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Marvell Technology Group Ltd. Reports Third Quarter of Fiscal Year 2020 Financial Results

- Q3 Revenue: $662 million

SANTA CLARA, Calif., Dec. 3, 2019 — (PRNewswire) —  Marvell Technology Group Ltd. (NASDAQ: MRVL), a leader in infrastructure semiconductor solutions, today reported financial results for the third quarter of fiscal year 2020.

Marvell completed the acquisition of Aquantia Corp. ("Aquantia") on September 19, 2019 (the "acquisition date"), approximately 6 weeks before the end of the third quarter of fiscal 2020. Marvell's results for the third quarter of fiscal 2020 include the results of Aquantia from the acquisition date, while prior periods presented do not.

Subsequent to Marvell's third quarter end, on November 5, 2019, Marvell completed the acquisition of Avera Semiconductor ("Avera"), the Application Specific Integrated Circuit ("ASIC") business of GlobalFoundries.

Revenue for the third quarter of fiscal 2020 was $662 million, which exceeded the midpoint of the Company's guidance provided on August 29, 2019. GAAP net loss for the third quarter of fiscal 2020 was $(83) million, or $(0.12) per diluted share. Non-GAAP net income for the third quarter of fiscal 2020 was $112 million, or $0.17 per diluted share. Cash flow from operations for the third quarter was $66 million.

"Marvell delivered solid results for the third quarter and I am pleased that our storage business grew sequentially led by a strong performance from our enterprise and datacenter products. In addition, we ramped our first 5G product shipments in volume, successfully responding to our customer's aggressive schedule requests, ahead of the plan we had laid out early this year," said Matt Murphy, Marvell's President and CEO. "We also recently completed the strategic acquisitions of Aquantia, a pioneer in multi-gig ethernet, and Avera, a leader in custom ASICs. These acquisitions broaden our technology portfolio for infrastructure customers and expand our addressable market by approximately $4 billion."

Marvell's fourth quarter guidance includes expected results from the Aquantia and Avera acquisitions for the full quarter. This guidance also includes expected results for the full quarter from the Wi-Fi Connectivity Business. Once the Wi-Fi Connectivity Business is divested to NXP, Marvell will update its revenue guidance for the fourth quarter. Marvell's fourth quarter guidance also takes into account the U.S. Government's export restriction on certain Chinese customers.

Fourth Quarter of Fiscal 2020 Financial Outlook

Conference Call

Marvell will conduct a conference call on Tuesday, December 3, 2019 at 1:45 p.m. Pacific Time to discuss results for the third quarter of fiscal 2020. Interested parties may join the conference call by dialing 1-844-647-5488 or 1-615-247-0258, pass-code 4437138. 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 Tuesday, December 10, 2019.

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 acquisition, 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 third quarter of fiscal 2020, a non-GAAP tax rate of 4.5% has been applied to the non-GAAP financial results.

Marvell believes that the presentation of non-GAAP financial measures provide important supplemental information to management and investors regarding financial and business trends relating to Marvell's financial condition and results of operations. While Marvell uses non-GAAP financial measures as a tool to enhance its understanding of certain aspects of its financial performance, Marvell does not consider these measures to be a substitute for, or superior to, financial measures calculated in accordance with GAAP. Consistent with this approach, Marvell believes that disclosing non-GAAP financial measures to the readers of its financial statements provides such readers with useful supplemental data that, while not a substitute for GAAP financial measures, allows for greater transparency in the review of its financial and operational performance.

Externally, management believes that investors may find Marvell's non-GAAP financial measures useful in their assessment of Marvell's operating performance and the valuation of Marvell. Internally, Marvell's non-GAAP financial measures are used in the following areas:

Non-GAAP financial measures have limitations in that they do not reflect all of the costs associated with the operations of Marvell's business as determined in accordance with GAAP. As a result, you should not consider these measures in isolation or as a substitute for analysis of Marvell's results as reported under GAAP. Marvell expects to continue to incur expenses similar to the non-GAAP adjustments described above, and exclusion of these items from Marvell's non-GAAP net income should not be construed as an inference that these costs are unusual, infrequent or non-recurring.

