SANTA CLARA, Calif.,
Dec. 6, 2019 /PRNewswire/ -- Marvell
(NASDAQ: MRVL) today announced the completion of the sale of its
Wi-Fi Connectivity business to NXP (NASDAQ: NXPI). The
divestiture encompasses Marvell's Wi-Fi and Bluetooth technology
portfolios and related assets.
Updated Revenue Guidance
Marvell is updating its
current quarter revenue guidance to reflect the Wi-Fi Connectivity
business sale to NXP. The Company now anticipates fourth
quarter FY20 revenue of $710 million
+/- 3% vs. original guidance for $750
million +/- 3% as provided at the time of the third quarter
earnings announcement on December 3,
2019.
About Marvell
Marvell first revolutionized the digital
storage industry by moving information at speeds never thought
possible. Today, that same breakthrough innovation remains at the
heart of the company's storage, processing, networking, security
and connectivity solutions. With leading intellectual property and
deep system-level knowledge, Marvell's semiconductor solutions
continue to transform the enterprise, cloud, automotive, industrial
and consumer markets. To learn more, visit:
https://www.marvell.com.
Forward-Looking Statements under the Private Securities
Litigation Reform Act of 1995
This press release contains forward-looking statements within
the meaning of the federal securities laws that involve risks and
uncertainties. Words such as "anticipates," "expects," "intends,"
"plans," "projects," "believes," "seeks," "estimates," "can,"
"may," "will," "would" and similar expressions identify such
forward-looking statements. These statements are not guarantees of
results and should not be considered as an indication of future
activity or future performance. Actual events or results may differ
materially from those described in this press release due to a
number of risks and uncertainties, including, but not limited to:
the risk that the company may not realize the anticipated benefits
of the acquisitions of Aquantia Corp. and the Application Specific
Integrated Circuit (ASIC) business of GLOBALFOUNDRIES and the
divestiture of Marvell's Wi-Fi Connectivity business to NXP
(collectively, the "Transactions"); the effect of the consummation
of the Transactions on the company's business relationships,
operating results, and business generally; potential difficulties
in employee retention as a result of the Transactions; the ability
of Marvell to successfully integrate operations and product lines
related to the acquisitions; the ability of Marvell to implement
its plans, forecasts, and other expectations with respect to the
Transactions and realize the anticipated synergies and cost savings
in the time frame anticipated or at all; the impact of
international conflict and economic volatility in either domestic
or foreign markets including risks related to trade conflicts, bans
and tariffs; the risks associated with manufacturing and selling
products and customers' products outside of the United States; Marvell's ability to
define, design and develop products for the 5G market; Marvell's
ability to market its 5G products to Tier 1 infrastructure
customers; the effects of transitioning to smaller geometry process
technologies; the impact of any change in the income tax laws in
jurisdictions where Marvell operates and the loss of any beneficial
tax treatment that Marvell currently enjoys; the risk of downturns
in the highly cyclical semiconductor industry; Marvell's dependence
upon the storage and networking markets, which are highly cyclical
and intensely competitive; the outcome of pending or future
litigation and legal and regulatory proceedings; Marvell's
dependence on a small number of customers; the impact and costs
associated with changes in international financial and regulatory
conditions; Marvell's ability and the ability of its customers to
successfully compete in the markets in which it serves; Marvell's
reliance on independent foundries and subcontractors for the
manufacture, assembly and testing of its products; Marvell's
ability and its customers' ability to develop new and enhanced
products and the adoption of those products in the market;
decreases in gross margin and results of operations in the future
due to a number of factors; Marvell's ability to estimate customer
demand and future sales accurately; Marvell's ability to scale its
operations in response to changes in demand for existing or new
products and services; risks associated with acquisition and
consolidation activity in the semiconductor industry; the effects
of any other potential acquisitions, divestitures or investments by
Marvell; Marvell's ability to protect its intellectual property;
Marvell's maintenance of an effective system of internal controls;
severe financial hardship or bankruptcy of one or more of Marvell's
major customers; and other risks detailed in Marvell's SEC filings
from time to time. For other factors that could cause Marvell's
results to vary from expectations, please see the risk factors
identified in Marvell's Quarterly Report on Form 10-Q for the
fiscal quarter ended November 2, 2019
as filed with the SEC on December 4,
2019, and other factors detailed from time to time in
Marvell's filings with the SEC. Marvell undertakes no obligation to
revise or publicly update any forward-looking statements.
For further information, contact:
Ashish Saran
Vice President, Investor Relations
408-222-0777
ir@marvell.com
View original
content:http://www.prnewswire.com/news-releases/marvell-completes-divestiture-of-wi-fi-connectivity-business-to-nxp-300970797.html
SOURCE Marvell