SANTA CLARA, Calif.,
March 3, 2021 /PRNewswire/
-- Marvell Technology Group Ltd. (NASDAQ: MRVL), a leader in
infrastructure semiconductor solutions, today reported financial
results for the fourth fiscal quarter and the full fiscal year,
ended January 30, 2021.
Net revenue for the fourth quarter of fiscal 2021 was
$798 million, which exceeded the
midpoint of the Company's guidance provided on December 3, 2020. GAAP net income for the fourth
quarter of fiscal 2021 was $17
million, or $0.02 per diluted
share. Non-GAAP net income for the fourth quarter of fiscal 2021
was $201 million, or $0.29 per diluted share. Cash flow from
operations for the fourth quarter was $158
million.
Net revenue for fiscal 2021 was $3.0
billion. GAAP net loss for fiscal 2021 was $(277) million, or $(0.41) per diluted share. Non-GAAP net income
for fiscal 2021 was $627 million, or
$0.92 per diluted share.
"Marvell ended fiscal year 2021 on a strong note with fourth
quarter revenue exceeding the mid-point of guidance. We delivered
outstanding fiscal year 2021 performance, with robust revenue
growth of 10%, led by our networking business which grew 22% driven
by strong 5G and Cloud product ramps," said Matt Murphy, Marvell's President and CEO. "The
Marvell team has done an excellent job driving revenue growth,
innovating to deliver new products, and positioning the company to
emerge even stronger from the pandemic. We are excited about the
numerous opportunities ahead in fiscal 2022. We anticipate strong
growth in the first quarter of fiscal 2022, projecting revenue to
grow approximately 15% year on year at the mid-point of
guidance."
Marvell's first 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 net revenue.
First Quarter of Fiscal 2022 Financial Outlook
- Net revenue is expected to be $800
million +/- 5%.
- GAAP gross margin is expected to be approximately 52.5%.
- Non-GAAP gross margin is expected to be approximately
63.5%.
- GAAP operating expenses are expected to be approximately
$391 million.
- Non-GAAP operating expenses are expected to be approximately
$300 million.
- Basic weighted-average shares outstanding are expected to be
677 million.
- Diluted weighted-average shares outstanding are expense to be
690 million.
- GAAP diluted income (loss) per share is expected to be
$(0.05) to $0.05 per share.
- Non-GAAP diluted income per share is expected to be
$0.23 to $0.31 per share.
Conference Call
Marvell will conduct a conference call on Wednesday, March 3, 2021 at 1:45 p.m. Pacific Time to discuss results for the
fourth quarter and full fiscal year 2021. Interested parties may
join the conference call by dialing 1-844-647-5488 or
1-615-247-0258, passcode 1390587. 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 Wednesday, March 10,
2021.
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
(including, but not limited to, asset impairment charges, employee
severance costs, and facilities 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
fourth 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. Forward-looking statements are
predictions, projections and other statements about future events
that are based on current expectations and assumptions and, as a
result, are subject to risks and uncertainties. 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: the completion of the proposed transaction with
Inphi Corporation on anticipated terms and timing or at all,
including obtaining shareholder and regulatory approvals,
anticipated tax treatment, unforeseen liabilities and other
conditions to the completion of the transaction with Inphi; failure
to realize the anticipated benefits of the proposed transaction
with Inphi, including as a result of delay in completing the
transaction or our ability to integrate the businesses of Marvell
and Inphi or due to unexpected costs, liabilities, delays or other
factors impacting the semiconductor industry; our ability to obtain
or consummate financing related to the Inphi transaction upon
acceptable terms or at all; potential litigation relating to the
proposed transaction with Inphi instituted against Marvell and
Inphi and our respective directors; the risk that disruptions from
the proposed transaction with Inphi will harm our or Inphi's
business, including current plans and operations; the ability of
Marvell or Inphi to retain and hire key personnel; potential
