CORRECTED-UPDATE 1-Marvell's forecast beats estimates as demand for chips rises
(Corrects fifth bullet to say shares rose 5.5 pct, not 10 pct)
* Sees fourth-qtr adj. earnings $0.23-$0.27/share vs est. $0.23
* Sees fourth-qtr revenue $880 mln-$920 mln vs est. $846.3 mln
* Third-qtr adj. earnings $0.32/share vs est. $0.25
* Revenue rises 19 pct to $931.2 mln vs est. $870.6 mln
* Shares up 5.5 pct after market
Nov 21 (Reuters) - Chipmaker Marvell Technology Group Ltd forecast quarterly revenue above analysts' estimates, helped by higher sales to flash drive and mobile and wireless device makers, sending its shares up 5.5 percent in extended trading.
The company, whose customers include hard disk drive and flash drive makers Western Digital Corp, Seagate Technology and Toshiba Corp, also reported better-than-expected results for the third quarter.
Marvell said it expected an adjusted profit of 23-27 cents per share for the current quarter on revenue of $880 million to $920 million.
Analysts on average were expecting a profit of 23 cents per share on revenue of $846.3 million, according to Thomson Reuters I/B/E/S.
Western Digital, Marvell's top customer, reported a better-than-expected quarterly profit in October, mainly due to strong sales of higher-margin products to businesses and consumers.
About 47 percent of Marvell's revenue last year came from storage customers, for whom it makes chips used for reading and writing data on hard-disk and flash drives. The company also makes chips used in mobile phones made by companies such as BlackBerry Ltd and Samsung Electronics Co Ltd .
Investment management firm KKR & Co has acquired about 5 percent of Marvell, Bloomberg reported this month, citing two people with knowledge of the matter. (r.reuters.com/nuc64v)
Marvell's net income rose to $103 million, or 21 cents per share, in the third quarter ended Nov. 2 from $69 million, or 12 cents per share, a year earlier.
Excluding items, the company earned 32 cents per share.
Revenue rose 19 percent to $931.2 million.
Analysts had expected earnings of 25 cents per share on revenue of $870.6 million.
Shares of Santa Clara, California-based Marvell were trading at $14.60 after the bell. The stock closed at $13.83 on the Nasdaq on Thursday. (Reporting by Supantha Mukherjee and Aurindom Mukherjee in Bangalore; Editing by Saumyadeb Chakrabarty and Kirti Pandey)
- IBM launches Watson system for research, hopes for breakthroughs
- Separatists say will allow 'trapped' Ukrainian forces to withdraw |
- California passes 'yes-means-yes' campus sexual assault bill
- In town halls, U.S. lawmakers hear voter anger over illegal migrants |
- Comedian Joan Rivers 'resting comfortably' at hospital |