The shares of Marvell Technology Group Ltd. rose during the extended session on Monday after the chipmaker reported better-than-expected quarterly results on Wall Street and forecast record revenue months after closing a major acquisition.
shares rose 3% after-hours, after falling 0.9% in regular session to close at $ 48.27.
“The acquisition of Inphi expands and accelerates our growth opportunity in the data center, Marvell’s largest end-market in terms of revenue,” Matt Murphy, CEO of Marvell, said in a statement.
Marvell has announced its intention to acquire Inphi Corp. in October and closed the deal in April.
Marvell expects adjusted earnings of 28 cents to 34 cents per share on revenue of $ 1.03 billion to $ 1.1 billion for the fiscal second quarter, while analysts polled by FactSet expected earnings of 30 cents per share on revenue of $ 841.1 million.
Quarterly sales of $ 1 billion or more would be a major milestone for Marvell. The company’s biggest selling quarter to date was the July 2014 quarter, when it grossed $ 961.5 million, according to FactSet data.
“Marvell’s outlook for strong revenue growth in the second quarter highlights strong demand in all of our key end markets,” said Murphy. “I have never felt so strong in our outlook and I think we are at the start of a multi-year growth cycle. “
The company reported a tax loss of $ 88.2 million, or 13 cents per share, in the first quarter, compared to a loss of $ 113 million, or 17 cents per share, in the prior year period .
Adjusted profit, which excludes stock-based compensation expense and other items, was 29 cents per share, down from 18 cents per share in the last year quarter.
Revenue reached $ 832.3 million from $ 693.6 million in the last year quarter. Analysts polled by FactSet had forecast a profit of 27 cents a share on revenue of $ 806.7 million.
Over the past 12 months, Marvell shares have gained 35%, compared to the PHLX Semiconductor SOX index 59%,
a 32% increase in the S&P 500 SPX index,
and a 41% gain in the Nasdaq COMP composite index, with a strong technological component,