- Q4 Net Revenue: $1.419 billion,
grew by 6% year-on-year
- Q4 Gross Margin: 47.5% GAAP gross margin; 63.5% non-GAAP gross
margin
- Q4 Diluted income (loss) per share: $(0.02) GAAP diluted loss per share; $0.46 non-GAAP diluted income per share
SANTA
CLARA, Calif., March 2,
2023 /PRNewswire/ -- Marvell Technology,
Inc. (NASDAQ: MRVL), a leader in data infrastructure
semiconductor solutions, today reported financial results for the
fourth fiscal quarter and the full fiscal year, ended
January 28, 2023.
Net revenue for the fourth quarter of fiscal 2023 was
$1.419 billion, above the midpoint of
the Company's guidance provided on January 11, 2023. GAAP net
loss for the fourth quarter of fiscal 2023 was $(15) million, or $(0.02) per diluted share. Non-GAAP net income
for the fourth quarter of fiscal 2023 was $396 million, or $0.46 per diluted share. Cash flow from
operations for the fourth quarter was $351.5
million.
Net revenue for fiscal 2023 was $5.920
billion. GAAP net loss for fiscal 2023 was $(164) million, or $(0.19) per diluted share. Non-GAAP net income
for fiscal 2023 was $1.822 billion,
or $2.12 per diluted share.
"Marvell delivered record revenue of $5.92 billion in fiscal 2023, growing 33 percent
year over year driven by strong growth from cloud, 5G, auto and
enterprise networking. In the fourth quarter of fiscal 2023, we
achieved revenue of $1.419 billion,
growing 6 percent year over year, above the midpoint of guidance,
driven by better-than-forecasted results from our datacenter end
market," said Matt Murphy, Marvell's
President and CEO. "While inventory corrections and resulting
changes in product mix are impacting our guidance for fiscal first
quarter revenue and gross margin, we expect these headwinds to
subside later in fiscal 2024, as inventory levels normalize, and
Marvell-specific growth drivers accelerate."
First Quarter of Fiscal 2024 Financial Outlook
- Net revenue is expected to be $1.300
billion +/- 5%.
- GAAP gross margin is expected to be 45.1% +/- 1%.
- Non-GAAP gross margin is expected to be approximately 60%.
- GAAP operating expenses are expected to be approximately
$687 million.
- Non-GAAP operating expenses are expected to be approximately
$460 million.
- Basic weighted-average shares outstanding are expected to be
858 million.
- Diluted weighted-average shares outstanding are expected to be
863 million.
- GAAP diluted loss per share is expected to be $(0.17) +/- $0.05
per share.
- Non-GAAP diluted income per share is expected to be
$0.29 +/- $0.05 per share.
GAAP diluted EPS is calculated using basic weighted average
shares outstanding when there is a GAAP net loss, and calculated
using diluted weighted average shares outstanding when there is a
GAAP net income. Non-GAAP diluted EPS is calculated using diluted
weighted average shares outstanding.
Conference Call
Marvell will conduct a conference call on Thursday, March 2, 2023 at 1:45 p.m. Pacific Time to discuss results for the
fourth quarter and full fiscal year 2023. Interested parties may
join the conference call by dialing 1-888-317-6003 or
1-412-317-6061, passcode 4137481. The call will be webcast and can
be accessed at the Marvell Investor Relations website at
http://investor.marvell.com/. A replay of the call can be accessed
by dialing 1-877-344-7529 or 1-412-317-0088, passcode 4079400 until
Thursday, March 9, 2023.
Discussion of Non-GAAP Financial Measures
Non-GAAP financial measures exclude the effect of stock-based
compensation expense, amortization of the inventory fair value
adjustment associated with 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. Although Marvell excludes the amortization
of all acquired intangible assets from these non-GAAP financial
measures, management believes that it is important for investors to
understand that such intangible assets were recorded as part of
purchase price accounting arising from acquisitions, and that such
amortization of intangible assets that relate to past acquisitions
will recur in future periods until such intangible assets have been
fully amortized. Investors should note that the use of intangible
assets contributed to Marvell's revenues earned during the periods
presented and are expected to contribute to Marvell's future period
revenues as well.
