Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Marvell (Nasdaq: MRVL ) popped 13% in intraday trading today after issuing better-than-expected earnings.
So what: Non-GAAP EPS of $0.38 fell 5% year over year but beat the $0.37 consensus estimate. GAAP EPS of $0.31 fell from $0.33 in the year-earlier quarter. Revenue of $898 million was essentially flat year over year but ahead of the $889 million consensus forecast.
Now what: Troubled Research In Motion (Nasdaq: RIMM ) is an important Marvell customer. The company has also been under pressure because of weak PC demand. The better-than-expected earnings and revenue suggest Marvell may be less exposed to RIM and PC market challenges than investors had feared. Management didn't offer guidance, but made generally positive comments, including:
We continue to execute well on all of our new product initiatives including in our Mobile and Wireless end market ... we experienced solid revenue growth in all our served end markets.... Looking forward, we continue to focus our investments on initiatives designed to increase revenue and profit through both new products and share gains.
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