To The Moon

Marvell Technology shares were sinking 5.68% in morning trading after the data-center semiconductor firm’s earnings and outlook disappointed Wall Street. The company said makers of storage equipment are reducing their stockpiles of chips, hurting its near-term results.

$Marvell(MRVL)$ reported October quarter non-GAAP net income of $491.5 million, or 57 cents a share. Analysts polled by FactSet had forecast adjusted earnings of 59 cents a share. Revenue of $1.54 billion was a touch below estimates of $1.55 billion.

The firm expects January quarter non-GAAP earnings of 46 cents, plus or minus five cents, which was below the consensus call for 62 cents a share.

“Inventory reductions, in particular at our storage customers, are impacting our near-term results and guidance, and we are working closely with them to manage their change in demand in an orderly fashion to clear the path to a resumption of growth,” CEO Matt Murphy said in the earnings release.

Marvell stock was down 7.2% to $42.13 in extended trading Thursday. Marvell shareshave struggledthis year amid abroader slump for semiconductor stocks.The stock was down 48% so far this year at Thursday’s close.

“Our design win pipeline remains strong, our new cloud-optimized products are starting to ramp, and we are well positioned to navigate the current environment successfully and remain confident in our long-term growth drivers,” Murphy wrote.