Infrastructure Chip Maker
shares fell in the extended session, although the company beat earnings expectations on an adjusted basis.
Shares of Marvell fell 4.4% in after-hours trading.
Marvell reported a fiscal second quarter a net loss of $276.4 million, representing 34 cents per share, compared to $157.9 million, or 24 cents per share, in the same period a year ago. Revenue rose 48% to $1.08 billion.
Adjusted for the amortization of intangibles, stock compensation and other items, earnings were 34 cents per share. Analysts had expected adjusted earnings of 31 cents per share on revenue of $1.07 billion.
“Growth was driven by the data center, which now represents Marvell’s largest end market with 40 percent of total revenue, and benefits from our growing momentum in the rapidly growing cloud infrastructure market,” said Matt Murphy, CEO of Marvell.
Marvell said it expects adjusted earnings of about 38 cents (plus or minus 3 cents) and revenue of $1.12 billion (plus or minus 3 percent) for the fiscal third quarter. Analysts had expected third-quarter non-GAAP earnings of 37 cents per share on revenue of $1.13 billion.
Murphy said the cloud data center and 5G markets will help the company’s growth in the third quarter. The company’s 5G revenue is expected to see “a significant increase” in the fourth quarter, he said.
Amid a global semiconductor shortage, investors typically expect chip companies to beat estimates by far and provide bullish guidance for the quarter ahead. With demand outpacing supply, semiconductor manufacturers could theoretically sell almost any chip they can produce.
Marvell also said it plans to report its segment revenues based on end-market versus customer product beginning in the second quarter, as it had previously disclosed. End markets include data center, enterprise networks and carrier infrastructure.
Earlier this month, Marvell said it plans to acquire Innovium, a network chip startup, for $1.1 billion. The deal gives the company access to a $2 billion market for Ethernet switch chips in data centers. Marvell bought Inphi, a manufacturer of optical components, for $10 billion last year.
Marvell stock closed down 0.1% to $63.24 on Thursday. Shares gained 33% this year, while the PHLX Semiconductor Index, or Sox, rose 21%.
Write to firstname.lastname@example.org