Marvell Technology Adjusted Profit Exceeds Guidance

Chip maker Marvell Technology Group Ltd. reported third-quarter revenue and earnings above its guidance amid strong growth in data storage and network infrastructure business.

Marvell also authorized a stock buyback program of up to $1 billion.

The company projects fourth-quarter revenue of about $565 million plus or minus 2%, excluding certain businesses that will be classified as discontinued operations.

Marvell expects earnings from continuing operations excluding items of 17 cents to 21 cents a share, while analysts polled by Thomson Reuters project 13 cents.

In after-hours trading, shares rose 8.2% to $14.45.

On Nov. 2, Marvell said it planned to cut 900 jobs, discontinue some research and development and divest "non-strategic" operations.

For the quarter ended Oct. 29, Marvell earned $72.6 million, or 14 cents a share, compared with a loss of $57.8 million, or 11 cents a share, a year earlier.

Earnings excluding items were 20 cents a share, above Sept. 6 guidance of 8 cents to 13 cents.

Revenue fell 3% to $654.4 million.

Write to Josh Beckerman at josh.beckerman@wsj.com

(END) Dow Jones Newswires

November 17, 2016 21:35 ET (02:35 GMT)

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