Marvell Cuts its Forecast, and Cuts its CFO Loose

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On Thursday, after trading had safely ended for the day, semiconductor maker Marvell Technology (Nasdaq: MRVL  ) dropped a bombshell: Sales for the third quarter of 2012 will probably come in between $765 million and $785 million -- as much as 10% short of management's prior projection of $800 million to $850 million.

Management blamed "the continued slowdown in the global economy" in general for its troubles, and weak demand for personal computers and hard disk drives (into which its chips are incorporated) in particular. But it also appears to blame its finance chief. Alongside the earnings warning, Marvell announced that Chief Financial Officer Clyde Hosein has resigned from the company ... "to pursue other opportunities." Marvell Corporate Controller Brad Feller will take over CFO duties on an interim basis as Marvell seeks out a permanent replacement.

On the plus side, solid state drives, as well as chips sold for use in networking and mobile devices, appear to be relatively healthy -- or at least "in line with prior expectations." It's not exactly all's well that end's well, but at least it's not all bad news.

Fool contributor Rich Smith has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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Rich Smith

I love things that go "boom." Sonic or otherwise, that means I tend to gravitate towards defense and aerospace stocks. But to tell the truth, over the course of a dozen years writing for The Motley Fool, I have covered -- and continue to cover -- everything from retailers to consumer goods stocks, and from tech to banks to insurers as well. Follow me on Twitter or Facebook for the most important developments in defense & aerospace news, and other great stories besides.

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Related Tickers

12/1/2015 4:00 PM
MRVL $9.38 Up +0.52 +5.87%
Marvell Technology… CAPS Rating: ***