Aug. 21, 2014, 4:38 PM
- Though Marvell (NASDAQ:MRVL) posted in-line FQ2 revenue and beat EPS estimates, it's guiding for FQ3 revenue of $960M-$1B and EPS of $0.29 (+/- $0.02), below a consensus of $1.01B and $0.32. No explanation is provided in the earnings release for the outlook.
- FQ2 gross margin was 50.6%, +180 bps Q/Q and -140 bps Y/Y, and near the high end of a 49%-51% guidance range (drove the EPS beat). FQ3 GM guidance is also at 49%-51%.
- GAAP opex fell 2% Y/Y to $363.4M (compares with a slight revenue increase), with R&D spend nearly flat at $294.8M. No buybacks were carried out.
- FQ2 results, PR
Aug. 21, 2014, 4:08 PM
Aug. 20, 2014, 5:35 PM
Jul. 8, 2014, 11:28 AM
- Following checks with Japanese hard drive component suppliers Nidec and TDK, and research firm TSR, CLSA reports Seagate (STX -0.9%) is cutting its Sep. quarter forecast for industry hard drive shipments to ~133M from a prior 140M-145M.
- In April, Seagate guided for June quarter industry shipments to be "down a few points" from a March quarter level of 138M, but to also reach 140M-145M in each of the next 2 quarters. The market has been pressured by SSD cannibalization and weak enterprise storage sales, but has also benefited from stabilizing PC sales and healthy demand from Internet giants.
- Seagate and Western Digital (WDC -1.5%) are only down moderately on a rough day for tech. Seagate reports on July 17, and Western on July 30.
- Other names with strong industry exposure: MRVL, HTCH
Jun. 13, 2014, 9:52 AM
- Two days after Nomura upgraded Marvell (MRVL -1.1%), Susquehanna has cut the chipmaker to Neutral, and lowered its PT by $3 to $16.
- Whereas Nomura is upbeat about Marvell's baseband chip sales to Chinese OEMs (particularly for 4G TD-LTE phones), Susquehanna is worried about an inventory overhang.
- Following a strong 2013 rally, shares have been in a fairly narrow range for the whole of 2014, in spite of healthy gains for chip industry peers.
Jun. 11, 2014, 9:55 AM
- Nomura has upgraded Marvell (MRVL +2.8%) to Buy, and hiked its PT by $4 to $19. The firm is optimistic about the chipmaker's ability to grow its 4G baseband processor sales.
- Better-than-expected baseband demand fueled Marvell's big FQ1 revenue beat. The company has scored a decent number of design wins with Chinese OEMs for phones running on China Mobile's new 4G TD-LTE network, and has also had its chips certified for use on AT&T and Verizon's networks.
- Mobile/wireless sales (inc. Wi-Fi/Bluetooth combo chips) made up 33% of Marvell's FQ1 sales. Qualcomm still claims the lion's share of the 4G baseband market, aided by leads in multi-band support and high-end app processor integration.
Jun. 5, 2014, 9:28 AM| Jun. 5, 2014, 9:28 AM | 4 Comments
May 23, 2014, 5:36 PM
May 22, 2014, 4:38 PM
- Marvell (MRVL) expects FQ2 revenue of $940M-$980M and EPS of $0.26-$0.30, largely above a consensus of $930.1M and $0.26.
- FQ1 gross margin was 48.8%, -130 bps Q/Q and -580 bps Y/Y, and missing guidance of 49%-51%. That resulted in EPS only moderately beating estimates in spite of a huge revenue beat. Nonetheless, Marvell has set an FQ2 guidance range of 49%-51%.
- Better-than-expected demand for Marvell's 4G LTE baseband processors contributed to the revenue beat. The company recently began shipping products for this market, which has long been dominated by Qualcomm, and has scored design wins with Chinese OEMs.
- Opex rose 4% Y/Y, well below rev. growth of 30%. No buybacks take place in the quarter.
- MRVL -0.7% AH. FQ1 results, PR
May 22, 2014, 4:08 PM
May 21, 2014, 5:35 PM
May 1, 2014, 10:06 AM
- Like Seagate (STX -4%), Western Digital (WDC -6.1%) missed FQ3 revenue estimates while beating EPS forecasts. Also like Seagate, it offered light FQ4 guidance on its CC (transcript): Revenue of $3.5B-$3.6B and EPS of $1.65-$1.75 vs. a consensus of $3.72B and $1.89.
- While Seagate estimates March quarter industry hard drive shipments totaled 138M, Western pegs them at 137M. More importantly, the company expects shipments to fall to 130M in the June quarter.