Forward-Looking Statements under the Private Securities Litigation Reform Act of 1995

This press release contains forward-looking statements within the meaning of the federal securities laws that involve risks and uncertainties. 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: the risk that the proposed divestiture of Marvell's Wi-Fi Connectivity business to NXP will not be completed; 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 or at all; the impact of international conflict and economic volatility in either domestic or foreign markets including risks related to trade conflicts, bans and tariffs; 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; 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-Q for the fiscal quarter ended August 3, 2019 as filed with the SEC on September 4, 2019, 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

 

Nine Months Ended

   

November 2,
2019

 

August 3,
2019

 

November 3,
2018

 

November 2,
2019

 

November 3,
2018

Net revenue

 

$

662,470

   

$

656,568

   

$

851,051

   

$

1,981,490

   

$

2,120,992

 

Cost of goods sold

 

322,403

   

305,866

   

467,464

   

929,293

   

984,602

 

Gross profit

 

340,067

   

350,702

   

383,587

   

1,052,197

   

1,136,390

 
                     

Operating expenses:

                   

Research and development

 

267,781

   

266,354

   

264,888

   

801,002

   

657,907

 

Selling, general and administrative

 

118,993

   

113,990

   

112,178

   

342,988

   

318,192

 

Restructuring related charges

 

14,802

   

16,586

   

27,031

   

37,070

   

64,013

 

Total operating expenses

 

401,576

   

396,930

   

404,097

   

1,181,060

   

1,040,112

 

Operating income (loss)

 

(61,509)

   

(46,228)

   

(20,510)

   

(128,863)

   

96,278

 

Interest income

 

1,092

   

1,077

   

1,046

   

3,437

   

10,690

 

Interest expense

 

(21,241)

   

(20,531)

   

(22,370)

   

(62,975)

   

(38,409)

 

Other income (loss), net

 

689

   

(2,197)

   

(2,628)

   

(1,624)

   

(3,858)

 

Interest and other income (loss), net

 

(19,460)

   

(21,651)

   

(23,952)

   

(61,162)

   

(31,577)

 

Income (loss) before income taxes

 

(80,969)

   

(67,879)

   

(44,462)

   

(190,025)

   

64,701

 

Provision (benefit) for income taxes

 

1,532

   

(10,548)

   

9,305

   

(1,743)

   

(16,903)

 

Net income (loss)

 

(82,501)

   

(57,331)

   

(53,767)

   

(188,282)

   

81,604

 
                     

Net income (loss) per share — Basic:

 

$

(0.12)

   

$

(0.09)

   

$

(0.08)

   

$

(0.28)

   

$

0.14

 
                     

Net income (loss) per share — Diluted:

 

$

(0.12)

   

$

(0.09)

   

$

(0.08)

   

$

(0.28)

   

$

0.14

 
                     

Weighted average shares:

                   

Basic

 

668,178

   

663,603

   

657,519

   

667,184

   

569,031

 

Diluted

 

668,178

   

663,603

   

657,519

   

667,184

   

578,872

 

 

Marvell Technology Group Ltd.

Condensed Consolidated Balance Sheets (Unaudited)

(In thousands)

 
   

November 2,
2019

 

February 2,
2019

Assets

       

Current assets:

       

Cash and cash equivalents

 

$

438,369

   

$

582,410

 

Accounts receivable, net

 

495,216

   

493,122

 

Inventories

 

308,299

   

276,005

 

Prepaid expenses and other current assets

 

43,789

   

43,721

 

Assets held for sale

 

600,893

   

 

Total current assets

 

1,886,566

   

1,395,258

 

Property and equipment, net

 

316,214

   

318,978

 

Goodwill

 

5,161,312

   

5,494,505

 

Acquired intangible assets, net

 

2,500,215

   

2,560,682

 

Other non-current assets

 

438,955

   

247,329

 

Total assets

 

$

10,303,262

   

$

10,016,752

 
         

Liabilities and Shareholders' Equity

       

