Marvell Technology Group, Ltd. Earnings Cheat Sheet: Profit Falls, but Beats Estimates

Marvell Technology Group, Ltd. (NASDAQ:MRVL) reported its results for the second quarter. Marvell Technology Group Ltd. is a global semiconductor provider of analog, mixed-signal, digital signal processing and embedded microprocessor integrated circuits.

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Marvell Technology Group Earnings Cheat Sheet for the Second Quarter

Results: Net income for the semiconductor company fell to $192 million (31 cents per diluted share) vs. net income of $220 million or 33 cents per share a year earlier.

Revenue: Rose 0.1% to $897.5 million from the year earlier quarter.

Actual vs. Wall St. Expectations: MRVL reported adjusted net income of 38 cents per share. By that measure, the company beat the mean estimate of 32 cents per share. Analysts were expecting revenue of $889 million.

Quoting Management: “We continue to execute well on all of our new product initiatives including in our Mobile and Wireless end market which grew 18% sequentially,” said Dr. Sehat Sutardja, Marvell’s Chairman and Chief Executive Officer. “Our second quarter results were at the high-end of our earlier projected range and we experienced solid revenue growth in all our served end markets leading to increased profitability. Looking forward, we continue to focus our investments on initiatives designed to increase revenue and profit through both new products and share gains.”

Key Stats:

Gross margin shrank 1.2 percentage points to 57.9%. The contraction appeared to be driven by increased costs, which rose 3.1% from the year earlier quarter while revenue rose 0.1%.

The company beat estimates last quarter after falling short in the previous two quarters. In the first quarter, it missed the mark by 2 cents, and in the fourth quarter of the last fiscal year, it fell short by one cent.

Over the last five quarters, revenue has increased 12% on average year over year. The biggest increase came in the second quarter of the last fiscal year, when revenue rose 39.9% from the year earlier quarter.

Competitors to Watch: Texas Instruments Inc. (NYSE:TXN), Intel Corporation (NASDAQ:INTC), Broadcom Corporation (NASDAQ:BRCM), PLX Technology, Inc. (NASDAQ:PLXT), Standard Microsystems Corp. (NASDAQ:SMSC), PMC-Sierra, Inc. (NASDAQ:PMCS), LSI Corporation (NYSE:LSI), STMicroelectronics N.V. (NYSE:STM), and NVIDIA Corporation (NASDAQ:NVDA).

Investing Insights: Steve Jobs Prepares to Deliver a New Catalyst for Apple’s Stock.

(Source: Xignite Financials)