Marvell (MRVL) Guides Lower on Mobile, Storage Revenue

Shares of Marvell (NASDAQ:MRVL) were being hit hard after the company guided much lower for its mobile and storage revenue for the quarter.

Marvell said revenue for the two segments will will drop sharply in the current quarter, while also expecting PC sales to continue to be soft.

The mobile and wireless revenue of the company will be under the most pressure, expected to fall by over 20 percent. For storage, Marvell said shares will drop somewhere in the mid-single digit range as measured against the prior quarter.

Competition from Nvidia (NASDAQ:NVDA) and Qualcomm (NASDAQ:QCOM) in the smartphone market will also ramp up going forward.

Research In Motion's (NASDAQ:RIMM) Blackberry is one of the companies Marvell supplies chips to. Other major smartphone companies aren't using Marvell chips at this time.

Marvell reported net profit, excluding items, in the fourth quarter of $273 million or 40 cents a share, compared with $266 million or 40 cents a share in the same quarter last year. Analysts were looking for 42 cents a share.

Revenue in the quarter increased 7 percent to $901 million year over year, but dropped 6 percent from the previous quarter. Analysts on average had expected Marvell to report revenue of $924 million.

Marvell was trading at $17.15 after hours, dropping $1.07, or 5.87 percent.