(Reuters) – Chipmaker Marvell Technologies posted a fall in second-quarter revenue, as weak enterprise market along with economic uncertainty weighed on demand for its chips and networking hardware.
Shares of the California-based company fell 5% in after-market trading
Companies are holding off on upgrades to their technology infrastructure as an uncertain economic outlook clouds future prospects.
Marvell’s recovery in China has been weak as American legislation restricted the exports of certain chips to the Asian country in October last year.
The company, which makes equipment such as switches and adaptors, projected revenue of $1.40 billion, plus or minus 5%, for the third quarter, the lower end of which is below analyst expectations of $1.39 billion.
Marvell forecast per share earnings of 40 cents, plus or minus 5 cents for the third quarter, which was in line with expectations, according to Refinitiv data.
Its revenue fell 12% from a year earlier to $1.34 billion. On an adjusted basis, the company earned 33 cents compared with estimates of a profit of 32 cents.
(Reporting by Zaheer Kachwala in Bengaluru; Editing by Krishna Chandra Eluri)
