Marvell Technology Group Ltd. (MRVL - Analyst Report) recently announced the appointment of Dave Caron to the position of Corporate Controller and Chief Accounting Officer (CAO). Effective immediately, he will be responsible for handling the company's corporate accounting and financial reporting functions.
Caron brings to Marvell extensive experience in financial and accounting management along with global business insight in both services and technology. The newly appointed CAO is expected to take Marvell to newer heights. With his leadership traits, expertise and experience, he is expected to unlock further value. We believe that Dave’s sector know-how will prove beneficial for Marvell.
With past experience in companies like Maxim Integrated where he worked as Corporate Controller and Principal Accounting Officer and played a major role in managing finance and accounts related work, Caron is expected to bring in transformative changes in Marvell and augment its revenues going forward.
Before Maxim, Caron had also served in finance leadership positions at Read-Rite Corporation and Ernst & Young. Over the years, he has successfully steered technology companies and expects to emulate the same success at Marvell.
Caron holds a series of educational and professional degrees, including a Bachelor of Science in Business Administration degree from San Jose State University and is also an expert Public Accountant.
The company believes that Caron’s vast experience will enable the company to effectively deliver new and integrated solutions that will add to Marvell’s solid growth prospects.
Going further, investors are also encouraged by the new appointment as they expect the new CAO and Corporate Controller to bring in greater innovation and undertake strategic initiatives to boost comps, going ahead.
Marvell reported mixed second-quarter fiscal 2017 results, wherein the bottom line surpassed the Zacks Consensus Estimate but the top line missed the same. Also, revenues slumped on a year-over-year basis mainly due to lower demand in the mobile handset business.
Though the macro headwinds and stringent regulations might put the company's financials under pressure in the near term, we believe that strong demand for Marvell’s 4G LTE products could be a growth driver. This will be supported by growth from the company’s wide range of newly-launched Internet of Things (IoT) solutions.
However, competition in the semiconductor market from major players such as Intel Corp. (INTC - Analyst Report) and Texas Instruments Inc. (TXN - Analyst Report) remains a headwind.
Currently, Marvell Technology has a Zacks Rank #3 (Hold). A better-ranked stock in the technology sector is Equinix Inc. (EQIX - Analyst Report) , sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here
Equinix has long-term earnings per share growth rate of 16.94%
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