Marvell Forecasting ‘Extended Period of Growth’ in Its 5G Business
Marvell Technology continues to see “healthy demand” for its products, except for consumer hard drives, and its overall demand is still “outpacing supply,” said CEO Matt Murphy on an earnings call Thursday for its fiscal Q2 ended July 30. Net…
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revenue of $1.52 billion grew 41% year over year and 5% sequentially, he said. Marvell endured a “choppy” supply environment in the quarter, and “we expect our revenue mix by end market will continue to be influenced more by supply than demand in the near term,” he said. “We are encouraged to see some pockets of additional supply starting to open up,” said Murphy. But for higher-complexity products with long manufacturing cycle times, “the supply chain for leading-edge technology and advanced packaging remains very tight,” he said. Q2 revenue in Marvell’s carrier infrastructure end market grew 45% year over year to $285 million, “well above our forecast,” he said. Marvell’s wireless business “continued to advance in the second quarter, benefiting from the growth in 5G adoption,” said Murphy. “We expect to see an extended period of growth for our 5G business, with multiple regions such as Europe and India yet to launch 5G in a meaningful fashion.” Additional growth is also expected “in other large geographies such as the U.S., which are only in their first year of mainstream deployment,” he said.