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Marvell Technology, Inc. Reports Third Quarter Of Fiscal Year 2022 Financial Results
Marvell announced earnings per share of $0.43 on revenue of $1.21B

Marvell Technology, Inc. (NASDAQ: MRVL), a leader in infrastructure semiconductor solutions, today reported financial results for the third quarter of the fiscal year 2022.

This quarterly report represents an earnings surprise of 13.16%. A quarter ago, it was expected that this chipmaker would post earnings of $0.31 per share when it produced earnings of $0.34, delivering a surprise of 9.68%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

Marvell

Image: techcrunch

Marvell completed the acquisition of Innovium, Inc. (“Innovium”) on October 5, 2021 (the “acquisition date”), approximately 25 days before the end of the third quarter of fiscal year 2022. Marvell’s results for the third quarter of fiscal 2022 include the results of Innovium from the acquisition date, while prior periods presented do not.

Financials Highlights:

Net revenue for the third quarter of fiscal 2022 was $1.211 billion, which exceeded the midpoint of the Company’s guidance provided on August 26, 2021. GAAP net loss for the third quarter of fiscal 2022 was $(63) million, or $(0.08) per diluted share. Non-GAAP net income for the third quarter of fiscal 2022 was $364 million, or $0.43 per diluted share. Cash flow from operations for the third quarter was $265 million.

“Marvell delivered record revenue of $1.211 billion in the fiscal third quarter, growing 13 percent sequentially and 61 percent year over year, exceeding the high end of our guidance. Revenue grew substantially in each of our five end markets, led by data center, our largest contributor at 41 percent of total revenue, which grew 15 percent sequentially and 109 percent year over year,” said Matt Murphy, Marvell’s President, and CEO. “For the fourth quarter, we are expecting sequential revenue growth of 9 percent at the midpoint of guidance, led by 5G, which is projected to increase by 30 percent sequentially, and data center which is forecasted to continue to grow in the double digits on a percentage basis.”

Marvell shares are up 48% from the beginning of the year and are trading at $70.68, down-from-52-week-high. They are outperforming the Nasdaq 100 which is up 24.07% year to date.

Next for Marvell

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.43 on $1.21 billion in revenues for the coming quarter and $1.45 on $4.28 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Technology Services is currently in the bottom 32% of the 250 plus Zacks industries.

Financial Statement:

Marvell Technology, Inc.

Condensed Consolidated Statements of Operations (Unaudited)

(In thousands, except per share amounts)

Three Months Ended

Nine Months Ended

October 30,
2021

July 31,
2021

October 31,
2020

October 30,
2021

October 31,
2020

Net revenue

$

1,211,245

$

1,075,881

$

750,143

$

3,119,405

$

2,171,081

Cost of goods sold

623,425

704,051

369,083

1,741,614

1,103,863

Gross profit

587,820

371,830

381,060

1,377,791

1,067,218

Operating expenses:

Research and development

371,894

367,043

255,637

1,025,037

812,360

Selling, general and administrative

243,406

259,161

115,501

704,033

350,322

Restructuring related charges

5,861

12,294

19,312

31,041

161,189

Total operating expenses

621,161

638,498

390,450

1,760,111

1,323,871

Operating loss

(33,341)

(266,668)

(9,390)

(382,320)

(256,653)

Interest income

189

150

608

561

2,243

Interest expense

(35,423)

(33,814)

(16,066)

(104,378)

(48,531)

Other income (loss), net

999

(1,654)

299

568

3,613

Interest and other income (loss), net

(34,235)

(35,318)

(15,159)

(103,249)

(42,675)

Loss before income taxes

(67,576)

(301,986)

(24,549)

(485,569)

(299,328)

Benefit for income taxes

(5,044)

(25,558)

(1,641)

(58,367)

(5,494)

Net loss

$

(62,532)

$

(276,428)

$

(22,908)

$

(427,202)

$

(293,834)

Net loss per share — basic:

$

(0.08)

$

(0.34)

$

(0.03)

$

(0.55)

$

(0.44)

Net loss per share — diluted:

$

(0.08)

$

(0.34)

$

(0.03)

$

(0.55)

$

(0.44)

Weighted average shares:

Basic

828,635

821,062

670,487

781,008

667,186

Diluted

828,635

821,062

670,487

781,008

667,186

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