Marvell Technology Inc (NASDAQ:MRVL), a leader in infrastructure semiconductor solutions, stock fell 7.13% (As on August 26, 11:31:53 AM UTC-4, Source: Google Finance) after the company issued a lower-than-expected fiscal third-quarter outlook. For its second quarter ended July 30, Marvell reported a profit before costs such as stock compensation of $486 million, up from $284 million in the same quarter last year. Revenue jumped 42% from a year ago and 5% from the first quarter, to $1.517 billion. The figures were roughly in line with analysts’ expected earnings per share of 56 cents and revenue of $1.52 billion. Marvell saw significant revenue growth across most operating areas. Data center income came in at $643.4 million in the quarter, up from $433.7 million in the second quarter of fiscal 2022. Carrier infrastructure revenue rose from $196.7 million to $285.2 million. Enterprise networking came in at $340.3 million, up from $222.7 million. And automotive/industrial revenue hit $83.6 million, up from $57.4 million.

One segment, consumer, saw a small decline, to $164.4 million, from $166.7 million a year ago. Marvell’s data center business now accounts for 42%, up from 40%, while its consumer business dropped to an 11% share, down from 16% last year.

MRVL in the second quarter of FY 23 has reported the adjusted earnings per share of 57 cents, beating the analysts’ estimates for the adjusted earnings per share of 56 cents. The company had reported the adjusted revenue growth of 42 percent to $1.52 billion in the second quarter of FY 23, which is inline with the analysts’ estimates for revenue of $1.52 billion. The company has Q2 delivered 65.0% non-GAAP gross margin.

For its third quarter of fiscal 2023, Marvell predicts an adjusted profit of 59 cents per share on revenue of $1.56 billion. The outlook is below analyst forecasts of 61 cents and $1.58 billion. The company expects sequential revenue growth to accelerate in the fourth quarter as supply constraints begin to ease. Further the company is  well-positioned to continue to benefit from our favorable end market exposure tied to strong secular growth trends and significant expected upcoming revenue contributions from a number of Marvell-specific product ramps.

In addition, for the third quarter of 2023, Non-GAAP gross margin is expected to be 65.0% +/- 0.25% and Non-GAAP operating expenses are expected to be $435 million to $440 million.