Marvell Technology(MRVL) - 2025 Q2 - Earnings Call Transcript

Financial Data and Key Metrics Changes - For Q2 2025, Marvell reported revenue of $1.27 billion, a 10$0.30, exceeding guidance and reflecting a 25% sequential increase [5][22] - GAAP gross margin was 46.2%, while non-GAAP gross margin was 61.9% [22] Business Line Data and Key Metrics Changes - Data center revenue reached a record $881 million, growing 92$151 million, and carrier revenue was $76 million, both flat sequentially [13][21] - Consumer revenue grew 112$89 million, recovering from prior inventory corrections [15][21] - Automotive and industrial revenue was $76 million, declining 31$14 billion by 2028 [8] - The enterprise networking and carrier markets are expected to see mid-single-digit growth sequentially in Q3 [14][21] Company Strategy and Development Direction - Marvell is focusing on AI and accelerated infrastructure, reallocating investments towards high ROI opportunities [17] - The company aims to maintain leadership in the interconnect market, expanding its product portfolio to include new technologies [8][18] - Custom silicon is expected to be the largest revenue growth driver, with a focus on partnerships with Tier 1 cloud providers [10][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in exceeding AI revenue targets for the year, driven by strong demand in both custom and optics businesses [32][63] - The company anticipates a return to year-over-year revenue growth in Q3, with all end markets expected to grow [5][19] - Management highlighted the importance of maintaining operational discipline and leveraging operating margins as revenue grows [38][60] Other Important Information - Cash flow from operations was $306 million, with inventory reduced by nearly 20$1 billion each annually, with growth expected in the coming quarters [59][60]