Marvell Technology (NASDAQ: MRVL) announced its financial results for the second quarter of fiscal year 2025, reporting net revenue of $1.273 billion, which exceeded the mid-point of its guidance by $23 million. The company posted a GAAP net loss of $193.3 million, or $(0.22) per diluted share, while its non-GAAP net income stood at $266.2 million, or $0.30 per diluted share. This performance was driven by strong demand from AI-related products, particularly in electro-optics and custom AI programs.
Looking ahead to the third quarter of fiscal 2025, Marvell expects all its end markets to grow sequentially, with consolidated revenue forecasted to rise by 14% at the mid-point. The company projects GAAP gross margin at approximately 47.2% and non-GAAP gross margin at around 61%, with GAAP and non-GAAP diluted income per share expected to be $(0.09) and $0.40, respectively.
- Data center revenue grew 92% y/y and 8% q/q in Q2, expect high-teens % growth q/q in Q3
- Enterprise down 54% y/y and 1% q/q; carrier down 72% y/y, up 6% q/q; expect mid-single-digit % growth q/q in Q3
- Auto/industrial revenue down 31% y/y and 2% q/q in Q2, expect mid-single-digit % growth q/q in Q3
- Consumer revenue down 47% y/y and up 112% q/q in Q2, expect Q3 revenue to grow slightly
- Q2 Net Revenue: $1.273 billion, down 5% year-on-year
- Q2 Gross Margin: 46.2% GAAP, 61.9% non-GAAP
- Q2 Diluted Income (Loss) Per Share: $(0.22) GAAP, $0.30 non-GAAP
- Q2 Cash Flow from Operations: $306.4 million
- Q3 Revenue Guidance: $1.450 billion +/- 5%
- Q3 GAAP Diluted Loss Per Share: $(0.09) +/- $0.05
- Q3 Non-GAAP Diluted Income Per Share: $0.40 +/- $0.05
Additional highlights
- AI electro-optics revenue exceeded expectations in Q2
- Expect electro-optics revenue to grow every quarter in FY25
- Expect custom cloud programs to ramp significantly in Q3 and Q4
- Initial shipments of 800G DSPs for active electrical cables
- ▪ Marvell 51.2T Ethernet switch entered volume production
- ▪ Microsoft integrates Marvell hardware security modules into
- Azure Key Vault and Managed HSM services
- Launched industry-first 1.6 Tbps PAM4 DSP for active electrical cables
- Introduced new CXL near-memory accelerators and CXL memory-expansion controllers
“Marvell’s second quarter revenue grew 10% sequentially, above the mid-point of guidance driven by strong demand from AI,” said Matt Murphy, Marvell’s Chairman and CEO.
