In this post, we will be analyzing Marvell as part of the series analyzing major players in the iPhone’s component ecosystem. A related, speculative post about Marvell written prior to the iPhone’s release may also be worth reading.
Marvell Technology Group (NASDAQ: MRVL) is a global leader in storage, communications, and consumer silicon solutions. It was founded in 1995 and has more than 5000 employees. In 2006, it had $1.67 billion in revenue with a loss of $12 million. On a positive front, its sales increased 34% to $2.24 billion in 2006. The company bought Intel’s Xscale communications-chip division for $600 million. Though this acquisition has added to its growth, it has affected its profitability. The company expects the effect to last till the summer of 2008.
In Apple’s iPhone, Marvell provides a wireless connectivity device, 88W8686, a 90-nm WLAN part. On the launch of the iPhone on June 29th, its stock price rose $1, or 5.8%, to $18.2. >>>
Real estate sites are redefining the property business with property listing, realtor directory, mortgage calculator, financial advice and neighborhood info all at the click of a button. According to National Association of Realtors, the percentage of potential U.S. home buyers using the internet as part of their housing search process rose from 2% in 1995 to 77% in 2005 to over 80% in 2006.
It is a business that primarily belonged to the newspaper industry before, but has since shifted over to the Internet in a massive way.
According to comScore, total Internet audience for real estate web sites grew by 15% from 34.79 million unique visitors in January 2006 to 39.85 million unique visitors in January 2007. The top players are Realtor, RealtyTrac, Homegain, Apartments, Rent, Zillow and ZipRealty. Hitwise, estimates that the top-10 real estate sites accounted for 30 percent of visits to all web sites in the real estate category in February 2007.
We have been reviewing the online real estate industry and have covered ZipRealty, Zillow and Move from the Web 3.0 perspective. Oodle, Trulia, Loopnet are some of the up and coming real estate sites. >>>
AdventNet provides a safety zone from which to launch Zoho, which is why I was looking to gain an understanding of the revenue and cash position of the company. While competition will be stiff from Google and Microsoft, as well as other CRM and group meeting companies, Zoho seems to have a unique philosophy of ultimate frugality. Read on!
SM: Before we go into the details on the Zoho story, let me make sure we get on the same page. What is the revenue level from the OEM business and what is the revenue level from Manage Engine? SV: I would say OEM accounts for 30% of our revenue, Manage Engine, which we started in 2003, is now accounting for 70% of our revenue. Zoho is really small right now, and there are only two products which are even priced.
SM: Can you position Zoho for me? SV: Zoho is an on-demand application offering. We are offering a competitor to Microsoft Office on demand, meaning online. We also have a CRM and an application creator online. We just call it the ability to work online. That is our vision – to provide a comprehensive suite for a mid-sized customer. We want mid-sized customers to be able to have their IT needs met online. >>>
SM: Describe some of your team building experiences. Is your management team complete now? PF: We’ve built an extremely talented team across the board – from developers to sales executives. A large proportion found their jobs through Indeed itself, which is gratifying. We’re continuing to build the team and our current open positions are listed here: https://www.indeed.jobs/
SM: What are your thoughts about exit? Since we have an unresolved question around TAM, I would have to conclude that if your TAM is relatively small, then you will need to exit before you raise another round of money. If, however, you want to raise more money, then you will need to rationalize the market size question. PF: We are focused on moving the company forward: building the team, improving our services, growing revenue and ultimately generating profits for our
shareholders. For now, we have enough cash to keep going. >>>
National Association of Realtors (NAR), whose over 1 million members are Realtors, is a century-old powerful trade association of real estate agents and brokers in US.
Besides owning the word ‘Realtor’ as a registered trademark, the NAR has sufficient clout among the decision makers, which stems from its being the US’ third largest donor to political campaigns, having given in excess of $30 million since 1990.
But the NAR’s real strength lies in its formidable database, culled and nurtured over many decades. So, in November 1996 when Stuart Wolff founded Homestore.com to tie up with the NAR and put its home listings online, it was thought of as a smart move. That was in the early dotcom era. >>>
Move, originally known as Homestore, was launched in 1993. The Company is headquartered in Westlake Village, California. It is a real estate-based site providing comprehensive property listings for sale, home finance, moving, relocation, new homes, apartments for rent and senior housing. According to a Hitwise survey of Real Estate sites, conducted in February 2007, Move is ranked tenth with 1.45% market share.
Move, with its ease of use, easy inter-category navigation, drop-down menus, interactive help sections, FAQ and neat design is an attractive, functional offering. >>>
During the downturn after the bubble burst, many companies took significant hits. Here, it is revealing to notice there was really only one tough year for Adventnet, which could actually be described as an R&D year. That could have taken place anytime in the company’s history. The bubble burst did not destroy the company, they simply reacted positively to the change and moved in the right direction.
SM: Did you have to take a revenue hit between 2000 – 2003? SV: In 2001, due to the legacy of software we had fielded, we still experienced growth. In 2002 we took a hit. By 2003, although a lot of the startups were gone, we had successfully transitioned the core of our business to well established companies. By 2004 and 2005 this network management software had really taken off. Of course, we had a head start – we already had the technology.
SM: What is the Manage Engine? SV: It competes with the likes of HP OpenView, and Computer Associates companies like them. The main difference is that it is geared towards the mid-level markets, not the high-end enterprise segment.
SM: What are your top target segments? PF: As a comprehensive search engine for jobs, Indeed.com isn’t targeting particular segments. We’re covering all jobs in all fields. Having said that, we do have a disproportionate number of web-savvy, early-adopter types who have discovered the beauty of comprehensive job search.
SM: How did you penetrate the market and get early traction? PF: We were fortunate in having a lot of discussion about Indeed in the media and on blogs. That early exposure brought our initial traffic which then grew exponentially through word-of-mouth.
SM: What stage are you at now? Revenue? Profitability? Traffic? >>>