Marvell Technology Group Ltd. (NASDAQ: MRVL) stock enhanced over 5.5% on 7 Sep,( as of 11:04 AM GMT-4 ; Source: Google finance) trading after the company posted better than expected results for the second quarter of 2019. The company has closed the $6 billion acquisition of Cavium on July 6, 2018, approximately four weeks before the end of the second fiscal quarter. Therefore, the results for the second quarter of fiscal 2019 include the results from the Cavium businesses from July 6 to the end of the fiscal quarter. The combined talent and portfolio now positions Marvell is expected to lead some of the most exciting trends driving growth in the infrastructure market, including Cloud and Edge computing, 5G and automotive. Further, the company expects higher estimates for cost savings and will lead to the long term 6% to 8% annual revenue growth target. The cost synergies previously forecast at $150 million to $175 million per year would actually hit $200 million a year by the end of fiscal 2020.

MRVL in the second quarter of FY 19 has reported the adjusted earnings per share of 35 cents, beating the analysts’ estimates for the adjusted earnings per share of 34 cents. The company had reported the adjusted revenue growth of 3 percent to $665 million in the second quarter of FY 19, beating the analysts’ estimates for revenue of $616 million. The revenue grew due to the strong growth in networking and continued growth in the storage business. Moving to the core businesses, the company’s storage business met expectations with revenue of $320 million, growing 3% year-over-year, the company continue to offset secular declines in client HDD through two efforts. First, MRVL are growing their position in the nearline segment of the HDD market, which is fueled by continued demand for data storage in the cloud. Second, the company continue to increase Marvell’s footprint in the SSD market, where MRVL are also expanding the reach into the enterprise and data center segment.

For the third quarter of 2019, MRVL expects the revenue to be in the range of $825 million to $865 million. Non-GAAP gross margin is expected to be in the range of 64% to 65%. Non-GAAP operating expenses are expected to be $300 million to $305 million. Non-GAAP diluted EPS from continuing operations is expected to be in the range of $0.30 to $0.34 per share.