Marvell Technology Group Ltd.(NASDAQ: MRVL) stock rose over 1.1% on March 9th, 2018 (as of 10:57AM EST; Source: Google finance) leading to a total 15.5% in the last four weeks.
Fiscal 2018 revenue from the core businesses rose 7% on a yoy basis. At a broad-based level, the storage rose 8%, networking enhanced 1% and connectivity rose 14%. Networking business, excluding legacy, rose 7%. Growth in SSD and the ongoing traction of products targeting the enterprise and data center markets drove the performance. Refreshed switch, PHY and embedded processor products, also drove the business. Connectivity business revenue rose 14% year-over-year during the year. The group’s innovative technology, the new 11ax standard, which brings customers up to four times greater capacity, support several users, symmetrical uplink and downlink performance and greater coverage in all deployments.
Q4 was a record quarter for our SSD business as we continue to see strong demand for our broad family of SSD controller solutions.
Non-GAAP gross margins enhanced five percentage points to 61.4% against pcp surpassing the target of 60%. Non-GAAP operating margin rose 25.9%, which is an increase of 11 percentage points from a year ago, and on track to deliver a long-term target of 30%.
Revenue reached $615 million during the fourth quarter which is above the midpoint of the guidance. The Non-GAAP gross margin reached 62.3% driven by a richer mix of storage and networking, new product ramps that are accretive to gross margins and the ongoing improvement in optimizing their manufacturing cost structure. Non-GAAP operating margin reached 27% during the quarter and non-GAAP EPS rose 45% year-over-year to $0.32 per share.
The group ramped NVMe-based products for new Tier 1 client and cloud customers. These engagements, while early in their life cycle, shows their ongoing traction in the NVMe transition. The HDD business also showed a better -than-expected results in the fourth quarter, boosted by a better enterprise and data center markets. These new technologies are boosting aerial density gains, which continue to make HDDs a very lucrative solution for nearline storage in the data center market.
For the first quarter of fiscal 2019, the group forecasts overall networking business to grow in the mid- to high-single-digit range year-over-year, driven by growth of our new products.