SAN FRANCISCOFabless semiconductor vendor Marvell Technology Group Ltd. reported a sequential increase in sales for the quarter ended May 2 and the company's chief executive said recent trends indicate an improvement in near term order patterns.
Marvell (Santa Clara, Calif.) reported net sales for quarter of $521.4 million, up 2 percent compared to the prior quarter but down 35 percent compared to the year ago quarter. Revenue for the quarter exceeded consensus analyst expectations of 517.4 million.
For the quarterthe first of the company's fiscal year 2010Marvell posted a net loss in accordance with generally accepted accounting principles (GAAP ) of $39.5 million, or 6 cents per diluted share. The GAAP net loss was narrowed substantially from the previous quarter, when the company posted a loss of $65 million, or 11 cents per share. In the year-ago quarter, Marvell posted a new income of $69.9 million, or 11 cents per share.
"We are continuing to monitor the changing economic environment and will manage our business accordingly," said Sehat Sutardja, Marvell chairman and CEO, in a statement. "However, recent trends indicate an improvement in near term order patterns."
On a non-GAAP basis, excluding charges, Marvell posted a net income of $31.9 million, or 5 cents per share, down 2 percent from the previous quarter and 79 percent compared to the year-ago quarter.
GAAP gross margin for the first quarter of fiscal 2010 was 50.6 percent, compared to 50.7 percent for the fourth quarter of fiscal 2009 and 51.6 percent for the first quarter of fiscal 2009, Marvell said. GAAP gross margin for the first quarter of fiscal 2010 included costs of $1 million associated with the ramp-down of the company's test operations in Malaysia, Marvell said.