| Tech Stock News and Analysis |
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| Tuesday, October 03, 2006 |
MRVL shares lost 12% Tuesday after the company said demand for its chips would decline in the third quarter and administrative expenses would rise.
The company blamed lower demand from its hard disk drive customers. It said the personal computer sector is weak and inventory has increased.
Marvell Technology's stock closed Tuesday at $16.80, down $2.29, or 12%.
The 52-week range for Marvell's stock is $16.70 to $36.83.
Marvell Technology Group said it expected a significant increase in administrative expenses in the third quarter of fiscal 2007 due to higher costs related to a previously announced internal review of stock option practices and related accounting matters.
Sehat Sutardja, Marvell's president and chief executive officer, said he expected the sales downturn to be a "short-term event."
"We remain focused on continuing to aggressively invest in our business and to expand the reach of our technology into a growing number of high volume targets," he said in a prepared statement.
Marvell Technology is a fabless semiconductor company. It provides digital and mixed-signal integrated circuits for data storage and broadband communications. The company's products include chips that convert analog data from a magnetic disk into digital form for computing, preamplifiers, and Ethernet switch controllers and transceivers. |
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