SANTA CLARA, Calif.,
May 21, 2015 /PRNewswire/
-- Marvell Technology Group Ltd. (NASDAQ: MRVL), a global
leader in integrated silicon solutions, today reported financial
results for the first quarter of fiscal year 2016, ended
May 2, 2015.
Key First Quarter of Fiscal 2016 Financial Highlights
- Revenue: Q1 FY 2016, $724
Million
- GAAP Net Income: Q1 FY 2016, $14
Million
- GAAP Diluted EPS: Q1 FY 2016, $0.03
- Non-GAAP Net Income: Q1 FY 2016, $71
Million
- Non-GAAP Diluted EPS: Q1 FY 2016, $0.13
- Free Cash Flow: Q1 FY 2016, $44
Million
Second Quarter of Fiscal 2016 Financial Outlook
Marvell's financial outlook does not include the potential
impact of future share repurchases, pending litigation matters,
business combinations, asset acquisitions or other investments that
may be completed after May 20,
2015.
- Revenue is expected to be in the range of $710 Million to $740 Million.
- GAAP Gross Margin is expected to be in the range of 49.5% +/-
100 bps. Non-GAAP Gross Margin is expected to be in the range
of 50.0% +/- 100 bps.
- GAAP Operating Expenses are expected to be in the range of
$350 Million +/- $10 Million. Non-GAAP Operating Expenses to
be in the range of $305 Million +/-
$10 Million.
- GAAP Diluted EPS expected to be in the range of $0.02 +/- $0.01.
Non-GAAP Diluted EPS expected to be in the range of
$0.11 +/- $0.01.
First Quarter of Fiscal 2016
Revenue for the first quarter of fiscal 2016 was $724 million, down approximately 16 percent from
$857 million in the fourth quarter of
fiscal 2015, ended January 31, 2015,
and down approximately 24 percent from $958
million in the first quarter of fiscal 2015, ended
May 3, 2014.
GAAP net income for the first quarter of fiscal 2016 was
$14 million, or $0.03 per share (diluted), compared with GAAP net
income of $82 million, or
$0.16 per share (diluted), for the
fourth quarter of fiscal 2015, and $99
million, or $0.19 per share
(diluted), for the first quarter of fiscal 2015.
Non-GAAP net income was $71
million, or $0.13 per share
(diluted), for the first quarter of fiscal 2016, compared with
non-GAAP net income of $131 million,
or $0.25 per share (diluted), for the
fourth quarter of fiscal 2015 and $144
million, or $0.27 per share
(diluted), for the first quarter of fiscal 2015.
Marvell reports net income, basic and diluted net income per
share, in accordance with U.S. generally accepted accounting
principles (GAAP) and on a non-GAAP basis as outlined below.
Reconciliations of GAAP net income to non-GAAP net income for the
three months ended May 2, 2015,
January 31, 2015, and May 3, 2014 appear in the financial statements
below. Non-GAAP net income, where applicable, excludes the effect
of share-based compensation, amortization and write-off of acquired
intangible assets, acquisition-related costs, restructuring and
other exit related costs, litigation settlement, and certain
one-time expenses and benefits.
GAAP gross margin for the first quarter of fiscal 2016 was 51.5
percent, compared to 51.4 percent for the fourth quarter of fiscal
2015 and 48.4 percent for the first quarter of fiscal 2015.
Non-GAAP gross margin for the first quarter of fiscal 2016 was
51.6 percent, compared to 51.8 percent for the fourth quarter of
fiscal 2015 and 48.8 percent for the first quarter of fiscal 2015.
Shares used to compute GAAP net income per diluted share for the
first quarter of fiscal 2016 were 527 million shares, compared with
522 million shares in the fourth quarter of fiscal 2015 and 521
million shares in the first quarter of fiscal 2015.
Shares used to compute non-GAAP net income per diluted share for
the first quarter of fiscal 2016 were 535 million shares, compared
with 533 million shares for the fourth quarter of fiscal 2015 and
530 million shares for the first quarter of fiscal 2015.
