SANTA CLARA, Calif.,
May 28, 2020 /PRNewswire/
-- Marvell Technology Group Ltd. (NASDAQ: MRVL), a leader in
infrastructure semiconductor solutions, today reported financial
results for the first quarter of fiscal year 2021.
Revenue for the first quarter of fiscal 2021 was $694 million, which exceeded the midpoint of the
Company's guidance provided on March 4,
2020. GAAP net loss for the first quarter of fiscal 2021 was
$(113) million, or $(0.17) per diluted share. Non-GAAP net income
for the first quarter of fiscal 2021 was $118 million, or $0.18 per diluted share. Cash flow from
operations for the first quarter was $176
million.
"In a challenging environment, solid execution by the Marvell
team drove strong first quarter financial results with disciplined
operating expense management, healthy operating cash flow, and
revenue above the mid-point of guidance, enabled by stronger demand
for our networking products from the datacenter and 5G
infrastructure end markets," said Matt
Murphy, Marvell's President and CEO. "While we did
experience some COVID-19 supply chain impacts on our storage
business in the first quarter, we expect a bounce back in the
second quarter and we project our networking business to continue
to grow."
Marvell's second quarter guidance takes into account the U.S.
Government's export restrictions on certain Chinese customers.
Given the ongoing uncertainty associated with COVID-19 and related
public health measures, we also have temporarily widened the
guidance range on revenue.
Second Quarter of Fiscal 2021 Financial Outlook
- Revenue is expected to be $720
million +/- 5%.
- GAAP gross margin is expected to be approximately 50.6%.
- Non-GAAP gross margin is expected to be approximately 63%.
- GAAP operating expenses are expected to be approximately
$393 million.
- Non-GAAP operating expenses are expected to be approximately
$300 million.
- GAAP diluted loss per share is expected to be $(0.10) to $(0.02)
per share.
- Non-GAAP diluted income per share is expected to be
$0.17 to $0.23 per share.
Conference Call
Marvell will conduct a conference
call on Thursday, May 28, 2020 at
1:45 p.m. Pacific Time to discuss
results for the first quarter of fiscal 2021. Interested parties
may join the conference call by dialing 1-844-647-5488 or
1-615-247-0258, pass-code 8949798. The call will be webcast and can
be accessed at the Marvell Investor Relations website at
http://investor.marvell.com/ with a replay available following the
call until Thursday, June 4,
2020.
Discussion of Non-GAAP Financial Measures
Non-GAAP financial measures exclude the effect of share-based
compensation expense, amortization of the inventory fair value
adjustment associated with the Aquantia and Avera acquisitions,
amortization of acquired intangible assets, acquisition and
divestiture-related costs, restructuring and other related charges,
resolution of legal matters, 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 business.
Marvell uses a non-GAAP tax rate to compute the non-GAAP tax
provision. This non-GAAP tax rate is based on Marvell's estimated
annual GAAP income tax forecast, adjusted to account for items
excluded from GAAP income in calculating Marvell's non-GAAP income,
as well as the effects of significant non-recurring and period
specific tax items which vary in size and frequency. Marvell's
non-GAAP tax rate is determined on an annual basis and may be
adjusted during the year to take into account events that may
materially affect the non-GAAP tax rate such as tax law changes;
significant changes in Marvell's geographic mix of revenue and
expenses; or changes to Marvell's corporate structure. For the
first quarter of fiscal 2021, a non-GAAP tax rate of 5.0% has been
applied to the non-GAAP financial results.
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, 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. The exclusion of the above items from our GAAP financial
metrics does not necessarily mean that these costs are unusual or
infrequent.
