Marvell delays its annual report, warns of loss - Mobile World Live

Marvell delays its annual report, warns of loss

01 APR 2016
Marvell

Semiconductor firm Marvell Technology Group said it is running late with filing its annual report for the financial year ending 30 January 2016, adding that it expects to suffer a net loss in 2016, as well as see net revenue “significantly lower” than 2015.

In a SEC filing, the company said it would not be able to file the report “within the prescribed time period without unreasonable effort or expense” in part due to PricewaterhouseCoopers resigning as its accountancy firm in October last year, replaced by Deloitte & Touche in February.

The delay was also caused by an internal audit committee’s investigation of “certain accounting and internal control matters” which found last month that no fraudulent activity had taken place, though it identified certain “tone at the top” issues, including significant pressure on sales and finance personnel to meet revenue targets.

The firm said it is working to complete the preparation and facilitate the audit of its financial statements for the year to end-January 2016, as well as the other parts of the annual report, “as soon as practicable”.

The chip maker is under federal investigation over issues including its accounting practices.

Meanwhile, the SEC filing also said net revenue will likely take a hit because of decreased demand for its storage products; charges associated with settlement of litigation with Carnegie Mellon University “for an aggregate of $750 million” as well as restructuring and severance related charges for its mobile platform business of approximately $75 million.

In September, it was reported that the company was set for job losses as it downsized its mobile platform organisation to focus on opportunities in IoT, automotive and networking.

 

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Saleha Riaz

Saleha joined Mobile World Live in October 2014 as a reporter and works across all e-newsletters - creating content, writing blogs and reports as well as conducting feature interviews...More

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