Marvell Technology (NASDAQ:MRVL) found its stock slid 4.9% Friday after quarterly sales and profit fell short of Wall Street estimates. Marvell also issued a weaker than expected outlook. Inventory reductions by its customers are hurting results, it said.
Net revenue for the third quarter of fiscal 2023 was $1.537 billion , at the lower end of the Company's guidance provided on August 25. GAAP net income for the third quarter of fiscal 2023 was $13 million, or $0.02 per diluted share. Non-GAAP net income for the third quarter of fiscal 2023 was $492 million, or $0.57 per diluted share. Cash flow from operations for the third quarter was $411 .0 million.
"In the third quarter of fiscal 2023, we delivered revenue of $1.54 billion, a record for Marvell, growing 27% year over year driven by our key growth drivers of cloud, 5G and automotive, as well as share and content gains in our enterprise networking end market," said CEO Matt Murphy.
"Inventory reductions, in particular at our storage customers, are impacting our near-term results and guidance, and we are working closely with them to manage their change in demand in an orderly fashion to clear the path to a resumption of growth. Our design win pipeline remains strong, our new cloud-optimized products are starting to ramp, and we are well positioned to navigate the current environment successfully and remain confident in our long-term growth drivers."
MRVL shares slid $3.35, or 7.4%, to $42.05.
