SAN FRANCISCO, March 4 (Reuters) - Chipmaker Marvell Technology Group Ltd posted a 64 percent rise in quarterly revenue on a resurgence in tech spending, but its shares fell 6 percent as some investors had expected an even bigger increase.
Marvell's sales came to $842.5 million, in line with the average Wall Street estimate of $842 million, but the market had been banking on a big beat, analysts said. The stock had more than doubled over the past year and ahead of the results.
'They really didn't beat by much on the top line,' said Brigantine Advisors analyst Allan Mishan, though he added that profit and gross margin looked strong.
About half of Marvell's revenue comes from selling chips for the storage market, though the company has also been expanding aggressively in other areas, including smartphones and electronic readers. It offers low-cost chipsets for these devices, which Marvell says will help drive down selling prices.
Marvell said net profit was $204.8 million, or 31 cents a share, in its fiscal fourth quarter ended Jan. 30, compared with a loss of $65 million, or 11 cents a share, in the year-ago period.
Excluding items, profit was 40 cents a share, ahead of the average analyst estimate of 37 cents a share, according to Thomson Reuters I/B/E/S.
The company posted a gross margin of 60 percent, versus the average Wall Street target of 58.8 percent.
Marvell derives roughly a quarter of revenue from handset makers. Its main customers include hard-drive maker Western Digital Corp and BlackBerry maker Research in Motion Ltd.
Shares of Marvell, which is incorporated in Bermuda but headquartered in Santa Clara, California, fell to $18.94 in extended trading after closing at $20.13 on the Nasdaq.
(Reporting by Gabriel Madway, editing by Matthew Lewis) Keywords: MARVELLTECHNOLOGY/ (gabriel.madway@thomsonreuters.com; + 1 415 677 2536) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Marvell's sales came to $842.5 million, in line with the average Wall Street estimate of $842 million, but the market had been banking on a big beat, analysts said. The stock had more than doubled over the past year and ahead of the results.
'They really didn't beat by much on the top line,' said Brigantine Advisors analyst Allan Mishan, though he added that profit and gross margin looked strong.
About half of Marvell's revenue comes from selling chips for the storage market, though the company has also been expanding aggressively in other areas, including smartphones and electronic readers. It offers low-cost chipsets for these devices, which Marvell says will help drive down selling prices.
Marvell said net profit was $204.8 million, or 31 cents a share, in its fiscal fourth quarter ended Jan. 30, compared with a loss of $65 million, or 11 cents a share, in the year-ago period.
Excluding items, profit was 40 cents a share, ahead of the average analyst estimate of 37 cents a share, according to Thomson Reuters I/B/E/S.
The company posted a gross margin of 60 percent, versus the average Wall Street target of 58.8 percent.
Marvell derives roughly a quarter of revenue from handset makers. Its main customers include hard-drive maker Western Digital Corp and BlackBerry maker Research in Motion Ltd.
Shares of Marvell, which is incorporated in Bermuda but headquartered in Santa Clara, California, fell to $18.94 in extended trading after closing at $20.13 on the Nasdaq.
(Reporting by Gabriel Madway, editing by Matthew Lewis) Keywords: MARVELLTECHNOLOGY/ (gabriel.madway@thomsonreuters.com; + 1 415 677 2536) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.