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. 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:
risks related to the impact on our business of the novel
coronavirus (COVID-19) pandemic which have impacted, and may
continue to impact, our workforce and operations and the
transportation and manufacturing of our products; risks related to
the impact of the COVID-19 pandemic which have impacted, and may
continue to impact the operations of our customers, distributors,
vendors, suppliers, and partners; increased disruption and
volatility in the capital markets and credit markets as a result of
COVID-19, which could adversely affect our liquidity and capital
resources; the impact of COVID-19, or other future pandemics, on
the U.S. and global economies; disruptions caused by COVID-19
resulting in worker absenteeism, quarantines and restrictions on
our employees' ability to work and travel; the effects that the
current credit and market conditions caused by, or resulting from,
COVID-19 could have on the liquidity and financial condition of our
customers and suppliers, including any impact on their ability to
meet their contractual obligations; the impact of international
conflict and economic volatility in either domestic or foreign
markets including risks related to trade conflicts, regulations,
and tariffs, including but not limited to, restrictions imposed on
our Chinese customers; the risks associated with manufacturing and
selling products and customers' products outside of the United States; Marvell's ability to
define, design and develop products for the 5G market; Marvell's
ability to market its 5G products to Tier 1 infrastructure
customers; the effects of transitioning to smaller geometry process
technologies; the impact of any change in the income tax laws in
jurisdictions where Marvell operates and the loss of any beneficial
tax treatment that Marvell currently enjoys; the risk of downturns
in the highly cyclical semiconductor industry; the risk that the
company may not realize the anticipated benefits of the
acquisitions of Aquantia Corp. and the Application Specific
Integrated Circuit (ASIC) business of GLOBALFOUNDRIES and the
divestiture to NXP (collectively, the "Transactions"); the effect
of the consummation of the Transactions on the company's business
relationships, operating results, and business generally; potential
difficulties in employee retention as a result of the Transactions;
the ability of Marvell to successfully integrate operations and
product lines related to the acquisitions; the ability of Marvell
to implement its plans, forecasts, and other expectations with
respect to the Transactions and realize the anticipated synergies
and cost savings in the time frame anticipated; Marvell's
dependence upon the storage and networking markets, which are
highly cyclical and intensely competitive; the outcome of pending
or future litigation and legal and regulatory proceedings;
Marvell's dependence on a small number of customers; the impact and
costs associated with changes in international financial and
regulatory conditions; Marvell's ability and the ability of its
customers to successfully compete in the markets in which it
serves; Marvell's reliance on independent foundries and
subcontractors for the manufacture, assembly and testing of its
products; Marvell's ability and its customers' ability to develop
new and enhanced products and the adoption of those products in the
market; decreases in gross margin and results of operations in the
future due to a number of factors; Marvell's ability to estimate
customer demand and future sales accurately; Marvell's ability to
scale its operations in response to changes in demand for existing
or new products and services; risks associated with acquisition and
consolidation activity in the semiconductor industry; the effects
of any other potential acquisitions, divestitures or investments;
Marvell's ability to protect its intellectual property;
Marvell's maintenance of an effective system of internal controls;
severe financial hardship or bankruptcy of one or more of Marvell's
major customers; 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-K for the
fiscal quarter ended February 1, 2020
as filed with the SEC on March 23,
2020, and other factors detailed from time to time in
Marvell's filings with the SEC. Marvell undertakes no obligation to
revise or publicly update 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, processing, networking, security and 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
|
|
May 2,
2020
|
|
February 1,
2020
|
|
May 4,
2019
|
Net revenue
|
$
|
693,641
|
|
|
$
|
717,671
|
|
|
$
|
662,452
|
|
Cost of goods
sold
|
366,739
|
|
|
412,927
|
|
|
301,024
|
|
Gross profit
|
326,902
|
|
|
304,744
|
|
|
361,428
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
Research and
development
|
279,584
|
|
|
279,389
|
|
|
266,867
|
|
Selling, general and
administrative
|
122,027
|
|
|
121,592
|
|
|
110,005
|
|
Restructuring related
charges
|
21,287
|
|
|
18,258
|
|
|
5,682
|
|
Total operating
expenses
|
422,898
|
|
|
419,239
|
|
|
382,554
|
|
Operating income
(loss)
|
(95,996)
|
|
|
(114,495)
|
|
|
(21,126)
|
|
Interest
income
|
1,058
|
|
|
1,379
|
|
|
1,268
|
|
Interest
expense
|
(16,830)
|
|
|
(22,656)
|
|
|
(21,203)
|
|
Other income (loss),
net
|
3,754
|
|
|
1,124,179
|
|
|
(116)
|
|
Interest and other
income (loss), net
|
(12,018)
|
|
|
1,102,902
|
|
|
(20,051)
|
|
Income (loss) before
income taxes
|
(108,014)
|
|
|
988,407
|
|
|
(41,177)
|
|
Provision (benefit) for
income taxes
|
5,019
|
|
|
(784,266)
|
|
|
7,273
|
|
Net income
(loss)
|
$
|
(113,033)
|
|
|
$
|
1,772,673
|
|
|
$
|
(48,450)
|
|
|
|
|
|
|
|
Net income (loss) per
share — Basic:
|
$
|
(0.17)
|
|
|
$
|
2.66
|
|
|
$
|
(0.07)
|
|
|
|
|
|
|
|
Net income (loss) per
share — Diluted:
|
$
|
(0.17)
|
|
|
$
|
2.62
|
|
|
$
|
(0.07)
|
|
|
|
|
|
|
|
Weighted average
shares:
|
|
|
|
|
|
Basic
|
663,547
|
|
|
665,562
|
|
|
658,963
|
|
Diluted
|
663,547
|
|
|
675,700
|
|
|
658,963
|
|
Marvell Technology
Group Ltd.
