Marvell Technology $MRVL Stock Up 10% In After-hours on Beats

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MRVL stock rose 10% in after-hours trading on December 2, 2021, after the company reported earnings and revenue beats.

Marvell Technology, Inc. Reports Third Quarter of Fiscal Year 2022 Financial Results

SANTA CLARA, Calif., Dec. 2, 2021 /PRNewswire/ — Marvell Technology, Inc. (NASDAQ: MRVL), a leader in infrastructure semiconductor solutions, today reported financial results for the third quarter of fiscal year 2022. Marvell reported Q3 adjusted EPS of 43c versus the consensus estimate of 38c. The company reported Q3 revenue of $1.21B versus the consensus estimate of $1.15B.

Marvell completed the acquisition of Innovium, Inc. (“Innovium”) on October 5, 2021 (the “acquisition date”), approximately 25 days before the end of the third quarter of fiscal year 2022. Marvell’s results for the third quarter of fiscal 2022 include the results of Innovium from the acquisition date, while prior periods presented do not.

Net revenue for the third quarter of fiscal 2022 was $1.211 billion, which exceeded the midpoint of the Company’s guidance provided on August 26, 2021. GAAP net loss for the third quarter of fiscal 2022 was $(63) million, or $(0.08) per diluted share. Non-GAAP net income for the third quarter of fiscal 2022 was $364 million, or $0.43 per diluted share. Cash flow from operations for the third quarter was $265 million.

“Marvell delivered record revenue of $1.211 billion in the fiscal third quarter, growing 13 percent sequentially and 61 percent year over year, exceeding the high end of our guidance. Revenue grew substantially in each of our five end markets, led by data center, our largest contributor at 41 percent of total revenue, which grew 15 percent sequentially and 109 percent year over year,” said Matt Murphy, Marvell’s President and CEO. “For the fourth quarter, we are expecting sequential revenue growth of 9 percent at the midpoint of guidance, led by 5G, which is projected to increase by 30 percent sequentially and data center which is forecasted to continue to grow in the double digits on a percentage basis.”

The financial outlook for the fourth quarter of fiscal 2022 includes expected results of Innovium for the full quarter.

Fourth Quarter of Fiscal 2022 Financial Outlook

  • Net revenue is expected to be $1.320 billion +/- 3%.
  • GAAP gross margin is expected to be 47.9% to 49.8%.
  • Non-GAAP gross margin is expected to be approximately 65%.
  • GAAP operating expenses are expected to be $630 million to $640 million.
  • Non-GAAP operating expenses are expected to be $390 million to $395 million.
  • Basic weighted average shares outstanding are expected to be 844 million.
  • Diluted weighted average shares outstanding are expected to be 861 million.
  • GAAP diluted loss per share is expected to be $(0.03) +/- $0.04 per share.
  • Non-GAAP diluted income per share is expected to be $0.48 +/- $0.03 per share.

Marvell Launches Industry’s First 802.1AE MACsec Integrated Dual 1000BT1 and 100BT1 PHY Automotive Solutions

SANTA CLARA, Calif., Dec. 2, 2021 /PRNewswire/ — Marvell (NASDAQ: MRVL) today introduced the industry’s first 802.1AE MACsec integrated dual 1000BT1 and 100BT1 PHYs. The newly announced products extend Marvell’s leadership in automotive Ethernet PHY while aiding OEMs in the transition toward software-defined vehicles, where secure communication of data is a critical requirement. These Ethernet PHY solutions enable energy efficient, secure in-vehicle networks and assist in achieving functional safety compliance at the system level.

MACsec technology secures data exchange on a hop-by-hop basis and prevents Layer 2 security threats such as intrusion, man-in-the-middle, and replay attacks. Automotive networks rely heavily on partial networking in which some segments are hibernated and woken up on demand. Marvell’s latest PHYs support the Open Alliance TC10 for sleep mode and wake-up, tailored for automotive use cases. TC10 control signals are sent over the data line and minimize the need for special cables for remote control of the PHY states. Rapid electrification of vehicles has resulted in reduced power budget for each component.

Marvell’s new dual 1000BT1 88Q2233M with MACsec and 100BT1 88Q120xM with MACsec are the latest additions to the Brightlane PHY automotive portfolio. With the introduction of these groundbreaking solutions, Marvell achieves several industry firsts, including the first to launch an 802.3bp compliant dual 1000BT1 PHY with MACsec integrated, and the first to launch an 802.3bw compliant 100BT1 PHY with MACsec integrated.

“The launch of 88Q2233M and 88Q120xM underscores Marvell’s commitment to developing innovative solutions for the automotive market and ushers in a new era of software-defined vehicles,” said Will Chu, senior vice president and general manager of the Automotive Business Unit, Marvell. “Ethernet adoption is growing at a rapid pace, with future vehicle designs requiring multiple gigabit PHYs. Our new solutions seamlessly solve the issue of space constraint by integrating two 1000Base-T1 in a single package. The products also reduce the total BOM cost as many of the external components are common for the two 1000Base-T1 PHYs.”

“Marvell’s new MACsec integrated dual 1000BASE-T1 and 100BASE-T1 PHYs are helping solve a critical requirement of secure communication for a new generation of software-defined vehicles,” said Ian Riches, vice president for the Global Automotive Practice, Strategy Analytics. “With this launch, Marvell is staking a leadership position in secure automotive Ethernet while helping tier ones and OEMs build smarter, safer and greener vehicles of the future.”

As automotive networks are required to work in noisy environments, devices must be able to work together without interference. All components on the network should meet the electromagnetic interference/electromagnetic compatibility (EMI/EMC) requirements in accordance with the Open Alliance TC1 and TC12. As Marvell’s third-generation automotive ethernet PHYs, 88Q2233M and 88Q120xM are built on proven automotive architectures that deliver best-in-class EMI/EMC performance.

Key Features:

  • 88Q2233M: Dual 1000BASE-T1, IEEE 802.3bp-compliant Ethernet PHY supports operation over unshielded twisted pair (UTP)
  • 88Q120xM: 100BASE-T1, IEEE 802.3bw-compliant Ethernet PHY supports operation over unshielded twisted pair (UTP)
  • Supports IEEE 802.1AE MACsec: Support MACsec that provides layer 2 security and prevents security threats such as intrusion, man-in-the-middle, and replay attacks
  • Supports OPEN Alliance TC10 Sleep Mode: Support TC10 fast wake-sleep mechanism to enable partial networking
  • 802.1AS, 802.1AS-Rev PTP: Support precision timing protocol that enables extremely precise time synchronization of networks
  • Integrated Voltage Regulators: Support single 3.3V supply mode and saves overall BOM cost
  • ASPICE Level 2 software: Enables faster time-to-market with reuse of a flexible API and robust solution

MRVL stock technical analysis

The long term trend is positive and the short term trend is neutral. The long term trend may just continue or reversal may be around the corner! MRVL has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 74.58. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 70.94, a stop order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign. Click here to sign up for email alerts on MRVL stock.

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