Marvell: Fiscal 2FQ24 Financial Results

(in $ million)	2Q23	2Q24	6 mo. 23	6 mo. 24
Revenue	1,517	1,341	2,964	2,663
*Growth*		-12%		*-10%*
Net income (loss)	4.3	(207.5	(161.4)	(376.4)

Marvell Technology, Inc. reported financial results for the second quarter of fiscal year 2024.

Net revenue was $1.341 billion, $11 million above the midpoint of the company’s guidance provided on May 25, 2023. GAAP net loss was $(207.5) million, or $(0.24) per diluted share. Non-GAAP net income was $290.2 million, or $0.33 per diluted share. Cash flow from operations was $112.5 million.

“Marvell delivered 2FQ24 revenue above the midpoint of guidance, and we are forecasting sequential revenue growth to accelerate in the third quarter. This growth is being driven primarily by AI and cloud infrastructure,” said Matt Murphy, chairman and CEO. “Demand from AI applications continues to strengthen, driving our overall revenue outlook from AI for this fiscal year even higher than previously outlined. Our strategy to focus on data infrastructure across a diverse set of end markets is serving us well despite the backdrop of a softening macroenvironment.”

3FQ24 Financial Outlook

Net revenue is expected to be $1.400 billion +/-5%.
GAAP gross margin is expected to be 45.6%-48.0%.
Non-GAAP gross margin is expected to be 60.3%-61.3%.
GAAP operating expenses are expected to be $666 million-$671 million.
Non-GAAP operating expenses are expected to be $435 million-$440 million.
Basic weighted average shares outstanding are expected to be 863 million.
Diluted weighted average shares outstanding are expected to be 869 million.
GAAP diluted loss per share is expected to be $(0.07)+/-$0.05 per share.
Non-GAAP diluted income per share is expected to be $0.40+/-$0.05 per share.

Comments

Since several quarters, Marvell does not publish any figure for its storage and network controller business that was more than $1 billion per fiscal year in the past, but Murphy did few comments on the subject in company's earnings call transcript: "Let me now talk about what we are seeing in storage and data center. As we expected, from a low base in 1FQ24, we saw sequential storage data center revenue growth in 2FQ24, and we are expecting modest sequential growth in 3FQ24. However, storage end market demand remains significantly depressed and customer inventory remains high. As a result, the industry's expectations for a data center storage recovery have pushed out meaningfully."