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Marvell Technology Group Ltd. (NASDAQ:MRVL) reported that revenue for 1Q2017 declined almost 12% to $541 million in 1Q2017. Also, it was down nearly 25% percent from the revenue of $724 million reported in the comparable period last year.

The segment highlights

Marvell reported in 1Q2017, storage revenue plunged 16% sequentially, highlighting poor HDD industry demand. Networking revenue in the reported period surged 5% sequentially due to enhanced enterprise networking demand. The revenue from mobile and wireless segment dropped 29% sequentially, primarily due to the previously projected declines in sales resulting from Marvell’s exit from its mobile handset operations.

Mobile handset revenues in 1Q2017 came at $22 million compared to revenue of $65 million in the same quarter, a year earlier. Marvell projects mobile handset segment-related revenue to drop through FY2017 following the restructuring processes reported on September 24, 2015.

The future outlook

Marvell’s financial outlook for 2Q2017 does not discount the potential impact of any share repurchases, asset acquisitions, business combinations, pending litigation matters, or other investments closed after July 26, 2016. The revenue for 2Q2017 is anticipated to come in between $625 million and $635 million. Marvell stated that GAAP gross margins are projected to come in between 52% and 54% while GAAP operating expenses can fall between $307 million and $317 Million.

Earlier in May, the company reported that it had obtained notification from NASDAQ that, following the company’s trial before The NASDAQ Hearings Panel in April, it granted the firm with an extension up to September 6, 2016 to reclaim compliance with existing listing requirements. It implies that until September, MRVL shares will continue to trade on The NASDAQ.

The company has submitted its Form 10-K for FY2016 and Form 10-Q for 2Q2016 and 3Q2016. However, Marvell has to still file Form 10-Q for the first quarter of FY2017.

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