NEW YORK: Chipmaker Marvell Technology Group forecast current-quarter revenue above analysts’ expectations and reported first-quarter results that beat estimates on high demand for its storage and networking chips.
Marvell’s shares rose almost 9 per cent to $12.29 and closed at $11.31 on Nasdaq on Friday.
The company said it expects a second-quarter profit of 17 cents per share to 21 cents per share on revenue of between $770 million and $810 million.
Analysts on average were expecting a profit of 18 cents per share and revenue of $763.5 million, according to Thomson Reuters I/B/E/S.
“We expect growth to be driven by increased traction in areas such as mobile handsets, tablets, connectivity and solid state drives,” Chief Executive Sehat Sutardja said in a statement.
Marvell counts hard disk drive and flash drive makers Western Digital Corp, Seagate Technology Plc and Toshiba Corp among its top customers.
Sales to its storage customers accounted for 47 per cent of Marvell’s revenue last year. Marvell also makes communications and processor products used in mobile phones.
Western Digital and Seagate reported better-than-expected quarterly results, helped by growing demand for products that help customers store data in the cloud, reducing their dependence on personal computer hard drives.
Marvell’s rival LSI Corp in April reported quarterly results above analysts’ estimates and forecast current-quarter revenue largely above expectations.
Net income fell to $53 million, or 11 cents per share, in the first quarter from $95 million, or 16 cents per share, a year earlier.