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Marvell Technology Inc. (MRVL+6.23%) has submitted its 10-Q filing for the quarterly period ended November 2, 2024.
The filing reports a net revenue of $1.5 billion for the quarter, an increase of 7% compared to the same quarter the previous year. This increase was primarily driven by a 98% rise in sales from the data center end market, partially offset by declines in other sectors.
Cost of goods sold was $1,166.7 million, representing 77% of net revenue, up from 61.1% in the previous year. The increase was largely due to impairment charges related to restructuring actions.
Marvell reported a gross profit of $349.4 million, down from $551.2 million in the previous year, with gross margin decreasing to 23% from 38.9%.
Operating expenses totaled $1,052.2 million, including $488.6 million in research and development and $205.3 million in selling, general, and administrative expenses.
Restructuring related charges amounted to $358.3 million for the quarter, associated with strategic shifts to increase investment in the data center market and reduce investment in other areas.
The company recorded an operating loss of $702.8 million, compared to a loss of $146.3 million in the previous year.
Interest expense was $47.2 million, while interest income and other net losses amounted to $0.5 million.
Marvell reported a net loss of $676.3 million for the quarter, compared to a net loss of $164.3 million in the previous year.
Cash provided by operating activities was $1,167.2 million, with cash used in investing and financing activities amounting to $230.4 million and $1,019.5 million, respectively.
The company ended the quarter with $868.1 million in cash and cash equivalents, a decrease from $950.8 million at the beginning of the period.
Marvell's restructuring plan aims to focus on data center investments, resulting in significant restructuring charges and asset impairments during the quarter.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Marvell Technology Inc. quarterly 10-Q report dated December 4, 2024. To report an error, please email earnings@qz.com.