Monday, November 26, 2007

Marvell Announces Record Q3 Revenue of $758 Million, Job Cutbacks

Marvell reported net revenue for the third quarter of fiscal 2008 of $758.2 million, an increase of 46% over net revenue of $520.4 million for the third quarter of fiscal 2007 and a 15% sequential increase from net revenue of $656.7 million for the second quarter of fiscal 2008. Net loss (GAAP) was $6.4 million, or $0.01 per share (diluted), for the third quarter of fiscal 2008, compared with net income under GAAP of $6.0 million, or $0.01 per share (diluted), for the third quarter of fiscal 2007.

Marvell also announced a plan to reduce operating expenses by cutting approximately 400 employees, or approximately 7% of its total worldwide workforce. The company expects to incur a restructuring charge in connection with the plan of up to $8 million in the fourth quarter of fiscal 2008 related to severance and other expenses. The workforce reduction will affect in particular positions based in the United States and Israel, and to a lesser degree, other international locations.

"We are extremely pleased with our performance this quarter and see even greater opportunities in the fourth quarter," stated Dr. Sehat Sutardja, Marvell's President and CEO. "Marvell achieved record revenues, reached a $3 billion annual run rate and our operating margins and earnings per share on a pro forma basis have exceeded our expectations. The increasing sales trend is a result of our investments in a broad range of technologies and from our ability to efficiently integrate these technologies into superior products across many markets."


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