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Marvell Boosts Networking Efforts With Next-Gen Technologies

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Marvell Technology Group Ltd. (MRVL - Free Report) recently announced that a wide range of its next generation Ethernet and Fibre Channel technologies is available on Dell EMC PowerEdge MX platform.

The 10/25GbE FastLinQ Ethernet and QLogic16G/32G Fibre Channel technologies are designed to allow powerful composable solution for the data center via delivery of input/output connectivity.

The Dell EMC PowerEdge MX platform is built on Dell EMC’s kinetic infrastructure architecture, and is designed to address customer need for scale at a lower total cost of ownership.

The synergistic combination of Marvell’s Ethernet and Fibre Channel technologies and Dell EMC PowerEdge MX will provide flexible server connectivity solutions and an array of features to support the growing amount of data center workload.

Strong Networking Business Drives Growth

Marvell’s Ethernet and Fibre Channel technologies are part of the company’s Networking business segment, which grew 15.3% year over year to $283.3 million in the last reported quarter, constituting 43% of total revenues.

Strong growth in networking, which now includes the recently acquired Cavium’s fiber channel products, contributed significantly to Marvell’s revenue increase of 9.9% year over year.

Revenues from networking, which, going forward will include Cavium's embedded processors, security processors and Ethernet connectivity products, are expected to contribute approximately 46% of total revenues.

Speaking of Marvell’s efforts in Ethernet solutions, it is important to note that the company’s automotive Ethernet business is also gaining traction with continued ramping of switch products into wireless base stations. Revenue contribution from its refreshed switching products rose more than 50% year over year.

We believe that these efforts are paying off and initiatives like the 10/25GbE FastLinQ Ethernet and QLogic16G/32G Fibre Channel technologies will provide the company with adequate growth opportunities.

Zacks Rank & Stocks to Consider

Marvell currently has a Zacks Rank #3 (Hold).

A few better-ranked stocks in the broader Computer and Technology sector are Fortinet, Inc. (FTNT - Free Report) , Vishay Intertechnology, Inc. (VSH - Free Report) and Radware Ltd. (RDWR - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth for Fortinet, Vishay and Radware is pegged at 16.8%, 9.2% and 19%, respectively.

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