Marvell Tech Cuts Revenue Outlook
In a double-dose of bad news, Marvell said third-quarter revenue will be less than expected and told investors it will restate past financial results due to discrepencies in its past stock-option grants. Shares of Marvell were halted prior to the announcement.
Marvell blamed the shortfall to slumping demand among its hard-disk drive customers. Marvell said the soft demand stems from weaker-than-normal seasonal shipments in the PC market, as well as excess inventory held by some of its significant storage customers. “We view this decline in our revenues as a short-term event and we remain focused on cointiuing to aggressively invest in our business and to expand the reach of our technology into a growing number of high-volume markets,” said Marvel CEO Sehat Sutardja.
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