SANTA CLARA, Calif.,
March 2, 2017 /PRNewswire/ --
- Q4 Revenue: $571 Million
- Q4 GAAP gross margin of 57.3%; Non-GAAP gross margin of
57.6%
- Q4 GAAP diluted loss per share from continuing operations of
($0.15); Non-GAAP diluted earnings
per share from continuing operations of $0.22
- Cash and short-term investments: $1.67
Billion
Marvell Technology Group Ltd. (NASDAQ: MRVL), a leader in
storage, networking, and wireless connectivity semiconductor
solutions, today reported financial results for the fourth fiscal
quarter and the full fiscal year, ended January 28, 2017. Revenues for the fourth quarter
of fiscal 2017 were $571 million,
which exceeded the midpoint of the Company's guidance provided on
November 17, 2016.
GAAP net loss from continuing operations for the fourth quarter
of fiscal 2017 was $77 million, or
($0.15) per share. Non-GAAP net
income from continuing operations for the fourth quarter of fiscal
2017 was $114 million, or
$0.22 per diluted share. Cash flow
from operations for the quarter was $119
million.
Revenue for fiscal year 2017 was $2.3
billion. GAAP net income from continuing operations for the
full year was $44 million or
$0.09 per diluted share. Non-GAAP net
income from continuing operations for the full year was
$331 million, or $0.63 per diluted share.
"Marvell delivered another strong performance in Q4'17, which
demonstrates our team's ongoing commitment to the Company's
transformation and the growing power of our business model," said
Matt Murphy, President and Chief
Executive Officer. "Our performance also demonstrates the strength
of our portfolio in the data storage, network infrastructure and
wireless connectivity markets, which are core to our business."
First Quarter of Fiscal 2018 Financial Outlook
- Revenue is expected to be $570
million plus or minus 2%, better than normal
seasonality.
- GAAP and Non-GAAP Gross Margins are expected to be
approximately 59%.
- GAAP Operating Expenses are expected to be $250 million to $265 million.
- Non-GAAP Operating Expenses are expected to be $220 million to $225
million.
- GAAP Diluted EPS from continuing operations are expected to be
in the range of $0.12 to
$0.18.
- Non-GAAP Diluted EPS from continuing operations are expected to
be in the range of $0.19 to
$0.23.
Discontinued Operations
The Company's financial results for prior periods presented herein
have been recast to reflect certain businesses that were classified
as discontinued operations during the fourth quarter of fiscal year
2017.
Conference Call
Marvell will conduct a conference call
on Thursday, March 2, 2017 at
1:45 p.m. Pacific Time to discuss
results for the fourth quarter and full fiscal year 2017.
Interested parties may join the conference call by dialing
1-844-647-5488 or 1-615-247-0258, pass-code 67685468. 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 March 10, 2017.
Investor Day
Marvell will hold its 2017 Investor Day
at the St. Regis Hotel in New York
City on March 10, 2017 from
9:30 a.m. – 12:30 p.m. Eastern Time. The live webcast and
presentation materials will be available
at www.marvell.com/investors. During the presentation,
Marvell's leadership team will provide an update on the company's
strategy, business and products, and answer questions from
attendees.
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 related
charges, litigation settlement, and certain 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 diluted net income per share from continuing
operations is calculated by dividing Non-GAAP net income from
continuing operations by Non-GAAP weighted average shares
outstanding (diluted). For purposes of calculating Non-GAAP
diluted 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 additional proceeds
assumed to be used to repurchase shares under the GAAP treasury
stock method.
Marvell believes that the presentation of Non-GAAP financial
measures provide 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, financial measures calculated in accordance with GAAP.
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.
Externally, management believes that investors may find
Marvell's Non-GAAP financial measures useful in their assessment of
Marvell's operating performance and the valuation of Marvell.
Internally, Marvell's Non-GAAP financial measures are used in the
following areas:
- Management's evaluation of Marvell's operating
performance;
- Management's establishment of internal operating budgets;
- Management's performance comparisons with internal forecasts
and targeted business models; and
- Management's determination of the achievement and measurement
of certain performance-based equity awards (adjustments may vary
from award to award).
