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Marvell Technology Group lifted its estimate of third-quarter revenue

By Steve Gavriliuc for CEOWORLD Magazine Updated:October 26, 2009

Marvell Technology Group Ltd. (Nasdaq: MRVL),the Santa Clara, Calif., provider of storage, communications and other solutions, lifted its estimate of third-quarter revenue and said it would post a tax benefit of 5 cents a share for the period.

Marvell currently projects net revenue for the third quarter of fiscal 2010 to increase to a range of $760 million to $775 million, an increase of 19 to 21 percent sequentially from net revenue of $641 million reported for the second quarter of fiscal 2010, ended August 1, 2009. The increase in projected revenues is due to broad improvement in demand within multiple end markets.

The outlook for revenue in the third quarter of fiscal 2010 was previously projected to be in a range of $680 million to $730 million, or an increase of 6 to 14 percent sequentially from the second fiscal quarter of 2010.

Marvell anticipates a one-time tax benefit during the fiscal third quarter as a result of the reversal of previously recorded tax reserves as a result of the expiration of the related statute of limitations. Marvell currently expects the reversal will result in a et tax benefit for the third fiscal quarter of 2010 of approximately $25 million, or approximately $0.05 per share on a GAAP basis.

In a statement on Monday, the company said it now expects fiscal 2010 third-quarter revenue of $760 million to $775 million, citing “broad improvement in demand within multiple end markets.” It previously had estimated $680 million to $730 million. A survey of analysts by FactSet Research produced a consensus estimate of $710.3 million of revenue for the period. The tax benefit stems from the reversal of certain tax reserves after a related statute of limitations expired, Marvell said.

Marvell Technology Group Ltd. (NASDAQ: MRVL) is a leader in the development of storage, communications and consumer silicon solutions. Marvell’s diverse product portfolio includes switching, transceiver, communications controller, wireless, and storage solutions that power the entire communications infrastructure, including enterprise, metro, home, and storage networking.

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