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Marvell Technology (NASDAQ:MRVL) shares fell 12% in extended-trading on Thursday after the specialty semiconductor company issued first-quarter guidance that missed expectations.
Looking ahead, Marvell expects to generate revenue of $1.15B plus or minus 5% in the first-quarter. Analysts were expecting sales of $1.37B.
Marvell also expects adjusted gross margins to be within a range of 62% to 63%, while adjusted earnings are forecast to be between $0.18 and $0.28 per share.
“In the first quarter of fiscal 2025, we expect continued sequential growth in our data center revenue with initial shipments of our cloud optimized silicon programs for AI complementing our electro-optics franchise,” said Matt Murphy, Marvell’s Chairman and CEO. “While we are forecasting soft demand impacting consumer, carrier infrastructure, and enterprise networking in the near term, we expect revenue declines in these end markets to be behind us after the first quarter, and project a recovery in the second half of the fiscal year.”
The weaker-than-expected guidance comes after Marvell, which specializes in application-specific integrated circuits, earned an adjusted $0.46 per share on $1.43B in revenue.
A consensus of analysts expected the company to earn $0.46 per share on $1.42B in revenue.
Marvell also said its board of directors have initiated a $3B stock buyback program.
The company will host a conference call at 4:30 p.m. EST to discuss the results.