Non-GAAP financial measures have limitations in that they do not
reflect all of the costs associated with the operations of
Marvell's business as determined in accordance with GAAP. As a
result, you should not consider these measures in isolation or as a
substitute for analysis of Marvell's results as reported under
GAAP. Marvell expects to continue to incur expenses similar to the
Non-GAAP adjustments described above, and exclusion of these items
from Marvell's Non-GAAP net income should not be construed as an
inference that these costs are unusual, infrequent or
non-recurring.
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 regarding its first quarter of
fiscal 2018 financial outlook; and Marvell's use of Non-GAAP
financial measures as important supplemental information. Words
such as "anticipates," "expects," "intends," "plans," "projects,"
"believes," "seeks," "estimates," "can," "may," "will," "would" 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, but not limited to: adverse impacts of
litigation or regulatory activities; Marvell's ability to implement
its restructuring in a timely manner; the amount and timing of
anticipated charges associated with the restructuring; Marvell's
ability to increase its operational efficiency and decrease its
operating expenses to the anticipated level; its ability to divest
certain non-strategic businesses within the anticipated timeframes
and with the anticipated cost savings; actions that may be taken by
Marvell as a result of the Audit Committee's investigation;
Marvell's ability to compete in products and prices in an intensely
competitive industry; Marvell's reliance on the hard disk drive 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; severe financial hardship or bankruptcy of
one or more of Marvell's major customers; 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;
risks associated with acquisition and consolidation activity in the
semiconductor industry; and other risks detailed in Marvell's SEC
filings from time to time. For other factors that could cause
Marvell's results to vary from expectations, please see the risk
factors identified in Marvell's Quarterly Report on Form 10-Q for
the fiscal quarter ended October 29,
2016 as filed with the SEC on December 6, 2016, 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 first revolutionized the
digital storage industry by moving information at speeds never
thought possible. Today, that same breakthrough innovation remains
at the heart of the Company's storage, network infrastructure, and
wireless connectivity solutions. With leading intellectual property
and deep system-level knowledge, Marvell's semiconductor solutions
continue to transform the enterprise, cloud, automotive,
industrial, and consumer markets. To learn more, 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
|
|
Year
Ended
|
|
|
|
|
|
|
January
28,
|
|
October
29,
|
|
January
30,
|
|
January
28,
|
|
January
30,
|
|
|
|
|
|
|
2017
|
|
2016
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
revenue
|
|
|
|
$
571,400
|
|
$
626,092
|
|
$
602,513
|
|
$
2,317,674
|
|
$
2,649,216
|
|
Cost of goods
sold
|
|
|
243,883
|
|
268,313
|
|
292,288
|
|
1,029,527
|
|
1,442,517
|
|
Gross
profit
|
|
|
|
327,517
|
|
357,779
|
|
310,225
|
|
1,288,147
|
|
1,206,699
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
228,669
|
|
209,905
|
|
225,577
|
|
880,050
|
|
1,041,922
|
|
Selling and
marketing
|
|
|
29,154
|
|
29,237
|
|
29,849
|
|
118,311
|
|
126,113
|
|
General and
administrative
|
|
80,347
|
|
28,754
|
|
37,566
|
|
181,416
|
|
804,071
|
|
Amortization and
write-off of acquired intangible assets
|
1,480
|
|
2,299
|
|
2,300
|
|
8,376
|
|
10,098
|
|
|