- Goldman notes hyperscale data center owners (Google, Facebook, Amazon, etc.) are getting more efficient with their storage usage, and that this is affecting both Western and Seagate. Seagate is also dealing with inventory issues at enterprise storage OEMs; Western isn't reporting anything similar.
- With SSDs continuing to encroach on hard drives, Western's enterprise SSD sales grew to $134M (+46% Y/Y, still less than 4% of sales) in FQ3, and are expected to outgrow the broader market going forward. Non-PC applications made up 53% of total revenue.
- Western's ASP fell $2 Q/Q to $58 due to.a mix shift towards console hard drive sales. In spite of the ASP drop, gross margin was 30.1%, flat Q/Q and up 90 bps Y/Y, and above guidance of 29.5%. A 29.5% GM is forecast for FQ4.
- $244M was spent on buybacks, up from $150M in FQ2. Free cash flow was $536M vs. $539M a year ago.
- Hard drive controller supplier Marvell (MRVL -1%) is off moderately.
Apr. 17, 2014, 5:26 PM
- After underperforming yesterday in response to a mixture of in-line and soft outlooks from Intel, ASML, and Linear, chip stocks bounced back strongly following more encouraging numbers from foundry giant TSMC, NAND flash giant SanDisk, and well-diversified Cypress.
- TSMC, seen as a bellwether for chip demand due to a client list that includes most of the world's top fabless chipmakers (Qualcomm, Broadcom, MediaTek, Xilinx, etc.), beat Q1 estimates, issued strong Q2 guidance, and reported seeing healthy sales from mobile clients, and for its advanced 28nm process node.
- SanDisk offered strong margin guidance to go with a Q1 beat. Cypress posted a slight Q1 revenue beat, and issued Q2 revenue guidance that beat consensus at the midpoint.
- Notable gainers: ARMH +3.9%. MRVL +2.2%. CODE +5.1%. RMBS +4.4%. IDTI +3%. ENTR +3.7%. PXLW +6.1%. QUIK +2.4%.
Apr. 3, 2014, 2:33 PM
- With intense price competition for regular LED bulbs acting as a dual-edged sword - it's growing the addressable market, but also pressuring margins - Cree (CREE -1%), Philips (PHG -0.2%) and other vendors are ramping investments in smart bulbs and/or systems that support features such as on/off timing, automatic dimming, and smartphone/tablet control.
- Philips recently expanded its Hue connected bulb product line (includes iOS/Android controller apps) to include a white-only bulb (the Hue Lux) and a wireless wall switch (the Hue tap). Cree has rolled out SmartCast, a wireless commercial lighting system that emphasizes ease of use and low management costs.
- Provided consumers and businesses buy in, Cirrus Logic (CRUS +1.2%) and Marvell (MRVL -1.4%) could benefit. Cirrus sells driver ICs for smart LED bulbs; Marvell offers driver ICs, controller ICs, and related software.
- Previous: Light quality helps LED bulb sales grow in spite of high prices
Apr. 1, 2014, 6:40 PM
- With demand pressured by PC weakness and SSD cannibalization, Gartner forecasts global hard drive shipments will post a 2.9% CAGR from 2013-2018, growing from 552M units to 635.1M.
- High-capacity business-critical drives, beloved by Web/cloud service providers, are expected to fuel much of the industry's growth by delivering a 25.1% CAGR. Western Digital's (NASDAQ:WDC) new Helium drives are aimed in large part at this segment.
- The market for high-margin performance-optimized drives, where Seagate (NASDAQ:STX) has a leading position, is expected to see a -4.9% CAGR. In addition, the segment's ASP is expected to fall 17.1% annually.
- PC drives are a mixed bag: Sales of 3.5" desktop drives are expected to see a -7% CAGR, but 2.5" mobile/notebook drives are seen growing at a 4.2% annual clip. CAGR forecasts for 2.5" and 3.5" consumer electronics drives are respectively at 4.4% and 2.4%.
- Though both Seagate and Western have both launched SSDs, Western has been more aggressive at increasing its flash exposure, as evidenced by the sTec, VeloBit, and Virident deals. Seagate is looking to strengthen its hard drive position through the just-closed Xyratex acquisition. Both firms are pitching 5mm-thin ultra-slim hard drives as an alternative to notebook SSDs.
- Other companies with strong industry exposure: MRVL, LSI, HTCH, OTCPK:TOSBF
Apr. 1, 2014, 4:25 AM
- A district judge has ordered Marvell Technology Group (MRVL) to pay almost $1.54B for breaching two hard disk drive patents held by Carnegie Mellon University.
- The amount is well above the $1.17B that a jury awarded Carnegie in December 2012. The judge, Nora Barry Fischer, increased the payout because she believes that Marvell copied the IP through "known willful infringement."
- However, Fischer rejected Carnegie's requests for double or triple damages.
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