Marvell Technology, a leading semiconductor company, reported a net revenue of $1.2 billion for the first quarter of fiscal 2025, marking a 12% decrease from the $1.3 billion reported in the same quarter of the previous year. The decline was attributed to reduced sales across most end markets, with significant drops in the carrier infrastructure (75%), enterprise networking (58%), consumer (70%), and automotive/industrial (13%) sectors. However, this was partially offset by an 87% increase in sales from the data center end market, driven by strong demand for electro-optics products used in AI applications. The company also initiated shipments of custom AI compute products. Despite the overall revenue decline, gross profit margin improved by 3.3 percentage points year-on-year due to a favorable shift in product mix. Operating...Show More

Marvell Technology, a leading semiconductor company, reported a net revenue of $1.2 billion for the first quarter of fiscal 2025, marking a 12% decrease from the $1.3 billion reported in the same quarter of the previous year. The decline was attributed to reduced sales across most end markets, with significant drops in the carrier infrastructure (75%), enterprise networking (58%), consumer (70%), and automotive/industrial (13%) sectors. However, this was partially offset by an 87% increase in sales from the data center end market, driven by strong demand for electro-optics products used in AI applications. The company also initiated shipments of custom AI compute products. Despite the overall revenue decline, gross profit margin improved by 3.3 percentage points year-on-year due to a favorable shift in product mix. Operating expenses remained relatively flat, with research and development costs slightly down by 1% and selling, general, and administrative expenses up by 0.5%. Marvell Technology continues to navigate a challenging macroeconomic environment, including U.S. government export restrictions on certain Chinese customers, which is expected to impact revenue. The company remains committed to returning value to shareholders through its stock repurchase and dividend programs. In the reported quarter, Marvell repurchased 2.2 million shares for $150 million and paid $51.8 million in cash dividends. As of May 4, 2024, $3.1 billion remains available for future stock repurchases. Looking ahead, Marvell Technology is focused on securing long-term capacity through agreements with foundries and partners and expects to continue facing various risks, including those related to global economic conditions, customer demand, and competition in the semiconductor industry.