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Marvell cuts quarterly sales target
Marvell cuts quarterly sales target
Dylan McGrath
1/27/2012 1:01 PM EST
SAN FRANCISCO—Chip maker Marvell Technology Group Ltd. Friday (Jan. 27) cut its sales target for the quarter ending Jan. 28, saying revenue would be lower than expected because of disk drive shortages created by last year's flooding in Thailand.
Marvell (Santa Clara, Calif.) said it now expects sales for the fourth quarter of its fiscal 2012 to be between $735 million and $745 million, down from a prior target range of $775 million to $825 million.
Rampant flooding in the second half of 2011 forced the closure of a number of electronics manufacturing facilities and created a shortage of hard disk drives. In December, market research firm IHS iSuppli cut its PC market forecast for 2012 to growth of 6.8 percent from 9.5 percent, citing hard disk drive shortages created by the Thai floods.
"The supply of disk drives started to recover in our fourth fiscal quarter, but later than we had originally anticipated," said Sehat Sutardja, Marvell's chairman and CEO, in a statement issued Friday. "Our SSD revenues grew more than expected but not enough to offset the impact of the Thailand floods on our HDD volumes."
Sutardja said Marvell also experienced year-end demand softness from mobile and wireless customers, particularly in China. "We believe these effects are near term only, and should not impact our results in the new fiscal year," Sutardja said.
Marvell plans to issue its fiscal fourth quarter results Feb. 23
Marvell (Santa Clara, Calif.) said it now expects sales for the fourth quarter of its fiscal 2012 to be between $735 million and $745 million, down from a prior target range of $775 million to $825 million.
Rampant flooding in the second half of 2011 forced the closure of a number of electronics manufacturing facilities and created a shortage of hard disk drives. In December, market research firm IHS iSuppli cut its PC market forecast for 2012 to growth of 6.8 percent from 9.5 percent, citing hard disk drive shortages created by the Thai floods.
"The supply of disk drives started to recover in our fourth fiscal quarter, but later than we had originally anticipated," said Sehat Sutardja, Marvell's chairman and CEO, in a statement issued Friday. "Our SSD revenues grew more than expected but not enough to offset the impact of the Thailand floods on our HDD volumes."
Sutardja said Marvell also experienced year-end demand softness from mobile and wireless customers, particularly in China. "We believe these effects are near term only, and should not impact our results in the new fiscal year," Sutardja said.
Marvell plans to issue its fiscal fourth quarter results Feb. 23