Marvell Technology Group Ltd. shares rose in the extended session Monday after the chip maker reported quarterly results that topped Wall Street expectations and forecast record revenue months after the close of a major acquisition.
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“The acquisition of Inphi increases and accelerates our growth opportunity in the data center, Marvell’s largest end market by revenue,” said Matt Murphy, Marvell’s chief executive, in a statement.
Marvell announced its intention to acquire Inphi Corp. back in October, and closed the deal in April.
Marvell expects adjusted earnings of 28 cents to 34 cents a share on revenue of $1.03 billion to $1.1 billion for the fiscal second quarter, while analysts surveyed by FactSet had forecast earnings of 30 cents a share on revenue of $841.1 million.
Quarterly sales of $1 billion or more would represent a major milestone for Marvell. To date, the company’s largest sales quarter was the July-ending quarter of 2014, when it reported $961.5 million, according to FactSet data.
“Marvell’s outlook for strong revenue growth in the second quarter highlights robust demand across all our key end markets,” Murphy said. “I have never felt stronger about our prospects and believe that we are at the beginning of a multi-year growth cycle.”
The company reported a fiscal first-quarter loss of $88.2 million, or 13 cents a share, compared with a loss of $113 million, or 17 cents a share, in the year-ago period.
Adjusted earnings, which exclude stock-based compensation expenses and other items, were 29 cents a share, compared with 18 cents a share in the year-ago quarter.
Revenue rose to $832.3 million from $693.6 million in the year-ago quarter. Analysts surveyed by FactSet had forecast earnings of 27 cents a share on revenue of $806.7 million.
Over the past 12 months, Marvell shares have gained 35%, compared with a 59% gain by the PHLX Semiconductor Index
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