Marvell Technology Group Q3 2016 revenues dip 5%

Marvell Technology Group Ltd. (NASDAQ: MRVL) said it has reported preliminary financial results for the third quarter of fiscal 2016, ended October 31, 2015, and updated preliminary financial results for the second quarter of fiscal 2016, ended August 1, 2015.

Revenues for the third quarter of fiscal 2016 were USD674 million, down approximately 5 percent from USD711 million in the second quarter of fiscal 2016, ended August 1, 2015, and down approximately 28 percent from USD930 million in the third quarter of fiscal 2015, ended November 1, 2014.

In the third quarter of fiscal 2016, storage revenue declined 16 percent sequentially reflecting lower demand from HDD customers but was offset slightly by better-than-expected SSD controller sales.

Networking revenue in the third quarter of fiscal 2016 declined 8 percent sequentially reflecting continued weak demand for enterprise networking products while mobile and wireless revenue grew 15 percent sequentially on stronger smartphone demand, particularly in the low-end. We are restructuring the mobile business as it relates to mobile handsets only.

The US GAAP net loss for the third quarter of fiscal 2016 was (USD62) million, or (USD0.12) loss per share compared with a GAAP net loss of (USD403) million, or (USD0.78) loss per share, for the second quarter of fiscal 2016, and GAAP net income of USD115 million, or USD0.22 per share (diluted), for the third quarter of fiscal 2015.

In the second quarter of fiscal 2016 the company recorded litigation reserves of USD395 million. Excluding this item, the impact of restructuring and other related charges of USD27 million which includes a USD14 million write-down of inventory related to the mobile handset platform business, and other non-GAAP adjustments, the company reported non-GAAP net income of USD62 million or USD0.12 per share in the second quarter of fiscal 2016. Refer to the GAAP to non-GAAP reconciliation and related footnotes contained in the press release for more information.

On September 11, 2015 Marvell released a preliminary statement of operations for the second quarter of fiscal 2016, ended August 1, 2015 and announced that the Audit Committee of the company´s board of directors was conducting an independent investigation of certain accounting and internal control matters in the second quarter of fiscal 2016, which is further described below.

Due to the company´s delayed filing of its Form 10-Q, the company is obligated to continue to adjust its financial results to account for subsequent activities (Type 1 subsequent events) occurring after September 11, 2015.

Marvell is a global leader in providing complete silicon solutions and Kinoma software enabling the “Smart Life and Smart Lifestyle.”