Marvell Technology lowers 4Q guidance

SANTA CLARA, Calif. - Chip maker Marvell Technology Group Ltd. slashed its fiscal fourth-quarter sales outlook Thursday because of the global economic turmoil.

The company now expects revenue of $500 million to $520 million — a decline of 38 percent to 41 percent from the year-ago quarter's $845 million in sales.

Marvell's prior outlook was for sales of $690 million to $730 million for the quarter, which ends Jan. 31.

Analysts, on average, are expecting sales of $700.1 million, according to a poll by Thomson Reuters.

"There is a great deal of uncertainty surrounding the duration and depth of the current worldwide economic slowdown," said Sehat Sutardja, chairman, president and chief executive, in a statement. "This is especially true within the PC and the consumer electronics markets."

He added Marvell will "continue to take actions to re-align our expense profile to the current environment."

Shares fell 1 cent to $6.20 in after-hours trading, having closed up 5 cents at $6.21 in the regular session.

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