Marvell Technology Group Ltd. (NASDAQ:MRVL) Q3 2020 Earnings Conference Call - Final Transcript

Dec 03, 2019 • 04:45 pm ET

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Marvell Technology Group Ltd. (NASDAQ:MRVL) Q3 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by and welcome to the Q3 2020 Marvell Technology Group Earnings Conference Call. [Operator Instructions] I would now like to hand the conference over to your speaker, Ashish Saran, Vice President, Investor Relations. Sir, please begin.

Executive
Ashish Saran

Thank you and good afternoon, everyone. Welcome to Marvell's third quarter fiscal year 2020 earnings call. Joining me today are Matt Murphy, Marvell's President and CEO and Jean Hu, our CFO. I would like to remind everyone that certain comments today may include forward-looking statements, which are subject to significant risks and uncertainties and which could cause our actual results to differ materially from management's current expectations. Please review the cautionary statements and risk factors contained in our earnings press release, which we filed with the SEC today and posted on our website as well as our most recent 10-K and 10-Q filings, we do not intend to update our forward-looking statements. During our call today, we will refer to certain non-GAAP financial measures, a reconciliation between our GAAP and non-GAAP financial measures is available on our website in the Investor Relations section.

With that, I'll turn the call over to Matt for his comments on our performance.

Executive
Matt Murphy

Great, thanks, Ashish, and good afternoon to everyone on the call. As a reminder, we closed the acquisition of Aquantia in our third fiscal quarter. So our consolidated results include a partial quarter of results from their operations as well. During the third quarter of fiscal 2020, we delivered solid results and achieved $662 million in revenue. Our GAAP loss per share was $0.12, our non-GAAP earnings per share was $0.17 at the midpoint of guidance. Our storage business grew sequentially and we had better than expected results from our networking business. While we cannot influence the macroeconomic environment, I am very happy with our execution on the things we do control.

Earlier this year, we discussed a number of significant design wins for our products in 5G base stations, enterprise switches automotive Ethernet and data center storage. In the third quarter, we continue to add to this growing list with more wins, which I will discuss later in the call. Our engagement with customers continues to strengthen, which is becoming evident in our success in winning high value sockets in all our target markets, which we expect to drive sustainable growth over many years.

In fact, one of our important growth drivers has already started to benefit us and I'm very pleased that we shipped a significant amount of our 5G products in the third quarter helping our key customer rapidly rollout base stations for the initial wave of 5G deployments in Korea. Of course, this is just a start of 5G deployments and we are looking forward to a lot more growth from 5G in the longer term. More recently, we closed the acquisition of Avera on the first day of our fourth quarter. The acquisitions of Aquantia and Avera are very strategic to broadening our semiconductor solutions