Marvell Technology Group Ltd. Reports Second Quarter of Fiscal Year 2018 Financial Results

 

Marvell Technology Group Ltd.

Reconciliations from GAAP to Non-GAAP

(Unaudited)

(In thousands, except per share amounts)















Three Months Ended


Six Months Ended



July 29, 2017


April 29, 2017


July 30, 2016


July 29, 2017


July 30, 2016

GAAP gross profit:


$

365,178



$

345,511



$

326,919



$

710,689



$

600,619


Special items:











Share-based compensation


1,810



1,426



2,720



3,236



4,504


Other cost of goods sold (a)


3,000







3,000




Total special items


4,810



1,426



2,720



6,236



4,504


Non-GAAP gross profit


$

369,988



$

346,937



$

329,639



$

716,925



$

605,123













GAAP gross margin


60.4

%


60.3

%


54.7

%


60.4

%


54.1

%

Non-GAAP gross margin


61.2

%


60.6

%


55.2

%


60.9

%


54.5

%


































Total GAAP operating expenses


$

240,815



$

244,086



$

276,560



$

484,901



$

564,477


Special items:











Share-based compensation


(19,557)



(20,313)



(30,359)



(39,870)



(50,003)


Restructuring related charges (b)


(4,285)



(886)



(721)



(5,171)



(5,162)


Amortization of and write-off acquired intangible assets


(1,065)



(1,071)



(2,299)



(2,136)



(4,597)


Other operating expenses (c)


(1,687)



(2,303)



13



(3,990)



(1,229)


Total special items


(26,594)



(24,573)



(33,366)



(51,167)



(60,991)


Total non-GAAP operating expenses


$

214,221



$

219,513



$

243,194



$

433,734



$

503,486



































GAAP operating margin


20.6

%


17.7

%


8.4

%


19.2

%


3.3

%

Other cost of goods sold (a)


0.5

%


%


%


0.3

%


%

Share-based compensation


3.5

%


3.8

%


5.5

%


3.7

%


4.9

%

Restructuring related charges (b)


0.7

%


0.2

%


0.1

%


0.4

%


0.5

%

Amortization and write-off of acquired intangible assets


0.2

%


0.2

%


0.5

%


0.2

%


0.3

%

Other operating expenses (c)


0.3

%


0.3

%


%


0.3

%


0.1

%

Non-GAAP operating margin


25.8

%


22.2

%


14.5

%


24.1

%


9.1

%























GAAP interest and other income, net


$

7,188



$

3,333



$

6,284



$

10,521



$

7,772


Special items:











Restructuring related items (d)


(3,085)







(3,085)




Total special items


(3,085)







(3,085)




Total non-GAAP interest and other income, net


$

4,103



$

3,333



$

6,284



$

7,436



$

7,772



































GAAP net income


$

165,259



$

106,621



$

51,305



$

271,880



$

28,626


Loss (income) from discontinued   operations, net of tax


(29,809)



(7,029)



11,161



(36,838)



26,548


GAAP net income from continuing operations


135,450



99,592



62,466



235,042



55,174


Special items:











Other cost of goods sold ( a )


3,000







3,000




Share-based compensation


21,367



21,739



33,079



43,106



54,507


Restructuring related charges (b)


1,200



886



721



2,086



5,162


Amortization of and write-off acquired intangible assets


1,065



1,071



2,299



2,136



4,597


Other operating expenses (c)


1,687



2,303



(13)



3,990



1,229


Pre-tax total special items


28,319



25,999



36,086



54,318



65,495


Other income tax effects and         adjustments (e)


(10,298)



(64)





(10,362)



(1,071)


Non-GAAP net income from continuing operations


$

153,471



$

125,527



$

98,552



$

278,998



$

119,598



































Weighted average shares — basic


500,817



503,790



511,235



502,303



510,014


Weighted average shares — diluted


510,309



517,592



514,314



513,951



513,669


Non-GAAP weighted average shares — diluted (f)


519,438



523,154



526,453



521,296



524,408













GAAP diluted net income (loss) per share from continuing operations


$

0.26



$

0.19



$

0.12



$

0.46



$

0.11


Non-GAAP diluted net income per share from continuing operations


$

0.30



$

0.24



$

0.19



$

0.54



$

0.23




(a)

Other costs of goods sold in the three and six months ended July 29, 2017 include charges for past intellectual property licensing matters.



(b)

Restructuring related charges include costs that are a direct result of restructuring. Such charges include employee severance, facilities related costs, contract cancellation charges and impairment of equipment.



(c)

Other operating expenses in the three and six months ended July 29, 2017 include costs of retention bonuses offered to employees who remained through the ramp down of certain operations due to the restructuring actions.



(d)

Interest and other income, net includes restructuring related items such as gain on sale of a business and foreign currency losses related to restructuring related accruals.



(e)

Other income tax effects and adjustments in the three months ended July 29, 2017 and April 29, 2017 includes adjustment to the tax provision based on a non-GAAP tax rate of 4%. Other income tax effects and adjustments in the six months ended July 29, 2017 includes adjustment to the tax provision based on a non-GAAP tax rate of 4%.



(f)

Non-GAAP diluted share count excludes the impact of share-based compensation expense expected to be incurred in future periods and not yet recognized in the Company's financial statements, which would otherwise be assumed to be used to repurchase shares under the GAAP treasury stock method.


« Previous Page 1 | 2 | 3 | 4 | 5 | 6 | 7  Next Page »



© 2024 Internet Business Systems, Inc.
670 Aberdeen Way, Milpitas, CA 95035
+1 (408) 882-6554 — Contact Us
ShareCG™ is a trademark of Internet Business Systems, Inc.

Report a Bug Report Abuse Make a Suggestion About Privacy Policy Contact Us User Agreement Advertise