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 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, and excludes tax deductions and benefits
from acquired tax loss and credit carryforwards and changes in
valuation allowance on acquired deferred tax assets. 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;
acquisitions; significant changes in Marvell's geographic mix of
revenue and expenses; or changes to Marvell's corporate structure.
For the fourth quarter of fiscal 2023, a non-GAAP tax rate of 6.0%
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," "outlook," "forecast," "targets" and
similar expressions identify such forward-looking statements.
Forward-looking statements contained in this press release include,
but are not limited to, the statements describing our financial
outlook and future period revenues. 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: risks related to
changes in general economic conditions, or expectations of such
conditions, such as rising interest rates, economic slowdowns,
recessions, inflation, and stagflation; risks related to our
ability to estimate customer demand and future sales accurately;
risks related to higher inventory levels; risks related to
cancellations, rescheduling or deferrals of significant customer
orders or shipments, as well as the ability of our customers to
manage inventory; the risk of downturns in the semiconductor
industry or our customer end markets; our ability to retain and
hire key personnel; risks related to the rapid growth of the
Company; risks related to the impact of the COVID-19 pandemic which
have impacted, and for which lingering effects may continue to
impact our business, employees and operations, the transportation
and manufacturing of our products, and the operations of our
customers, distributors, vendors, suppliers, and partners; risks
related to use of a hybrid work model; delays or increased costs
related to completing the design, development, production and
introduction of our new products due to a variety of issues,
including supply chain cross-dependencies, dependencies on EDA and
similar tools, dependencies on the use of third party, business
partner or customer intellectual property, collaboration and
synchronization requirements with business partners and customers,
requirements to establish new manufacturing, testing, assembly and
packing processes, and other issues; supply chain disruptions or
component shortages that may impact the production of our products
including our kitting process 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; our
reliance on our manufacturing partners for the manufacture,
assembly, testing and packaging of our products; risks related to
the ASIC business model which requires us to use third-party IP
including the risk that we may lose business or experience
reputational harm if third parties, including customers, lose
confidence in our ability to protect their IP rights; the impact of
international conflict and economic volatility in either domestic
or foreign markets including risks related to trade conflicts or
tensions, 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; our
ability to define, design and develop products for the Cloud and 5G
markets; our ability to secure design wins from our customers and
prospective customers; our ability to market our 5G products to
Tier 1 infrastructure customers; our ability to complete and
realize the anticipated benefits of any acquisitions, divestitures
and investments; decreases in gross margin and results of
operations in the future due to a number of factors, including
increasing interest rates and volatility in foreign exchange rates;
severe financial hardship or bankruptcy of one or more of our major
customers; 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 we currently enjoy; our ability
to limit costs related to defective products; risks related to our
debt obligations; the outcome of pending or future litigation and
legal and regulatory proceedings; risk related to our ESG program;
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; our ability to
accurately categorize our products by end markets; 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, including any
consolidation of our manufacturing partners; our ability to protect
our intellectual property; our maintenance of an effective system
of internal controls; 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 us 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 over 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,
Inc.