Total operating
expenses
|
|
339,650
|
|
270,195
|
|
295,292
|
|
1,188,153
|
|
1,982,204
|
|
Operating income
(loss)
|
|
|
(12,133)
|
|
87,584
|
|
14,933
|
|
99,994
|
|
(775,505)
|
|
Interest and other
income, net
|
|
3,780
|
|
5,470
|
|
1,084
|
|
17,022
|
|
17,685
|
|
Income (loss) from
continuing operations before income taxes
|
(8,353)
|
|
93,054
|
|
16,017
|
|
117,016
|
|
(757,820)
|
|
Provision (benefit)
for income taxes
|
|
68,524
|
|
15,600
|
|
(1,156)
|
|
73,022
|
|
11,335
|
|
Income (loss) from
continuing operations
|
(76,877)
|
|
77,454
|
|
17,173
|
|
43,994
|
|
(769,155)
|
|
Loss from
discontinued operations, net of tax
|
(3,214)
|
|
(4,838)
|
|
(12,973)
|
|
(22,843)
|
|
(42,245)
|
|
Net income
(loss)
|
|
|
$
(80,091)
|
|
$
72,616
|
|
$
4,200
|
|
$
21,151
|
|
$
(811,400)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
share - Basic:
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
|
$
(0.15)
|
|
$
0.15
|
|
$
0.03
|
|
$
0.09
|
|
$
(1.51)
|
|
Discontinued
operations
|
|
(0.01)
|
|
(0.01)
|
|
(0.02)
|
|
(0.05)
|
|
(0.08)
|
|
Net income (loss) per
share basic
|
|
$
(0.16)
|
|
$
0.14
|
|
$
0.01
|
|
$
0.04
|
|
$
(1.59)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
share - Diluted:
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
|
$
(0.15)
|
|
$
0.15
|
|
$
0.03
|
|
$
0.09
|
|
$
(1.51)
|
|
Discontinued
operations
|
|
(0.01)
|
|
(0.01)
|
|
(0.02)
|
|
(0.05)
|
|
(0.08)
|
|
Net income (loss) per
share diluted
|
|
$
(0.16)
|
|
$
0.14
|
|
$
0.01
|
|
$
0.04
|
|
$
(1.59)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
computing basic earnings (loss) per share
|
507,834
|
|
511,090
|
|
506,352
|
|
509,738
|
|
510,945
|
|
Shares used in
computing diluted earnings (loss) per share
|
507,834
|
|
522,091
|
|
508,590
|
|
517,513
|
|
510,945
|
|
Marvell Technology
Group Ltd.
|
|
Condensed
Consolidated Balance Sheets
|
|
(Unaudited)
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
January
28,
|
|
January
30,
|
|
Assets
|
|
|
|
|
|
2017
|
|
2016
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
|
Cash, cash
equivalents and short-term investments
|
|
$
1,668,360
|
|
$
2,282,749
|
|
Accounts receivable,
net
|
|
|
|
335,384
|
|
323,300
|
|
Inventories
|
|
|
|
|
|
171,969
|
|
200,958
|
|
Prepaid expenses and
other current assets
|
|
58,771
|
|
102,560
|
|
Current assets held
for sale
|
|
|
|
45,846
|
|
45,095
|
|
|
Total current
assets
|
|
|
|
2,280,330
|
|
2,954,662
|
|
Property and
equipment, net
|
|
|
|
243,397
|
|
296,778
|
|
Long-term
investments
|
|
|
|
|
4,615
|
|
11,296
|
|
Goodwill and acquired
intangible assets, net
|
|
|
2,006,984
|
|
2,015,360
|
|
Other non-current
assets
|
|
|
|
113,324
|
|
164,031
|
|
|
Total
assets
|
|
|
|
|
$
4,648,650
|
|
$
5,442,127
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
|
|
|
$
143,484
|
|
$
180,372
|
|
Accrued
liabilities
|
|
|
|
|
283,138
|
|
253,691
|
|
Carnegie Mellon
University accrued litigation settlement
|
-
|
|
736,000
|
|
Deferred
income
|
|
|
|
|
68,124
|
|
53,973
|
|
Current liabilities
held for sale
|
|
|
1,670
|
|
1,749
|
|
|
Total current
liabilities
|
|
|
|
496,416
|
|
1,225,785
|
|
Other non-current
liabilities
|
|
|
|
124,583
|
|
76,219
|
|
|
Total
liabilities
|
|
|
|
|
620,999
|
|
1,302,004
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
|
|
|
|
Common
stock
|
|
|
|
|
1,012
|
|
1,015
|
|
Additional paid-in
capital
|
|
|
|
3,016,775
|
|
3,028,921
|
|
Accumulated other
comprehensive income (loss)
|
|
23
|
|
(795)
|
|
Retained
earnings
|
|
|
|
|
1,009,841
|
|
1,110,982
|
|
|
Total shareholders'
equity
|
|
|
4,027,651
|
|
4,140,123
|
|
|
Total liabilities and
shareholders' equity
|
|
$
4,648,650
|
|
$
5,442,127
|
|
Marvell Technology
Group Ltd.
