(Reuters) -Chipmaker Marvell Technology missed Wall Street expectations for first-quarter revenue on Thursday, hurt by weak client spending in its wireless carrier and enterprise markets.
The company reported revenue of $1.16 billion, compared with estimates of $1.17 billion, according to LSEG data.
Shares of the Santa Clara, California-based company fell 5% in extended trading.
Marvell’s results signal that the company continues to grapple with weaker demand in its consumer markets as well as a cut back on IT spend by its enterprise clients due to signs of a soft economy.
“We see a favorable setup for the second half of this fiscal year, driven by continued growth in data center and the beginning of a recovery in enterprise networking and carrier infrastructure,” Marvell CEO Matt Murphy said.
The company forecast second-quarter revenue in line with analysts’ estimates. It also sees adjusted earnings per share of 29 cents, plus or minus 5 cents, compared with estimates of 30 cents.
(Reporting by Zaheer Kachwala in Bengaluru; Editing by Maju Samuel)
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