|
Condensed
Consolidated Statements of Operations (Unaudited)
|
(In millions, except
per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
January 28,
2023
|
|
October 29,
2022
|
|
January 29,
2022
|
|
January 28,
2023
|
|
January 29,
2022
|
Net revenue
|
|
$ 1,418.5
|
|
$ 1,537.3
|
|
$ 1,343.0
|
|
$ 5,919.6
|
|
$ 4,462.4
|
Cost of goods
sold
|
|
745.2
|
|
760.0
|
|
656.6
|
|
2,932.1
|
|
2,398.2
|
Gross
profit
|
|
673.3
|
|
777.3
|
|
686.4
|
|
2,987.5
|
|
2,064.2
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
443.1
|
|
448.1
|
|
399.2
|
|
1,784.3
|
|
1,424.2
|
Selling, general and
administrative
|
|
203.4
|
|
207.8
|
|
251.2
|
|
843.6
|
|
955.3
|
Legal settlement
(a)
|
|
—
|
|
—
|
|
—
|
|
100.0
|
|
—
|
Restructuring related
charges
|
|
3.5
|
|
15.6
|
|
1.3
|
|
21.6
|
|
32.4
|
Total operating
expenses
|
|
650.0
|
|
671.5
|
|
651.7
|
|
2,749.5
|
|
2,411.9
|
Operating income
(loss)
|
|
23.3
|
|
105.8
|
|
34.7
|
|
238.0
|
|
(347.7)
|
Interest
income
|
|
2.5
|
|
1.5
|
|
0.2
|
|
5.3
|
|
0.8
|
Interest
expense
|
|
(49.3)
|
|
(45.2)
|
|
(35.0)
|
|
(170.6)
|
|
(139.3)
|
Other income,
net
|
|
0.3
|
|
3.2
|
|
2.2
|
|
12.4
|
|
2.7
|
Interest and other
income (loss), net
|
|
(46.5)
|
|
(40.5)
|
|
(32.6)
|
|
(152.9)
|
|
(135.8)
|
Income (loss) before
income taxes
|
|
(23.2)
|
|
65.3
|
|
2.1
|
|
85.1
|
|
(483.5)
|
Provision (benefit)
for income taxes
|
|
(7.8)
|
|
52.0
|
|
(4.1)
|
|
248.6
|
|
(62.5)
|
Net income
(loss)
|
|
$
(15.4)
|
|
$
13.3
|
|
$
6.2
|
|
$ (163.5)
|
|
$ (421.0)
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
share - basic
|
|
$
(0.02)
|
|
$
0.02
|
|
$
0.01
|
|
$
(0.19)
|
|
$
(0.53)
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
share - diluted
|
|
$
(0.02)
|
|
$
0.02
|
|
$
0.01
|
|
$
(0.19)
|
|
$
(0.53)
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
854.1
|
|
852.6
|
|
844.4
|
|
851.4
|
|
796.9
|
Diluted
|
|
854.1
|
|
858.4
|
|
862.1
|
|
851.4
|
|
796.9
|
|
|
(a)
|
Relates to a settlement
of a contractual dispute.
|
Marvell Technology,
Inc.
|
Condensed
Consolidated Balance Sheets (Unaudited)
|
(In
millions)
|
|
|
|
|
|
|
|
January 28,
2023
|
|
January 29,
2022
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
911.0
|
|
$
613.5
|
Accounts receivable,
net
|
|
1,192.2
|
|
1,048.6
|
Inventories
|
|
1,068.3
|
|
720.3
|
Prepaid expenses and
other current assets
|
|
109.6
|
|
111.0
|
Total current
assets
|
|
3,281.1
|
|
2,493.4
|
Property and
equipment, net
|
|
577.4
|
|
462.8
|
Goodwill
|
|
11,586.9
|
|
11,511.1
|
Acquired intangible
assets, net
|
|
5,102.0
|
|
6,153.4
|
Deferred tax
assets
|
|
465.9
|
|
493.5
|
Other non-current
assets
|
|
1,508.8
|
|
994.4
|
Total
assets
|
|
$
22,522.1
|
|
$
22,108.6
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
|
$
465.8
|
|
$
461.5
|
Accrued
liabilities
|
|
1,092.0
|
|
622.6
|
Accrued employee
compensation
|
|
244.5
|
|
241.3
|
Short-term
debt
|
|
584.4
|
|
63.2
|
Total current
liabilities
|
|
2,386.7
|
|
1,388.6
|
Long-term
debt
|
|
3,907.7
|
|
4,484.8
|
Other non-current
liabilities
|
|
590.5
|
|
533.1
|
Total
liabilities
|
|
6,884.9
|
|
6,406.5
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
Common
stock
|
|
1.7
|
|
1.7
|
Additional paid-in
capital
|
|
14,512.0
|
|
14,209.0
|
Retained
earnings
|
|
1,123.5
|
|
1,491.4
|
Total stockholders'
equity
|
|
15,637.2
|
|
15,702.1
|
Total liabilities and
stockholders' equity
|
|
$
22,522.1
|
|
$
22,108.6
|
Marvell Technology,
Inc.