|
|
Condensed
Consolidated Statements of Cash Flows
|
|
(Unaudited)
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Year
Ended
|
|
|
|
|
|
|
|
|
January
28,
|
|
January
30,
|
|
|
January
28,
|
|
January
30,
|
|
|
|
|
|
|
|
|
2017
|
|
2016
|
|
|
2017
|
|
2016
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
|
|
|
$
(80,091)
|
|
$
4,200
|
|
|
$
21,151
|
|
$
(811,400)
|
|
Adjustments to
reconcile net income (loss) to net cash provided
|
|
|
|
|
|
|
|
|
|
|
by operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
|
26,683
|
|
22,800
|
|
|
107,851
|
|
100,176
|
|
Share-based
compensation
|
|
|
|
|
24,058
|
|
32,419
|
|
|
113,970
|
|
133,779
|
|
Amortization and
write-off of acquired intangible assets
|
|
|
1,965
|
|
2,947
|
|
|
10,641
|
|
12,688
|
|
Impairment of
long-lived assets and restructuring related charges
|
|
50,500
|
|
289
|
|
|
52,581
|
|
16,032
|
|
Other non-cash
expense (income), net
|
|
|
|
(1,013)
|
|
7,885
|
|
|
7
|
|
13,811
|
|
Excess tax benefits
from share-based compensation
|
|
|
(27)
|
|
1
|
|
|
(37)
|
|
(26)
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
|
|
26,811
|
|
57,628
|
|
|
(12,084)
|
|
97,655
|
|
|
Inventories
|
|
|
|
|
18,381
|
|
69,544
|
|
|
29,325
|
|
90,586
|
|
|
Prepaid expenses and
other assets(a)
|
|
|
|
12,300
|
|
(35,245)
|
|
|
9,722
|
|
(17,113)
|
|
|
Accounts
payable
|
|
|
|
|
(38,694)
|
|
(62,163)
|
|
|
(28,153)
|
|
(105,898)
|
|
|
Accrued liabilities
and other non-current liabilities (a)
|
|
64,238
|
|
(25,933)
|
|
|
(695,497)
|
|
720,798
|
|
|
Accrued employee
compensation
|
|
|
|
7,597
|
|
(18,702)
|
|
|
18,016
|
|
(33,338)
|
|
|
Deferred
income
|
|
|
|
|
6,138
|
|
(2,364)
|
|
|
14,072
|
|
(12,398)
|
|
|
|
Net cash provided by
(used in) operating activities
|
|
118,846
|
|
53,306
|
|
|
(358,435)
|
|
205,352
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of
available-for-sale securities
|
|
|
|
(146,046)
|
|
(133,215)
|
|
|
(489,856)
|
|
(1,056,045)
|
|
Sales and maturities
of available-for-sale securities
|
|
|
199,217
|
|
477,301
|
|
|
856,254
|
|
1,303,500
|
|
Purchase of time
deposits
|
|
|
|
|
(75,000)
|
|
-
|
|
|
(275,000)
|
|
-
|
|
Maturities of time
deposits
|
|
|
|
|
75,000
|
|
-
|
|
|
125,000
|
|
-
|
|
Distribution from
(investments in) privately-held companies
|
|
(258)
|
|
(119)
|
|
|
16
|
|
(41)
|
|
Purchases of
technology licenses
|
|
|
|
(1,870)
|
|
(1,579)
|
|
|
(10,309)
|
|
(8,236)
|
|
Purchases of property
and equipment
|
|
|
|
(6,786)
|
|
(3,894)
|
|
|
(44,510)
|
|
(37,255)
|
|
Purchase of equipment
previously leased
|
|
|
|
-
|
|
-
|
|
|
-
|
|
(10,240)
|
|
Net proceeds from
sale of equipment held for sale
|
|
|
-
|
|
-
|
|
|
-
|
|
10,007
|
|
|
|
Net cash provided by
investing activities
|
|
|
|
|
44,257
|
|
338,494
|
|
|
161,595
|
|
201,690
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Repurchase of common
stock (b)
|
|
|
|
(125,033)
|
|
-
|
|
|
(181,564)
|
|
(260,875)
|
|
Proceeds from
employee stock plans
|
|
|
|
62,383
|
|
21,369
|
|
|
74,219
|
|
80,717
|
|
Minimum tax
withholding paid on behalf of employees
|
|
|
|
|
|
|
|
|
|
|
|
for net share
settlement
|
|
|
|
|
(402)
|
|
(482)
|
|
|
(16,683)
|
|
(24,358)
|
|
Dividend payments to
shareholders
|
|
|
|
|
(30,457)
|
|
(30,447)
|
|
|
(122,292)
|
|
(122,821)
|
|
Payments on
technology license obligations
|
|
|
|
|
(7,117)
|
|
(1,112)
|
|
|
(20,965)
|
|
(12,528)
|
|
