The holidays are over, but the party time will likely to
continue for ace integrated silicon circuit maker
Marvell Technology Group Ltd.
(
MRVL">MRVL
). The company has a series of new products waiting in the wings.
Plus, it has bulked up with a strategic tie-up with leading search
engine
Google Inc.
(
GOOG">GOOG
) and a newly acquired entity namelyXelerated AB.
Marvell is now offering88NV9145 PCIe (Peripheral Component
Interconnect Express)SSD controller. The88NV9145 controller will
provide a core building block designed to create nativePCIe SSDs in
flexible configurations that incrementally scale in cost, capacity
and performance.
Marvell is also introducing anotherPCIe SSD controller, namely
Z-DriveR5 , in conjunction with
OCZ Technology Group Inc.
(
OCZ">OCZ
). The Z-DriveR5 will expedite performance, reliability and
endurance while reducing the cost to deploy high performance solid
state storage systems in the data center.
In a separate development,Marvell announced that its ARMADA 1500
HD Media System-on-a-Chip will be featured into Google TV.Marvell
chip-powered Google TV solutions will enable powerful products to
be brought to market at attractive prices.
Last but not the least,Marvell announced that it completed the
acquisition of Sweden -basedXelerated AB, for an undisclosed sum.
The company is a developer of network processing and Ethernet
switching chips for a variety of telecom equipment.
Xelerated's portfolio of network processor and programmable
switches complementsMarvell's existing product portfolio and will
thereby helpMarvell to compete with rivals such as
Broadcom Corp.
(
BRCM">BRCM
) and
EZchip Semiconductor Ltd.
(
EZCH">EZCH
).
Marvell's reported a mediocre third quarter 2012 result with
earnings per share and revenue falling year over year. But the
strong mobile and wireless business performance and continuous
sharebuybacks were the positives of the quarter. The fourth quarter
guidance reflects mostly the adverse effect of the Thailand flood.
But we are pleased with an improving demand situation in China and
new product adoption.
Stiff competition in the semiconductor market from major
players, such as
Intel Corp.
(
INTC">INTC
),
Texas Instruments Inc.
(
TXN">TXN
) and
LSI Corp.
(
LSI">LSI
), significant number of pending lawsuits, higher material costs
and the company's European exposure will remain as concerns.
However, we feel that new product launches, association with Google
and synergies fromXelerated acquisition could give the company's
shares a boost.
Currently,Marvell Technology has aZacks #3 Rank, implying a
short-term Hold recommendation.
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LSI
): Free Stock Analysis Report
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Report
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