Market Commentary and Intraday News
Marvell Technology lowers 3Q outlook; CFO resigns
244 days ago
(AP:SANTA CLARA, Calif.) Shares of Marvell Technology Group Ltd. plunged in after-hours trading Thursday after the computer chip manufacturer lowered its fiscal third-quarter outlook and said its finance chief has resigned.
The Santa Clara, Calif., company made both announcements after the markets closed. Its shares dropped 9.4 percent in after-hours trading.
Marvell said that it expects net revenue for the fiscal third quarter to range between $765 million and $785 million. Previously the company had forecast net revenue in a range between $800 million and $850 million.
Analysts surveyed by FactSet, on average, have predicted revenue of $910.4 million.
Sehat Sutardja, chairman and CEO, said Marvell revised the forecast because of the slower global economy has reduced demand for some of its products, including personal computers.
Separately Marvell said Chief Financial Officer Clyde Hosein resigned to pursue other opportunities but will assist the company in its search for his replacement.
Vice president and Corporate Controller Brad Feller will serve as interim CFO. Previously, he was corporate controller for Integrated Device Technology, a San Jose-based company that makes semiconductors.
Shares of Marvell fell 17 cents to end at $8.83 and dropped 81 cents more in after-hours trading. In the past 52 weeks, the price has ranged from $8.67 to $16.86 per share.
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