The shares of data infrastructure semiconductor solutions developer Marvell Technology (NASDAQ:MRVL) have been surging lately, owing to investor optimism regarding the company’s growth potential. However, MRVL’s latest quarterly report reflects depressed earnings due to industry headwinds and restructuring expenses. So, will the company be able to live up to investors’ expectations? Read more to find out.Data infrastructure semiconductor company Marvell Technology, Inc. (MRVL) has maintained its momentum despite the current slowdown in the semiconductor industry due to global supply constraints. This is evident in MRVL’s 23.6% gains over the past month, versus the iShares PHLX Semiconductor ETF’s (SOXX) 9.2% returns over this period. Shares of MRVL have gained 6.5% over the past five days, while SOXX returned 2%.
MRVL’s latest earnings report, released on June 7, accelerated its momentum. The stock has gained 10% since the earnings report to close yesterday’s trading session at $53.59. While the company’s rising revenues and declining losses year-over-year appealed to investors, a closer look at the report reveals poor financial performance compared to the prior quarter. MRVL’s non-GAAP revenues for its fiscal first quarter, ended May 2, was $832.23 million, up 20% year-over-year. The company’s revenues increased 4.3% sequentially. However, despite this improvement in top line, MRVL’s non-GAAP gross profits declined marginally from the prior quarter to $481.14 million. And its operating loss rose 4,641.4% sequentially to $82.31 million.
MRVL reported a $88.24 million net loss for this period. This compares to $16.54 million in net income reported in the prior quarter. Its loss per share increased 750% sequentially to $0.13. Its cash outflow from operating activities came in at $13.73 million, compared to $175.63 million in cash inflow in the prior quarter.