Marvell Technology, Inc. (NASDAQ:MRVL) Q3 2023 Earnings Call Transcript

Matt Murphy : Ashish, do we have time for one more? Should I just wrap it up with some closing comments?

Ashish Saran: Yes. Go ahead, wrap it up, Matt.

Matt Murphy : Perfect. Yes. Well, thanks, everybody, for all the questions. Just a little bit of a few comments as we close here. Look, first, I think Q3 was a great quarter for us. I mean we’re in the middle of a pretty severe macroeconomic environment. A lot of other companies have obviously seen some of this inventory digestion and impact earlier. But in Q3, we delivered record revenue, very strong operating margins. Even if you look at the fourth quarter guide and you kind of compare our second half of this year to a year ago, we’re up about 15%. And when you look at sort of the rest of the market, take sort of large digital peers, that peer group is down about 5%. So we still think even with a softer Q4 guide, we continue to perform very well from a top line perspective.

I’d say also we’ve been disciplined on managing expenses. The pro forma FY ’23 will grow about 28%. And if you look at our OpEx increase, it’s about 14%. So we’ve been basically growing operating expenses at about half the rate of revenue growth. And we’ve been able to put together a world-class team as a result to execute on these massive design wins we’ve gotten over the last few years. And so while we’re going to be disciplined in our spending, and Jean sort of gave you the model on OpEx. We feel very good about the size of the team, the resources we have and the ability to execute, which our customers are counting on. And I believe if we do that, there’s even more to come. So in conclusion, we continue to have the right strategy with really strong partnerships with key customers.

We think we’re in the right markets. And the growth drivers of cloud, 5G wireless communications and automotive continue to be three of the largest growth opportunities in the semiconductor industry, and Marvell is extremely well positioned there. So thanks for all the questions. I’m sure we can be more helpful in the callbacks as well. There’s a lot of moving pieces. But thank you so much for your time today.

Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.