|
Condensed
Consolidated Balance Sheets (Unaudited)
|
(In
thousands)
|
|
|
|
May 2,
2020
|
|
February
1,
2020
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
667,548
|
|
|
$
|
647,604
|
|
Accounts receivable,
net
|
|
468,760
|
|
|
492,346
|
|
Inventories
|
|
270,374
|
|
|
322,980
|
|
Prepaid expenses and
other current assets
|
|
72,282
|
|
|
74,567
|
|
Total current
assets
|
|
1,478,964
|
|
|
1,537,497
|
|
Property and
equipment, net
|
|
348,066
|
|
|
357,092
|
|
Goodwill
|
|
5,337,405
|
|
|
5,337,405
|
|
Acquired intangible
assets, net
|
|
2,651,678
|
|
|
2,764,600
|
|
Deferred tax
assets
|
|
639,470
|
|
|
639,791
|
|
Other non-current
assets
|
|
525,946
|
|
|
496,850
|
|
Total
assets
|
|
$
|
10,981,529
|
|
|
$
|
11,133,235
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
|
$
|
185,711
|
|
|
$
|
213,747
|
|
Accrued
liabilities
|
|
380,653
|
|
|
346,639
|
|
Accrued employee
compensation
|
|
124,277
|
|
|
149,780
|
|
Total current
liabilities
|
|
690,641
|
|
|
710,166
|
|
Long-term
debt
|
|
1,439,852
|
|
|
1,439,024
|
|
Deferred tax
liabilities
|
|
33,284
|
|
|
31,233
|
|
Other non-current
liabilities
|
|
282,130
|
|
|
274,232
|
|
Total
liabilities
|
|
2,445,907
|
|
|
2,454,655
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
Common
shares
|
|
1,330
|
|
|
1,328
|
|
Additional paid-in
capital
|
|
6,144,907
|
|
|
6,135,939
|
|
Accumulated other
comprehensive income
|
|
868
|
|
|
—
|
|
Retained
earnings
|
|
2,388,517
|
|
|
2,541,313
|
|
Total shareholders'
equity
|
|
8,535,622
|
|
|
8,678,580
|
|
Total liabilities and
shareholders' equity
|
|
$
|
10,981,529
|
|
|
$
|
11,133,235
|
|
Marvell Technology
Group Ltd.
