The latest financial result indicated that the chipmaker Marvell Technology has lost customers in its key markets such as Enterprise networking, Carrier infrastructure, Consumer and Automotive/industrial in the first quarter of fiscal 2025.
Marvell Technology is targeting revenue of $1,250 million during the current quarter.
Marvell Technology’s revenue from Enterprise networking market dropped to $153.1 million in the first quarter of fiscal 2025 as compared with $364.6 million in Q1 fiscal 2024 and $265 million in Q4 fiscal 2024.
Marvell Technology’s revenue from carrier infrastructure business decreased to $71.8 million in the first quarter of fiscal 2025 as compared with $289.9 million in Q1 fiscal 2024 and $170 million in Q4 fiscal 2024.
Marvell Technology’s revenue from consumer segment dropped to $42 million in the first quarter of fiscal 2025 as compared with $142.1 million in Q1 fiscal 2024 and $143.9 million in Q4 fiscal 2024.
Marvell Technology’s revenue from automotive/industrial dipped to $77.6 million in the first quarter of fiscal 2025 as compared with $89.3 million in Q1 fiscal 2024 and $82.3 million in Q4 fiscal 2024.
On the other hand, Marvell Technology’s revenue from data center business customers rose to $816.4 million as compared with $435.8 million in Q1 fiscal 2024 and $765.3 million in Q4 fiscal 2024.
Marvell said strong revenue growth in data center business was driven by cloud AI as well as standard cloud infrastructure. In addition to strong contributions from electro-optics products, it also benefited from the shipments of custom AI compute programs. There was a decline in revenue from enterprise on-premise data centers.
Marvell Technology reported revenue of $1,161 million, down 12 percent year-on-year and 19 percent quarter-on-quarter, hurt by weak client spending in its wireless carrier and enterprise markets. The drop in revenue is despite achieving 87 percent year over year and 7 percent sequential growth in data center revenue.
“We see a favorable setup for the second half of this fiscal year, driven by continued growth in data center and the beginning of a recovery in enterprise networking and carrier infrastructure,” Marvell CEO Matt Murphy said.
Excess inventory at its carrier clients and telecom operators have hit the prospects of new orders for firms like Marvell.
