StockCall Research on Marvell Technology and Broadcom: Global Semiconductor Sales in 2012 Beat Expectations

Feb 07, 2013, 08:00 ET from

LONDON, February 7, 2013 /PRNewswire/ --

Global semiconductor sales for 2012 beat expectations, according to the Semiconductor Industry Association (SIA). SIA's CEO Brian Toohey also said that the industry is well-positioned for a successful 2013. This is good news for semiconductor companies Marvell Technology Group Ltd. (NASDAQ: MRVL) and Broadcom Corporation (NASDAQ: BRCM). StockCall analysts have completed comprehensive technical analysis on Marvell Technology and Broadcom. These free reports can be accessed by signing up now at

Semiconductor Industry Outperforms

Global semiconductor sales for 2012 were $291.6 billion, according to SIA. This is the third highest annual sales ever for the industry. Although sales fell 2.7% from 2011, the SIA said that total chip sales for 2012 exceeded the forecast from the World Semiconductor Trade Statistics (WSTS).

More importantly, the industry saw robust sales in a challenging macroeconomic environment. SIA CEO Toohey noted that despite substantial macroeconomic challenges, the worldwide semiconductor industry outperformed forecasts and posted one of its highest yearly sales totals in 2012.

In December, semiconductor sales were $24.7 billion. Sales for the fourth quarter of 2012 were $74.2 billion, up 3.8% over the same period in the previous year.

Americas and Asia/Pacific were the best performing regions in December. Toohey noted that despite lingering economic and political uncertainty, the U.S. semiconductor market continues to show signs of strength, posting impressive growth in December. He added that recent momentum, led by strength in the Americas, has the semiconductor industry well-positioned for a successful 2013.

Broadcom's Q4 Results

Last week, Broadcom reported its fourth quarter results. For the quarter ended December 31, 2012, Broadcom reported net revenue of $2.08 billion, up 14.3% on a year-over-year basis. Net revenue for 2012 was $8.01 billion, up 8.4% over 2011. Sign up today to download the free report on Broadcom at

Broadcom's net income for the fourth quarter of 2012 was $251 million, or $0.43 per share. On a non-GAAP basis, the company reported fourth quarter net income of $462 million, or $0.76 per share. Net income for the full-year 2012 was $719 million, or $1.25 per share on GAAP basis and $1.76 billion, or $2.92 per share on a non-GAAP basis.

Broadcom CEO Scott McGregor noted that the company delivered record revenue in each of its three business groups and record cash flow from operations in 2012, reflecting its continued market share growth and economics.

Marvell Technology's Q4 Results Eyed

Investors are now waiting for Marvell Technology's fourth quarter results, which will be released on Thursday, February 21, 2013. StockCall on the other hand has already posted a free technical analysis on Marvell Technology, which can be accessed at  

For the third quarter, Marvell's results were impacted by the weakness in PC demand. The softness in PC market due to the shift to mobile computing and weak economic environment is hurting some semiconductor companies, including Intel Corp. At the time of the release of its third quarter results, Marvell Chairman and CEO Dr. Sehat Sutardja said that despite the near-term softness in PCs, the company is focused on growing its overall storage business through share gains in HDDs and growth in SSDs.

In the third quarter ended October 27, 2012, Marvell had reported revenue of $781 million, down 4% on a sequential basis. The company's GAAP net income for the third quarter was $69 million, or $0.12 per share, compared to $93 million, or $0.16 per share reported in the previous quarter. Non-GAAP net income for the third quarter was $113 million, or $0.20 per share.

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