Marvell Technology Inc (NASDAQ:MRVL) stock surges 17.37% (As on Dec 3, 11:45:02 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the third quarter of FY 22. Marvell completed the acquisition of Innovium, Inc. on October 5, 2021, approximately 25 days before the end of the third quarter of fiscal year 2022. Non-GAAP net income for the third quarter of fiscal 2022 was $364 and Cash flow from operations for the third quarter was $265 million. The company posted Q3  non-GAAP gross margin of 65.1%.

MRVL in the third quarter of FY 22 has reported the adjusted earnings per share of 43 cents, beating the analysts’ estimates for the adjusted earnings per share of 38 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 61 percent to $1.21 billion in the third quarter of FY 22, beating the analysts’ estimates for revenue by 5.53%. The Revenue grew substantially in each of the five end markets, led by data center, which is the largest contributor at 41 percent of total revenue, which grew 15 percent sequentially and 109 percent year over year.

For the fourth quarter, the company is expecting sequential revenue growth of 9 percent at the midpoint of guidance, led by 5G, which is projected to increase by 30 percent sequentially and data center which is forecasted to continue to grow in the double digits on a percentage basis.

For the fourth quarter, the company expects net revenue to be $1.320 billion +/- 3%, Non-GAAP gross margin is expected to be approximately 65%, Non-GAAP operating expenses are expected to be $390 million to $395 million and Non-GAAP diluted income per share is expected to be $0.48 +/- $0.03 per share.

On the other hand, Marvell has recently introduced the industry’s first 802.1AE MACsec integrated dual 1000BT1 and 100BT1 PHYs. The newly announced products extend Marvell’s leadership in automotive Ethernet PHY while aiding OEMs in the transition toward software-defined vehicles, where secure communication of data is a critical requirement. These Ethernet PHY solutions enable energy efficient, secure in-vehicle networks and assist in achieving functional safety compliance at the system level. MACsec technology secures data exchange on a hop-by-hop basis and prevents Layer 2 security threats such as intrusion, man-in-the-middle, and replay attacks. Marvell’s latest PHYs support the Open Alliance TC10 for sleep mode and wake-up, tailored for automotive use cases.