Marvell Technology (NASDAQ:MRVL) tumbled on Friday after the semiconductor company unveiled it was conducting an internal investigation of certain accounting and internal control matters, and it warned it would swing to a quarterly loss, disappointing Wall Street.
Shares dropped 16.3% to $8.83 p.m. in New York, after reaching $8.21, the lowest intraday price since January 2013.
The investigation is focusing on whether revenue was recognized earlier than it should have been and whether senior management “set an appropriate tone for an effective control environment,” the Santa Clara, California-based company said in a statement on Friday.
Net loss was $382.4mln, or $0.74 per share, for the period ended August 1, in preliminary results compared to a profit of $138.9mln, or $0.27, a year earlier.
Analysts on average had predicted a profit of $11.9mln, according to Capital IQ data.