|
Condensed
Consolidated Statements of Cash Flows (Unaudited)
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
January 28,
2023
|
|
January 29,
2022
|
|
January 28,
2023
|
|
January 29,
2022
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
(15.4)
|
|
$
6.2
|
|
$
(163.5)
|
|
$
(421.0)
|
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
77.9
|
|
76.3
|
|
304.9
|
|
265.9
|
Stock-based
compensation
|
|
130.7
|
|
134.8
|
|
552.4
|
|
460.7
|
Amortization of
acquired intangible assets
|
|
273.2
|
|
294.8
|
|
1,087.4
|
|
979.4
|
Amortization of
inventory fair value adjustment associated with
acquisitions
|
|
12.7
|
|
3.2
|
|
38.7
|
|
194.3
|
Amortization of
deferred debt issuance costs and debt discounts
|
|
2.6
|
|
2.5
|
|
10.3
|
|
21.6
|
Restructuring related
impairment charges
|
|
0.7
|
|
1.0
|
|
5.6
|
|
6.2
|
Deferred income
taxes
|
|
(3.2)
|
|
(26.3)
|
|
50.4
|
|
(93.9)
|
Other expense,
net
|
|
6.5
|
|
8.9
|
|
52.4
|
|
69.0
|
Changes in assets and
liabilities, net of acquisitions:
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
198.8
|
|
(67.6)
|
|
(142.7)
|
|
(409.0)
|
Prepaid expenses and
other assets
|
|
(98.0)
|
|
(96.5)
|
|
(480.4)
|
|
(161.8)
|
Inventories
|
|
(122.5)
|
|
(91.3)
|
|
(385.9)
|
|
(291.9)
|
Accounts
payable
|
|
(53.9)
|
|
(0.6)
|
|
(87.8)
|
|
93.2
|
Accrued employee
compensation
|
|
(3.8)
|
|
16.6
|
|
2.5
|
|
29.6
|
Accrued liabilities
and other non-current liabilities
|
|
(54.8)
|
|
84.2
|
|
444.5
|
|
77.0
|
Net cash provided by
operating activities
|
|
351.5
|
|
346.2
|
|
1,288.8
|
|
819.3
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
Purchases of
technology licenses
|
|
(2.0)
|
|
(8.4)
|
|
(11.1)
|
|
(17.7)
|
Purchases of property
and equipment
|
|
(54.0)
|
|
(38.8)
|
|
(206.2)
|
|
(169.2)
|
Acquisitions, net of
cash acquired
|
|
(9.3)
|
|
(15.2)
|
|
(112.3)
|
|
(3,555.0)
|
Other, net
|
|
1.1
|
|
(0.6)
|
|
1.2
|
|
(3.2)
|
Net cash used in
investing activities
|
|
(64.2)
|
|
(63.0)
|
|
(328.4)
|
|
(3,745.1)
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
Repurchases of common
stock
|
|
—
|
|
—
|
|
(115.0)
|
|
—
|
Proceeds from employee
stock plans
|
|
38.8
|
|
41.7
|
|
91.3
|
|
84.5
|
Tax withholding paid
on behalf of employees for net share settlement
|
|
(26.4)
|
|
(136.7)
|
|
(227.6)
|
|
(305.8)
|
Dividend payments to
stockholders
|
|
(51.3)
|
|
(50.7)
|
|
(204.4)
|
|
(191.0)
|
Payments on technology
license obligations
|
|
(38.9)
|
|
(36.6)
|
|
(142.5)
|
|
(134.5)