adverse reactions or changes to business relationships resulting
from the announcement or completion of the proposed transaction
with Inphi; risks relating to the value of the shares to be issued
in the Inphi transaction; risks associated with third party
contracts containing consent and/or other provisions that may be
triggered by the proposed transaction with Inphi; potential
business uncertainty, including changes to existing business
relationships, during the pendency of the proposed transaction that
could affect Marvell's and/or Inphi's financial performance;
restrictions during the pendency of the proposed transaction that
may impact Marvell's or Inphi's ability to pursue certain business
opportunities or strategic transactions; failure to receive the
approval of the securityholders of Marvell and/or Inphi; the
occurrence of any event, change or other circumstances that could
give rise to the termination of the merger agreement with Inphi;
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, innovate, collaborate, 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; supply chain
disruptions or component shortages that may impact the production
of our products or may impact the price of components which in turn
may impact our margins on any impacted products and any constrained
availability from other electronic suppliers impacting our
customers' ability to ship their products, which in turn may
adversely impact our sales to those customers; the risks associated
with manufacturing and selling products and customers' products
outside of the United States; our
ability to define, design and develop products for the 5G market;
our ability to market our 5G products to Tier 1 infrastructure
customers; our reliance on independent foundries and subcontractors
for the manufacture, assembly and testing of our products;
cancellations, rescheduling or deferrals of significant customer
orders or shipments, as well as the ability of our customers to
manage inventory; our ability to estimate customer demand and
future sales accurately; our ability to realize the expected
benefits from restructuring activities; the effects of
transitioning to smaller geometry process technologies; the impact
of any change in the income tax laws in jurisdictions where we
operate and the loss of any beneficial tax treatment that Marvell
currently enjoys; the risk of downturns in the semiconductor
industry; the risk that we may not realize the anticipated benefits
of our prior acquisitions and divestitures; our 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; our dependence on a small
number of customers; the impact and costs associated with changes
in international financial and regulatory conditions; our ability
and the ability of our customers to successfully compete in the
markets in which we serve; our ability and our 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; our ability to
scale our 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; our
maintenance of an effective system of internal controls; severe
financial hardship or bankruptcy of one or more of our major
customers; and other risks detailed in our SEC filings from time to
time. The foregoing list of factors is not exhaustive. You should
carefully consider the foregoing factors and the other risks and
uncertainties that affect our business described in the "Risk
Factors" section of our Annual Reports on Form 10-K, Quarterly
Reports on Form 10-Q and other documents filed by Marvell from time
to time with the SEC. Forward-looking statements speak only as of
the date they are made. Readers are cautioned not to put undue
reliance on forward-looking statements, and we assume no obligation
and do not intend to update or revise these forward-looking
statements, whether as a result of new information, future events
or otherwise.
About Marvell
To deliver the data infrastructure technology that connects the
world, we're building solutions on the most powerful foundation:
our partnerships with our customers. Trusted by the world's leading
technology companies for 25 years, we move, store, process and
secure the world's data with semiconductor solutions designed for
our customers' current needs and future ambitions. Through a
process of deep collaboration and transparency, we're ultimately
changing the way tomorrow's enterprise, cloud, automotive, and
carrier architectures transform—for the better.