Current liabilities:

       

Accounts payable

 

$

212,955

   

$

185,362

 

Accrued liabilities

 

305,827

   

335,509

 

Accrued employee compensation

 

130,062

   

115,925

 

Liabilities held for sale

 

5,610

   

 

Total current liabilities

 

654,454

   

636,796

 

Long-term debt

 

2,036,441

   

1,732,699

 

Non-current income taxes payable

 

48,136

   

59,221

 

Deferred tax liabilities

 

214,492

   

246,252

 

Other non-current liabilities

 

183,921

   

35,374

 

Total liabilities

 

3,137,444

   

2,710,342

 
         

Shareholders' equity:

       

Common shares

 

1,341

   

1,317

 

Additional paid-in capital

 

6,355,723

   

6,188,598

 

Accumulated other comprehensive income

 

37

   

 

Retained earnings

 

808,717

   

1,116,495

 

Total shareholders' equity

 

7,165,818

   

7,306,410

 

Total liabilities and shareholders' equity

 

$

10,303,262

   

$

10,016,752

 

 

Marvell Technology Group Ltd.

Condensed Consolidated Statements of Cash Flows (Unaudited)

(In thousands)

 
   

Three Months Ended

 

Nine Months Ended

   

November 2,
2019

 

November 3,
2018

 

November 2,
2019

 

November 3,
2018

Cash flows from operating activities:

               

Net income (loss)

 

$

(82,501)

   

$

(53,767)

   

$

(188,282)

   

$

81,604

 

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

               

Depreciation and amortization

 

40,508

   

39,259

   

126,747

   

86,356

 

Share-based compensation

 

66,762

   

50,240

   

189,036

   

133,484

 

Amortization and write off of acquired intangible assets

 

92,760

   

78,691

   

253,467

   

104,630

 

Amortization of inventory fair value adjustment associated with acquisition

 

3,316

   

102,842

   

3,316

   

125,775

 

Amortization of deferred debt issuance costs and debt discounts

 

1,181

   

2,217

   

4,040

   

9,290

 

Restructuring related impairment charges

 

6,146

   

9,888

   

16,243

   

11,881

 

Other expense, net

 

2,574

   

1,771

   

4,590

   

5,402

 

Deferred income taxes

 

(10,275)

   

(6,261)

   

(7,901)

   

(27,675)

 

Changes in assets and liabilities:

               

Accounts receivable

 

(32,002)

   

(10,948)

   

8,374

   

(59,697)

 

Inventories

 

(39,276)

   

(5,007)

   

(30,602)

   

1,859

 

Prepaid expenses and other assets

 

(3,046)

   

7,630

   

(11,039)

   

(11,874)

 

Accounts payable

 

8,304

   

22,531

   

30,801

   

22,260

 

Accrued liabilities and other non-current liabilities

 

(26,141)

   

39,691

   

(106,258)

   

27,730

 

Accrued employee compensation

 

37,193

   

20,617

   

11,927

   

(20,922)

 

Net cash provided by operating activities

 

65,503

   

299,394

   

304,459

   

490,103

 

Cash flows from investing activities:

               

Purchases of available-for-sale securities

 

   

   

   

(14,956)

 

Sales of available-for-sale securities

 

18,832

   

   

18,832

   

623,896

 

Maturities of available-for-sale securities

 

   

   

   

187,985

 

Purchases of time deposits

 

   

   

   

(25,000)

 

Maturities of time deposits

 

   

25,000

   

   

175,000

 

Purchases of technology licenses

 

(414)

   

(9,918)

   

(1,936)

   

(11,181)

 

Purchases of property and equipment

 

(20,742)

   

(12,646)

   

(62,935)

   

(47,035)

 

Cash payment for acquisition, net of cash and cash equivalents acquired

 

(477,579)

   

   

(477,579)

   

(2,649,465)

 

Other, net

 

(1,404)

   

(4,007)

   

(1,793)

   

(7,534)

 

Net cash used in investing activities

 

(481,307)

   

(1,571)

   

(525,411)

