Wednesday, August 16, 2006

Marvell Sees Slowdown Due to PC Market and Rollout of 802.11n

Marvell Technology Group revenue for its second fiscal quarter ended July 29, 2006 of $574.0 million, an increase of 47% over net revenue of $390.5 million for the second quarter of fiscal 2006 and a 10.1% sequential increase from net revenue of $521.2 million for the first quarter of fiscal 2007.

All results reported are preliminary because Marvell is in the midst of a previously announced internal review by a special committee of its Board of Directors relating to the Company's historical stock option practices and related accounting matters.

"During the quarter our revenue growth was limited due to some near term challenges in some of our end markets. However, we remain very focused on the execution of our long term growth strategies and are excited about the expanding reach of our technology into an increasing number of end markets and applications, stated Dr. Sehat Sutardja, Marvell's President and CEO.

In a conference call, Marvell said it experienced lower than expected sales for PC-related products, including demand for Gigabit Ethernet related products was weak. It also cited excess inventory in the channel for WLAN products, negatively impacting its rollout of 802.11n devices.

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