Here is a recent victim, mentioned earlier: MRVL. A double whammy. Weak outlook + options problems. It begins to remind me on Brocade. In Afterhours trading, Marvell goes down hard losing 3.50 to under 16. Note that also Broadcom and other stock is mentioned and there shall be some fallout in Q3.
[http://www.siliconinvestor.com/readmsg.aspx?msgid=22625367&srchtxt=Marvell ]
Monday October 2, 4:49 pm ET
Marvell Technology Sees Weaker 3Q Sales, Plans to Restate Results Due to Options Probe
SANTA CLARA, Calif. (AP) -- Marvell Technology Group Ltd., a maker of circuits for data storage and broadband communications, on Monday said it expects its fiscal third-quarter sales to slide 10 percent quarter over quarter.
Separately, the company also said it plans to restate past financial results after a probe into its historical stock option practices turned up discrepancies.
The actual measurement dates for financial accounting purposes of certain stock option grants differ from the recorded grant dates, Marvell said. The company said it has not yet determined the amount of the additional charges or in which past quarters they'll be booked.
Financial statements dating back to June 2000, when the company went public, should not be relied upon, the company said.
Marvell forecast third-quarter sales of $574 million, down from the second quarter due to sluggish demand from hard disk drive customers. Weaker-than-normal seasonal shipments in the personal computer market and excess inventory held by some storage customers contributed to the market softness, Marvell said.
Marvell also said it sees "a significant increase" in general and administrative expenses during the quarter, as the costs of its internal stock options review were higher than expected.
In a statement, President and Chief Executive Sehat Sutardja called the revenue decline "as a short-term event."
Marvell Technology shares fell 28 cents to close at $19.09 on the Nasdaq. |