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 30,
2021
|
|
October 31,
2020
|
|
February 1,
2020
|
|
January 30,
2021
|
|
February 1,
2020
|
Net revenue
|
|
$
|
797,819
|
|
|
$
|
750,143
|
|
|
$
|
717,671
|
|
|
$
|
2,968,900
|
|
|
$
|
2,699,161
|
|
Cost of goods
sold
|
|
376,687
|
|
|
369,083
|
|
|
412,927
|
|
|
1,480,550
|
|
|
1,342,220
|
|
Gross
profit
|
|
421,132
|
|
|
381,060
|
|
|
304,744
|
|
|
1,488,350
|
|
|
1,356,941
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
260,380
|
|
|
255,637
|
|
|
279,389
|
|
|
1,072,740
|
|
|
1,080,391
|
|
Selling, general and
administrative
|
|
116,918
|
|
|
115,501
|
|
|
121,592
|
|
|
467,240
|
|
|
464,580
|
|
Legal settlement
(a)
|
|
36,000
|
|
|
—
|
|
|
—
|
|
|
36,000
|
|
|
—
|
|
Restructuring related
charges
|
|
9,570
|
|
|
19,312
|
|
|
18,258
|
|
|
170,759
|
|
|
55,328
|
|
Total operating
expenses
|
|
422,868
|
|
|
390,450
|
|
|
419,239
|
|
|
1,746,739
|
|
|
1,600,299
|
|
Operating income
(loss)
|
|
(1,736)
|
|
|
(9,390)
|
|
|
(114,495)
|
|
|
(258,389)
|
|
|
(243,358)
|
|
Interest
income
|
|
356
|
|
|
608
|
|
|
1,379
|
|
|
2,599
|
|
|
4,816
|
|
Interest
expense
|
|
(20,733)
|
|
|
(16,066)
|
|
|
(22,656)
|
|
|
(69,264)
|
|
|
(85,631)
|
|
Other income,
net
|
|
(727)
|
|
|
299
|
|
|
1,124,179
|
|
|
2,886
|
|
|
1,122,555
|
|
Interest and other
income (loss), net
|
|
(21,104)
|
|
|
(15,159)
|
|
|
1,102,902
|
|
|
(63,779)
|
|
|
1,041,740
|
|
Income (loss) before
income taxes
|
|
(22,840)
|
|
|
(24,549)
|
|
|
988,407
|
|
|
(322,168)
|
|
|
798,382
|
|
Benefit for income
taxes
|
|
(39,376)
|
|
|
(1,641)
|
|
|
(784,266)
|
|
|
(44,870)
|
|
|
(786,009)
|
|
Net income
(loss)
|
|
$
|
16,536
|
|
|
$
|
(22,908)
|
|
|
$
|
1,772,673
|
|
|
$
|
(277,298)
|
|
|
$
|
1,584,391
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
share - Basic
|
|
$
|
0.02
|
|
|
$
|
(0.03)
|
|
|
$
|
2.66
|
|
|
$
|
(0.41)
|
|
|
$
|
2.38
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
share - Diluted
|
|
$
|
0.02
|
|
|
$
|
(0.03)
|
|
|
$
|
2.62
|
|
|
$
|
(0.41)
|
|
|
$
|
2.34
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
673,529
|
|
|
670,487
|
|
|
665,562
|
|
668,772
|
|
|
664,709
|
|
Diluted
|
|
687,959
|
|
|
670,487
|
|
|
675,700
|
|
668,772
|
|
|
676,094
|
|
|
(a) Represents a
legal settlement relating to a commercial agreement.
|
Marvell Technology
Group Ltd.
|
Condensed
Consolidated Balance Sheets (Unaudited)
|
(In
thousands)
|
|
|
|
|
|
|
|
January 30,
2021
|
|
February 1,
2020
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
748,467
|
|
|
$
|
647,604
|
|
Accounts receivable,
net
|
|
536,668
|
|
|
492,346
|
|
Inventories
|
|
268,228
|
|
|
322,980
|
|
Prepaid expenses and
other current assets
|
|
63,782
|
|
|
74,567
|
|
Total current
assets
|
|
1,617,145
|
|
|
1,537,497
|
|
Property and
equipment, net
|
|
326,125
|
|
|
357,092
|
|
Goodwill
|
|
5,336,961
|
|
|
5,337,405
|
|
Acquired intangible
assets, net
|
|
2,270,700
|
|
|
2,764,600
|
|
Deferred tax
assets
|
|
672,424
|
|
|
639,791
|
|
Other non-current
assets
|
|
541,569
|
|
|
496,850
|
|
Total
assets
|
|
$
|
10,764,924
|
|
|
$
|
11,133,235
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
|
$
|
252,419
|
|
|
$
|
213,747
|
|
Accrued
liabilities
|
|
435,616
|
|
|
346,639
|
|
Accrued employee
compensation
|
|
189,421
|
|
|
149,780
|
|
Short-term
debt
|
|
199,641
|
|
|
—
|
|
Total current
liabilities
|
|
1,077,097
|
|
|
710,166
|
|
Long-term
debt
|
|
993,170
|
|
|
1,439,024
|
|
Other non-current
liabilities
|
|
258,853
|
|
|
305,465
|
|
Total
liabilities
|
|
2,329,120
|
|
|
2,454,655
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
Common
stock
|
|
1,350
|
|
|
1,328
|
|
Additional paid-in
capital
|
|
6,331,013
|
|
|
6,135,939
|
|
Retained
earnings
|
|
2,103,441
|
|
|
2,541,313
|
|
Total shareholders'
equity
|
|
8,435,804
|
|
|
8,678,580
|
|
Total liabilities and
shareholders' equity
|
|
$
|
10,764,924
|
|
|
$
|
11,133,235
|
|
Marvell Technology
Group Ltd.
