Marvell Technology Group (MRVL) swung to a net profit for the quarter ended Apr. 29, 2017. The company has made a net profit of $106.62 million, or $ 0.21 a share in the quarter, against a net loss of $22.68 million, or $0.04 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $124.29 million, or $0.24 a share compared with $15.82 million or $0.03 a share, a year ago.
Revenue during the quarter grew 11.51 percent to $579.18 million from $519.38 million in the previous year period. Gross margin for the quarter expanded 724 basis points over the previous year period to 60.19 percent. Operating margin for the quarter period stood at positive 17.07 percent as compared to a negative 3.87 percent for the previous year period.
Operating income for the quarter was $98.89 million, compared with an operating loss of $20.12 million in the previous year period.
"Marvell executed well in the first quarter of fiscal year 2018 as a renewed focus on its core businesses of storage, networking and connectivity were able to generate revenue growth of 12% year-over-year, driven by the long-term secular growth trends in the amount of data being created, stored and transmitted both wired and wirelessly," said Marvell's president and chief executive officer, Matt Murphy. “We are pleased to see that this growth was accompanied by a significant expansion in gross and operating margin, demonstrating the strength in our business model and the value Marvell’s solutions are bringing to our customers.”
For the second-quarter, Marvell Technology Group forecasts revenue to be in the range of $585 million to $615 million. The company expects diluted earnings per share to be in the range of $0.21 to $0.27 . On an adjusted basis, the company expects diluted earnings per share to be in the range of $0.26 to $0.30.
Operating cash flow turns positiveMarvell Technology Group has generated cash of $135.15 million from operating activities during the quarter as against cash outgo of $658.02 million in the last year period. The company has spent $18.31 million cash to meet investing activities during the quarter as against cash inflow of $210.78 million in the last year period.
The company has spent $204.97 million cash to carry out financing activities during the quarter as against cash outgo of $50.71 million in the last year period.
Cash and cash equivalents stood at stood at $725.96 million as at Apr. 29, 2017.
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