Cash flow from operations for the first quarter of fiscal 2016
was $59 million, compared to the
$142 million reported in the fourth
quarter of fiscal 2015 and the $235
million reported in the first quarter of fiscal
2015. Free cash flow for the first quarter of fiscal
2016 was $44 million, compared to the
$121 million reported in the fourth
quarter of fiscal 2015 and the $211
million reported in the first quarter of fiscal 2015.
Free cash flow as presented above is defined as cash flow from
operations, less capital expenditures and purchases of technology
licenses reported under investing and financing activities in the
consolidated statement of cash flows.
Under the company's authorized share repurchase program, Marvell
repurchased approximately 1.4 million shares for a total of
$22 million in the first quarter of
fiscal 2016. Marvell paid a quarterly dividend of $0.06 per share on April
2, 2015 to all shareholders of record as of March 12, 2015. Marvell intends to pay its next
quarterly dividend of $0.06 per share
on July 1, 2015 to all shareholders
of record as of June 11, 2015.
The payment of future quarterly cash dividends on Marvell's
common shares is subject to, among other things, the best interests
of its shareholders, its results of operations, cash balances and
future cash requirements, financial condition, developments in
ongoing litigation, statutory requirements of Bermuda law, and other factors that the board
of directors may deem relevant.
Key First Quarter of Fiscal 2016 Product
Announcements
- Xiaomi Launches New Series of Smart Home Products Powered by
Marvell's Best-In-Class End-to-End Internet of Things
Platforms
- Samsung Launches New Global Mass Market Galaxy J1 LTE
Smartphone Powered by Marvell's Industry-Leading ARMADA Mobile
PXA1908 Platform
- Marvell's Advanced Avastar Connectivity Solution Supports New
Social Wi-Fi and Indoor Location Technologies
- Marvell Partners with Google's Advanced Technology and Products
(ATAP) Group to Support Project Ara
- Marvell Enhances Its LTE Broadcast Capabilities for Global
Operators and OEMs with eMBMS Technology
- Marvell Open Sources KinomaJS to Accelerate Growth of the
Internet of Things Industry
- Marvell Unveils ARMADA Mobile PXA1826 5-Mode 4G LTE Release 10
Modem Supporting Carrier Aggregation
- Marvell's IoT Platform is Industry's First to Offer Full
HomeKit Support to Hardware Manufacturers
- Marvell Extends Lead in Android Set-top Box Segment with Launch
of ARMADA 1500 Ultra Platform for 4K Entertainment
- SendTek Announces G.hn Coaxial and Phoneline Gigabit Ethernet
Bridge Powered by Marvell's G.hn Technology to Support Market
Migration from HPNA to G.hn Installations for Home Networking
- Marvell Unveils Industry-Leading ZigBee Wireless
Microcontroller SoC to Advance Smart Home and IoT Innovations
- China Unicom Launches World's First 399RMB 5" 4G LTE XiaoLaJiao Smartphone Powered by
Marvell's ARMADA Mobile SoC
Conference Call
Marvell will be conducting a conference call on Thursday, May 21, 2015 at 1:45 p.m. Pacific Time to discuss results for the
first quarter of fiscal year 2016. Interested parties may join the
conference call by dialing 1- 877-703-6102 or 1-857-244-7301,
pass-code 47211925. The call will be webcast by Thomson
Reuters and can be accessed at the Marvell Investor Relations
website at http://investor.marvell.com/ with a replay available
following the call until June 21,
2015.
