Marvell Tanks Expectations (MRVL)
January 22, 2009 by Douglas A. McIntyre
Marvell Technology Group Ltd. (Nasdaq: MRVL) just got to pile on in the tech earnings warning carnage. The communications chip provider slashed its revenue projections in the quarter to $500 million to $520 million. This is a disaster, even considering the weakness seen elsewhere in PC’s and in communications equipment.
Marvell had previously forecast a range of $690 million to $730 million in revenues, or "only" a drop of 8% to 13% sequentially. This represents a sharp decline of 34% to 37% from net revenue of $791million reported for the immediately preceding quarter. That’s a drop of 38% to 41% on a year-over-year basisfrom $845 million.
The company blamed uncertainty over the durationof the global economic slowdown. The company sees a major decline in PC and consumer electronics markets. It gave noearnings targets, but said that it will continue to cut expenses. In short, job cuts and costs aremost likely headed its way.
Marvell closed up 0.8% at $6.21 in regular trading. Somehow shares areonly down about 1% in the initial after-hours reaction.
Jon C. Ogg
January 22, 2009
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