Excess tax benefits
from share-based compensation
|
|
|
27
|
|
(1)
|
|
|
37
|
|
26
|
|
|
|
Net cash used in
financing activities
|
|
|
(100,599)
|
|
(10,673)
|
|
|
(267,248)
|
|
(339,839)
|
|
Net increase
(decrease) in cash and cash equivalents
|
|
|
62,504
|
|
381,127
|
|
|
(464,088)
|
|
67,203
|
|
Cash and cash
equivalents at beginning of period
|
|
|
751,588
|
|
897,053
|
|
|
1,278,180
|
|
1,210,977
|
|
Cash and cash
equivalents at end of period
|
|
|
|
$
814,092
|
|
$
1,278,180
|
|
|
$
814,092
|
|
$
1,278,180
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
The Company agreed to
pay a total of $750.0 million to CMU in connection with the
settlement agreement that was reached in February 2016. Of this
settlement, the Company recognized a charge of $736.0 million in
fiscal 2016. The remaining $14.0 million was recorded in prepaid
expenses and other assets, to be recognized in cost of goods sold
over the remaining term of the license from February 2016 through
April 2018. For further detail of the accounting for the
settlement, see "Note 13 – Carnegie Mellon University Settlement"
in the Notes to the Unaudited Condensed Consolidated
Financial Statements included in the Company's Quarterly Report on
Form 10-Q for the quarter ended October 29, 2016.
|
|
|
|
(b)
|
Marvell records all
repurchases of common stock consistent with the way it records
investment purchases and sales, based on trade date in accordance
with U.S. GAAP.
|
|
Marvell Technology
Group Ltd.
|
|
Reconciliations
from GAAP to Non-GAAP
|
|
(Unaudited)
|
|
(In thousands,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
|
|
|
|
January
28,
|
|
October
29,
|
|
January
30,
|
|
January
28,
|
|
January
30,
|
|
|
|
|
|
|
2017
|
|
2016
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP gross profit
from continuing operations:
|
|
|
$
327,517
|
|
$
357,779
|
|
$
310,225
|
|
$
1,288,147
|
|
$
1,206,699
|
|
Special
items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation
|
|
|
1,641
|
|
2,189
|
|
1,826
|
|
8,334
|
|
7,787
|
|
Restructuring and
other related charges (a)
|
|
|
-
|
|
-
|
|
7
|
|
-
|
|
10,292
|
|
Amortization of and
write-off acquired intangible assets
|
|
-
|
|
-
|
|
-
|
|
-
|
|
733
|
|
Other cost of good
sold (b)
|
|
|
-
|
|
-
|
|
3,710
|
|
-
|
|
84,558
|
|
Total special
items
|
|
|
|
1,641
|
|
2,189
|
|
5,543
|
|
8,334
|
|
103,370
|
|
Non-GAAP gross
profit
|
|
|
$
329,158
|
|
$
359,968
|
|
$
315,768
|
|
$
1,296,481
|
|
$
1,310,069
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP gross margin
from continuing operations
|
|
|
57.3%
|
|
57.1%
|
|
51.5%
|
|
55.6%
|
|
45.5%
|
|
Non-GAAP gross
margin
|
|
|
57.6%
|
|
57.5%
|
|
52.4%
|
|
55.9%
|
|
49.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total GAAP operating
expenses from continuing operations
|
|
$
339,650
|
|
$
270,195
|
|
$
295,292
|
|
$
1,188,153
|
|
$
1,982,204
|
|
Special
items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation
|
|
|
(20,764)
|
|
(23,826)
|
|
(28,365)
|
|
(96,426)
|
|
(118,174)
|
|
Restructuring and
other related charges (a)
|
|
|
(98,860)
|
|
(1,164)
|
|
(4,389)
|
|
(105,186)
|
|
(53,251)
|
|
Amortization of and
write-off acquired intangible assets
|
|
(1,480)
|
|
(2,299)
|
|
(2,300)
|
|
(8,376)
|
|
(10,098)
|
|
CMU Litigation
settlement
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(654,667)
|
|
Other operating
expenses (c)
|
|
|
(315)
