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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.

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