Marvell: Fiscal 3Q20 Financial Results

For storage* only

(in $ million)	3Q19	2Q20	3Q20	9 mo. 19	9 mo. 20
Revenue	406.8	274.9	287.7	1,059.6	841.3
*Growth*	28%	-29%	5%	14%	*-21%*

* Storage products are comprised primarily of HDD and SSD controllers, FC adapters and data center storage solutions.

Marvell Technology Group Ltd. reported financial results for the 3FQ20.

Global revenue for was $662 million, which exceeded the midpoint of its guidance provided on August 29, 2019 being $660 million at midpoint.

Marvell completed the acquisition of Aquantia Corp., in custom ASICs, on September 19, 2019. It expects the acquired company will contribute approximately $300 million in annual revenue on FY21.

On the contrary, NXP Semiconductors N.V .will acquire the wireless connectivity portfolio of Marvell, the transaction being expected to close in the first half of December 2019.

Networking business revenue during 3FQ20 was $330 million, flat sequentially as compared to expectations of a low single-digit decline.

“Marvell delivered solid results for the third quarter and I am pleased that our storage business grew sequentially led by a strong performance from our enterprise and datacenter products. In addition, we ramped our first 5G product shipments in volume, successfully responding to our customer’s aggressive schedule requests, ahead of the plan we had laid out early this year,” said Matt Murphy, president and CEO

3FQ20 storage revenue was $288 million, growing 5% Q/Q and decreasing 29% Y/Y. The sequential growth was driven primarily from the enterprise and datacenter market. However, the firm experience weaker than expected revenue from the edge market, with a softening in demand from gaming and video surveillance.

In 3FQ20, storage represent 43% of global revenue, networking 50% and other 7%.

Marvell saw a rapid conversion from HDDs to SSDs in the PC market, which presents a headwind for its client business.

4FQ20 outlook