Discussion of Non-GAAP Financial Measures
Non-GAAP financial measures exclude the effect of share-based
compensation expense, amortization and write-off of acquired
intangible assets, acquisition-related costs, restructuring and
other exit-related costs, litigation settlement, and certain
one-time expenses and benefits that are driven primarily by
discrete events that management does not consider to be directly
related to Marvell's core operating performance. Non-GAAP net
income per share is calculated by dividing non-GAAP net income by
non-GAAP weighted average shares outstanding (diluted). For
purposes of calculating non-GAAP net income per share, the GAAP
weighted average shares outstanding (diluted) is adjusted to
exclude the potential benefits of share-based compensation expected
to be incurred in future periods but not yet recognized in the
financial statements. The expected compensation costs are treated
as proceeds assumed to be used to repurchase shares under the GAAP
treasury stock method and also include the dilutive/anti-dilutive
effects of common stock options and restricted stock
units.
Marvell believes that the presentation of non-GAAP financial
measures provides important supplemental information to management
and investors regarding financial and business trends relating to
Marvell's financial condition and results of operations. While
Marvell uses non-GAAP financial measures as a tool to enhance its
understanding of certain aspects of its financial performance,
Marvell does not consider these measures to be a substitute for, or
superior to, the information provided by GAAP financial measures.
Consistent with this approach, Marvell believes that disclosing
non-GAAP financial measures to the readers of its financial
statements provides such readers with useful supplemental data
that, while not a substitute for GAAP financial measures, allows
for greater transparency in the review of its financial and
operational performance. For further information regarding why
Marvell believes that these non-GAAP measures provide useful
information to investors, the specific manner in which management
uses these measures, and some of the limitations associated with
the use of these measures, please refer to Marvell's Current Report
on Form 8-K filed today with the SEC. The Form 8-K is available on
the SEC's website at www.sec.gov as well as on the Marvell website
in the Investor Relations section at www.marvell.com.
Forward-Looking Statements under the Private Securities
Litigation Reform Act of 1995
This press release contains forward-looking statements within
the meaning of the federal securities laws that involve risks and
uncertainties, including: Marvell's expectations and statements
regarding its financial outlook for the second quarter of fiscal
2016; its dividend program including the declaration of, timing of,
funding of, payment of and quarterly amount of dividends; and its
use of non-GAAP financial measures as important supplemental
information. Words such as "anticipates," "expects," "intends,"
"plans," "believes," "seeks," "estimates," "can," "will" and
similar expressions identify such forward-looking statements.
These statements are not guarantees of results and should not
be considered as an indication of future activity or future
performance. Actual events or results may differ materially from
those described in this press release due to a number of risks and
uncertainties, including, among others: Marvell's ability to
compete in products and prices in an intensely competitive
industry; Marvell's reliance on the hard disk drive and mobile and
wireless markets, which are highly cyclical and intensely
competitive; costs and liabilities relating to current and future
litigation; Marvell's reliance on a few customers for a significant
portion of its revenue; Marvell's ability to develop and introduce
new and enhanced products in a timely and cost effective manner and
the adoption of those products in the market; seasonality in sales
of consumer devices in which Marvell's products are incorporated;
uncertainty in the worldwide economic conditions; risks associated
with manufacturing and selling a majority of Marvell's products and
Marvell's customers' products outside of the United States; and other risks detailed in
Marvell's SEC filings from time to time. When Marvell files its
Quarterly Report on Form 10-Q for the first quarter of fiscal 2016,
the financial statements may differ from the results disclosed in
this press release because judgments and estimates that management
used in preparing the financial results reported in this press
release may need to be updated to the date of the filing. For other
factors that could cause Marvell's results to vary from
expectations, please see the risk factors identified in the
Marvell's latest Annual Report on Form 10-K for the year ended
January 31, 2015 as filed with the
SEC, and other factors detailed from time to time in Marvell's
filings with the SEC. Marvell undertakes no obligation to revise or
update publicly any forward-looking statements.
About Marvell
Marvell (NASDAQ: MRVL) is a global leader in providing complete
silicon solutions and Kinoma® software enabling the "Smart Life and
Smart Lifestyle." From mobile communications to storage, Internet
of Things (IoT), cloud infrastructure, digital entertainment and
in-home content delivery, Marvell's diverse product portfolio
aligns complete platform designs with industry-leading performance,
security, reliability and efficiency. At the core of the world's
most powerful consumer, network and enterprise systems, Marvell
empowers partners and their customers to always stand at the
forefront of innovation, performance and mass appeal. By providing
people around the world with mobility and ease of access to
services adding value to their social, private and work lives,
Marvell is committed to enhancing the human experience.
