Marvell CEO Sutardja Says He’d Consider Options for Mobile UnitIan King
Marvell Technology Group Ltd. Chief Executive Officer Sehat Sutardja said he would consider any options that made sense for investors, when asked whether he’s open to selling the company’s mobile-phone chip business.
“We will consider anything that makes sense to the shareholders,” Sutardja said Thursday on a conference call with analysts. “For sure we’re not backing off from business.”
Sutardja’s comments follow speculation that Marvell’s mobile-phone modem-chip business, which competes with Qualcomm Inc., might be an acquisition target. Doug Freedman, an analyst at RBC Capital Markets, estimated earlier this month that unit is worth more than $1 billion.
Marvell stock fell in extended trading after the Santa Clara, California-based company reported fiscal fourth-quarter revenue that missed analysts’ average predictions and gave a forecast for revenue in the current period that also fell short. Sales in the period that ended Jan. 31 were $857.5 million, compared with an average estimate of $889.9 million. For the first quarter, sales will be $810 million to $830 million, less than the average estimate of $883.7 million.