|
Condensed
Consolidated Statements of Cash Flows (Unaudited)
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
January 30,
2021
|
|
February 1,
2020
|
|
January 30,
2021
|
|
February 1,
2020
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
|
16,536
|
|
|
$
|
1,772,673
|
|
|
$
|
(277,298)
|
|
|
$
|
1,584,391
|
|
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
47,990
|
|
|
43,996
|
|
|
197,912
|
|
|
156,658
|
|
Share-based
compensation
|
|
59,479
|
|
|
53,171
|
|
|
241,539
|
|
|
242,207
|
|
Amortization of
acquired intangible assets
|
|
109,682
|
|
|
114,615
|
|
|
443,616
|
|
|
368,082
|
|
Amortization of
inventory fair value adjustment associated with
acquisitions
|
|
—
|
|
|
52,510
|
|
|
17,284
|
|
|
55,826
|
|
Amortization of
deferred debt issuance costs and debt discounts
|
|
6,809
|
|
|
2,723
|
|
|
10,026
|
|
|
6,763
|
|
Restructuring related
impairment charges
|
|
7,344
|
|
|
1,328
|
|
|
130,903
|
|
|
17,571
|
|
Deferred income
taxes
|
|
(39,906)
|
|
|
(777,257)
|
|
|
(39,491)
|
|
|
(785,158)
|
|
Gain on sale of
business
|
|
—
|
|
|
(1,123,223)
|
|
|
—
|
|
|
(1,121,709)
|
|
Other expense,
net
|
|
5,475
|
|
|
9,287
|
|
|
24,923
|
|
|
26,448
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
(46,397)
|
|
|
2,870
|
|
|
(44,322)
|
|
|
11,244
|
|
Inventories
|
|
96
|
|
|
43,361
|
|
|
29,913
|
|
|
12,759
|
|
Prepaid expenses and
other assets
|
|
(32,942)
|
|
|
(43,099)
|
|
|
(41,634)
|
|
|
(54,138)
|
|
Accounts
payable
|
|
4,895
|
|
|
(29,143)
|
|
|
39,663
|
|
|
1,658
|
|
Accrued liabilities
and other non-current liabilities
|
|
17,795
|
|
|
(76,635)
|
|
|
44,612
|
|
|
(182,893)
|
|
Accrued employee
compensation
|
|
1,439
|
|
|
8,661
|
|
|
39,641
|
|
|
20,588
|
|
Net cash provided by
operating activities
|
|
158,295
|
|
|
55,838
|
|
|
817,287
|
|
|
360,297
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
Sales of
available-for-sale securities
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18,832
|
|
Purchases of
technology licenses
|
|
(4,232)
|
|
|
(2,776)
|
|
|
(12,708)
|
|
|
(4,712)
|
|
Purchases of property
and equipment
|
|
(18,556)
|
|
|
(18,986)
|
|
|
(106,798)
|
|
|
(81,921)
|
|
Proceeds from sales of
property and equipment
|
|
206
|
|
|
89
|
|
|
738
|
|
|
620
|
|
Cash payment for
acquisition, net of cash and cash equivalents acquired
|
|
—
|
|
|
(593,500)
|
|
|
—
|
|
|
(1,071,079)
|
|
Net proceeds from sale
of business
|
|
—
|
|
|
1,699,835
|
|
|
—
|
|
|
1,698,783
|
|
Other
|
|
(567)
|
|
|
(405)
|
|
|
(876)
|
|
|
(1,677)
|
|
Net cash provided by
(used in) investing activities
|
|
(23,149)