As used in this release, the term "Marvell" refers to Marvell
Technology Group Ltd. and its subsidiaries. For more information,
please visit www.Marvell.com.
Marvell® and the Marvell logo are registered trademarks of
Marvell and/or its affiliates.
Marvell Technology
Group Ltd.
|
Condensed
Consolidated Statements of Operations
|
(Unaudited)
|
(In thousands,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
May
2,
|
|
January
31,
|
|
May
3,
|
|
|
|
|
|
|
|
2015
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
revenue
|
|
|
|
$ 724,288
|
|
$ 857,452
|
|
$ 957,830
|
|
Cost of goods
sold
|
|
|
351,153
|
|
417,131
|
|
493,860
|
|
Gross
profit
|
|
|
|
373,135
|
|
440,321
|
|
463,970
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
280,114
|
|
285,497
|
|
295,363
|
|
|
Selling and
marketing
|
|
|
36,174
|
|
37,235
|
|
38,358
|
|
|
General and
administrative
|
|
41,027
|
|
34,651
|
|
30,573
|
|
|
Amortization and
write-off of acquired intangible assets
|
2,568
|
|
3,100
|
|
6,689
|
|
|
|
Total operating
expenses
|
|
359,883
|
|
360,483
|
|
370,983
|
|
Operating
income
|
|
|
13,252
|
|
79,838
|
|
92,987
|
|
Interest and other
income, net
|
|
5,167
|
|
4,382
|
|
1,925
|
|
Income before income
taxes
|
|
18,419
|
|
84,220
|
|
94,912
|
|
Provision (benefit)
for income taxes
|
|
4,329
|
|
2,527
|
|
(4,567)
|
|
Net income
|
|
|
|
$ 14,090
|
|
$ 81,693
|
|
$ 99,479
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income per
share
|
|
|
$ 0.03
|
|
$
0.16
|
|
$ 0.20
|
|
Diluted net income
per share
|
|
$ 0.03
|
|
$
0.16
|
|
$ 0.19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
computing basic earnings per share
|
516,228
|
|
513,574
|
|
505,105
|
|
Shares used in
computing diluted earnings per share
|
527,167
|
|
522,112
|
|
520,751
|
|
Marvell Technology
Group Ltd.
|
Condensed
Consolidated Balance Sheets
|
(Unaudited)
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
May
2,
|
|
January
31,
|
Assets
|
|
|
|
|
|
2015
|
|
2015
|
Current
assets:
|
|
|
|
|
|
|
|
|
|
Cash, cash
equivalents and short-term investments
|
|
$ 2,500,915
|
|
$ 2,529,555
|
|
Accounts receivable,
net
|
|
|
|
393,814
|
|
420,955
|
|
Inventories
|
|
|
|
|
|
339,859
|
|
308,162
|
|
Prepaid expenses and
other current assets
|
|
91,151
|
|
85,368
|
|
|
Total current
assets
|
|
|
|
3,325,739
|
|
3,344,040
|
Property and
equipment, net
|
|
|
|
325,754
|
|
340,639
|
Long-term
investments
|
|
|
|
|
10,111
|
|
10,226
|
Goodwill and acquired
intangible assets, net
|
|
|
2,057,590
|
|
2,060,643
|
Other non-current
assets
|
|
|
|
122,855
|
|
128,839
|
|
|
Total
assets
|
|
|
|
|
$ 5,842,049
|
|
$ 5,884,387
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
|
|
|
$ 297,050
|
|
$ 282,899
|
|
Accrued
liabilities
|
|
|
|
|
258,345
|
|
286,357
|
|
Deferred
income
|
|
|
|
|
61,093
|
|
68,120
|
|
|
Total current
liabilities
|
|
|
|
616,488
|
|
637,376
|
Other non-current
liabilities
|
|
|
|
94,289
|
|
100,922
|
|
|
Total
liabilities
|
|
|
|
|
710,777
|
|
738,298
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
|
|
|
|
Common
stock
|
|
|
|
|
1,036
|
|
1,030
|
|
Additional paid-in
capital
|
|
|
|
3,101,773
|
|
3,099,548
|
|
Accumulated other
comprehensive income
|
|
80
|
|
308
|
|
Retained
earnings
|
|
|
|
|
2,028,383
|
|
2,045,203
|
|
|
Total shareholders'
equity
|
|
|
5,131,272
|
|
5,146,089
|
|
|
Total liabilities and
shareholders' equity
|
|
$ 5,842,049
|
|
$ 5,884,387
|
Marvell Technology
Group Ltd.
