A Tough End to the Year
Although full year-on-year comparisons for Marvell look quite good, hardcore tech investors pay virtually no attention. Instead, the company's fourth quarter sequential revenue growth contraction of 5% is the real story, particularly as the company almost completely missed the Street estimate range. Unfortunately, performance was "bad" and "worse" as revenue in the storage and drive segment fell 2% sequentially and the mobile/wireless segment dropped 13%. Networking was what passed for good news, with flat performance. (For more, see Semiconductor Equipment: The Small and Skeptically.)
To the company's partial credit, margins held up. Gross margin was only off by about 10 basis points from the third quarter (though down more than that from the year-ago level). While operating income did drop almost 17% from the third quarter, a large part of that was due to higher R&D spending.
Please continue to the full piece:
http://stocks.investopedia.
No comments:
Post a Comment