(Reuters) – Chip maker Marvell Technologies reported a fall in second-quarter revenue as a weakening enterprise market as well as economic uncertainty hit demand for its chips and networking hardware.
Shares of the California-based company fell 5% in after-market trading
Companies are holding off on upgrading their technology infrastructure due to an uncertain economic scenario clouding future prospects.
Marvell’s recovery in China has been shaky since a US law last October restricted exports of some chips to the Asian country.
The company, which makes equipment such as switches and adapters, forecast revenue of $1.40 billion, plus or minus 5%, for the third quarter, which bottomed out below analyst expectations of $1.39 billion.
Marvell reported earnings of 40 cents per share, plus or minus 5 cents, for the third quarter, which was in line with expectations, according to Refinitiv data.
Its revenue fell 12% from a year earlier to $1.34 billion. On an adjusted basis, the company earned 33 cents, compared with estimates for a profit of 32 cents.
(Reporting by Zaheer Kachhwala in Bengaluru; Editing by Krishna Chandra Elluri)