|
Condensed
Consolidated Statements of Cash Flows (Unaudited)
|
(In
thousands)
|
|
|
Three Months
Ended
|
|
May 2,
2020
|
|
May 4,
2019
|
Cash flows from
operating activities:
|
|
|
|
Net loss
|
$
|
(113,033)
|
|
|
$
|
(48,450)
|
|
Adjustments to
reconcile net loss to net cash provided by operating
activities:
|
|
|
|
Depreciation and
amortization
|
50,483
|
|
|
38,654
|
|
Share-based
compensation
|
59,687
|
|
|
58,598
|
|
Amortization of
acquired intangible assets
|
112,922
|
|
|
79,740
|
|
Amortization of
inventory fair value adjustment associated with
acquisitions
|
17,284
|
|
|
—
|
|
Other expense,
net
|
11,451
|
|
|
12,577
|
|
Deferred income
taxes
|
2,372
|
|
|
4,356
|
|
Changes in assets and
liabilities:
|
|
|
|
Accounts
receivable
|
23,586
|
|
|
22,775
|
|
Inventories
|
35,834
|
|
|
15,848
|
|
Prepaid expenses and
other assets
|
(6,694)
|
|
|
8,004
|
|
Accounts
payable
|
(3,557)
|
|
|
(1,873)
|
|
Accrued liabilities
and other non-current liabilities
|
10,796
|
|
|
(30,929)
|
|
Accrued employee
compensation
|
(25,503)
|
|
|
6,516
|
|
Net cash provided by
operating activities
|
175,628
|
|
|
165,816
|
|
Cash flows from
investing activities:
|
|
|
|
Purchases of
technology licenses
|
(3,684)
|
|
|
(1,484)
|
|
Purchases of property
and equipment
|
(35,343)
|
|
|
(19,183)
|
|
Other, net
|
665
|
|
|
(342)
|
|
Net cash used in
investing activities
|
(38,362)
|
|
|
(21,009)
|
|
Cash flows from
financing activities:
|
|
|
|
Repurchases of common
stock
|
(25,202)
|
|
|
(48,022)
|
|
Proceeds from employee
stock plans
|
5,458
|
|
|
31,084
|
|
Tax withholding paid
on behalf of employees for net share settlement
|
(31,501)
|
|
|
(28,758)
|
|
Dividend payments to
shareholders
|
(39,763)
|
|
|
(39,467)
|
|
Payments on technology
license obligations
|
(23,807)
|
|
|
(15,268)
|
|
Principal payments of
debt
|
—
|
|
|
(50,000)
|
|
Other, net
|
(2,507)
|
|
|
(4,893)
|
|
Net cash used in
financing activities
|
(117,322)
|
|
|
(155,324)
|
|
Net increase (decrease)
in cash and cash equivalents
|
19,944
|
|
|
(10,517)
|
|
Cash and cash
equivalents at beginning of period
|
647,604
|
|
|
582,410
|
|
Cash and cash
equivalents at end of period
|
$
|
667,548
|
|
|
$
|
571,893
|
|
Marvell Technology
Group Ltd.
|
Reconciliations
from GAAP to Non-GAAP (Unaudited)
|
(In thousands,
except per share amounts)
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
May 2,
2020
|
|
February 1,
2020
|
|
May 4,
2019
|
GAAP gross
profit:
|
$
|
326,902
|
|
|
$
|
304,744
|
|
|
$
|
361,428
|
|
Special
items:
|
|
|
|
|
|
Share-based
compensation
|
3,538
|
|
|
3,181
|
|
|
2,926
|
|
Amortization of
acquired intangible assets
|
86,567
|
|
|
86,383
|
|
|
59,906
|
|
Other cost of goods
sold (a)
|
18,562
|
|
|
52,510
|
|
|
450
|
|
Total special
items
|
108,667
|
|
|
142,074
|
|
|
63,282
|
|
Non-GAAP gross
profit
|
$
|
435,569
|
|
|
$
|
446,818
|
|
|
$
|
424,710
|
|
|
|
|
|
|
|
GAAP gross
margin
|
47.1
|
%
|
|
42.5
|
%
|
|
54.6
|
%
|
Non-GAAP gross
margin
|
62.8
|
%
|
|
62.3
|
%
|
|
64.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total GAAP operating
expenses
|
$
|
422,898
|
|
|
$
|
419,239
|
|
|
$
|
382,554
|
|
Special
items:
|
|
|
|
|
|
Share-based
compensation
|
(56,149)
|
|
|
(49,989)
|
|
|
(55,672)
|
|
Restructuring related
charges (b)
|
(21,287)
|
|
|
(18,258)
|
|
|
(5,682)
|
|
Amortization of
acquired intangible assets
|
(26,355)
|
|
|
