Marvell forecast beats estimates; shares rise
(Reuters) - Chipmaker Marvell Technology Group Ltd (MRVL.O) forecast current-quarter revenue above analysts' expectations and reported first-quarter results that beat estimates on high demand for its storage and networking chips.
Marvell's shares rose almost 9 percent to $12.29 after markets closed. They closed at $11.31 on Nasdaq on Thursday.
The company said it expects a second-quarter profit of 17 cents per share to 21 cents per share on revenue of between $770 million and $810 million.
Analysts on average were expecting a profit of 18 cents per share and revenue of $763.5 million, according to Thomson Reuters I/B/E/S.
"We expect growth to be driven by increased traction in areas such as mobile handsets, tablets, connectivity and solid state drives," Chief Executive Sehat Sutardja said in a statement.
Marvell counts hard disk drive and flash drive makers Western Digital Corp (WDC.O), Seagate Technology Plc (STX.O) and Toshiba Corp (6502.T) among its top customers.
Sales to its storage customers accounted for 47 percent of Marvell's revenue last year. Marvell also makes communications and processor products used in mobile phones.
Western Digital and Seagate reported better-than-expected quarterly results, helped by growing demand for products that help customers store data in the cloud, reducing their dependence on personal computer hard drives.
Marvell's rival LSI Corp (LSI.O) in April reported quarterly results above analysts' estimates and forecast current-quarter revenue largely above expectations.
Net income fell to $53 million, or 11 cents per share, in the first quarter from $95 million, or 16 cents per share, a year earlier.
Revenue fell 8 percent to $734 million.
Excluding items, the company earned 19 cents per share.
Analysts expected earnings of 14 cents per share on revenue of $721.6 million. (Reporting by Neha Alawadhi in Bangalore; Editing by Joyjeet Das)
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