SANTA CLARA, Calif.,
Feb. 6, 2019 /PRNewswire/
-- Marvell Technology Group Ltd. (NASDAQ: MRVL), a leader in
infrastructure semiconductor solutions, today announced an
estimated revenue range for its fourth quarter of fiscal 2019,
which ended on February 2,
2019.
Marvell now expects its fourth-quarter fiscal 2019 preliminary
unaudited revenue to be in the range of $735
million to $745 million, below
its previously announced guidance range of $790 million to $830
million.
The majority of Marvell's fourth-quarter revenue shortfall was
due to a weaker than expected storage controller business. Marvell
believes that demand for its products was impacted primarily by
macroeconomic uncertainty, reduction in cloud capital spending and
PC CPU shortages. The exception was embedded processors for
networking and 4G & pre-5G wireless infrastructure which met
expectations.
The company expects the weakness in demand that it saw in the
fourth quarter of fiscal 2019 to continue in the first quarter of
fiscal 2020.
"Although we are disappointed with our fourth quarter revenue,
we continued to run the business efficiently under difficult end
market conditions and are satisfied with gross margin execution and
operating expense management," said Matt
Murphy, President and CEO. "We are optimistic that demand
will begin to improve later this year, as inventory levels adjust
in customer's supply chains, and capital spending picks up. While
we will prudently manage our operating expenses to reflect this
softer demand environment, we remain committed to the key
initiatives that we outlined at our Investor Day and are on track
to launch our 5G base station products later this fiscal year. We
have conviction in our strategy to drive long-term growth and we
remain focused on execution."
This update is an estimate, based on information available to
management as of the date of this release, and may be subject to
further changes upon completion of Marvell's standard quarter and
year-end closing procedures. This update does not present all
necessary information for an understanding of Marvell's financial
condition as of February 2, 2019, or
its results of operations for the quarter and fiscal year ended
February 2, 2019.
Conference Call Webcast for Fourth Quarter and Fiscal Year
2019 Financial Results
Marvell will release its fourth quarter and fiscal year 2019
results on Thursday, March 7, 2019
after close of market. The company will host a conference
call that day at 1:45 p.m. Pacific
Time.
Interested parties may join the conference call by dialing
1-844-647-5488 or 1-615-247-0258, passcode 1885417.
The call will be webcast and can be accessed at the Marvell
Investor Relations website at http://investor.marvell.com/ with a
replay available following the call until Friday, March 15, 2019.
Forward-Looking Statements under the Private Securities
Litigation Reform Act of 1995
This press release contains forward-looking statements within
the meaning of the federal securities laws that involve risks and
uncertainties, including: Marvell's expectations regarding its
fourth quarter of fiscal 2019 financial results, the factors
affecting its fourth quarter results, its expectations of weakness
in demand to continue in its first quarter of fiscal 2020, its
expectations that demand will improve later this year, its ability
to manage future operating expenses and the timing of its 5G
product launch. Words such as "anticipates," "expects," "intends,"
"plans," "projects," "believes," "seeks," "estimates," "can,"
"may," "will," "would" and similar expressions identify such
forward-looking statements. These statements are not guarantees of
results and should not be considered as an indication of future
activity or future performance. Actual events or results may differ
materially from those described in this press release due to a
number of risks and uncertainties, including, but not limited to:
the rate of change in customer demand for our products; the effect
of the consummation of our acquisition of Cavium on the combined
company's business relationships, operating results, and business
generally; potential difficulties in Cavium employee retention as a
result of the transaction; the ability of Marvell to successfully
integrate Cavium's operations and product lines; the ability of
Marvell to implement its plans, forecasts, and other expectations
with respect to Cavium's business and realize the anticipated
synergies and cost savings in the time frame anticipated or at all,
and identify and realize additional opportunities; the risk of
downturns in the highly cyclical semiconductor industry; Marvell's
dependence upon the storage and networking markets, which are
highly cyclical and intensely competitive; the outcome of pending
or future litigation and legal and regulatory proceedings;
Marvell's dependence on a small number of customers; severe
financial hardship or bankruptcy of one or more of Marvell's major
customers; Marvell's ability to define, design and develop products
for the 5G market; Marvell's ability to market its 5G products to
Tier 1 infrastructure customers; Marvell's ability and the ability
of its customers to successfully compete in the markets in which it
serves; Marvell's reliance on independent foundries and
subcontractors for the manufacture, assembly and testing of its
products; Marvell's ability and its customers' ability to develop
new and enhanced products and the adoption of those products in the
market; decreases in gross margin and results of operations in the
future due to a number of factors; Marvell's ability to estimate
customer demand and future sales accurately; Marvell's ability to
scale its operations in response to changes in demand for existing
or new products and services; the impact of international conflict
and continued economic volatility in either domestic or foreign
markets; the effects of transitioning to smaller geometry process
technologies; the risks associated with manufacturing and selling a
majority of products and customers' products outside of
the United States; risks
associated with acquisition and consolidation activity in the
semiconductor industry; the impact of any change in the income tax
laws in jurisdictions where Marvell operates and the loss of any
beneficial tax treatment that Marvell currently enjoys; the effects
of any potential acquisitions or investments; Marvell's ability to
protect its intellectual property; the impact and costs associated
with changes in international financial and regulatory conditions;
Marvell's maintenance of an effective system of internal controls;
and other risks detailed in Marvell's SEC filings from time to
time. For other factors that could cause Marvell's results to vary
from expectations, please see the risk factors identified in
Marvell's Quarterly Report on Form 10-Q for the fiscal quarter
ended November 3, 2018 as filed with
the SEC on December 10, 2018, and
other factors detailed from time to time in Marvell's filings with
the SEC. Marvell undertakes no obligation to revise or update
publicly any forward-looking statements.
About Marvell
Marvell first revolutionized the digital
storage industry by moving information at speeds never thought
possible. Today, that same breakthrough innovation remains at the
heart of the company's storage, processing, networking,
security and connectivity solutions. With leading intellectual
property and deep system-level knowledge, Marvell's semiconductor
solutions continue to transform the enterprise, cloud, automotive,
industrial, and consumer markets. To learn more, visit:
www.marvell.com.
Marvell and the Marvell logo are registered
trademarks of Marvell and/or its affiliates.
For further information, contact:
Ashish Saran
Vice President, Investor Relations
408-222-0777
ir@marvell.com
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SOURCE Marvell Technology Group Ltd.