August 30, 2024 - $Marvell Technology (MRVL.US)$ shares rose 7.37% to $74.99 in early trading on Friday.

The company reported the financial results for the second quarter of the fiscal year 2025. It reported net loss narrowed, and revenue exceeded Wall Street revenue estimates in its Q2, driven by a surge in artificial intelligence demand and the ramp-up of its custom AI programs.

Financial Outlook for the Q2 FY2025

• Q2 Net Revenue: $1.273 billion, declined by 5% year-on-year.

• Q2 Gross Margin: 46.2% GAAP gross margin; 61.9% non-GAAP gross margin.

• Q2 Diluted income (loss) per share: $(0.22) GAAP diluted loss per share; $0.30 non-GAAP diluted income per share.

"Marvell's second quarter revenue grew 10% sequentially, above the mid-point of guidance driven by strong demand from AI. We saw strong growth from our electro-optics products and our custom AI programs began to ramp," said Matt Murphy, Marvell's Chairman and CEO. "Next quarter, we expect our combined enterprise networking and carrier end markets to return to growth, while our data center end market growth accelerates. As a result, for the third quarter of fiscal 2025, we expect all our end markets to grow sequentially, with consolidated revenue forecasted to grow 14% sequentially at the mid-point, accompanied by a significant increase in operating leverage."

Financial Outlook for the FY2025

• Net revenue is expected to be $1.450 billion +/- 5%.

• GAAP gross margin is expected to be approximately 47.2%.

• Non-GAAP gross margin is expected to be approximately 61%.

• GAAP operating expenses are expected to be approximately $693 million.

• Non-GAAP operating expenses are expected to be approximately $465 million.

• Basic weighted-average shares outstanding are expected to be 867 million.

• Diluted weighted-average shares outstanding are expected to be 875 million.

• GAAP diluted loss per share is expected to be $(0.09) +/- $0.05 per share.

• Non-GAAP diluted income per share is expected to be $0.40 +/- $0.05 per share.