Fri, Aug 30, 8:04 PM (137 days ago)
Marvell Technology, Inc. reported a net revenue of $1,272.9 million for the quarter ended August 3, 2024, reflecting a 5.1% decline year-over-year. The decrease was primarily attributed to significant drops in sales from several end markets, notably carrier infrastructure (down 72%) and enterprise networking (down 54%), though data center sales surged by 92% due to demand for AI-related products. Gross profit improved to $587.6 million, with a gross margin of 46.2%, up from 38.9% the previous year, driven by a favorable product mix and resolution of prior claims. Operating loss narrowed to $100.4 million, and the net loss for the quarter was $193.3 million, slightly better than the $207.5 million loss in the same quarter last year. Cash flow from operations was robust at $630.9 million, bolstered by improved working capital management. Marvell's debt stood at $4.2 billion, with ongoing concerns about compliance with covenants and potential impacts from geopolitical tensions, particularly concerning trade with China. The company continues to face uncertainties related to customer demand, supply chain disruptions, and fluctuating market conditions, which could affect future operations and financial performance.