Shares of Marvell Tech and TiVo Dip Following Earnings

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Marvell Technology Group Ltd. (NASDAQ:MRVL) posted a decrease in profit as revenue declined. Net income for Marvell Technology Group Ltd. fell to $80.7 million (13 cents per share) vs. $222.9 million (33 cents per share) a year earlier. This is a decline of 63.8% from the year-earlier quarter. Revenue fell 17.5% to $742.7 million from the year-earlier quarter. Marvell Technology Group Ltd. reported adjusted net income of 21 cents per share. By that measure, the company beat the mean estimate of 12 cents per share. Analysts were expecting revenue of $740.3 million.

“Fiscal year 2012 was a challenging year for Marvell in which we endured not only a choppy macro-economic environment but also the effects of an earthquake, massive floods, and product transitions at one of our largest customers. In spite of these challenges, Marvell delivered excellent profitability and free cash flow margins while simultaneously increasing our investments for several new initiatives,” said Dr. Sehat Sutardja, Marvell’s Chairman and Chief Executive Officer. “During fiscal 2012, Marvell was successful in several new products and initiatives. Our China TD business is now producing tangible results, our SSD revenue has exceeded expectations and our networking business is growing due to new products and share gains. As a result of these new initiatives and the recovery in the hard disk drive industry, we expect to see steady improvement in each of our end markets in the new fiscal year.”

Competitors to Watch: Texas Instruments Inc. (NYSE:TXN), Intel Corporation (NASDAQ:INTC), Broadcom Corporation (NASDAQ:BRCM), PLX Technology, Inc. (NASDAQ:PLXT), Standard Microsystems Corp. (NASDAQ:SMSC), PMC-Sierra, Inc. (NASDAQ:PMCS), LSI Corporation (NYSE:LSI), STMicroelectronics N.V. (NYSE:STM), and NVIDIA Corporation (NASDAQ:NVDA).

TiVo Inc. (NASDAQ:TIVO) climbed to a profit in the fourth quarter on lower costs. Reported a profit of $7.2 million (6 cents per diluted share) in the quarter. TiVo Inc. had a net loss of $34.4 million or a loss 30 cents per share in the year-earlier quarter. Revenue rose 19.1% to $66.5 million from the year-earlier quarter. TiVo Inc. beat the mean analyst estimate of a loss of 25 cents per share. It beat the average revenue estimate of $50.8 million.

Tom Rogers, President and CEO of TiVo, said, “This was a break-out year for TiVo on a number of fronts. First, we increased total net subscriptions by 234,000 in the fourth quarter, the highest quarterly increase in close to six years, which led to an increase in overall net subscriptions of 11% year-over-year and we expect this growth to continue. Second, we extended our leadership position in the advanced television space by substantially increasing the number of major domestic and international operators that TiVo is now deploying with, including Virgin Media, Charter, DIRECTV, ONO, Suddenlink, RCN, and Grande. Third, we proved that our intellectual property has significant value, as consideration from two settlements has now totaled over $800 million to date. And finally, we translated this success into significant profit in the last fiscal year, highlighted by Adjusted EBITDA of $147 million and net income of $102 million. We believe that as we continue to execute on our operator deals, continue to drive value from our intellectual property, and continue to innovate in advanced television, we will be in a position for sustained growth.”

Competitors to Watch: DISH Network Corp. (NASDAQ:DISH), Comcast Corporation (NASDAQ:CMCSA), Virgin Media Inc. (NASDAQ:VMED), DIRECTV (NASDAQ:DTV), Time Warner Cable Inc. (NYSE:TWC), Cablevision Systems Corp. (NYSE:CVC), Verizon (NYSE:VZ), Charter (NASDAQ:CHTR), Time Warner (NYSE:TWX), AT&T (NYSE:T) and Echostar Corporation (NASDAQ:SATS).

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com

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