Marvell Technology, Inc. Q2 FY2021 Earnings Call

· Earnings call transcript and AI-powered summary

Quarter Highlights

  • Q2 FY2021 revenue was $727 million, up 5% sequentially and 11% year-over-year, and above guidance midpoint by $7 million.
  • Non-GAAP EPS was $0.21, above guidance midpoint; GAAP loss per share was $0.24.
  • Networking revenue reached $406 million, up 3% sequentially and 23% year-over-year, driven by strong 5G deployments, cloud data center traction, and SmartNIC/HSM product growth.
  • Storage revenue was $290 million, up 12% sequentially and 6% year-over-year, driven by custom SSD controller ramps and strong nearline HDD demand.
  • Operating cash flow was $226 million; cash and short-term investments rose to $832 million.

Key Business Developments

  • Strong design win momentum across ASIC, storage, networking, and 5G base station markets.
  • Marvell extended its partnership with TSMC to develop products on the advanced 5nm N5P process, with multiple products sampling by end of 2021.
  • A new Tier-1 hyperscaler custom ASIC win under the Avera platform, expanding Marvell's presence in cloud infrastructure silicon.
  • Shift to a custom silicon model for ARM-based server processors. Future ARM server investments will focus exclusively on custom designs for hyperscale customers.

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Operator: Ladies and gentlemen, thank you for standing by, and welcome to the Second Quarter Fiscal 2021 Marvell Technology Group Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today’s conference is being recorded. [Operator Instructions] It is now my pleasure to introduce Vice President of Investor Relations, Ashish Saran. Ashish Saran: Thank you, and good afternoon, everyone. Welcome to Marvell’s second quarter fiscal year 2021 earnings call. Joining me today are Matt Murphy, Marvell’s President and CEO; and Jean Hu, our CFO. I would like to remind everyone that certain comments made today may include forward-looking statements, which are subject to significant risks and uncertainties that could cause our actual results to differ materially from management’s current expectations. Please review the cautionary statements and risk factors contained in our earnings press release, which we filed with the SEC today and posted on our website, as well as our most recent 10-K and 10-Q filings. We do not intend to update our forward-looking statements. During our call today, we will refer to certain non-GAAP financial measures. A reconciliation between our GAAP and non-GAAP financial measures is available on our website in the Investor Relations section. With that, I’ll turn the call over to Matt for his comments on our perfo

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