|
|
|
1,084,257
|
|
|
(119,644)
|
|
|
558,846
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
Repurchases of common
stock
|
|
—
|
|
|
(300,000)
|
|
|
(25,202)
|
|
|
(364,272)
|
|
Proceeds from employee
stock plans
|
|
36,145
|
|
|
44,167
|
|
|
86,635
|
|
|
147,276
|
|
Tax withholding paid
on behalf of employees for net share settlement
|
|
(25,468)
|
|
|
(17,440)
|
|
|
(108,094)
|
|
|
(98,302)
|
|
Dividend payments to
shareholders
|
|
(40,463)
|
|
|
(40,077)
|
|
|
(160,574)
|
|
|
(159,573)
|
|
Payments on technology
license obligations
|
|
(23,224)
|
|
|
(15,053)
|
|
|
(100,018)
|
|
|
(72,266)
|
|
Proceeds from issuance
of debt
|
|
—
|
|
|
600,000
|
|
|
—
|
|
|
950,000
|
|
Principal payments of
debt
|
|
(150,000)
|
|
|
(1,200,000)
|
|
|
(250,000)
|
|
|
(1,250,000)
|
|
Payment of equity and
debt financing costs
|
|
(15,710)
|
|
|
—
|
|
|
(38,023)
|
|
|
—
|
|
Other, net
|
|
—
|
|
|
(2,457)
|
|
|
(1,504)
|
|
|
(6,812)
|
|
Net cash used in
financing activities
|
|
(218,720)
|
|
|
(930,860)
|
|
|
(596,780)
|
|
|
(853,949)
|
|
Net increase
(decrease) in cash and cash equivalents
|
|
(83,574)
|
|
|
209,235
|
|
|
100,863
|
|
|
65,194
|
|
Cash and cash
equivalents at beginning of period
|
|
832,041
|
|
|
438,369
|
|
|
647,604
|
|
|
582,410
|
|
Cash and cash
equivalents at end of period
|
|
$
|
748,467
|
|
|
$
|
647,604
|
|
|
$
|
748,467
|
|
|
$
|
647,604
|
|
Marvell Technology
Group Ltd.
|
Reconciliations
from GAAP to Non-GAAP (Unaudited)
|
(In thousands,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
January 30,
2021
|
|
October 31,
2020
|
|
February 1,
2020
|
|
January 30,
2021
|
|
February 1,
2020
|
|
|
|
|
|
|
|
|
|
|
|
GAAP gross
profit:
|
|
$
|
421,132
|
|
|
$
|
381,060
|
|
|
$
|
304,744
|
|
|
$
|
1,488,350
|
|
|
$
|
1,356,941
|
|
Special
items:
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation
|
|
4,265
|
|
|
4,435
|
|
|
3,181
|
|
|
16,320
|
|
|
13,759
|
|
Amortization of
acquired intangible assets
|
|
83,327
|
|
|
83,078
|
|
|
86,383
|
|
|
338,197
|
|
|
279,567
|
|
Other cost of goods
sold (a)
|
|
796
|
|
|
4,296
|
|
|
52,510
|
|
|
35,284
|
|
|
57,718
|
|
Total special
items
|
|
88,388
|
|
|
91,809
|
|
|
142,074
|
|
|
389,801
|
|
|
351,044
|
|
Non-GAAP gross
profit
|
|
$
|
509,520
|
|
|
$
|
472,869
|
|
|
$
|
446,818
|
|
|
$
|
1,878,151
|
|
|
$
|
1,707,985
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP gross
margin
|
|
52.8
|
%
|
|
50.8
|
%
|
|
42.5
|
%
|
|
50.1
|
%
|
|
50.3
|
%
|
Non-GAAP gross
margin
|
|
63.9
|
%
|
|
63.0
|
%
|
|
62.3
|
%
|
|
63.3
|
%
|
|
