Chip maker Marvell Technology reported higher sales and a slimmer quarterly loss than expected, yet announced plans to slash the jobs of about 400 of its workers or about 7% of its payroll.
Santa Clara, California-based Marvell said the cuts would be mostly in the US and Israel. They are expected to occur in the current quarter and will cost as much as $8m in employee severance pay and related expenses.
For its quarter ended October 27, the company lost $6.4m, or 1 cent a share, compared to a profit of $6m, or 1 cent, a year ago. Revenue grew 46% to $758.25m. Analysts’ average forecasts called for a loss of 6 cents a share and revenue of $711.3m.
Excluding one-time expenses, the company turned a 14-cent-a-share profit, compared with a 12-cent profit on the same basis last year. This also beat consensus forecasts of 8 cents a share, excluding items.
Marvell’s shares plunged more than 10%, or $1.69, to close at $14.96 on the Nasdaq yesterday, setting a new 52-week low.