(Adds CEO, analyst comment, background, share movement)
By Aditi Shrivastava
Feb 20 Chipmaker Marvell Technology Group Ltd
reported a more-than-expected 112 percent rise in
profit, helped by strong demand from storage and networking
companies, and said it expected its mobile business to pick up
in the current quarter.
Marvell forecast first-quarter revenue between $870 and $910
million, above analysts' average estimate of $848.94 million,
according to Thomson Reuters I/B/E/S.
"In the first quarter, we are expecting some revenue and
unit growth for our 4G LTE mobile platform from multiple
customers," Chief Executive Sehat Sutardja said on a
post-earnings conference call with analysts.
Marvell said results were softer than it expected in the
mobile business in the fourth quarter as some customers delayed
Marvell's chips are used to write data on hard-disk drives
and helps store more data on a smaller surface.
The company, which also makes communications and processor
products used in mobile phones, said net income doubled to
$106.6 million, or 21 cents per share, in the quarter ended Feb.
1 from $50.2 million, or 9 cents per share, a year earlier.
"(Marvell) has shown some of the strongest revenue growth in
the industry, especially given the end-market exposure where
unit growth has been limited," RBC Capital Markets analyst Doug
On an adjusted basis, the company earned 29 cents per share,
4 cents more than analysts' expectation.
Revenue rose to $931.7 million, beating analysts' estimate
of $901.1 million.
Marvell's biggest customer Western Digital Corp
reported better-than-expected quarterly results in January,
citing strength in its gaming and notebook business.
Shares of Santa Clara, California-based Marvell were down 3
percent at $15.95 in trading after the bell.
They have risen as much as 6 percent in the last five days,
mainly due to short covering, Freedman said.
The stock, which have risen more than 70 percent in the last
12 months, closed at $16.12 on the Nasdaq on Thursday.
(Additional reporting by Lehar Maan Editing by Savio D'Souza
and Don Sebastian)