|
|
-
|
|
(6,836)
|
|
(1,544)
|
|
(43,914)
|
|
Total special
items
|
|
|
|
(121,419)
|
|
(27,289)
|
|
(41,890)
|
|
(211,532)
|
|
(880,104)
|
|
Total non-GAAP
operating expenses
|
|
|
$
218,231
|
|
$
242,906
|
|
$
253,402
|
|
$
976,621
|
|
$
1,102,100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
(loss)
|
|
|
$
(80,091)
|
|
$
72,616
|
|
$
4,200
|
|
$
21,151
|
|
$
(811,400)
|
|
Net loss from
discontinued operations
|
|
|
3,214
|
|
4,838
|
|
12,973
|
|
22,843
|
|
42,245
|
|
GAAP net income
(loss) from continuing operations
|
|
(76,877)
|
|
77,454
|
|
17,173
|
|
43,994
|
|
(769,155)
|
|
Special
items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation
|
|
|
22,405
|
|
26,015
|
|
30,191
|
|
104,760
|
|
125,961
|
|
Restructuring and
other related charges (a)
|
|
|
98,860
|
|
1,164
|
|
4,396
|
|
105,186
|
|
63,543
|
|
Amortization of and
write-off acquired intangible assets
|
|
1,480
|
|
2,299
|
|
2,300
|
|
8,376
|
|
10,831
|
|
CMU Litigation
settlement
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
654,667
|
|
Other operating
expenses (c)
|
|
|
315
|
|
-
|
|
10,546
|
|
1,544
|
|
128,472
|
|
Pre-tax total special
items
|
|
|
123,060
|
|
29,478
|
|
47,433
|
|
219,866
|
|
983,474
|
|
Non-GAAP income
before income taxes
|
|
|
46,183
|
|
106,932
|
|
64,606
|
|
263,860
|
|
214,319
|
|
Tax effect of special
items (d)
|
|
|
67,989
|
|
-
|
|
-
|
|
66,918
|
|
11,511
|
|
Non-GAAP net income
from continuing operations
|
|
|
$
114,172
|
|
$
106,932
|
|
$
64,606
|
|
$
330,778
|
|
$
225,830
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares - basic
|
|
|
507,834
|
|
511,090
|
|
506,352
|
|
509,738
|
|
510,945
|
|
Weighted average
shares - diluted
|
|
|
507,834
|
|
522,091
|
|
508,590
|
|
517,513
|
|
510,945
|
|
Non-GAAP weighted
average shares - diluted
|
|
|
528,141
|
|
531,831
|
|
518,568
|
|
527,197
|
|
526,294
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted net
income (loss) per share from continuing operations
|
|
$
(0.15)
|
|
$
0.15
|
|
$
0.03
|
|
$
0.09
|
|
$
(1.51)
|
|
Non-GAAP diluted net
income per share from continuing operations
|
|
$
0.22
|
|
$
0.20
|
|
$
0.12
|
|
$
0.63
|
|
$
0.43
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Restructuring and
other related charges include costs that qualify under U.S. GAAP as
restructuring costs and other incremental charges that are a direct
result of restructuring. Examples of other incremental charges
include impairment of equipment specifically identified as part of
the restructuring action and the write down of
inventories.
|
|
|
|
(b)
|
Other COGS include
charges recognized for pending and settled litigation proceedings
in three and twelve months ended January 30, 2016.
|
|
|
|
(c)
|
Other operating
expenses in the three and twelve months ended January 30, 2016
include costs of $2.9 million and $11.4 million, respectively, for
the surety bonds related to the litigation with CMU, and expenses
of $3.9 million and $5.0 million, respectively, related to
retention bonuses offered to employees who remained through the
ramp down of certain operations due to the restructuring action
announced in September 2015. Other operating expenses for the
twelve months ended January 30, 2016 include charges recognized for
pending and settled litigation proceedings of $12.1 million, and
for a payment of $15.4 million due to our former Chief Executive
Officer.
