Friday, September 11, 2015

Marvell Announces Preliminary Financials, Audit Committee Investigation

Marvell Technology Group Ltd. reported preliminary revenue of $711 million for the second quarter of its fiscal year 2016, ended August 1, 2015, down from $961.5 million a year earlier. There was a preliminary GAAP net loss of $382 million, or diluted loss per share of $0.74.

The company also announced that the Audit Committee of the company's Board of Directors is conducting an independent investigation of certain accounting and internal control matters in the second quarter of fiscal 2016.  Marvell said theinvestigation consists of a review of certain revenue recognition issues in the second quarter of fiscal 2016 and any associated issues with whether senior management's operating style during the period resulted in an open flow of information and communication to set an appropriate tone for an effective control environment. More specifically, the investigation has focused on the approximately 7 to 8 percent of revenue recognized in the second quarter of fiscal 2016 that, based upon the original customer request date, would have been received and earned in the third quarter of fiscal 2016 and is now no longer available for receipt in that quarter.  Such percentage represents an increase over the prior four quarters and is indicative of softening demand for certain of the company's products.