63.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total GAAP operating
expenses
|
|
$
|
422,868
|
|
|
$
|
390,450
|
|
|
$
|
419,239
|
|
|
$
|
1,746,739
|
|
|
$
|
1,600,299
|
|
Special
items:
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation
|
|
(55,214)
|
|
|
(55,352)
|
|
|
(49,989)
|
|
|
(225,219)
|
|
|
(229,050)
|
|
Restructuring related
charges (b)
|
|
(9,570)
|
|
|
(19,312)
|
|
|
(18,258)
|
|
|
(170,759)
|
|
|
(55,328)
|
|
Amortization of
acquired intangible assets
|
|
(26,355)
|
|
|
(26,355)
|
|
|
(28,232)
|
|
|
(105,419)
|
|
|
(88,515)
|
|
Legal settlement
(c)
|
|
(36,000)
|
|
|
—
|
|
|
—
|
|
|
(36,000)
|
|
|
—
|
|
Other operating
expenses (d)
|
|
(12,480)
|
|
|
(9,490)
|
|
|
(16,621)
|
|
|
(49,498)
|
|
|
(63,361)
|
|
Total special
items
|
|
(139,619)
|
|
|
(110,509)
|
|
|
(113,100)
|
|
|
(586,895)
|
|
|
(436,254)
|
|
Total non-GAAP
operating expenses
|
|
$
|
283,249
|
|
|
$
|
279,941
|
|
|
$
|
306,139
|
|
|
$
|
1,159,844
|
|
|
$
|
1,164,045
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
margin
|
|
(0.2)
|
%
|
|
(1.3)
|
%
|
|
(16.0)
|
%
|
|
(8.7)
|
%
|
|
(9.0)
|
%
|
Other cost of goods
sold (a)
|
|
0.1
|
%
|
|
0.6
|
%
|
|
7.3
|
%
|
|
1.2
|
%
|
|
2.1
|
%
|
Share-based
compensation
|
|
7.5
|
%
|
|
8.0
|
%
|
|
7.4
|
%
|
|
8.1
|
%
|
|
9.0
|
%
|
Restructuring related
charges (b)
|
|
1.2
|
%
|
|
2.6
|
%
|
|
2.5
|
%
|
|
5.8
|
%
|
|
2.0
|
%
|
Amortization of
acquired intangible assets
|
|
13.7
|
%
|
|
14.6
|
%
|
|
16.0
|
%
|
|
14.9
|
%
|
|
13.6
|
%
|
Legal settlement
(c)
|
|
4.5
|
%
|
|
—
|
%
|
|
—
|
%
|
|
1.2
|
%
|
|
—
|
%
|
Other operating
expenses (d)
|
|
1.6
|
%
|
|
1.2
|
%
|
|
2.4
|
%
|
|
1.7
|
%
|
|
2.5
|
%
|
Non-GAAP operating
margin
|
|
28.4
|
%
|
|
25.7
|
%
|
|
19.6
|
%
|
|
24.2
|
%
|
|
20.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
GAAP interest and
other income (loss), net
|
|
$
|
(21,104)
|
|
|
$
|
(15,159)
|
|
|
$
|
1,102,902
|
|
|
$
|
(63,779)
|
|
|
$
|
1,041,740
|
|
Special
items:
|
|
|
|
|
|
|
|
|
|
|
Restructuring
related items (e)
|
|
(28)
|
|
|
(1,002)
|
|
|
(1,122,988)
|
|
|
(596)
|
|
|
(1,124,197)
|
|
Write-off of debt
issuance costs (f)
|
|
6,045
|
|
|
453
|
|
|
1,621
|
|
|
6,498
|
|
|
2,079
|
|
Deal costs
(g)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,505
|
|
Total special
items
|
|
6,017
|
|
|
(549)
|
|
|
(1,121,367)
|
|
|
5,902
|
|
|
(1,120,613)
|
|
Total non-GAAP
interest and other income (loss), net
|
|
$
|
(15,087)
|
|
|
$
|
(15,708)
|
|
|
$
|
(18,465)
|
|
|
$
|
(57,877)
|
|
|
$
|
(78,873)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
(loss)
|
|
$
|
16,536
|
|
|
$
|
(22,908)
|
|
|
