Marvell Technology Group Ltd. (NASDAQ:MRVL) reported upbeat earnings for its second quarter, but issued weak earnings guidance for the third quarter.
The Santa Clara, Calif.-based company said revenue for the second quarter of fiscal 2020 was $657 million, which exceeded the midpoint of the Company's guidance provided on May 30, 2019.
GAAP net loss for the second quarter of fiscal 2020 was $(57) million, or $(0.09) per diluted share. Non-GAAP net income for the second quarter of fiscal 2020 was $110 million, or $0.16 per diluted share. Cash flow from operations for the second quarter was $73 million.
According to CEO Matt Murphy, "Marvell delivered solid second quarter results with revenue above the mid-point of our guidance and we fully achieved the operating expense reductions we had outlined last year, two quarters ahead of schedule
"In our third quarter, we face a worsening macro environment along with the ongoing impact from the current restrictions on shipments to Huawei, offset by a stabilizing storage business and the earlier than expected first production shipments of our 5G solutions."
For the third quarter, revenue is expected to be $660 million +/- 3%; GAAP gross margin is expected to be 53.5% to 54.5%. GAAP diluted loss per share is expected to be $(0.09) to $(0.05) per share. Non-GAAP diluted income per share is expected to be $0.15 to $0.19 per share.
Marvell's third quarter guidance takes into account the U.S. Government's export restriction on Huawei.
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