|
Proceeds from issuance
of debt
|
|
—
|
|
90.0
|
|
200.0
|
|
3,896.1
|
Principal payments of
debt
|
|
(21.8)
|
|
(100.9)
|
|
(265.6)
|
|
(526.8)
|
Payment for
repurchases and settlement of convertible notes
|
|
—
|
|
—
|
|
—
|
|
(181.2)
|
Proceeds from capped
calls
|
|
—
|
|
—
|
|
—
|
|
160.3
|
Payment of equity and
debt financing costs
|
|
—
|
|
—
|
|
—
|
|
(11.8)
|
Other, net
|
|
(0.1)
|
|
—
|
|
0.9
|
|
1.0
|
Net cash provided by
(used in) in financing activities
|
|
(99.7)
|
|
(193.2)
|
|
(662.9)
|
|
2,790.8
|
Net increase
(decrease) in cash and cash equivalents
|
|
187.6
|
|
90.0
|
|
297.5
|
|
(135.0)
|
Cash and cash
equivalents at beginning of the year
|
|
723.4
|
|
523.5
|
|
613.5
|
|
748.5
|
Cash and cash
equivalents at end of the year
|
|
$
911.0
|
|
$
613.5
|
|
$
911.0
|
|
$
613.5
|
Marvell Technology,
Inc.
|
Reconciliations from
GAAP to Non-GAAP (Unaudited)
|
(In millions, except
per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
January 28,
2023
|
|
October 29,
2022
|
|
January 29,
2022
|
|
January 28,
2023
|
|
January 29,
2022
|
GAAP gross
profit:
|
|
$ 673.3
|
|
$ 777.3
|
|
$ 686.4
|
|
$
2,987.5
|
|
$
2,064.2
|
Special
items:
|
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation
|
|
9.5
|
|
12.1
|
|
9.2
|
|
43.3
|
|
31.1
|
Amortization of
acquired intangible assets
|
|
185.4
|
|
181.9
|
|
178.7
|
|
725.6
|
|
609.5
|
Other cost of goods
sold (a)
|
|
32.4
|
|
13.0
|
|
2.5
|
|
61.0
|
|
193.5
|
Total special
items
|
|
227.3
|
|
207.0
|
|
190.4
|
|
829.9
|
|
834.1
|
Non-GAAP gross
profit
|
|
$ 900.6
|
|
$ 984.3
|
|
$ 876.8
|
|
$
3,817.4
|
|
$
2,898.3
|
|
|
|
|
|
|
|
|
|
|
|
GAAP gross
margin
|
|
47.5 %
|
|
50.6 %
|
|
51.1 %
|
|
50.5 %
|
|
46.3 %
|
Non-GAAP gross
margin
|
|
63.5 %
|
|
64.0 %
|
|
65.3 %
|
|
64.5 %
|
|
64.9 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total GAAP operating
expenses
|
|
$ 650.0
|
|
$ 671.5
|
|
$ 651.7
|
|
$
2,749.5
|
|
$
2,411.9
|
Special
items:
|
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation
|
|
(121.2)
|
|
(134.0)
|
|
(125.6)
|
|
(509.1)
|
|
(446.5)
|
Restructuring related
charges (b)
|
|
(3.5)
|
|
(15.6)
|
|
(1.3)
|
|
(21.6)
|
|
(32.4)
|
Amortization of
acquired intangible assets
|
|
(87.8)
|
|
(88.0)
|
|
(116.1)
|
|
(361.8)
|
|
(369.9)
|
Legal settlement
(c)
|
|
—
|
|
—
|
|
—
|
|
(100.0)
|
|
—
|
Other operating
expenses (d)
|
|
(6.8)
|
|
(13.5)
|
|
(18.9)
|
|
(39.0)
|
|
(130.0)
|
Total special
items
|
|
(219.3)
|
|
(251.1)
|
|
(261.9)
|
|
(1,031.5)
