Shares of Marvell Technology Group Ltd fell on Wednesday as the designer of 5G networking chips said supplies could remain tight through its fiscal 2022.
Marvell forecast revenue and adjusted profit ranges for its current fiscal first quarter with midpoints of $800 million and 27 cents per share, respectively, in line with analyst expectations of $793.3 million and 27 cents per share, according to IBES data from Refinitiv.
Marvell shares fell 3.4% to $43.90 in extended trading after closing 4.7% lower earlier in the day.
"The supply chain was not completely prepared for the surge in demand and needs time to increase capacity," Chief Executive Matt Murphy told investors on a conference call.
"While we are confident that the industry will respond to these challenges, we anticipate a supply gap for at least through fiscal 2022," he added. The company's fiscal 2022 ends in January 2022.
(Reporting by Stephen Nellis and Hyunjoo Jin in San Francisco; Editing by Leslie Adler and Bill Berkrot)
