Marvell Technology Plunges on Weaker-than-expected Q1 Revenue Outlook (MRVL)

Marvell Technology Group Ltd. (NASDAQ: MRVL) shares are sinking in today�s trading after the company gave a weaker-than-expected first-quarter revenue outlook. The company also announced its fourth-quarter financial results.

For the fourth quarter of fiscal 2011, Marvel reported revenue of $901 million, up 7% over the same period in fiscal 2010 and 6% over the previous quarter. For fiscal 2011, the company�s revenue was $3.61 billion, up 29% over fiscal 2010.

Marvel reported fourth-quarter GAAP net income of $223 million or $0.33 per share, compared with GAAP net income of $205 million or $0.31 per share reported for the same period in fiscal 2010. The company reported GAAP net income of $904 million or $1.34 per share for the full fiscal year.

The company�s non-GAAP net income for the fourth quarter was $273 million or $0.40 per share, compared with non-GAAP net income of $266 million or $0.40 per share reported for the fourth quarter of fiscal 2010.

Dr. Sehat Sutardja, chairman and CEO of Marvell, said that the company had a strong fiscal year for 2011, with revenue up 29% over the previous year and free cash flow of almost $1.1 billion or $1.60 per share.

Marvell also provided revenue guidance for the first quarter. The company said that it expects first-quarter revenue to come in between $800 million and $850 million, which is below the consensus estimate of $882.5 million.

Following the weaker than expected first-quarter financial results, Marvell shares plunged in today�s trading. The stock reached a low of $16.50 in early trading, and at last check, it was down 8.67% to $16.64, with volume up from daily average of 13.73 million to 13.78 million.

Marvell shares have a 52-week range of $13.87-$22.87. The stock is currently trading below its 50-day and 200-day moving averages. Year-to-date the stock is down 10.3%.

Marvell provides fables semiconductor for application specific standard products.

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