Marvell Technology (NASDAQ:MRVL) tumbled to the lowest in three years after the chip maker disclosed PricewaterhouseCoopers LLP resigned as its external accounting firm after an internal investigation into its accounting last month.
Shares plunged 18.6% to $7.71 at 10:18 a.m. in New York, after reaching $7.55, the lowest intraday price since October 2012.
Marvell unveiled PwC’s decision in a regulatory filing late on Monday.
PwC told the audit committee of its resignation on October 20 and wasn’t asked by the Santa Clara, California-based company to resign.
Marvell said that PwC's audit reports did not contain an "adverse opinion" for audits of the past two fiscal years.
PwC advised the company to expand the scope of its 2016 audit to Marvell's senior management level, controls over cash reserves, control over identification, communication and approval of related party transactions and the adequacy of financial reporting resources.
The investigation is focused on the 7% to 8% of revenue recognized in the second quarter of fiscal 2016 that, based upon the original customer request date, would have been received and earned in the third quarter of fiscal 2016 and is now no longer available for receipt in that quarter.