By Eric J. Savitz
Marvell Technology shares are losing ground in late trading Thursday after the chip maker posted April quarter results that edged Street estimates.
For the fiscal first quarter, Marvell reported revenue of $1.16 billion, down 12% from a year ago, but slightly ahead of both the company’s forecast and the Street consensus as tracked by FactSet at $1.15 billion. On an adjusted basis, Marvell earned 24 cents a share, a penny above the company’s forecast, but in line with the Street consensus. Adjusted gross margin of 62.4% was within the company forecast of 62% to 63%.
Marvell said that the company saw “stronger than forecasted demand” from AI related applications in the quarter. Data center revenue was up 87% from a year ago, Marvell said.
For the July quarter, the company sees revenue of $1.25 billion, give or take 5%, slightly above consensus at $1.22 billion, with adjusted profits of 29 cents a share, a penny above consensus.
“We see a favorable setup for the second half of this fiscal year, driven by continued growth in data center and the beginning of a recovery in enterprise networking and carrier infrastructure,” CEO Matt Murphy said in a statement.
Marvell late Thursday was down 3.9%, to $73.75.
Write to Eric J. Savitz at eric.savitz@barrons.com