Marvell Technology's upbeat forecast boosts shares
February 22, 2013 9:21 AM EST
Chipmaker Marvell Technology Group Ltd forecast results this quarter largely above analysts' expectations as its hard-disk drive business gains market share, sending its shares up 5 percent in trading after the bell.
Marvell, whose controllers are used in hard-disk drives, said it expected adjusted profit of 14 cents, plus or minus 2 cents, per share on revenue of $700 million to $740 million in the first quarter.
Analysts on average were expecting a profit of 13 cents per share on revenue of $710.8 million, according to Thomson Reuters I/B/E/S.
Shares of the Santa Clara, California-based company were trading at $9.90 after closing at $9.47 on the Nasdaq on Thursday.
The company's net income fell to $50 million, or 9 cents per share, in the fourth quarter ended February 2 from $81 million, or 13 cents per share, a year earlier.
Excluding items, the company earned 19 cents per share.
Revenue rose 4 percent to $775 million.
Analysts were expecting a profit of 13 cents per share on revenue of $720.9 million.
Marvell's major customers Western Digital Corp and Seagate Technology Plc posted results above analysts estimates last month.
(Reporting by Neha Alawadhi in Bangalore; Editing by Don Sebastian)