|
Condensed
Consolidated Statements of Cash Flows
|
(Unaudited)
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
|
May
2,
|
|
May
3,
|
|
|
|
|
|
|
|
|
|
2015
|
|
2014
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
Net income
|
$ 14,090
|
|
$ 99,479
|
|
Adjustments to reconcile net income to net cash
provided by operating activities:
|
|
|
|
|
|
Depreciation and
amortization
|
26,620
|
|
27,006
|
|
|
Share-based
compensation
|
33,221
|
|
29,969
|
|
|
Amortization and
write-off of acquired intangible assets
|
3,053
|
|
7,174
|
|
|
Other expense,
net
|
916
|
|
1,470
|
|
|
Excess tax benefits
from share-based compensation
|
(18)
|
|
(44)
|
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
Accounts
receivable
|
27,141
|
|
(63,578)
|
|
|
|
Inventories
|
(31,318)
|
|
(3,105)
|
|
|
|
Prepaid expenses and
other assets
|
1,065
|
|
(2,161)
|
|
|
|
Accounts
payable
|
17,125
|
|
85,128
|
|
|
|
Accrued liabilities
and other non-current liabilities
|
(11,576)
|
|
(7,134)
|
|
|
|
Accrued employee
compensation
|
(14,424)
|
|
30,001
|
|
|
|
Deferred
income
|
(7,027)
|
|
30,932
|
|
|
|
|
Net cash provided by
operating activities
|
58,868
|
|
235,137
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
Purchases of
available-for-sale securities
|
(392,900)
|
|
(181,889)
|
|
|
Sales and maturities
of available-for-sale securities
|
247,495
|
|
182,311
|
|
|
Investments in
privately-held companies
|
—
|
|
(441)
|
|
|
Purchases of
technology licenses
|
(3,606)
|
|
(8,111)
|
|
|
Purchases of property
and equipment
|
(7,334)
|
|
(16,131)
|
|
|
Purchase of equipment
previously leased
|
(10,240)
|
|
—
|
|
|
|
|
Net cash used in
investing activities
|
(166,585)
|
|
(24,261)
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
Repurchase of common
stock (a)
|
(20,273)
|
|
—
|
|
|
Proceeds from
employee stock plans
|
13,013
|
|
19,092
|
|
|
Minimum tax withholding paid on behalf of
employees for net share settlement
|
(22,310)
|
|
(24,286)
|
|
|
Dividend payments to
shareholders
|
(30,910)
|
|
(30,172)
|
|
|
Payments on
technology license obligations
|
(4,067)
|
|
—
|
|
|
Excess tax benefits
from share-based compensation
|
18
|
|
44
|
|
|
|
|
Net cash used in
financing activities
|
(64,529)
|
|
(35,322)
|
|
Net increase
(decrease) in cash and cash equivalents
|
(172,246)
|
|
175,554
|
|
Cash and cash
equivalents at beginning of period
|
1,210,977
|
|
965,750
|
|
Cash and cash
equivalents at end of period
|
$ 1,038,731
|
|
$ 1,141,304
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Marvell records all
repurchases as well as investment purchases and sales, based on
trade date in accordance with U.S. GAAP. Cash paid for repurchase
of Marvell common shares includes a total of 1.4 million shares
repurchased for $22.1 million in the first quarter of fiscal 2016,
adjusted for repurchases of $1.8 million made within the final
three days of the quarter that are accrued but not yet paid due to
the standard settlement period that normally takes up to three
days.