(28,232)
|
|
|
(19,834)
|
|
Other operating
expenses (c)
|
(19,403)
|
|
|
(16,621)
|
|
|
(6,569)
|
|
Total special
items
|
(123,194)
|
|
|
(113,100)
|
|
|
(87,757)
|
|
Total non-GAAP
operating expenses
|
$
|
299,704
|
|
|
$
|
306,139
|
|
|
$
|
294,797
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
margin
|
(13.8)
|
%
|
|
(16.0)
|
%
|
|
(3.2)
|
%
|
Other cost of goods
sold (a)
|
2.7
|
%
|
|
7.3
|
%
|
|
0.1
|
%
|
Share-based
compensation
|
8.6
|
%
|
|
7.4
|
%
|
|
8.8
|
%
|
Restructuring related
charges (b)
|
3.1
|
%
|
|
2.5
|
%
|
|
0.9
|
%
|
Amortization of
acquired intangible assets
|
16.3
|
%
|
|
16.0
|
%
|
|
12.0
|
%
|
Other operating
expenses (c)
|
2.7
|
%
|
|
2.4
|
%
|
|
1.0
|
%
|
Non-GAAP operating
margin
|
19.6
|
%
|
|
19.6
|
%
|
|
19.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP interest and
other income (loss), net
|
$
|
(12,018)
|
|
|
$
|
1,102,902
|
|
|
$
|
(20,051)
|
|
Special
items:
|
|
|
|
|
|
Restructuring and
other related items (d)
|
434
|
|
|
(1,122,988)
|
|
|
(338)
|
|
Write-off of debt
issuance costs (e)
|
—
|
|
|
1,621
|
|
|
458
|
|
Total special
items
|
434
|
|
|
(1,121,367)
|
|
|
120
|
|
Total non-GAAP
interest and other income (loss), net
|
$
|
(11,584)
|
|
|
$
|
(18,465)
|
|
|
$
|
(19,931)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
(loss)
|
$
|
(113,033)
|
|
|
$
|
1,772,673
|
|
|
$
|
(48,450)
|
|
Special
items:
|
|
|
|
|
|
Other cost of goods
sold (a)
|
18,562
|
|
|
52,510
|
|
|
450
|
|
Share-based
compensation
|
59,687
|
|
|
53,170
|
|
|
58,598
|
|
Restructuring related
charges in operating expenses (b)
|
21,287
|
|
|
18,258
|
|
|
5,682
|
|
Other operating
expenses (c)
|
19,403
|
|
|
16,621
|
|
|
6,569
|
|
Restructuring and
other related items in interest and other income, net
(d)
|
434
|
|
|
(1,122,988)
|
|
|
(338)
|
|
Amortization of
acquired intangible assets
|
112,922
|
|
|
114,615
|
|
|
79,740
|
|
Write-off of debt
issuance costs (e)
|
—
|
|
|
1,621
|
|
|
458
|
|
Pre-tax total special
items
|
232,295
|
|
|
(866,193)
|
|
|
151,159
|
|
Other income tax
effects and adjustments (f)
|
(1,229)
|
|
|
(789,761)
|
|
|
2,324
|
|
Non-GAAP net
income
|
$
|
118,033
|
|
|
$
|
116,719
|
|
|
$
|
105,033
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares — basic
|
663,547
|
|
|
665,562
|
|
|
658,963
|
|
Weighted average
shares — diluted
|
663,547
|
|
|
675,700
|
|
|
658,963
|
|
|
|
|
|
|
|
GAAP diluted net
income (loss) per share
|
$
|
(0.17)
|
|
|
$
|
2.62
|
|
|
$
|
(0.07)
|
|
Non-GAAP diluted net
income per share (g)
|
$
|
0.18
|
|
|
$
|
0.17
|
|
|
$
|
0.16
|
|
|
|
(a)
|
Other costs of goods
sold includes amortization of acquired inventory fair value
adjustment.
|
|
|
(b)
|
Restructuring related
charges include employee severance, facilities related costs, and
impairment of equipment and other assets.
|
|
|
(c)
|
Other operating
expenses include integration costs associated with recent
acquisitions.
|
|
|
(d)
|
Interest and other
income (loss), net, includes restructuring and other related items
such as gain on sale of business and foreign currency remeasurement
associated with restructuring related accruals.
|
|
|
(e)
|
Write-off of debt
issuance costs is associated with the partial term loan
repayment.
|
|
|
(f)
|
Other income tax
effects and adjustments relate to tax provision based on a non-GAAP
income tax rate of 5.0% for the three months ended May 2, 2020.
