Marvell Technology Group (NASDAQ: MRVL) is set to report its earnings on March 5. The leader in the development of storage, communications, and consumer silicon solutions has had a string of product launches and has also struck a cord with atleast two analysts. Marvell announced its Plug Computing initiative to make high-performance, always on, always connected, and environmentally friendly computing readily available for developers and end-users. A Plug Computer is small enough to plug directly into a wall socket and is designed to draw so little power that it can be left on all of the time. Unlike other embedded devices in the home, it contains a gigahertz class processor to offer PC class performance. This makes it a viable alternative to a PC for any software service. Another launch was the Marvell® 88DE2750 digital video format converter, this converts high-definition, standard-definition and low-resolution video and graphics, into any desired output format up to and including 1080p and 4Kx2K, producing quiet and natural images, free from noise and artifacts. It features a new proprietary technology called Qdeo True Color, which enables 8-bit consumer video to use the full dynamic range of 10-bit and 12-bit displays producing natural-looking images free from contouring or banding.

In mid February, ThinkEquity chip analyst Vijay Rakesh launched coverage of Marvell Technology with a Buy rating and a $10 price target. He contends that the company’s storage component business will benefit from increasing share in the high-margin enterprise segment. He also contends that market share shift among the hard drive vendors is benefiting Marvell’s customer base, especially in the 2.5 inch mobile drive market. Goldman Sachs upgraded to Buy from Neutral and added to the firm's Conviction Buy List.

However, in its guidance statement the company expects fourth quarter revenue of $500.0 million to $520.0 million. The company's previous guidance was revenue of $690.0 million to $730.0Mn. This came in the light of poor consumer confidence and the weak near term outlook for the company’s key customers, Western Digital Corporation (Western Digital) and Seagate Technology (Seagate), to negatively impact the company’s top-line.

Also, the CEO of Marvell sold $56 million in shares that had been pledged to secure a loan. Sehat Sutardja, president and chief executive officer of Marvell, and his wife Weili Dai sold 8.7 million shares at an average per-share price of $6.52 from Dec. 10 through Dec. 12.

Earnings Estimates
Current Estimates: ($0.05)
Number of Estimates: 15
High Estimate: $0.07
Low Estimate: ($0.09)
Last Year EPS: $0.06
Percentage Growth: -183.00 %

Disclosure: The author does not own any of the stocks mentioned above.