 million, or 18 cents a share, the previous year.
The company reported adjusted earnings of 38 cents a share, beating the consensus by a penny.
Shares of other chipmakers were also gaining ground Friday afternoon.
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-- Reported by Andrea Tse in New York
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