Marvell Technology Inc (MRVL, Financial), a fabless chip designer focused on wired networking, reported its financial results for the second quarter of fiscal year 2025. The company serves various end markets, including data centers, carriers, enterprises, automotive, and consumer sectors, with a range of semiconductor solutions.
Performance Overview
Marvell Technology Inc (MRVL, Financial) reported net revenue of $1.273 billion for Q2 FY2025, surpassing the analyst estimate of $1.252 billion. However, the company posted a GAAP net loss of $193.3 million, or $(0.22) per diluted share, missing the estimated earnings per share (EPS) of $(0.13). On a non-GAAP basis, the company reported a net income of $266.2 million, or $0.30 per diluted share.
Financial Achievements and Challenges
Despite a 5% year-on-year decline in net revenue, Marvell's Q2 revenue grew 10% sequentially, driven by strong demand from AI and growth in electro-optics products. The company also began ramping its custom AI programs. However, the GAAP gross margin stood at 46.2%, while the non-GAAP gross margin was 61.9%, indicating the impact of various special items and stock-based compensation.
Key Financial Metrics
| Metric | Q2 FY2025 | Q1 FY2025 | Q2 FY2024 |
|---|---|---|---|
| Net Revenue | $1.273 billion | $1.161 billion | $1.341 billion |
| GAAP Gross Margin | 46.2% | 45.5% | 38.9% |
| Non-GAAP Gross Margin | 61.9% | 62.4% | 60.3% |
| GAAP Net Loss | $(193.3) million | $(215.6) million | $(207.5) million |
| Non-GAAP Net Income | $266.2 million | $206.7 million | $290.2 million |
Income Statement Highlights
Marvell Technology Inc (MRVL, Financial) reported a gross profit of $587.6 million, with operating expenses totaling $688.0 million. The company faced an operating loss of $100.4 million and an interest expense of $48.4 million. The provision for income taxes was $47.1 million, resulting in a net loss of $193.3 million for the quarter.
Balance Sheet and Cash Flow
As of August 3, 2024, Marvell Technology Inc (MRVL, Financial) had total assets of $20.293 billion, including $808.7 million in cash and cash equivalents. The company's total liabilities stood at $6.088 billion, with stockholders' equity amounting to $14.205 billion. Cash flow from operations for the second quarter was $306.4 million.
Commentary and Outlook
“Marvell’s second quarter revenue grew 10% sequentially, above the mid-point of guidance driven by strong demand from AI. We saw strong growth from our electro-optics products and our custom AI programs began to ramp,” said Matt Murphy, Marvell’s Chairman and CEO.
Looking ahead, Marvell Technology Inc (MRVL, Financial) expects net revenue for the third quarter of fiscal 2025 to be approximately $1.450 billion, with a GAAP gross margin of 47.2% and a non-GAAP gross margin of 61%. The company anticipates a GAAP diluted loss per share of $(0.09) and a non-GAAP diluted income per share of $0.40.
For more detailed insights and the full earnings report, visit the 8-K filing.
Explore the complete 8-K earnings release (here) from Marvell Technology Inc for further details.