|
|
|
|
|
|
|
|
|
|
Marvell Technology
Group Ltd.
|
Reconciliations
from GAAP to Non-GAAP
|
(Unaudited)
|
(In thousands,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
May
2,
|
|
January
31,
|
|
May
3,
|
|
|
|
|
|
|
2015
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net
income
|
|
|
$ 14,090
|
|
$ 81,693
|
|
$ 99,479
|
|
Share-based
compensation
|
|
33,221
|
|
37,963
|
|
29,969
|
|
Amortization and
write-off of acquired intangible assets
|
3,493
|
|
4,025
|
|
7,614
|
|
|
Restructuring and
other exit-related costs
|
|
592
|
|
3,412
|
|
5,088
|
|
Litigation matters
(a)
|
|
|
(1,700)
|
|
-
|
|
2,000
|
|
Other
(b)
|
|
|
21,382
|
|
3,764
|
|
-
|
|
Non-GAAP net
income
|
|
$ 71,078
|
|
$ 130,857
|
|
$ 144,150
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP weighted average
shares - diluted
|
|
527,167
|
|
522,112
|
|
520,751
|
|
|
Non-GAAP
adjustment
|
|
7,993
|
|
10,688
|
|
9,625
|
|
Non-GAAP weighted
average shares diluted (c)
|
535,160
|
|
532,800
|
|
530,376
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted net
income per share
|
|
$ 0.03
|
|
$
0.16
|
|
$ 0.19
|
|
Non-GAAP diluted net
income per share
|
|
$ 0.13
|
|
$
0.25
|
|
$ 0.27
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP gross
profit:
|
|
|
$ 373,135
|
|
$ 440,321
|
|
$ 463,970
|
|
|
Share-based
compensation
|
|
1,547
|
|
2,006
|
|
2,299
|
|
|
Amortization of
acquired intangible assets
|
|
925
|
|
925
|
|
925
|
|
|
Litigation matters
(a)
|
|
(1,700)
|
|
-
|
|
-
|
|
|
Other
(b)
|
|
|
-
|
|
1,000
|
|
-
|
|
Non-GAAP gross
profit
|
|
$ 373,907
|
|
$ 444,252
|
|
$ 467,194
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP gross
margin
|
|
|
51.5%
|
|
51.4%
|
|
48.4%
|
|
|
Share-based
compensation
|
|
0.2%
|
|
0.2%
|
|
0.3%
|
|
|
Amortization of
acquired intangible assets
|
|
0.1%
|
|
0.1%
|
|
0.1%
|
|
|
Litigation matters
(a)
|
|
-0.2%
|
|
-
|
|
-
|
|
|
Other
(b)
|
|
|
-
|
|
0.1%
|
|
-
|
|
Non-GAAP gross
margin
|
|
51.6%
|
|
51.8%
|
|
48.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP research and
development:
|
|
$ 280,114
|
|
$ 285,497
|
|
$ 295,363
|
|
|
Share-based
compensation
|
|
(24,781)
|
|
(25,590)
|
|
(20,368)
|
|
|
Restructuring and
other exit-related costs
|
|
|
|
-
|
|
(67)
|
|
(4,682)
|
|
Non-GAAP research and
development
|
|
$ 255,333
|
|
$ 259,840
|
|
$ 270,313
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP selling and
marketing:
|
|
$ 36,174
|
|
$ 37,235
|
|
$ 38,358
|
|
|
Share-based
compensation
|
|
(2,577)
|
|
(3,069)
|
|
(2,928)
|
|
|
Restructuring and
other exit-related costs
|
|
|
|
-
|
|
-
|
|
(48)
|
|
Non-GAAP selling and
marketing
|
|
$ 33,597
|
|
$ 34,166
|
|
$ 35,382
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP general and
administrative:
|
|
$ 41,027
|
|
$ 34,651
|
|
$ 30,573
|
|
|
Share-based
compensation
|
|
(4,316)
|
|
(7,298)
|
|
(4,374)
|
|
|
Restructuring and
other exit-related costs