Other income tax effects and adjustments relate to tax provision
based on a non-GAAP income tax rate of 4.5% for the three months
ended February 1, 2020 and May 4, 2019.
|
|
|
(g)
|
Non-GAAP diluted net
income per share for the three months ended May 2, 2020, and May 4,
2019 was calculated by dividing non-GAAP net income by weighted
average shares outstanding (diluted) of 670,841 shares and 671,048
shares, respectively, due to the non-GAAP net income reported in
the respective period.
|
Marvell
Technology Group Ltd.
|
|
Outlook for
the Second Quarter of Fiscal Year 2021
|
|
Reconciliations
from GAAP to Non-GAAP (Unaudited)
|
|
(In
millions, except per share amounts)
|
|
|
|
|
|
|
|
|
Outlook for Three
Months Ended
August 1, 2020
|
|
GAAP
revenue
|
$720 +/-
5%
|
|
Special
items:
|
—
|
|
Non-GAAP
revenue
|
$720 +/-
5%
|
|
|
|
|
GAAP gross
margin
|
50.6%
|
|
Special
items:
|
|
|
Share-based
compensation
|
0.3%
|
|
Amortization of
acquired intangible assets
|
12.1%
|
|
Non-GAAP gross
margin
|
63%
|
|
|
|
|
Total GAAP
operating expenses
|
~$393
|
|
Special
items:
|
|
|
Share-based
compensation
|
64
|
|
Amortization of
acquired intangible assets
|
26
|
|
Other operating
expenses
|
3
|
|
Total non-GAAP
operating expenses
|
~$300
|
|
|
|
|
|
|
|
GAAP diluted net
loss per share
|
$(0.10) -
$(0.02)
|
|
Special
items:
|
|
|
Share-based
compensation
|
0.10
|
|
Amortization of
acquired intangible assets
|
0.17
|
|
Other income tax
effects and adjustments
|
(0.01)
|
|
Non-GAAP diluted net
income per share
|
$0.17 -
$0.23
|
|
Quarterly Revenue
Trend (Unaudited)
|
(In
thousands)
|
|
|
Three Months
Ended
|
|
%
Change
|
|
May 2,
2020
|
|
February 1,
2020
|
|
May 4,
2019
|
|
YoY
|
|
QoQ
|
Networking
(1)
|
$
|
393,920
|
|
|
$
|
376,724
|
|
|
$
|
341,344
|
|
|
15
|
%
|
|
5
|
%
|
Storage
(2)
|
258,688
|
|
|
296,486
|
|
|
278,667
|
|
|
(7)
|
%
|
|
(13)
|
%
|
Total
Core
|
652,608
|
|
|
673,210
|
|
|
620,011
|
|
|
5
|
%
|
|
(3)
|
%
|
Other
(3)
|
41,033
|
|
|
44,461
|
|
|
42,441
|
|
|
(3)
|
%
|
|
(8)
|
%
|
Total
Revenue
|
$
|
693,641
|
|
|
$
|
717,671
|
|
|
$
|
662,452
|
|
|
5
|
%
|
|
(3)
|
%
|
|
Three Months
Ended
|
% of
Total
|
May 2,
2020
|
|
February 1,
2020
|
|
May 4,
2019
|
Networking
(1)
|
57
|
%
|
|
52
|
%
|
|
52
|
%
|
Storage
(2)
|
37
|
%
|
|
41
|
%
|
|
42
|
%
|
Total
Core
|
94
|
%
|
|
93
|
%
|
|
94
|
%
|
Other
(3)
|
6
|
%
|
|
7
|
%
|
|
6
|
%
|
Total
Revenue
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
(1) Networking products are comprised
primarily of Ethernet Solutions, Embedded Processors and Custom
ASICs.
|
(2) Storage products are comprised
primarily of Storage Controllers and Fibre Channel
Adapters.
|
(3) Other
products are comprised primarily of Printer Solutions and
Application Processors.
|
For further information, contact:
Ashish Saran
Vice President, Investor Relations
408-222-0777
ir@marvell.com
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SOURCE Marvell