Earnings Insight - Marvell Technology

LONDON, December 15, 2014 /PRNewswire/ --

Investor-Edge.com has issued free earnings insight on Marvell Technology Group Ltd (NASDAQ: MRVL). On November 20, 2014, the company reported its financial results for Q3 FY15 (period ended November 01, 2014). Click on www.investor-edge.com/FreeReports to read our free earnings review on Marvell Technology Group Ltd (Marvell). In Q3 FY15, the company's revenue was reported at $930.14 million, while its non-GAAP net income stood at $0.29 per diluted share. Our free coverage report can be accessed at:

www.investor-edge.com/register

Earnings Overview 

During Q3 FY15, Marvell's revenue was nearly flat as compared to $931.23 million in Q3 FY14. The company's reported revenue fell short of Bloomberg analysts' forecasts of $975.75 million. Marvell's GAAP gross margin for Q3 FY15 improved to 51.1%, from 50.1% in Q3 FY14, while its non-GAAP margin for Q3 FY15 stood at 51.0%, compared to 50.3% in the year-ago quarter. The free research on MRVL can be downloaded as in PDF format at:

http://get.Investor-Edge.com/pdf/?c=Marvell%20Technology&d=15-Dec-2014&s=MRVL

The company's total operating expenses for Q3 FY15 were $359.62 million, lower than $371.02 million in Q3 FY14. Marvell's Q3 FY15 operating income increased to $115.54 million from $95.22 million in Q3 FY14. The company's Q3 FY15 income before taxes increased to $120.30 million from $96.76 million in Q3 FY14. In the reported quarter, Marvell recorded an income tax expense of $5.00 million which compares to a tax-benefit of $6.40 million in Q3 FY14. The company's GAAP net income for Q3 FY15 increased to $115.30 million, or $0.22 per diluted share, from $103.16 million, or $0.21 per diluted share, in Q3 FY14. Analysts from Bloomberg had expected the company to report GAAP net income of $113.94 million, or $0.22 per diluted share, in Q3 FY15. On the other hand, Marvell's non-GAAP net income for Q3 FY15 lowered to $154.95 million from $163.37 million in Q3 FY14.   

In Q3 FY15, Marvell's cash flow from operations increased to $195 million from $177 million in Q3 FY14. The company's free cash flow for Q3 FY15 stood at $167 million, compared to $157 million in Q3 FY14. Sign up and read the free analyst's notes on MRVL at:

http://get.Investor-Edge.com/pdf/?c=Marvell%20Technology&d=15-Dec-2014&s=MRVL

Under its authorized share repurchase program, Marvell repurchased approximately 3.7 million shares for a total of $45 million in Q3 FY15. The company paid a quarterly dividend of $0.06 per share on October 2, 2014 to all its shareholders of record as of September 11, 2014. Further, the company is scheduled to pay its Q4 FY15 dividend of $0.06 per share on December 29, 2014 to all the shareholders as of record on December 11, 2014.

For Q4 FY15, the company expects revenue to be in the range of $880 million to $900 million. The company's GAAP gross margin is expected to be in the range of 50.1% +/- 100 bps, and non-GAAP gross margin is expected in the range of 50.5% +/- 100 bps. Marvell projects its GAAP and non-GAAP operating expenses in the range of $365 million +/-$10 million, and $320 million +/- $10 million, respectively. Further, the company expects its GAAP and non-GAAP diluted EPS in the range of $0.16 +/- $0.02 and $0.24 +/- $0.02, respectively. The company informed that its Q4 FY15 financial outlook does not include the potential impact of future share repurchases, pending litigation matters, business combinations, asset acquisitions or other investments completed after November 19, 2014.

Stock Performance  

On the day following the earnings release, November 21, 2014, Marvell's stock rallied 5.19% to end the session at $13.99. Since then, shares of the company have witnessed a mixed momentum. On the last close, Friday, December 12, 2014, the stock finished 1.46% lower at $14.19. The company's shares vacillated between $14.18 and $14.48 during the session. A total of 5.67 million shares were traded, which was below its three months average volume of 5.95 million shares. Over the last one month and over the past three months, the company's shares have gained 10.00% and 2.38%, respectively. However, the stock has fallen by 1.32% since the start of 2014. Shares in Marvell closed above their 50-day moving average of $13.43. Furthermore, the stock traded at a PE ratio of 15.81 and has a Relative Strength Index (RSI) of 51.53. Visit Investor-Edge and access the latest research on MRVL at:

http://get.Investor-Edge.com/pdf/?c=Marvell%20Technology&d=15-Dec-2014&s=MRVL

Sneak Peek to Corporate Insider Trading 

In the last one month Marvell has not reported any share transactions by insiders to the U.S. Securities and Exchange Commission (SEC). Complimentary in-depth research on MRVL is available at:

http://get.Investor-Edge.com/pdf/?c=Marvell%20Technology&d=15-Dec-2014&s=MRVL

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