SAN FRANCISCOCiting broad improvement in demand within multiple end-markets, Marvell Technology Group Ltd. Monday (June 22) increased its revenue target for its second fiscal quarter ending Aug. 1, saying it now expects sales to be between $600 million and $630 million.
The new range would represent a sequential increase of 15 to 21 percent from revenue of $521 million posted by Marvell in the previous quarter. Marvell had previously said it expected revenue for the second fiscal quarter to be between $540 million to $580 million.
Marvell (Santa Clara, Calif.) said it anticipates generating net income in accordance with generally accepted accounting principles as a result of improved revenue levels.
"We are optimistic in our near-term outlook based on the improved order rate we have experienced so far in our second quarter, which we believe generally signals some strengthening in our customers' expectations for their businesses," said Dr. Sehat Sutardja, Marvell chairman, president and CEO, in a statement.
Marvell is the latest of several semiconductor suppliers to increase quarterly revenue guidance in the face of improving demand. Others have included Diodes Inc., Microchip Technology Inc., Mindspeed Technology Inc., Texas Instruments Inc. and United Microelectronics Corp.
Independent semiconductor market statistician Mike Cowan recently revised his 2009 semiconductor annual market estimate to $192.5 billion, which would be equivalent to a market contraction of 22.6 percent. Cowan in May forecast contraction of 26.8 percent.
"Even with the recent pick-up in demand for our products, we encourage everyone to remain cautious of the demand environment for the next few quarters in light of what the industry has experienced in the past nine months," Sehat said.