Sales Surge at Marvell Tech

The chipmaker beats first-quarter estimates by 2 cents on a 40% year-over-year revenue spike.
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Updated from 4:25 p.m. EDT

First-quarter sales grew more than 40% year over year at

Marvell Technology

(MRVL) - Get Report

, helping the company to top analysts' expectations.

Thanks to a recent acquisition, the company also offered better-than-expected sales guidance for coming quarters.

Investors cheered the news, bidding up the company's shares by $3.05, or about 6%, to $52.76 in after-hours exchanges.

In the quarter ended April 29, the chipmaker earned $75.3 million, or 23 cents a share, on sales of $521.2 million, Marvell reported after the bell Thursday.

Those figures were up from the previous year, when the company earned $63.5 million, or 20 cents a share, on $364.8 million in sales.

That the company's earnings growth trailed its revenue growth was due in part to an accounting change; like other public companies, Marvell began expensing stock options this fiscal year.

Without those costs as well as amortization and acquisition-related charges, the company would have earned $141.1 million, or 44 cents a share, up from $84.2 million, or 27 cents a share a year earlier.

On this basis, analysts had forecast that the company would earn 42 cents a share on sales of $516.9 million, according to Thomson First Call.

The company had predicted that it would post sales ranging from about $513 million to $518 million, but didn't give an earnings target.

In its current, second quarter, Marvell expects sales of about $580 million to $585 million, including a $30 million contribution from the printer semiconductor business it

recently acquired from

Avago Technologies

.

Although the company didn't offer a specific earnings target, its guidance implies a per-share profit, excluding stock options and other costs, of about 44 cents to 45 cents a share.

The Street had previously forecast earnings of 45 cents a share on sales of $549 million in the current period, but that estimate may not have included the printer semiconductor business.

For the full year, Marvell upped its revenue target to a range of $2.37 billion to $2.425 billion. In February, the company

predicted that it would post full-year sales of between $2.25 billion to $2.3 billion for year; the increased expectations were largely the result of the printer business, company officials said on a conference call.

As with its second-quarter outlook, Marvell didn't offer specific earnings guidance, but it gave enough details to imply a range.

Assuming its tax rate and interest income remain about the same the rest of the year and its share count grows modestly, Marvell's guidance implies full-year earnings of about $1.86 to $1.93 a share.

Sell-siders had predicted a full-year profit of $1.87 on $2.3 billion in sales.

Shares of Marvell closed regular trading off 65 cents, or about 1%, to $49.71.