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Why Did Marvell Technology’s Revenue Fall Again?

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Marvell Technology’s price movement 

Marvell Technology (MRVL) has a market cap of $4.58 billion. Its YTD (year-to-date) performance is decreasing due to its revenue falling 15% and 1.78% in 1Q16 and 2Q16. After the earnings report for 2Q16, Marvell fell 16.21% to close at $8.84 per share. As a result, its stock fell with the price movement on a weekly, monthly, and YTD basis by -20.50%, -28.71%, and -38.55%, respectively. It fell -18.53% on a trailing five-day basis. Technically, it has broken the support. Now, it’s trading below all three of the major moving average benchmarks. Currently, it’s trading -21.36% below the 20-day moving average, -26.93% below the 50-day moving average, and -37.62% below the 200-day moving average.

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The SPDR S&P Semiconductor ETF (XSD) tracks an equal-weighted index of semiconductor stocks. The YTD price movement of XSD is 2.05%.

Marvell Technology’s competitors and their market caps are:

  • STMicroelectronics NV (STM) – $6.37billion
  • NVIDIA (NVDA) – $12.21 billion
  • Freescale Semiconductor (FSL) – $11.52 billion
  • Texas Instruments (TXM) – $48.83 billion

Marvell Technology’s performance in 2Q16

Marvell Technology has reported preliminary financial results due to the investigation of certain accounting and internal control matters in 2Q16.

According to Marvell’s 2Q16 earnings report, the net revenue fell to $711.326 million in 2Q16—a fall of 1.76% on a quarterly basis. The cost of goods sold as a percentage of sales was reported at 105.20%. Marvell reported the gross income and net income at -$37.020 million and -$382.430 million in 2Q16. In 1Q16, the net revenue was $724.288 million with an EPS (earnings per share) of $0.03 per share. The current ratio rose by 2.80% in 1Q16 on a quarterly basis.

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On June 1, 2015, the company launched Avastar 88W8997, 28nm 2×2 802.11ac Wave-2 combo with full support for Bluetooth 4.2, MU-MIMO. It’s the smallest and power efficient wireless connectivity combo for enterprise and consumer markets. It launched the ARMADA Mobile PXA1936 octa-core 64-bit 5-mode 4G LTE turnkey reference design to accelerate the mass adoption of mobile solutions.

About Marvell Technology

Marvell Technology is a well-known semiconductor company. It has expertise in microprocessor architecture and digital signal processing. It drives multiple platforms including high volume storage solutions, mobile and wireless, networking, and consumer and green products. From mobile communications to storage, IoT (Internet of Things), cloud infrastructure, digital entertainment, and in-home content delivery, Marvell’s diverse product portfolio aligns a complete platform design with industry-leading performance, security, reliability, and efficiency.

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