   

(1,768,290)

 

Cash flows from financing activities:

               

Repurchases of common stock

 

   

(53,969)

   

(64,272)

   

(53,969)

 

Proceeds from employee stock plans

 

21,795

   

16,192

   

103,109

   

60,772

 

Tax withholding paid on behalf of employees for net share settlement

 

(19,220)

   

(8,915)

   

(80,862)

   

(45,691)

 

Dividend payments to shareholders

 

(40,140)

   

(39,411)

   

(119,496)

   

(108,592)

 

Payments on technology license obligations

 

(28,889)

   

(23,003)

   

(57,213)

   

(52,481)

 

Proceeds from issuance of debt

 

350,000

   

   

350,000

   

1,892,605

 

Principal payments of debt

 

   

(75,000)

   

(50,000)

   

(681,128)

 

Payment of equity and debt financing costs

 

   

(2,115)

   

   

(11,550)

 

Other, net

 

(2,869)

   

   

(4,355)

   

 

Net cash provided by (used in) in financing activities

 

280,677

   

(186,221)

   

76,911

   

999,966

 

Net increase (decrease) in cash and cash equivalents

 

(135,127)

   

111,602

   

(144,041)

   

(278,221)

 

Cash and cash equivalents at beginning of period

 

573,496

   

498,659

   

582,410

   

888,482

 

Cash and cash equivalents at end of period

 

$

438,369

   

$

610,261

   

$

438,369

   

$

610,261

 

 

Marvell Technology Group Ltd.

Reconciliations from GAAP to Non-GAAP (Unaudited)

(In thousands, except per share amounts)

                     
   

Three Months Ended

 

Nine Months Ended

   

November 2,
2019

 

August 3,
2019

 

November 3,
2018

 

November 2,
2019

 

November 3,
2018

GAAP gross profit:

 

$

340,067

   

$

350,702

   

$

383,587

   

$

1,052,197

   

$

1,136,390

 

Special items:

                   

Share-based compensation

 

3,990

   

3,662

   

2,429

   

10,578

   

9,082

 

Amortization of acquired intangible assets

 

72,146

   

61,132

   

57,594

   

193,184

   

76,577

 

Other cost of goods sold (a)

 

4,758

   

   

105,841

   

5,208

   

128,774

 

Total special items

 

80,894

   

64,794

   

165,864

   

208,970

   

214,433

 

Non-GAAP gross profit

 

$

420,961

   

$

415,496

   

$

549,451

   

$

1,261,167

   

$

1,350,823

 
                     

GAAP gross margin

 

51.3

%

 

53.4

%

 

45.1

%

 

53.1

%

 

53.6

%

Non-GAAP gross margin

 

63.5

%

 

63.3

%

 

64.6

%

 

63.6

%

 

63.7

%

                     
                     
                     

Total GAAP operating expenses

 

$

401,576

   

$

396,930

   

$

404,097

   

$

1,181,060

   

$

1,040,112

 

Special items:

                   

Share-based compensation

 

(63,375)

   

(60,014)

   

(47,811)

   

(179,061)

   

(138,433)

 

Restructuring related charges (b)

 

(14,802)

   

(16,585)

   

(27,031)

   

(37,070)

   

(64,013)

 

Amortization of acquired intangible assets

 

(20,614)

   

(19,835)

   

(21,098)

   

(60,283)

   

(28,053)

 

Other operating expenses (c)

 

(19,495)

   

(20,676)

   

(11,222)

   

(46,740)

   

(54,703)

 

Total special items

 

(118,286)

   

(117,110)

   

(107,162)

   

(323,154)

   

(285,202)

 

Total non-GAAP operating expenses

 

$

283,290

   

$

279,820

   

$

296,935

   

$

857,906

   

$

754,910

 
                     
                     
                     

GAAP operating margin

 

(9.3)

%

 

(7.0)

%

 

(2.4)

%

 

(6.5)

%

 

4.5

%

Other cost of goods sold (a)

 

0.7

%

 

%

 

12.4

%

 

0.3

%

 

