Marvell Technology Group Ltd. (NASDAQ:MRVL) reported downturn in its earnings growth for the first quarter, but still beat analysts’ estimates. The firm’s sales segment hurt profit very much, declining 24 percent. The semiconductor company has also given a fainted outlook for the current quarter that’s below the analysts’ estimates.
The firm posted a profit of $14.1 million or $0.03 per share in the first quarter, shy from $99.5 million or $0.19 per in the earlier year period.
Adjusted earnings declined to $71.1 million or $0.13 per share compared to $144.2 million or $0.27 per share in last year. But earnings beat consensus estimate of $0.10 per share, excluding special items.
Revenue bumped the Santa Clara, California-based Marvell a lot. The company’s turnover slid 24 percent to $724.3 million, very well below from $957.8 million gained by company in a year earlier period. The revenue also underperformed the analysts’ forecast of $733.83 million
Gross margins grew from 48.4 percent year on year to 51.5 percent in the current quarter. The company has cut down its operating costs in the quarter, which dropped $359.9 million from $371.0 million last year.
The company is expecting adjusting earnings of $0.11 per share, plus or minus $0.01 per share, with revenue ranging from $710 million to $740 million for second quarter. On the other hand, analysts’ expects the company to gain $0.16 per share in earnings and $784.25 million in revenue for the ongoing quarter.
Marvell is renowned company in microprocessor architecture and digital-signal processing. The company’s technology is widely employed in mobiles, wireless and storage. The company is going through a major transition in its management as its Chief Financial Officer Mike Rashkin’s is leaving the firm after served the firm for more than a year. The company has announced Sukhi Nagesh, served the company as vice president of finance and investor relations, as its new CFO on temporary basis.
