Chip maker Marvell Technology Group Ltd. (NASDAQ: MRVL) lowered its revenue estimate for the fourth quarter this morning from $775-$825 million to $735-$745 million. The company’s CEO explained the projected decline:
The supply of disk drives started to recover in our fourth fiscal quarter, but later than we had originally anticipated. Our SSD revenues grew more than expected but not enough to offset the impact of the Thailand floods on our HDD volumes. In addition, we experienced year-end demand softness at our mobile and wireless customers, particularly in China. We believe these effects are near term only, and should not impact our results in the new fiscal year.
Marvell shares have fallen -3.5% to $15.21 in pre-market trading. The company’s 52-week trading range is $11.23-$20.42.
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