Friday, August 25, 2023

Marvell: Data infrastructure represents 87% of revenue

Marvell reported net revenue for the second quarter of its fiscal 2024 of $1.341 billion, $11 million above the midpoint of the company's prior guidance, but down 12% year-on-year.

GAAP net loss for the second quarter of fiscal 2024 was $(207.5) million, or $(0.24) per diluted share. Non-GAAP net income for the second quarter of fiscal 2024 was $290.2 million, or $0.33 per diluted share.

"Marvell delivered second quarter fiscal 2024 revenue above the midpoint of guidance, and we are forecasting sequential revenue growth to accelerate in the third quarter. This growth is being driven primarily by AI and cloud infrastructure," said Matt Murphy, Marvell's Chairman and CEO. "Demand from AI applications continues to strengthen, driving our overall revenue outlook from AI for this fiscal year even higher than previously outlined. Our strategy to focus on data infrastructure across a diverse set of end markets is serving us well despite the backdrop of a softening macroenvironment."

Some highlights:

  • Data infrastructure revenue represented 87 percent of total revenue.
  • Data center revenue grew 6% QoQ, with cloud growing over 20% QoQ.
  • Enterprise networking revenue declined 10% QoQ, due to inventory corrections.
  • Carrier revenue declined 5% QoQ; wireline decline partially offset by 5G growth.
  • Automotive/industrial revenue grew 23% QoQ; automotive continued strong growth.


Ericsson and Huawei renew global patent license

Ericsson and Huawei have renewed a multi-year global patent cross-licensing agreement that covers patents essential to standards relevant to the products of the parties, including 3G, 4G, and 5G.

The agreement covers the companies’ respective sales of network infrastructure and consumer devices, granting both parties global access to each other's patented, standardized technologies.

"We are pleased to announce our renewal of our global cross-licensing agreement with Huawei," said Christina Petersson, Chief Intellectual Property Officer at Ericsson. "Both companies are major contributors to mobile communication standards and recognize the value of each other's intellectual property. This agreement demonstrates the commitment of both parties that intellectual property should be respected and rewarded, and that leading technological innovations should be shared across the industry. A balanced approach to licensing ensures that the interests of both patent holders and implementers are served fairly, driving healthy, sustainable industry development for the benefit of consumers and enterprises everywhere."

With the current portfolio of IPR licensing contracts, Ericsson estimates the full-year 2023 IPR licensing revenues to be approximately SEK 11 billion.

Jabil looks to sell its Mobility business to BYD for $2.2B

Jabil announced a preliminary agreement to sell its Mobility business to  BYD Electronic (International) for  approximately $2.2 billion.

"This transformational deal would represent the largest transaction in the history of our company, and I am thrilled to be able to work with a reputable company like BYDE to drive this business successfully forward,” said CEO Kenny Wilson.

“If completed, the proceeds from this transaction will enable us to enhance our shareholder-centric capital framework, including incremental share buybacks. Additionally, it will provide opportunities for further investment in electric vehicles, renewable energy, healthcare, AI cloud data centers, and other end-markets," he added.

As part of the agreement, the parties have agreed to endeavor to enter into a definitive agreement. The divestiture will not be completed until the parties have completed due diligence and executed a definitive agreement and closed the transaction, which will be subject to the satisfaction of required regulatory approvals and other customary closing conditions.