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© bahar bostanci dreamstime.com Business | July 28, 2016

Marvell with loss in 1Q/2017

Marvell Technology Group Ltd. reported a loss on declining sales for its fiscal 1Q/2017, which ended April 30, 2016.
Key First Quarter of Fiscal 2017 Highlights

  • Revenue: Q1 FY 2017, $541 Million
  • GAAP Net (Loss): Q1 FY 2017, ($23) Million
  • GAAP Diluted (Loss) Per Share: Q1 FY 2017, ($0.04)
  • Cash Flow from Operations: Q1 FY 2017, ($610) Million
  • Cash and ST Investments: $1.6 Billion

Revenues for the first quarter of fiscal 2017 were USD 541 million, down approximately 12 percent from USD 616 million in the fourth quarter of fiscal 2016 (ended January 30, 2016), and down approximately 25 percent from USD 724 million in the first quarter of fiscal 2016 (ended May 2, 2015).

In the first quarter of fiscal 2017, storage revenue declined 16 percent sequentially, reflecting lower HDD industry demand partially offset by growth in SSD. Networking revenue in the first quarter of fiscal 2017 grew 5 percent sequentially due to improved enterprise networking demand.

Mobile and wireless revenue decreased 29 percent sequentially, mainly driven by the previously anticipated declines in revenue resulting from Marvell’s exit of the mobile handset business. Mobile handset revenues in the first quarter of 2017, fourth quarter, and first quarter of fiscal 2016 were USD 22 million, USD 69 million and USD 65 million, respectively.

Marvell anticipates mobile handset platform-related revenue to decline through fiscal year 2017 due to the restructuring actions announced on September 24, 2015.

GAAP net loss for the first quarter of fiscal 2017 was (USD 23) million, or (USD 0.04) per share (diluted) compared with a GAAP net income of USD 4 million, or USD 0.01 per share (diluted), for the fourth quarter of fiscal 2016, and GAAP net income of USD 14 million, or USD 0.03 per share (diluted), for the first quarter of fiscal 2016.

Second Quarter of Fiscal 2017 Financial Outlook
  • Revenue is expected to be in the range of USD 625 - 635 million.
  • GAAP Gross Margin is expected to be in the range of 52 percent.
  • GAAP Operating Expenses are expected to be in the range of USD 307 - 317 million.
  • GAAP Diluted EPS are expected to be in the range of USD 0.03 - 0.05.

Update Regarding NASDAQ Compliance Plan

On May 3, 2016, Marvell announced that it had received written notification from Nasdaq that, following Marvell's hearing before The Nasdaq Hearings Panel on April 14, 2016, it granted the Company an extension of time to September 6, 2016 to regain compliance with continued listing requirements. Until that time, shares of Marvell stock will remain listed on The Nasdaq Stock Market.

The company is working diligently to complete the preparation and filing of the Form 10-Q for the first quarter of 2017 as soon as practicable, at which time Marvell believes it will regain full compliance with Nasdaq continued listing requirements.
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