|
|
(978.8)
|
Total non-GAAP
operating expenses
|
|
$ 430.7
|
|
$ 420.4
|
|
$ 389.8
|
|
$
1,718.0
|
|
$
1,433.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
margin
|
|
1.6 %
|
|
6.9 %
|
|
2.6 %
|
|
4.0 %
|
|
(7.8) %
|
Other cost of goods
sold (a)
|
|
2.3 %
|
|
0.8 %
|
|
0.2 %
|
|
1.0 %
|
|
4.3 %
|
Stock-based
compensation
|
|
9.2 %
|
|
9.5 %
|
|
10.0 %
|
|
9.3 %
|
|
10.7 %
|
Restructuring related
charges (b)
|
|
0.2 %
|
|
1.0 %
|
|
0.1 %
|
|
0.4 %
|
|
0.7 %
|
Amortization of
acquired intangible assets
|
|
19.3 %
|
|
17.6 %
|
|
22.0 %
|
|
18.4 %
|
|
21.9 %
|
Legal settlement
(c)
|
|
— %
|
|
— %
|
|
— %
|
|
1.7 %
|
|
— %
|
Other operating
expenses (d)
|
|
0.5 %
|
|
0.9 %
|
|
1.4 %
|
|
0.7 %
|
|
3.0 %
|
Non-GAAP operating
margin
|
|
33.1 %
|
|
36.7 %
|
|
36.3 %
|
|
35.5 %
|
|
32.8 %
|
|
|
|
|
|
|
|
|
|
|
|
GAAP interest and
other income (loss), net
|
|
$ (46.5)
|
|
$ (40.5)
|
|
$ (32.6)
|
|
$
(152.9)
|
|
$
(135.8)
|
Special
items:
|
|
|
|
|
|
|
|
|
|
|
Debt issuance related
costs and other (e)
|
|
(1.8)
|
|
(0.5)
|
|
(3.1)
|
|
(8.0)
|
|
16.7
|
Total special
items
|
|
(1.8)
|
|
(0.5)
|
|
(3.1)
|
|
(8.0)
|
|
16.7
|
Total non-GAAP
interest and other income (loss), net
|
|
$ (48.3)
|
|
$ (41.0)
|
|
$ (35.7)
|
|
$
(160.9)
|
|
$
(119.1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marvell Technology,
Inc.
|
Reconciliations
from GAAP to Non-GAAP (Unaudited)
|
(In millions,
except per share amounts)
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
January 28,
2023
|
|
October 29,
2022
|
|
January 29,
2022
|
|
January 28,
2023
|
|
January 29,
2022
|
GAAP net income
(loss)
|
|
$ (15.4)
|
|
$
13.3
|
|
$
6.2
|
|
$
(163.5)
|
|
$
(421.0)
|
Special
items:
|
|
|
|
|
|
|
|
|
|
|
Other cost of goods
sold (a)
|
|
32.4
|
|
13.0
|
|
2.5
|
|
61.0
|
|
193.5
|
Stock-based
compensation
|
|
130.7
|
|
146.1
|
|
134.8
|
|
552.4
|
|
477.6
|
Restructuring related
charges (b)
|
|
3.5
|
|
15.6
|
|
1.3
|
|
21.6
|
|
32.4
|
Legal settlement
(c)
|
|
—
|
|
—
|
|
—
|
|
100.0
|
|
—
|
Other operating
expenses (d)
|
|
6.8
|
|
13.5
|
|
18.9
|
|
39.0
|
|
130.0
|
Amortization of
acquired intangible assets
|
|
273.2
|
|
269.9
|
|
294.8
|
|
1,087.4
|
|
979.4
|
Debt issuance related
costs and other (e)
|
|
(1.8)
|
|
(0.5)
|
|
(3.1)
|
|
(8.0)
|
|
16.7
|
Pre-tax total special
items
|
|
444.8
|
|
457.6
|
|
449.2
|
|
1,853.4
|
|
1,829.6
|
Other income tax
effects and adjustments (f)
|
|
(33.1)
|
|
20.6
|
|
(26.7)
|
|
132.3
|
|
(129.8)
|
Non-GAAP net