|
|
|
|
(d)
|
Tax effect of special
items in the three and twelve months ended January 28, 2017 include
$68.0 million of tax expense related to restructuring actions
taken, which was offset in the twelve months ended January 28, 2017
by $1.1 million related tax effect of the payment to our former
Chief Executive Officer. For the twelve months ended January 30,
2016, tax effect of special items included $8.4 million of tax
expense related to the restructuring actions in fiscal 2016 and
$3.1 million related to the payment to our former Chief Executive
Officer.
|
|
Marvell Technology
Group Ltd.
|
|
Condensed
Consolidated Statements of Operations
|
|
(Unaudited)
|
|
(In thousands,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
January
28,
|
|
October
29,
|
|
July
30,
|
|
April
30,
|
|
|
|
|
|
|
2017
|
|
2016
|
|
2016
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
revenue
|
|
|
|
$
571,400
|
|
$
626,092
|
|
$
600,799
|
|
$
519,383
|
|
Cost of goods
sold
|
|
|
243,883
|
|
268,313
|
|
272,977
|
|
244,354
|
|
Gross
profit
|
|
|
|
327,517
|
|
357,779
|
|
327,822
|
|
275,029
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
228,669
|
|
209,905
|
|
214,122
|
|
227,354
|
|
Selling and
marketing
|
|
|
29,154
|
|
29,237
|
|
29,826
|
|
30,094
|
|
General and
administrative
|
|
80,347
|
|
28,754
|
|
36,916
|
|
35,399
|
|
Amortization and
write-off of acquired intangible assets
|
1,480
|
|
2,299
|
|
2,299
|
|
2,298
|
|
|
Total operating
expenses
|
|
339,650
|
|
270,195
|
|
283,163
|
|
295,145
|
|
Operating income
(loss)
|
|
|
(12,133)
|
|
87,584
|
|
44,659
|
|
(20,116)
|
|
Interest and other
income, net
|
|
3,780
|
|
5,470
|
|
6,284
|
|
1,488
|
|
Income (loss) from
continuing operations before income taxes
|
(8,353)
|
|
93,054
|
|
50,943
|
|
(18,628)
|
|
Provision (benefit)
for income taxes
|
|
68,524
|
|
15,600
|
|
(5,745)
|
|
(5,357)
|
|
Income (loss) from
continuing operations
|
(76,877)
|
|
77,454
|
|
56,688
|
|
(13,271)
|
|
Loss from
discontinued operations, net of tax
|
(3,214)
|
|
(4,838)
|
|
(5,383)
|
|
(9,408)
|
|
Net income
(loss)
|
|
|
$
(80,091)
|
|
$
72,616
|
|
$
51,305
|
|
$
(22,679)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
share - Basic:
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
|
$
(0.15)
|
|
$
0.15
|
|
$
0.11
|
|
$
(0.03)
|
|
Discontinued
operations
|
|
(0.01)
|
|
(0.01)
|
|
(0.01)
|
|
(0.01)
|
|
Net income (loss) per
share basic
|
|
$
(0.16)
|
|
$
0.14
|
|
$
0.10
|
|
$
(0.04)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
share - Diluted:
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
|
$
(0.15)
|
|
$
0.15
|
|
$
0.11
|
|
$
(0.03)
|
|
Discontinued
operations
|
|
(0.01)
|
|
(0.01)
|
|
(0.01)
|
|
(0.01)
|
|
Net income (loss) per
share diluted
|
|
$
(0.16)
|
|
$
0.14
|
|
$
0.10
|
|
$
(0.04)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
computing basic earnings (loss) per share
|
507,834
|
|
511,090
|
|
511,235
|
|
508,794
|
|
Shares used in
computing diluted earnings (loss) per share
|
507,834
|
|
522,091
|
|
514,314
|
|
508,794
|
|
Marvell Technology
Group Ltd.
