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.