Marvell Updates Outlook for 3Q09

Marvell Technology Group Ltd. updated its financial outlook for the third quarter of fiscal 2010, ending October 31, 2009.

Marvell currently projects net revenue for the third quarter of fiscal 2010 to increase to a range of $760 million to $775 million, an increase of 19 to 21 percent sequentially from net revenue of $641 million reported for the second quarter of fiscal 2010, ended August 1, 2009. The increase in projected revenues is due to broad improvement in demand within multiple end markets.

The outlook for revenue in the third quarter of fiscal 2010 was previously projected to be in a range of $680 million to $730 million, or an increase of 6 to 14 percent sequentially from the second fiscal quarter of 2010.

Marvell anticipates a one-time tax benefit during the fiscal third quarter as a result of the reversal of previously recorded tax reserves as a result of the expiration of the related statute of limitations. Marvell currently expects the reversal will result in a net tax benefit for the third fiscal quarter of 2010 of approximately $25 million, or approximately $0.05 per share on a GAAP basis.