6.1

%

Share-based compensation

 

10.2

%

 

9.7

%

 

5.9

%

 

9.6

%

 

7.0

%

Restructuring related charges (b)

 

2.2

%

 

2.5

%

 

3.2

%

 

1.9

%

 

3.0

%

Amortization of acquired intangible assets

 

14.0

%

 

12.3

%

 

9.2

%

 

12.8

%

 

4.9

%

Other operating expenses (c)

 

3.0

%

 

3.2

%

 

1.4

%

 

2.3

%

 

2.6

%

Non-GAAP operating margin

 

20.8

%

 

20.7

%

 

29.7

%

 

20.4

%

 

28.1

%

                                         
                                         
                                         
                                         
                                         

GAAP interest and other income (loss), net

 

$

(19,460)

   

$

(21,651)

   

$

(23,952)

   

$

(61,162)

   

$

(31,577)

 

Special items:

                   

Restructuring related items (d)

 

(946)

   

75

   

1,491

   

(1,209)

   

(142)

 

Write-off of debt issuance costs (e)

 

   

   

850

   

458

   

6,954

 

Deal costs (f)

 

496

   

1,009

   

   

1,505

   

 

Total special items

 

(450)

   

1,084

   

2,341

   

754

   

6,812

 

Total non-GAAP interest and other income (loss), net

 

$

(19,910)

   

$

(20,567)

   

$

(21,611)

   

$

(60,408)

   

$

(24,765)

 
                     
                     
                     

GAAP net income (loss)

 

$

(82,501)

   

$

(57,331)

   

$

(53,767)

   

$

(188,282)

   

$

81,604

 

Special items:

                   

Other cost of goods sold (a)

 

4,758

   

   

105,841

   

5,208

   

128,774

 

Share-based compensation

 

67,365

   

63,676

   

50,240

   

189,639

   

147,515

 

Restructuring related charges in operating expenses (b)

 

14,802

   

16,585

   

27,031

   

37,070

   

64,013

 

Restructuring related items in interest and other income, net (d)

 

(946)

   

75

   

1,491

   

(1,209)

   

(142)

 

Amortization of acquired intangible assets

 

92,760

   

80,967

   

78,692

   

253,467

   

104,630

 

Write-off of debt issuance costs (e)

 

   

   

850

   

458

   

6,954

 

Transaction costs included in interest and other income, net (f)

 

496

   

1,009

   

   

1,505

   

 

Other operating expenses (c)

 

19,495

   

20,676

   

11,222

   

46,740

   

54,703

 

Pre-tax total special items

 

198,730

   

182,988

   

275,367

   

532,878

   

506,447

 

Other income tax effects and adjustments (g)

 

(3,773)

   

(15,728)

   

55

   

(17,177)

   

(39,763)

 

Non-GAAP net income

 

$

112,456

   

$

109,929

   

$

221,655

   

$

327,419

   

$

548,288

 
                     
                     
                     

Weighted average shares — basic

 

668,178

   

663,603

   

657,519

   

667,184

   

569,031

 

Weighted average shares — diluted

 

668,178

   

663,603

   

657,519

   

667,184

   

578,872

 
                     

GAAP diluted net income (loss) per share

 

$

(0.12)

   

$

(0.09)

   

$

(0.08)

   

$

(0.28)

   

$

0.14

 

Non-GAAP diluted net income per share (h)

 

$

0.17

   

$

0.16

   

$

0.33

   

$

0.48

   

$

0.95

 
   

(a)

Other costs of goods sold includes amortization of the Aquantia inventory fair value adjustment in 2019, amortization of the Cavium inventory fair value adjustment in 2018, as well as charges for past intellectual property licensing matters.

(b)

Restructuring related charges include employee severance, facilities related costs, and impairment of equipment and other assets.

(c)

Other operating expenses include Cavium, Aquantia, and Avera merger costs.

(d)

Interest and other income, net, includes restructuring related items such as foreign currency remeasurement associated with restructuring related accruals.

(e)

Write-off of debt issuance costs is associated with the partial term loan repayment.