income
|
|
$ 396.3
|
|
$ 491.5
|
|
$ 428.7
|
|
$
1,822.2
|
|
$
1,278.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP weighted average
shares — basic
|
|
854.1
|
|
852.6
|
|
844.4
|
|
851.4
|
|
796.9
|
GAAP weighted average
shares — diluted
|
|
854.1
|
|
858.4
|
|
862.1
|
|
851.4
|
|
796.9
|
Non-GAAP weighted
average shares — diluted (g)
|
|
859.0
|
|
858.4
|
|
862.1
|
|
859.2
|
|
813.1
|
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted net
income (loss) per share
|
|
$ (0.02)
|
|
$
0.02
|
|
$
0.01
|
|
$ (0.19)
|
|
$ (0.53)
|
Non-GAAP diluted net
income per share
|
|
$
0.46
|
|
$
0.57
|
|
$
0.50
|
|
$
2.12
|
|
$
1.57
|
|
|
(a)
|
Other cost of goods
sold includes amortization of acquired inventory fair value
adjustments and charges for an intellectual property licensing
matter.
|
|
|
(b)
|
Restructuring and other
related items include asset impairment charges, employee severance
costs, facilities related charges, and other.
|
|
|
(c)
|
Relates to a settlement
of a contractual dispute.
|
|
|
(d)
|
Other operating
expenses include acquisition related costs.
|
|
|
(e)
|
Debt issuance related
costs and other includes the partial term loan repayment and bridge
financing, and gains or losses on investments.
|
|
|
(f)
|
Other income tax
effects and adjustments relate to tax provision based on a non-GAAP
income tax rate of 6.0% for the three months ended January 28,
2023, October 29, 2022, and year ended January 28, 2023. Our
non-GAAP income taxes for the year ended January 28, 2023 excluded
certain significant non-recurring income tax items that arose
during our fiscal quarters. In the three months ended April 30,
2022, $213.6 million of non-recurring income tax expense associated
with the extension of a tax incentive in Singapore was excluded
from our non-GAAP income tax expense. Additionally, during the
three months ended October 29, 2022, we excluded $22.4 million
(which was subsequently reduced to $18.3 million in the three
months ended January 28, 2023) of non-recurring income tax expense
associated with the claw back of incentive benefits that resulted
from our election to avail ourselves of a preferential temporary
tax provision in Israel. 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 January 29, 2022 and year ended January
29, 2022.
|
|
|
(g)
|
Non-GAAP diluted
weighted average shares differs from GAAP diluted weighted average
shares due to the non-GAAP net income reported.
|
Marvell
Technology, Inc.
