Marvell Technology, a provider of storage, communications and consumer silicon solutions, reported a 207% decline in its net profit for the third quarter ended October 2007. It recorded a net loss of $6.4m compared to a profit of $6m in the previous year due to an increase in research and other operating costs.
The company recorded year-on-year revenue growth of 46% from $758.2m in third quarter, an increase of 46% compared to $520.4m for the same period in the previous year due to the increase in consumer electronics and PC chips. The operating loss was $6.4m compared to an operating profit $5.6m. Earnings per share decreased to -$0.01 compared to $0.01 last year.
We are extremely pleased with our performance this quarter and see even greater opportunities in the fourth quarter, said Sehat Sutardja, president and chief executive at Marvell. Marvell achieved record revenues, reached a $3 billion annual run rate and our operating margins and earnings per share on a pro forma basis have exceeded our expectations. The increasing sales trend is a result of our investments in a broad range of technologies and from our ability to efficiently integrate these technologies into superior products across many markets.
The company also announced that due to the net loss for the quarter, it plans to reduce its headcount by 400 employees, or approximately 7% of its total workforce.
Marvell’s competitor LSI Corporation also reported similar results with a net loss of $140.6m in the third quarter ended September 2007 compared to profit of $43m in the previous year. The company recoded a year-on-year increase of 44.5% in its sales to reach $727m compared to $493m last year.
Source: ComputerWire daily updates