February 23, 2012 / 9:25 PM / in 6 years

UPDATE 2-Marvell's results beat expectations

* Marvell sees revenue of flat to up 6 pct sequentially

* China, hard drives hurt Q4 earnings, revenues

* Shares edge higher after-hours

By Noel Randewich

Feb 23 (Reuters) - Marvell Technology Group Ltd’s fourth-quarter earnings and revenue fell less than Wall Street expected, and the company said revenue for the current quarter could rise as much as six percent sequentially, as the chipmaker recovers from hard-drive shortages and its weak Chinese business.

The company cut its fourth quarter revenue outlook in January, blaming a depressed storage supply chain and weak demand for its mobile business in China.

On Thursday, it reported an 18 percent decline in fourth quarter revenue to $743 million, compared with an average forecast for $740.3 million.

Chief Financial Officer Clyde Hosein told analysts on a conference call on Thursday that revenue in the current quarter should be flat to 6 percent higher when compared with the previous quarter.

That will be driven by growth in sales of chips for hard drives, as the industry recovers from a shortage of components caused by flooding in Thailand last year, he said.

Analysts had expected an increase of about 3 percent.

Marvell also expects its mobile and wireless chip sales to dip in line with seasonality, and its networking market to be about flat in the current quarter.

Net income for the fourth quarter which ended Jan 28, fell to $81 million, or 13 cents a share, from $223 million, or 33 cents a share. Excluding certain items, it earned 21 cents a share, beating the 17 cents expected by analysts, according to Thomson Reuters I/B/E/S.

Marvell shares rose 2 percent to $16.40 in extended trading, after closing at $16.055 on the Nasdaq.

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