Marvell Tech, the new Starboard Value activist investor target, says its accounting investigation turned up nothing fraudulent. However, there were issues with recognizing revenue early – something we already knew. Shares are down 40% in the last twelve months nonetheless. Another overhang that rolled off in the past few weeks is its settlement with CMU for a $750 million patent infringement case.
There are corporate governance issues that remain, with the founder and his wife holding the top two spots in the company. And the founder and his brother are the largest shareholders.
Marvell says – “The audit committee did identify a limited number of transactions that had the effect of recognizing revenue prematurely, generally involving the extension of payment terms beyond Marvell’s customary terms. Marvell is evaluating whether any of these errors were material to any previously reported financial period.
Big bet for Starboard.
Get our detailed Marvell thoughts via Activist Strategy.
