Marvell reported record revenues of USD 1.076 billion for the second quarter, up almost 50 percent from the year before. The company said the increase was driven by its data centre business, which now represents Marvell’s largest end market at 40 percent of total revenue, pushed by momentum in the fast-growing cloud infrastructure market. CEO Matt Murphy noted that the company achieved organic and non-organic growth, helped by its acquisition of Inphi, completed in April. Revenues are expected to continue rising in the third quarter, led by the cloud data centre market. Murphy also sees continued advances for the company's 5G business, with strong sequential growth and an even higher jump projected for the fourth quarter.
Operating expenses went higher to USD 638.5 million from 500.4 million while the adjusted gross margin climbed to 64.8 percent from 63.3 percent. Both the operating and net loss widened, to USD 266.7 million from a loss of 151.3 million and to USD 276.4 million from a loss of 157.9 million respectively. The adjusted net profit however went up, to USD 283.9 million from 140.4 million, with the adjusted profit per share going to USD 0.34 from 0.21. The net loss per diluted share went to USD 0.34 from a loss of 0.24. The company ended the quarter with USD 559.6 million in cash, from 831.5 million year-on-year.
For the third quarter, the company is guiding for revenues of USD 1.145 billion, plus or minus 3 percent, an adjusted gross margin of 64-65 percent, operating expenses of USD 584-594 million, a diluted net loss per share of USD 0.04-0.10 and adjusted earnings ranging from a loss of USD 0.03 to gains of 0.38 per share.
Marvell added that it will adjust its reporting fashion by the second quarter of 2022, presenting revenue for the data centre, carrier infrastructure, enterprise networking, consumer and automotive/industrial end markets, instead of the three product groups networking, storage and other.
