Marvell CEO Says Tablets Are Threat To "Monster" PCs
Marvell Technology Group signage outside the company's headquarters building in Santa Clara, Calif. Photograph by David Paul Morris — Bloomberg via Getty Images

Marvell Technology Shares Pop After Announcing $1 Billion Share Buyback

Nov 18, 2016

Marvell Technology Group reported a better-than-expected quarterly profit and said it would buy back $1 billion of shares.

Shares of Marvell, which has a market value of $6.88 billion, were up 6.6% in after-market trading on Thursday.

The chipmaker said the buyback would replace an existing $3.25 billion program, which had a balance of about $115 million.

Marvell (mrvl) said it intends to buy back about $500 million of shares over the next 12 months.

The company reported net income of $72.6 million, or 14 cents per share, in the third quarter ended Oct. 29, compared with a loss of $57.75 million, or 11 cents per share, a year earlier.

Excluding items, the company earned 20 cents per share, beating the average analyst estimate of 12 cents, according to Thomson Reuters I/B/E/S.

Marvell, which had been under pressure from activist investor Starboard Value to shake up its management and cut costs, revamped its management team and named a new chief executive earlier this year.

The company said this month that it planned to cut about 900 jobs globally and sell non-core assets in a bid to lower costs by as much as $190 million annually.

All products and services featured are based solely on editorial selection. FORTUNE may receive compensation for some links to products and services on this website.

Quotes delayed at least 15 minutes. Market data provided by Interactive Data. ETF and Mutual Fund data provided by Morningstar, Inc. Dow Jones Terms & Conditions: http://www.djindexes.com/mdsidx/html/tandc/indexestandcs.html. S&P Index data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Terms & Conditions. Powered and implemented by Interactive Data Managed Solutions