Shares of Marvell Technology (NASDAQ:MRVL) have jumped today, up by 6% as of 12:50 p.m. EDT, after the company reported fiscal first-quarter earnings. The chipmaker topped Wall Street's forecasts for both sales and profits.
Revenue in the fiscal first quarter came in at $694 million, easily beating the $678.7 million in sales that analysts were modeling for. That resulted in adjusted net income of $118 million, or $0.18 per share. The market was expecting just $0.14 per share in adjusted profit. Marvell generated $176 million in operating cash flow and finished the quarter with $668 million in cash on the balance sheet.
"In a challenging environment, solid execution by the Marvell team drove strong first quarter financial results with disciplined operating expense management, healthy operating cash flow, and revenue above the mid-point of guidance, enabled by stronger demand for our networking products from the datacenter and 5G infrastructure end markets," CEO Matt Murphy said in a statement. "While we did experience some COVID-19 supply chain impacts on our storage business in the first quarter, we expect a bounce back in the second quarter and we project our networking business to continue to grow."
The tech specialist's supply chain has been affected by U.S. government export restrictions on certain Chinese companies. Marvell was still able to offer some guidance, albeit with a wider range for revenue to accommodate greater uncertainties.
Revenue in the second quarter is expected to be $720 million, plus or minus 5%. Adjusted gross margin should be around 63%, and adjusted earnings per share are forecast at $0.17 to $0.23.