|
Outlook for
the First Quarter of Fiscal Year 2024
|
Reconciliations from
GAAP to Non-GAAP (Unaudited)
|
(In millions,
except per share amounts)
|
|
|
|
|
|
Outlook for Three
Months Ended
April 29,
2023
|
GAAP net
revenue
|
$1,300 +/-
5%
|
Special
items:
|
—
|
Non-GAAP net
revenue
|
$1,300 +/-
5%
|
|
|
GAAP gross
margin
|
45.1% +/- 1%
|
Special
items:
|
|
Stock-based
compensation
|
0.8 %
|
Amortization of
acquired intangible assets
|
14.1 %
|
Non-GAAP gross
margin
|
~ 60%
|
|
|
Total GAAP
operating expenses
|
~ $687
|
Special
items:
|
|
Stock-based
compensation
|
137
|
Amortization of
acquired intangible assets
|
86
|
Restructuring related
charges
|
2
|
Other operating
expenses
|
2
|
Total non-GAAP
operating expenses
|
~ $460
|
|
|
|
|
GAAP diluted net
income per share
|
$(0.17) +/-
$0.05
|
Special
items:
|
|
Stock-based
compensation
|
0.17
|
Amortization of
acquired intangible assets
|
0.31
|
Other income tax
effects and adjustments
|
(0.02)
|
Non-GAAP diluted net
income per share
|
$0.29 +/-
$0.05
|
Quarterly Revenue Trend (Unaudited)
Our product solutions serve five large end markets where our
technology is essential: (i) data center, (ii) enterprise
networking, (iii) carrier infrastructure, (iv) consumer, and (v)
automotive/industrial. These markets and their corresponding
customer products and applications are noted in the table
below:
End
market
|
Customer products
and applications
|
Data center
|
•
Cloud and on-premise Artificial
intelligence (AI) systems
•
Cloud and on-premise ethernet
switching
•
Cloud and on-premise network-attached
storage (NAS)
•
Cloud and on-premise servers
•
Cloud and on-premise storage area
networks
•
Cloud and on-premise storage
systems
•
Data center interconnect (DCI)
|
Enterprise
networking
|
•
Campus and small medium enterprise
routers
•
Campus and small medium enterprise
ethernet switches
•
Campus and small medium enterprise
wireless access points (WAPs)
•
Network appliances (firewalls, and load
balancers)
•
Workstations
|
Carrier
infrastructure
|
•
Broadband access systems
•
Ethernet switches
•
Optical transport systems
•
Routers
•
Wireless radio access network (RAN)
systems
|
Consumer
|
•
Broadband gateways and routers
•
Gaming consoles
•
Home data storage
•
Home wireless access points
(WAPs)
•
Personal Computers (PCs)
•
Printers
•
Set-top boxes
|
Automotive/industrial
|
•
Advanced driver-assistance systems
(ADAS)
•
Autonomous vehicles (AV)
•
In-vehicle networking
•
Industrial ethernet switches
•
United States military and government
solutions
•
Video surveillance
|
Quarterly Revenue
Trend (Unaudited) (Continued)
|
|
|
Three Months
Ended
|
|
%
Change
|
Revenue by End
Market
(In
millions)
|
January 28,
2023
|
|
October 29,
2022
|
|
January 29,
2022
|
|
YoY
|
|
QoQ
|
Data center
|
$
497.6
|
|
$
627.3
|
|
$
574.1
|
|
(13) %
|
|
(21) %
|
Enterprise
networking
|
366.3
|
|
376.0
|
|
263.0
|
|
39 %
|
|
(3) %
|
Carrier
infrastructure
|
275.4
|
|
271.4
|
|
241.0
|
|
14 %
|
|
1 %
|
Consumer
|
179.8
|
|
178.4
|
|
185.4
|
|
(3) %
|
|
1 %
|
Automotive/industrial
|
99.4
|
|
84.2
|
|
79.5
|
|
25 %
|
|
18 %
|
Total Net
Revenue
|
$
1,418.5
|
|
$
1,537.3
|
|
$
1,343.0
|
|
6 %
|
|
(8) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
Revenue by End
Market % of Total
|
|
|
|
|
January 28,
2023
|
|
October 29,
2022
|
|
January 29,
2022
|
Data center
|
|
|
|
|
35 %
|
|
41 %
|
|
43 %
|
Enterprise
networking
|
|
|
|
|
26 %
|
|
24 %
|
|
19 %
|
Carrier
infrastructure
|
|
|
|
|
19 %
|
|
18 %
|
|
18 %
|
Consumer
|
|
|
|
|
13 %
|
|
12 %
|
|
14 %
|
Automotive/industrial
|
|
|
|
|
7 %
|
|
5 %
|
|
6 %
|
Total Net
Revenue
|
|
|
|
|
100 %
|
|
100 %
|
|
100 %
|
For further information, contact:
Ashish Saran
Senior Vice President, Investor Relations
408-222-0777
ir@marvell.com
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SOURCE Marvell