Marvell also said CFO Cylde
Hosein resigned to pursue other opportunities. Brad Feller, vice
president and corporate controller, will serve as interim CFO during the
search for Hosein’s replacement.
Berger said Hosein was a good
operational executive brought on to make fundamental strategic and
business changes at Marvell. "That Mr. Hosein departed without achieving
these goals suggests Marvell's culture and founder-CEO control have
made these changes nearly impossible to achieve," he wrote.
Berger asserted that Sutardja seems unwilling to make what FBR believes are important changes to Marvell.
think Marvell has a structural management problem that inhibits the
firm from realizing real change, may discourage the development of
formalized engineering processes, and keeps the firm on what seems to be
a self-destructive path of no growth and limited traction in cellular,"
Berger wrote. "With the board unwilling to make real changes, business
at Marvell could migrate from bad to worse over time."
A spokesman for Marvell refuted Berger's comments, saying Marvell has had tremendous success in the mobile market in the past and is currently in the midst of a transition to a new product, which is gaining traction among customers. Marvell expects to have more success in mobile, the spokesman said. He also defended Marvell's engineering process as very formalized, rigid and best-in-class.
"The analysts is entitled to his opinion," the spokesman said. "We think his opinion is wrong."
Marvell's stock traded at $7.53 in afternoon trading Friday, down 15 percent from Thursday's closing price.
Due to the influence of mobile devices such as smartphone and tablet PC, many related industries achieve growth, then what's the development end of mobile devices, just as PC comes to post-PC era? Is there also a post-smartphone ear?
The CEO make take Marvell private if Wall Street continues to badger him. Marvell has no debt and has a good cash flow. Most tech companies have management issues with risk adverse executives simply trying to do the same type of product development year after year. The bean counters in many companies have taken away the ability to innovate much. For example, just look at HP management. I think some of the suffering at Marvell has to do with RIMM going down the toilet by failing to offer a sleek solution to take a bite out of Apple. And the hard drive business also is in a rough patch at the moment since people want cell phones and possibly tablets. I think tablets are somewhat of a technology fad and just an alternative way of displaying a notebook computer.
Join our online Radio Show on Friday 11th July starting at 2:00pm Eastern, when EETimes editor of all things fun and interesting, Max Maxfield, and embedded systems expert, Jack Ganssle, will debate as to just what is, and is not, and embedded system.