Marvell Technology, Inc. Q3 FY2020 Earnings Call

· Earnings call transcript and AI-powered summary

Quarter Overview

  • Q3 revenue was $662 million, slightly above midpoint guidance ($660M).
  • GAAP loss per share was $0.12; non-GAAP EPS was $0.17 (midpoint of guidance).
  • Networking revenue was $330 million (50% of total), flat sequentially but better than expectations for a decline.
  • Storage revenue was $288 million, up 5% sequentially driven by enterprise/datacenter demand.
  • The quarter included partial contributions from the Aquantia acquisition.

Key Business Drivers and Performance

5G and Networking
  • Marvell shipped significant volumes of 5G products to a Tier 1 customer supporting early deployments in Korea.
  • The 5G production ramp began ahead of schedule (initially expected Q4, but started in Q3).
  • Embedded processors delivered double-digit sequential growth due to these 5G shipments.
  • Initial deployments in Korea will continue for several quarters; additional growth expected from Japan and the U.S. in fiscal 2021.
  • Second Tier 1 customer’s baseband processors enter production in Q4 of fiscal 2021.
  • Design win secured for a customized Fusion processor for massive MIMO radio heads, with production beginning in early calendar 2021.
Aquantia Acquisition
  • Aquantia’s multi-gig Ethernet products added to Marvell’s Ethernet portfolio.

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Operator: Ladies and gentlemen, thank you for standing by and welcome to the Q3 2020 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]I would now like to hand the conference over to your speaker, Ashish Saran, Vice President, Investor Relations. Sir, please begin. Ashish Saran: Thank you, and good afternoon, everyone. Welcome to Marvell's third quarter fiscal year 2020 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 today may include forward-looking statements, which are subject to significant risks and uncertainties and which 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 com

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