|
|
Reconciliations
from GAAP to Non-GAAP
|
|
(Unaudited)
|
|
(In thousands,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
January
28,
|
|
October
29,
|
|
July
30,
|
|
April
30,
|
|
|
2017
|
|
2016
|
|
2016
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
GAAP gross profit
from continuing operations:
|
$
327,517
|
|
$
357,779
|
|
$ 327,822
|
|
$ 275,029
|
|
Special
items:
|
|
|
|
|
|
|
|
|
Share-based
compensation
|
1,641
|
|
2,189
|
|
2,720
|
|
1,784
|
|
Non-GAAP gross
profit
|
$
329,158
|
|
$
359,968
|
|
$ 330,542
|
|
$ 276,813
|
|
|
|
|
|
|
|
|
|
|
GAAP gross margin
from continuing operations
|
57.3%
|
|
57.1%
|
|
54.6%
|
|
53.0%
|
|
Non-GAAP gross
margin
|
57.6%
|
|
57.5%
|
|
55.0%
|
|
53.3%
|
|
|
|
|
|
|
|
|
|
|
Total GAAP operating
expenses from continuing operations
|
$
339,650
|
|
$
270,195
|
|
$ 283,163
|
|
$ 295,145
|
|
Special
items:
|
|
|
|
|
|
|
|
|
Share-based
compensation
|
(20,764)
|
|
(23,826)
|
|
(31,440)
|
|
(20,396)
|
|
Restructuring and
other related charges (a)
|
(98,860)
|
|
(1,164)
|
|
(721)
|
|
(4,441)
|
|
Amortization of and
write-off acquired intangible assets
|
(1,480)
|
|
(2,299)
|
|
(2,299)
|
|
(2,298)
|
|
Other operating
expenses
|
(315)
|
|
-
|
|
13
|
|
(1,242)
|
|
Total special
items
|
(121,419)
|
|
(27,289)
|
|
(34,447)
|
|
(28,377)
|
|
Total non-GAAP
operating expenses
|
$
218,231
|
|
$
242,906
|
|
$ 248,716
|
|
$ 266,768
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
(loss)
|
$
(80,091)
|
|
$
72,616
|
|
$
51,305
|
|
$ (22,679)
|
|
Net loss from
discontinued operations
|
3,214
|
|
4,838
|
|
5,383
|
|
9,408
|
|
GAAP net income
(loss) from continuing operations
|
(76,877)
|
|
77,454
|
|
56,688
|
|
(13,271)
|
|
Special
items:
|
|
|
|
|
|
|
|
|
Share-based
compensation
|
22,405
|
|
26,015
|
|
34,160
|
|
22,180
|
|
Restructuring and
other related charges (a)
|
98,860
|
|
1,164
|
|
721
|
|
4,441
|
|
Amortization of and
write-off acquired intangible assets
|
1,480
|
|
2,299
|
|
2,299
|
|
2,298
|
|
Other operating
expenses
|
315
|
|
-
|
|
(13)
|
|
1,242
|
|
Pre-tax total special
items
|
123,060
|
|
29,478
|
|
37,167
|
|
30,161
|
|
Non-GAAP income
before income taxes
|
46,183
|
|
106,932
|
|
93,855
|
|
16,890
|
|
Tax effect of special
items (b)
|
67,989
|
|
-
|
|
-
|
|
(1,071)
|
|
Non-GAAP net income
from continuing operations
|
$
114,172
|
|
$
106,932
|
|
$
93,855
|
|
$
15,819
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares - basic
|
507,834
|
|
511,090
|
|
511,235
|
|
508,794
|
|
Weighted average
shares - diluted
|
507,834
|
|
522,091
|
|
514,314
|
|
508,794
|
|
Non-GAAP weighted
average shares - diluted
|
528,141
|
|
531,831
|
|
526,453
|
|
522,363
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted net
income (loss) per share from continuing operations
|
$
(0.15)
|
|
$
0.15
|
|
$
0.11
|
|
$
(0.03)
|
|
Non-GAAP diluted net
income per share from continuing operations
|
$
0.22
|
|
$
0.20
|
|
$
0.18
|
|
$
0.03
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Restructuring and
other related charges include costs that qualify under U.S. GAAP as
restructuring costs and other incremental charges that are a direct
result of restructuring. Examples of other incremental charges
include impairment of equipment specifically identified as part of
the restructuring action.
|
|
|
|
(b)
|
Tax effect of special
items in the three months ended January 28, 2017 include $68.0
million of tax expense related to restructuring actions taken. Tax
effect of special items in the three months ended April 30, 2016
include $1.1 million related tax effect of the payment to our
former Chief Executive Officer.
|
T. Peter Andrew
Vice President, Investor Relations
408-222-1145
pandrew@marvell.com
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/marvell-technology-group-ltd-reports-fourth-quarter-and-fiscal-year-2017-financial-results-300417246.html
SOURCE Marvell Technology Group Ltd.