(f)

Costs incurred in connection with preparation of the impending divestiture of the Wi-Fi Connectivity business.

(g)

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 August 3, 2019 and the three and nine months ended November 2, 2019, and based on a non-GAAP income tax rate of 4% for the three and nine months ended November 3, 2018.

(h)

Non-GAAP diluted net income per share for the three months ended November 2, 2019, August 3, 2019 and November 3, 2018 was calculated by dividing non-GAAP net income by weighted average shares outstanding (diluted) of 679,345, 675,755 shares and 665,752 shares, respectively, due to the non-GAAP net income reported in the respective period. Non-GAAP diluted net income per share for the nine months ended November 2, 2019 was calculated by dividing non-GAAP net income by weighted average shares outstanding (diluted) of 678,986 shares due to the non-GAAP net income reported in the period.

 

 Marvell Technology Group Ltd.

 Outlook for the Fourth Quarter of Fiscal Year 2020

Reconciliations from GAAP to Non-GAAP (Unaudited)

 (In millions, except per share amounts)

   
   
 

Outlook for Three Months Ended

February 1, 2020

GAAP revenue

$750 +/- 3%

Special items:

Non-GAAP revenue

$750 +/- 3%

   

GAAP gross margin

45.5%

Special items:

 

Share-based compensation

0.3%

Amortization of acquired intangible assets

16.2%

Non-GAAP gross margin

62%

   

Total GAAP operating expenses

 $445 - $455

Special items:

 

Share-based compensation

65

Restructuring related charges

23

Amortization of acquired intangible assets

23

Other operating expenses

22

Total non-GAAP operating expenses

$315 - $320

   
   

GAAP diluted net loss per share

 $(0.23) - $(0.17)

Special items:

 

Share-based compensation

0.10

Amortization of acquired intangible assets

0.21

Restructuring related charges in operating expenses

0.04

Other operating expenses

0.03

Other income tax effects and adjustments

(0.01)

Non-GAAP diluted net income per share

$0.15 - $0.19

 

Quarterly Revenue Trend (Unaudited)

(In thousands)

     
 

Three Months Ended

 

% Change

 

November 2,
2019

 

August 3,
2019

 

November 3,
2018

 

YoY

 

QoQ

Networking (1)

$

329,962

   

$

329,605

   

$

398,424

   

(17)

%

 

%

Storage (2)

287,708

   

274,905

   

406,822

   

(29)

%

 

5

%

   Total Core

617,670

   

604,510

   

805,246

   

(23)

%

 

2

%

Other (3)

44,800

   

52,058

   

45,805

   

(2)

%

 

(14)

%

Total Revenue

$

662,470

   

$

656,568

   

$

851,051

   

(22)

%

 

1

%

 

 

Three Months Ended

% of Total

November 2,
2019

 

August 3,
2019

 

November 3,
2018

Networking (1)

50

%

 

50

%

 

47

%

Storage (2)

43

%

 

42

%

 

48

%

   Total Core

93

%

 

92

%

 

95

%

Other (3)

7

%

 

8

%

 

5

%

Total Revenue

100

%

 

100

%

 

100

%

   

(1)

Networking products are comprised primarily of Ethernet Switches, Ethernet Transceivers, Ethernet NICs, Embedded Communication Processors, Automotive Ethernet, Security Adapters and Processors as well as WiFi Connectivity products.  In addition, this grouping includes a few legacy product lines in which we no longer invest, but will generate revenue for several years.

(2)

Storage products are comprised primarily of HDD and SSD Controllers, Fibre Channel Adapters and Data Center Storage Solutions.

(3)

Other products are comprised primarily of Printer Solutions, Application Processors and others.

For further information, contact:
Ashish Saran
Vice President, Investor Relations
408-222-0777
Email Contact

Marvell is a leading provider of infrastructure semiconductor solutions. (PRNewsfoto/Marvell Technology Group Ltd.)

 

 

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SOURCE Marvell

Contact:
Company Name: Marvell
Web: http://www.marvell.com
Financial data for Marvell