Marvell Technology revealed it grew its revenue by 10.75 percent from 2019 in its recently published 2021 fiscal second-quarter financial results. CEO Matt Murphy attributed his company’s strong performance to its hardworking and resilient staff.
The Santa Clara, California-based company offered guidance for the fiscal third quarter that indicated continued growth in the November period.
Marvell’s FQ2 Results
In the three months ending August 1, Marvell generated $727.2 million in revenue, up from $656.5 million it made in the same period last year. The company also recorded adjusted net income of $140.3 million, or earnings per share (EPS) of $.21. The chipmaker meaningfully exceeded its 2020 fiscal second-quarter profit of $109.9 million, or adjusted EPS of $.016.
Seeking Alpha reports Marvell’s strong August period sales topped Wall Street’s forecast by $6.45 million. The fabless semiconductor manufacturer also surpassed the revenue guidance of $720 million it offered in late May.
In an earnings call, the company’s chief executive noted the coronavirus pandemic had disrupted the firm’s operations. However, Murphy also said his team adjusted to the constraints of the social distancing era very well. He praised his engineers for completing an off-site chip bring-up and his sales team for increasing the brand’s customer engagements.
Growth Trend Continued into the Fall
Marvell expects its revenue and EPS growth to continue into the fall thanks to new additions to its product lineup.
The chipmaker estimates its November period revenue will be $750 million, plus or minus 5 percent, with adjusted EPS of $0.22 to $0.28. Based on its 2019 results, the company anticipates improving its sales by 7.56 to 18.88 percent. The firm also predicts its FQ3 EPS will rise 29.4 to 64 percent on an annual basis.
Marvell stated strong demand for its 5G infrastructure and cloud data center products would bolster its revenue in the current period. Murphy noted his company received customer approval to increase output of its new SSD controller and cloud ASIC. He also said Marvell would begin producing a 5G base station component for Nokia later this year.
In the longer term, Marvell expressed optimism regarding the release of its forthcoming 5nm portfolio. The chipmaker intends to begin sampling its cutting-edge products at the end of 2021 with mass production scheduled shortly after that.
The Taiwanese Semiconductor Manufacturing Company (TSMC), which recently renewed its partnership with Marvell, will fabricate the firm’s 5nm products.
While many electronic components companies struggled for months after the coronavirus outbreak, Marvell has seemingly made a full recovery. As such, the firm’s near-term growth forecast is entirely justified.