$
|
1,772,673
|
|
|
$
|
(277,298)
|
|
|
$
|
1,584,391
|
|
Special
items:
|
|
|
|
|
|
|
|
|
|
|
Other cost of goods
sold (a)
|
|
796
|
|
|
4,296
|
|
|
52,510
|
|
|
35,284
|
|
|
57,718
|
|
Share-based
compensation
|
|
59,479
|
|
|
59,787
|
|
|
53,170
|
|
|
241,539
|
|
|
242,809
|
|
Restructuring related
charges (gain) in operating expenses (b)
|
|
9,570
|
|
|
19,312
|
|
|
18,258
|
|
|
170,759
|
|
|
55,328
|
|
Legal settlement
(c)
|
|
36,000
|
|
|
—
|
|
|
—
|
|
|
36,000
|
|
|
—
|
|
Other operating
expenses (d)
|
|
12,480
|
|
|
9,490
|
|
|
16,621
|
|
|
49,498
|
|
|
63,361
|
|
Restructuring related
items in interest and other income (loss), net (e)
|
|
(28)
|
|
|
(1,002)
|
|
|
(1,122,988)
|
|
|
(596)
|
|
|
(1,124,197)
|
|
Amortization of
acquired intangible assets
|
|
109,682
|
|
|
109,433
|
|
|
114,615
|
|
|
443,616
|
|
|
368,082
|
|
Write-off of debt
issuance costs (f)
|
|
6,045
|
|
|
453
|
|
|
1,621
|
|
|
6,498
|
|
|
2,079
|
|
Transaction costs
included in interest and other income, net (g)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,505
|
|
Pre-tax total special
items
|
|
234,024
|
|
|
201,769
|
|
|
(866,193)
|
|
|
982,598
|
|
|
(333,315)
|
|
Other income tax
effects and adjustments (h)
|
|
(49,936)
|
|
|
(10,502)
|
|
|
(789,761)
|
|
|
(77,893)
|
|
|
(806,938)
|
|
Non-GAAP net
income
|
|
$
|
200,624
|
|
|
$
|
168,359
|
|
|
$
|
116,719
|
|
|
$
|
627,407
|
|
|
$
|
444,138
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares — basic
|
|
673,529
|
|
|
670,487
|
|
|
665,562
|
|
|
668,772
|
|
|
664,709
|
|
Weighted-average
shares — diluted
|
|
687,959
|
|
|
670,487
|
|
|
675,700
|
|
|
668,772
|
|
|
676,094
|
|
Non-GAAP weighted
average shares — diluted (i)
|
|
687,959
|
|
|
682,724
|
|
|
675,700
|
|
|
679,944
|
|
|
676,094
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted net
income (loss) per share
|
|
$
|
0.02
|
|
|
$
|
(0.03)
|
|
|
$
|
2.62
|
|
|
$
|
(0.41)
|
|
|
$
|
2.34
|
|
Non-GAAP diluted net
income per share
|
|
$
|
0.29
|
|
|
$
|
0.25
|
|
|
$
|
0.17
|
|
|
$
|
0.92
|
|
|
$
|
0.66
|
|
|
|
(a)
|
Other costs of goods
sold includes inventory write-downs and amortization of acquired
inventory fair value adjustments.
|
|
|
(b)
|
Restructuring related
charges include asset impairment charges (i.e. due to changes to
the scope of the server processor product line), employee severance
costs, facilities related charges, and other.
|
|
|
(c)
|
Represents a legal
settlement relating to a commercial agreement.
|
|
|
(d)
|
Other operating
expenses include integration and merger costs associated with
acquisitions.
