By RTT News,
February 20, 2014, 08:59:00 PM EDT
(RTTNews.com) - Chipmaker Marvell Technology Group Ltd. ( MRVL ) reported Thursday a profit for the fourth quarter that more than doubled from last year, despite lower margins, reflecting double-digit revenue growth. Both adjusted earnings per share and quarterly revenues topped analysts' expectations. The company also provided earnings and revenue guidance for the first quarter, above Street view.
Separately, the company also announced the appointment of Michael Rashkin as the new chief financial officer, effective February 17. Rashkin, who brings in more than 40 years of experience in finance, tax and operations in high technology industries, has been serving as Interim CFO since early December 2013, when Brad Feller resigned as interim CFO. Prior to joining Marvell, Rashkin spent 13 years at Apple Inc. ( AAPL ).
The Hamilton, Bermuda-based company reported net income of $106.63 million or $0.21 per share for the fourth quarter, higher than $50.16 million or $0.09 per share for the prior-year quarter.
Excluding items, adjusted net income for the quarter was $150.97 million or $0.29 per share, compared to $104.36 million or $0.19 per share in the year-ago quarter.
On average, 27 analysts polled by Thomson Reuters expected the company to report earnings of $0.25 per share for the quarter. Analysts' estimates typically exclude special items.
Revenue for the quarter increased 20 percent to $931.75 million from $775.29 million in the same quarter last year, and topped twenty-seven Wall Street analysts' consensus estimate of $901.13 million.
Gross margin for the quarter contracted 240 basis points to 49.8 percent from last year's 52.2 percent. Total operating expenses for the quarter edged up to $363.89 million from $360.85 million in the year-ago quarter.
Further, Marvell said it paid a quarterly dividend of $0.06 per share on December 23, 2013 to all shareholders of record as of December 12, 2013. Marvell added that it intends to pay its next quarterly dividend of $0.06 per share on March 27 to all shareholders of record as of March 13, 2014, but developments in on-going litigation could delay the payment.
"Fiscal year 2014 was the start of a turnaround for Marvell as we delivered year over year growth in revenue and profits. We made good progress in a number of critical areas during the year," Chairman and CEO Dr. Sehat Sutardja said in a statement.
For fiscal 2014, the company reported net income of $324.82 million or $0.64 per share, higher than $306.59 million or $0.54 per share in the prior year. Excluding items, adjusted net income for the quarter was $530.33 million or $1.02 per share, compared to $497.93 million or $0.86 per share in the year ago.
Total revenues for the full year grew 7 percent to $3.40 billion from $3.17 billion in the previous year.
Analysts expected the company to report full-year 2014 earnings of $0.99 per share on annual revenues of $3.37 billion.
Looking ahead to the first quarter or fiscal 2015, the company forecasts adjusted earnings per share of $0.22 +/- $0.02, on projected revenues between $870 million and $910 million. Street is currently looking for first-quarter earnings of $0.21 per share on quarterly revenues of $848.94 million.
"We are investing in advanced technologies that will help drive increased business opportunities and continued revenue and profit growth in all of our target end markets," Sutardja added.
MRVL closed Thursday's regular trading session at $16.13, up $0.36 or 2.25% on a volume of 7.73 million shares. However, the stock lost $0.43 or 2.64% in after-hours trading.
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