Marvell Technology, Inc. (NASDAQ:MRVL) Q4 2023 Earnings Call Transcript

Matt Murphy: Yes. Perfect. Well, I appreciate everybody’s time on the call today. When I look back at our last fiscal year, it was a great success for Marvell. I think it — and I was reflecting back, looking at where we were back, let’s say, in 2020, during the pandemic, we were in the process of combining with Inphi and I sort of look a few years later, and I think in fiscal 2023, we — ourselves, Inphi and also, by the way, the Innovium team we brought in, really everybody executed extremely well. It was very, very strong growth, very strong margins, great growth overall. Certainly, we’re going through, now after several years of extremely strong growth, a correction in inventory, that’s more pronounced in some markets than others.

We’re managing through that very prudently and expeditiously and doing that also in a partnership model with our customers, to where we’re trying to understand their real demand and get back to a point where we’re shipping back to real demand. At this point, we believe we’re shipping below consumption of Marvell products. And so, we want to get back there. And when we do that, it will also lead to the increase in recovery back in the gross margin profile. And then we can have all of our new wins that we’ve gotten and all the hard work, our sales team, business unit team has done over the last few years, driving our design win funnel to recognize that growth. So, I’d say, despite the short-term issues, we think very long term at Marvell, okay?

I mean, I’m entering my seventh year as — actually, about to complete my seventh year as CEO. The prospects for this company are tremendous. We have conviction in our end markets and the long-term opportunity. And the R&D investment that’s needed to really execute the programs our customers want to is right in front of us. We have an opportunity, I think, to really reassess and make sure that we’re focused and laser focused on the best opportunities. I think we’ve made capital allocation from day one, a strategic priority for Marvell. And I believe, we can come through this cycle much — as a much stronger company with our growth prospects intact and actually have a better long-term opportunity doing really key programs for our customers with the best ROI.

So we’re going through that whole process now, as we do always, and I feel very good about the future of the company. So appreciate the time today, everybody, and look forward to catching up post earnings.

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