|
|
|
(e)
|
Interest and other
income (loss), net includes restructuring and other related items
such as gain on sale of a business and foreign currency
remeasurement associated with restructuring related
accruals.
|
|
|
(f)
|
Write-off of debt
issuance costs is associated with the partial term loan repayment
and bridge financing.
|
|
|
(g)
|
Deal costs include
transaction costs incurred in connection with divestiture of the
Wi-Fi Connectivity business.
|
|
|
(h)
|
Other income tax
effects and adjustments relate to tax provision based on a non-GAAP
income tax rate of 5.0% for the three and twelve months ended
January 30, 2021 and three months ended October 31, 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 and twelve months
ended February 1, 2020.
|
|
|
(i)
|
Non-GAAP diluted
weighted average shares differs from GAAP diluted weighted average
shares due to the non-GAAP net income reported.
|
Marvell Technology
Group Ltd.
|
Outlook for the
First Quarter of Fiscal Year 2022
|
Reconciliations
from GAAP to Non-GAAP (Unaudited)
|
(In millions,
except per share amounts)
|
|
|
|
|
|
Outlook for Three
Months Ended
May 1, 2021
|
GAAP net
revenue
|
$800 +/-
5%
|
Special
items:
|
—
|
Non-GAAP net
revenue
|
$800 +/-
5%
|
|
|
GAAP gross
margin
|
~52.5%
|
Special
items:
|
|
Share-based
compensation
|
0.5%
|
Amortization of
acquired intangible assets
|
10.5%
|
Non-GAAP gross
margin
|
~63.5%
|
|
|
Total GAAP
operating expenses
|
~ $391
|
Special
items:
|
|
Share-based
compensation
|
55
|
Amortization of
acquired intangible assets
|
25
|
Restructuring related
charges
|
4
|
Other operating
expenses
|
7
|
Total non-GAAP
operating expenses
|
~$300
|
|
|
|
|
GAAP diluted net
income (loss) per share
|
$(0.05) -
$0.05
|
Special
items:
|
|
Share-based
compensation
|
0.08
|
Amortization of
acquired intangible assets
|
0.16
|
Restructuring related
charges
|
0.01
|
Other operating
expenses
|
0.01
|
Other
expense
|
0.01
|
Non-GAAP diluted net
income per share
|
$0.23 -
$0.31
|
Quarterly Revenue
Trend (Unaudited)
|
(In
thousands)
|
|
|
|
|
Three Months
Ended
|
|
%
Change
|
|
January 30,
2021
|
|
October 31,
2020
|
|
February 1,
2020
|
|
YoY
|
|
QoQ
|
Networking
(1)
|
$
|
438,610
|
|
|
$
|
444,756
|
|
|
$
|
376,724
|
|
|
16
|
%
|
|
(1)
|
%
|
Storage
(2)
|
326,412
|
|
|
276,279
|
|
|
296,486
|
|
|
10
|
%
|
|
18
|
%
|
Total
Core
|
765,022
|
|
|
721,035
|
|
|
673,210
|
|
|
14
|
%
|
|
6
|
%
|
Other
(3)
|
32,797
|
|
|
29,108
|
|
|
44,461
|
|
|
(26)
|
%
|
|
13
|
%
|
Total Net
Revenue
|
$
|
797,819
|
|
|
$
|
750,143
|
|
|
$
|
717,671
|
|
|
11
|
%
|
|
6
|
%
|
|
Three Months
Ended
|
% of
Total
|
January 30,
2021
|
|
October 31,
2020
|
|
February 1,
2020
|
Networking
(1)
|
55
|
%
|
|
59
|
%
|
|
52
|
%
|
Storage
(2)
|
41
|
%
|
|
37
|
%
|
|
41
|
%
|
Total
Core
|
96
|
%
|
|
96
|
%
|
|
93
|
%
|
Other
(3)
|
4
|
%
|
|
4
|
%
|
|
7
|
%
|
Total Net
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.
|
For further information, contact:
Ashish Saran
Vice President, Investor Relations
408-222-0777
ir@marvell.com
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SOURCE Marvell