Research Desk Line-up: Semtech Post Earnings Coverage

LONDON, UK / ACCESSWIRE / June 16, 2017 / Pro-Trader Daily publishes post-earnings coverage on Marvell Technology Group Ltd (NASDAQ: MRVL) following the Company's disclosure of its second quarter fiscal 2017 financial results on May 25, 2017. The designer of storage and networking controller microchips reported better than expected sales and earnings numbers. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at: http://protraderdaily.com/register/.

Get more of our free earnings reports coverage from other constituents of the Semiconductor - Integrated Circuits industry. Pro-TD has currently selected Semtech Corporation (NASDAQ: SMTC) for due-diligence and potential coverage as the Company reported on May 31, 2017, its unaudited financial results for Q1 FY18 which ended on April 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on Semtech when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on MRVL; also brushing on SMTC. With the links below you can directly download the report of your stock of interest free of charge at:

http://protraderdaily.com/optin/?symbol=MRVL

http://protraderdaily.com/optin/?symbol=SMTC

Earnings Reviewed

Revenue for the first quarter of fiscal 2018 was $579.18 million compared to revenue of $519.38 million for the quarter ended April 30, 2016. The Company's revenue exceeded the midpoint of Marvell's guidance provided on March 02, 2017, and also surpassed analysts' estimates of $570.2 million.

During Q1 FY18, Marvell's Storage revenue surged 25% to $303.81 million compared to revenue of $242.64 million in Q1 FY17. The Company's networking revenue grew 5% to $144.82 million compared to $138.34 million in the prior year's same quarter. Marvell's Connectivity revenue totaled $76.09 million in Q1 FY18, increasing 3% compared to revenue of $73.55 million in Q1 FY17.

For Q1 FY18, Marvell's GAAP gross margin was 60.2% compared to 53.0% in Q1 FY17, while its non-GAAP gross margin was 60.4% ahead of non-GAAP gross margin of 53.3% and Company's expectations of approximately 59%. For the reported quarter, Marvell's GAAP and non-GAAP operating margins totaled 17.1% and 21.8%, respectively, better than the Company's expectations.

Marvell's GAAP net income from continuing operations for Q1 FY18 was $96.97 million, or $0.19 per share, compared to GAAP net loss of $13.27 million, or loss of $0.03 per diluted share. The Company's non-GAAP net income from continuing operations for the reported quarter was $124 million, or $0.24 per diluted share, versus $16.89 million, or $0.03 per diluted share, in the prior year's comparable quarter. The earnings results exceeded Wall Street's estimates of $0.10 per share.

Cash Matters

As of April 29, 2017, Marvell's cash and cash equivalents were $725.96 million compared to cash and cash equivalents worth $814.09 million as on January 28, 2017.

Marvell's free cash flow in Q1 FY18 was $170 million and represented 20% of sales. The Company returned approximately 170% of its free cash flow to shareholders, including $30 million in dividend and $166 million in stock repurchases.

Recent Events

Subsequent to the close of its Q1 FY18, Marvell sold its LTE thin-modem business to ASR Microelectronics for a purchase price of $45 million. This product line was classified as part of the Company's other product category. The Company stated that in the upcoming quarter, this product line will be reclassified and added to discontinued operations. Marvell's revenue guidance provided for Q2 FY18 excluded revenue associated with this sale, which has been approximately $5 million per quarter.

Outlook

For Q2 FY18, Marvell is forecasting revenue in the range of $585 million to $615 million. At the midpoint of its guidance, the Company expects its storage revenue to be flat sequentially and grow double digit on a y-o-y basis. Marvell is estimating its networking revenue to be approximately flat sequentially.

Stock Performance

On Thursday, June 15, 2017, the stock closed the trading session at $17.41, marginally falling 0.74% from its previous closing price of $17.54. A total volume of 6.51 million shares have exchanged hands. Marvell Technology's stock price soared 8.34% in the last three months, 21.66% in the past six months, and 73.41% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have surged 25.52%. The stock is trading at a PE ratio of 58.42 and has a dividend yield of 1.38%. At Thursday's closing price, the stock's net capitalization stands at $8.69 billion.

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SOURCE: Pro-Trader Daily