Marvell keeps stock listing, but loses CFO

Marvell Technology Group, embroiled in a backdating investigation, filed a delayed earnings report with stock regulators this week and announced the resignation of the interim chief financial officer who had agreed to remain in his job until the filing was made.

Marvell’s interim CFO, Michael Tate, will serve his final day Friday, the company said. Tate had also held the titles of vice president, corporate controller, and treasurer in his six years at Marvell before agreeing earlier this year to help complete the financial filings. His departure marks the latest in a series of executive shakeups since the investigation ensued.

By delivering the missing earnings report for the first quarter of 2007 to the U.S. Securities and Exchange Commission, Marvell finally satisfied demands set by the Nasdaq stock market to continue trading its shares. Investors gained confidence in that move, driving the stock up to $19.10 from $17.98 on Tuesday, before it settled back to $18.35 at midday Thursday.

Marvell did not respond to requests for comment.

One financial analyst maintained a “buy” rating on Marvell stock but scaled back his profit forecast because of concerns about increased research and development spending revealed in the new financial restatements. Despite those troubles, Marvell stock is “near a fundamental bottom,” and will probably rise in the long term thanks to increased sales of the XScale smartphone chip, according to Shaw Wu, an analyst for American Technology Research.

Wu now expects Marvell to earn $0.33 per share on revenue of $2.7 billion in fiscal 2008, down from $0.38 per share on the same revenue. He also reduced his forecast of the company’s 2009 earnings to $0.80 per share on revenue of $3.2 billion, down from an original $0.85 per share on the same revenue.

“From our understanding, Tate is stepping down due mainly to personal reasons,” Wu said in a note to investors. “We believe his resignation will be viewed as a mild negative as he was well-respected in the investment community for his candor and conservative nature.”

Tate’s resignation follows closely on the heels of a corporate shuffling that resulted from an investigation of charges that certain executives changed dates on their stock options, illegally boosting their profits when they sold the stocks.

In May, Marvell said that Sehat Sutardja would step down as chairman of the board but keep his job as CEO, although an internal investigation had revealed that he participated in a few instances of stock options backdating. In another shakeup, Weili Dai, Marvell’s cofounder and COO and also a board member, said he would leave his management and financial roles for a new job as director of strategic marketing and business development.

At that time, the company also announced it had fired its general counsel, Matthew Gloss, and accepted the resignation of its CFO, George Hervey. Marvell named Tate to replace Hervey and complete the financial restatements.

“We appreciate Mike’s hard work during this very difficult time,” Sutardja said in a statement. “He enabled us to complete the filing of our delayed reports, to the benefit of shareholders, customers and employees alike. We wish him the best in his next endeavor.”