|
|
|
|
(592)
|
|
(3,345)
|
|
(358)
|
|
|
Litigation matters
(a)
|
|
-
|
|
-
|
|
(2,000)
|
|
|
Other
(b)
|
|
|
(18,302)
|
|
(2,764)
|
|
-
|
|
Non-GAAP general and
administrative
|
|
$ 17,817
|
|
$ 21,244
|
|
$ 23,841
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP provision
(benefit) for income taxes
|
|
$ 4,329
|
|
$ 2,527
|
|
$ (4,567)
|
|
|
Other
(b)
|
|
|
(3,080)
|
|
-
|
|
-
|
|
Non-GAAP provision
(benefit) for income taxes
|
$ 1,249
|
|
$ 2,527
|
|
$ (4,567)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
The amounts recorded
do not relate to Marvell's litigation with Carnegie Mellon
University.
|
|
|
(b)
|
Other costs included
in general and administrative expenses for the three months ended
May 2, 2015 includes a cash payment of $15.4 million to Dr. Sehat
Sutardja, the Company's Chief Executive Officer (See "Note 15 -
Subsequent Events" in the Notes to the Consolidated Financial
Statements set forth in Part II, Item 8 of the Company's Annual
Report on Form 10-K for fiscal 2015). Other costs included in the
provision for income taxes for the three months ended May 2, 2015
includes the corporate income tax effect of the $15.4 million cash
payment. Other costs for all periods presented also includes costs
associated with the surety bond to appeal the Carnegie Mellon
University judgment.
|
|
|
(c)
|
For purposes of
calculating non-GAAP diluted net income per share, the GAAP diluted
weighted average shares outstanding is adjusted to exclude the
potential benefits of share-based compensation costs expected to be
incurred in future periods but not yet recognized in the financial
statements.
|
Marvell Technology
Group Ltd.
|
Reconciliations
from GAAP to Non-GAAP Outlook
|
(Unaudited)
|
(In millions,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second
Quarter
|
|
Note : Amounts
represent the midpoint of the expected range
|
Fiscal
2016
|
|
|
|
|
|
|
|
|
|
GAAP gross
margin
|
49.5%
|
|
|
Share-based
compensation, acquisition related costs, and other
|
0.5%
|
|
Non-GAAP gross
margin
|
50.0%
|
|
|
|
|
|
|
|
Second
Quarter
|
|
|
|
Fiscal
2016
|
|
|
|
|
|
GAAP operating
expenses
|
$
350
|
|
|
Share-based
compensation, acquisition-related costs, restructuring,
|
|
|
|
amortization of
intangible assets and other
|
(45)
|
|
Non-GAAP operating
expenses
|
$
305
|
|
|
|
|
|
|
|
Second
Quarter
|
|
|
|
Fiscal
2016
|
|
|
|
|
|
GAAP diluted earnings
per share
|
$
0.02
|
|
|
Share-based
compensation, acquisition-related costs, restructuring,
|
|
|
|
amortization of
intangible assets and other
|
0.09
|
|
Non-GAAP diluted
earnings per share
|
$
0.11
|
|
For further
information, contact:
|
John Spencer
Ahn
|
Sue Kim
|
Investor
Relations
|
Media
Relations
|
408-222-7544
|
408-222-1942
|
johnahn@marvell.com
|
suekim@marvell.com
|
|
|
|
|
|
|
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SOURCE Marvell Technology Group Ltd.