Marvell Technology, Inc. Q3 FY2023 Earnings Call

· Earnings call transcript and AI-powered summary

Quarter Overview

  • Q3 FY23 revenue reached $1.54B, a company record. This represents 27% year-over-year growth and 1% sequential growth.
  • Revenue landed near the lower end of guidance due to late-quarter customer shipment delays and inventory reductions.
  • Q4 FY23 is expected to decline sequentially, driven primarily by steep drops in storage demand and significant weakening from China-based OEM customers.
  • Q3 revenue mix: Data Center 41%, Enterprise Networking 24%, Carrier Infrastructure 18%, Consumer 12%, Auto/Industrial 5%.

Key Business Segment Highlights

Data Center
  • Q3 revenue: $627M, up 26% year-over-year, down 3% sequentially.
  • Cloud business delivered strong growth; on‑premise data center softened.
  • Storage (HDD, SSD, Fibre Channel) demand dropped several quarters faster than historic cycles, triggering a steep Q4 forecasted decline.
  • Q4 outlook: Data center expected to decline mid‑ to high‑teens year-over-year and mid‑20% sequentially.
  • China weakness primarily affects enterprise-related demand rather than cloud.
  • Long‑term: Strong pipeline in cloud-optimized silicon, CXL, and advanced optical products; major Tier‑1 hyperscaler design win secured.
Carrier Infrastructure
  • Q3 revenue: $271M, up 26% year-over-year, down 5% sequentially.
  • Wireless (5G) continues strong, now at a >$600M annualized run rate.

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Operator: Good afternoon, and welcome to Marvell Technology’s Fiscal Third Quarter 2023 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. Please note this event is being recorded. I would now like to turn the conference over to Mr. Ashish Saran, Senior Vice President of Investor Relations. Please go ahead. Ashish Saran: Thank you, and good afternoon, everyone. Welcome to Marvell's third quarter fiscal year 2023 earnings call. Joining me today are Matt Murphy, Marvell's President and CEO; and Jean Hu, our CFO. Let me 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 in the Investor Relations section of our website. With that, I'll turn the call over to Matt for his comments on our performance. Matt? Matt Murphy: Thanks, Ashish, and good afternoon, ever

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