At the ongoing Computex 2010 convention in Taipei, Taiwan, Marvell Inc. (MRVL) announced that it is joining with Hanwang, the leading eReader solution provider in China, to unveil next-gen, higher performance and versatile eReaders at inexpensive prices.
Computex is the information technology industry’s yearly tradeshow, which runs from June 1st to the 5th in Taipei, Taiwan.
Armed with Marvell’s ARMADA 166E, the first System-on-a-Chip (SoC) with an integrated e-Paper Display (EPD) controller, Hanwang’s new generation of devices aim to offer better performance, more functionality and lower price points to capture a big share in the global eReader market.
The success of Marvell’s differentiated solutions doesn’t seem to end here. Apart from Hanwang, the ARMADA 166E application processor has also been selected by Koobe, another leading eReader solution provider in China, to power its new JinYong Reader.
Going by recent trends, a growing demand for eReading in China, as well as the whole world, would become a significant revenue growth driver for the company in the coming quarters.
According to sources, China is expected to evolve as the world’s largest eReader market sometime before 2015. We think it will be a great opportunity for the leading integrated silicon solutions provider to capitalize on research and development activities for new product cycles.
Recently, the company, with the introduction of “3D by Marvell,” targeted the fast-evolving, digital entertainment media. The innovation will support ARMADA 1000 High Definition Media Processor SoC to deliver Blu-ray 3D experiences to the users.
According to a recent Informa Telecoms and Media report, 22.5 million viewers are expected to swap their two dimensional TV sets for 3D technology by 2015. With its innovative and diversified platform, we expect the company to be one of the key beneficiaries.
Last month, Marvell reported encouraging first-quarter results with revenue of $856.0 million, which was up 64.0% year over year and 2.0% sequentially. Results were driven by a ramp in sales of new products, a launch of new programs, design wins and new customers. The company expects revenue from new products to increase from 16.0% in the first quarter to greater than 20.0% of total revenue in the second quarter.
Excluding one-time items, but including stock-based compensation expense, earnings for the quarter were 34 cents a share, which missed the Zacks Consensus Estimate by 4 cents. The company ended the quarter with a strong $2.1 billion of cash and cash equivalents.
We maintain a short-term Buy recommendation on the company.
Read the full analyst report on “MRVL”
Zacks Investment Research
