Marvell (MRVL) Shares Higher Despite Decline in Q3 Sales, Profit
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Price: $237.04 -5.57%
Revenue Growth %: +34.8%
Financial Fact:
Research and development: 222.46M
Today's EPS Names:
BTTX, VAXX, ELYS, More
Revenue Growth %: +34.8%
Financial Fact:
Research and development: 222.46M
Today's EPS Names:
BTTX, VAXX, ELYS, More
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Marvell Technology Group Ltd. (NASDAQ: MRVL) reported financial results for the third quarter of fiscal 2012 ended October 29, 2011 Thursday after the closing bell. Shares of MRVL are trading up about 4.7 percent to $14.40 in the post-market session following the release.
Revenue for the quarter declined 1 percent year over year to $950 million, topping the consensus of $938.96 million.
The cost of goods sold rose 5.4 percent to a total of $412.1 million.
GAAP net income was $195 million, or $0.32 per share, compared with GAAP net income of $256 million, or $0.38 per share for the third quarter of fiscal 2011.
Non-GAAP net income was $244 million, or $0.40 per share, compared with non-GAAP net income of $307 million, or $0.45 per share, for the same quarter last year. The earnings consensus for the quarter was $0.39 per share.
GAAP gross margin for the quarter was 56.6 percent, compared to 59.3 percent for the third quarter of fiscal 2011. Non-GAAP gross margin was 56.8 percent, compared to 59.5 percent for the third quarter of fiscal 2011.
Cash flow from operations for the quarter were $262 million, down from the $368 million in the third quarter of fiscal 2011. Free cash flow for the quarter was $239 million, down from the $338 million last year.
Cash and cash equivalents totaled $2.42 billion at the end of the quarter, down from $2.93 billion at the beginning of 2011.
"We are pleased with our third quarter results as we demonstrated solid growth in the quarter driven by our Mobile and Wireless end market, which grew over 20% sequentially. Our TD mobile phone platforms have been extremely well received by customers," said Dr. Sehat Sutardja, Marvell's Chairman and Chief Executive Officer. "We are now serving over 15 mobile customers with over 30 handsets ramping. Also, in the third quarter, we started shipping our WCDMA solutions to new customers. Our overall profitability remains solid, and during the last 12 months we generated over $840 million in free cash flow with the third quarter of fiscal 2012 representing the 17th consecutive quarter of positive free cash flow for the company. We also have a strong balance sheet that will allow us to better manage the impact from the flooding that occurred throughout parts of Thailand. The damage caused by the floods will have a near term impact on us, but we expect to emerge from this even stronger. Our diversified revenue profile gives us the ability to withstand such unpredictable events and continue to deliver solid profitability to our shareholders."
UPDATE: On its conference call, Marvell just issued fourth-quarter sales guidance in the range of $775-$825 million, which compares to the Street estimate of $808.8 million. The company is expecting adj-EPS of 23 plus or minus a "couple" cents (implying 21-25 cents), which compares to the Street estimate of 25c.
Revenue for the quarter declined 1 percent year over year to $950 million, topping the consensus of $938.96 million.
The cost of goods sold rose 5.4 percent to a total of $412.1 million.
GAAP net income was $195 million, or $0.32 per share, compared with GAAP net income of $256 million, or $0.38 per share for the third quarter of fiscal 2011.
Non-GAAP net income was $244 million, or $0.40 per share, compared with non-GAAP net income of $307 million, or $0.45 per share, for the same quarter last year. The earnings consensus for the quarter was $0.39 per share.
GAAP gross margin for the quarter was 56.6 percent, compared to 59.3 percent for the third quarter of fiscal 2011. Non-GAAP gross margin was 56.8 percent, compared to 59.5 percent for the third quarter of fiscal 2011.
Cash flow from operations for the quarter were $262 million, down from the $368 million in the third quarter of fiscal 2011. Free cash flow for the quarter was $239 million, down from the $338 million last year.
Cash and cash equivalents totaled $2.42 billion at the end of the quarter, down from $2.93 billion at the beginning of 2011.
"We are pleased with our third quarter results as we demonstrated solid growth in the quarter driven by our Mobile and Wireless end market, which grew over 20% sequentially. Our TD mobile phone platforms have been extremely well received by customers," said Dr. Sehat Sutardja, Marvell's Chairman and Chief Executive Officer. "We are now serving over 15 mobile customers with over 30 handsets ramping. Also, in the third quarter, we started shipping our WCDMA solutions to new customers. Our overall profitability remains solid, and during the last 12 months we generated over $840 million in free cash flow with the third quarter of fiscal 2012 representing the 17th consecutive quarter of positive free cash flow for the company. We also have a strong balance sheet that will allow us to better manage the impact from the flooding that occurred throughout parts of Thailand. The damage caused by the floods will have a near term impact on us, but we expect to emerge from this even stronger. Our diversified revenue profile gives us the ability to withstand such unpredictable events and continue to deliver solid profitability to our shareholders."
UPDATE: On its conference call, Marvell just issued fourth-quarter sales guidance in the range of $775-$825 million, which compares to the Street estimate of $808.8 million. The company is expecting adj-EPS of 23 plus or minus a "couple" cents (implying 21-25 cents), which compares to the Street estimate of 25c.
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