Marvell Technology, Inc. | ||||||||||||||||||||
Reconciliations from GAAP to Non-GAAP (Unaudited) | ||||||||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||||||
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| Three Months Ended |
| Six Months Ended | ||||||||||||||||
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| July 31, 2021 |
| May 1, 2021 |
| August 1, 2020 |
| July 31, 2021 |
| August 1, 2020 | ||||||||||
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GAAP gross profit: |
| $ | 371,830 |
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| $ | 418,141 |
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| $ | 359,256 |
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| $ | 789,971 |
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| $ | 686,158 |
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Special items: |
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Share-based compensation |
| 2,665 |
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| 9,803 |
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| 4,082 |
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| 12,468 |
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| 7,620 |
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Amortization of acquired intangible assets |
| 167,253 |
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| 93,812 |
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| 85,225 |
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| 261,065 |
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| 171,792 |
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Other cost of goods sold (a) |
| 155,840 |
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| 13,723 |
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| 11,630 |
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| 169,563 |
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| 30,192 |
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Total special items |
| 325,758 |
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| 117,338 |
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| 100,937 |
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| 443,096 |
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| 209,604 |
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Non-GAAP gross profit |
| $ | 697,588 |
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| $ | 535,479 |
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| $ | 460,193 |
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| $ | 1,233,067 |
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| $ | 895,762 |
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| GAAP gross margin |
| 34.6 | % |
| 50.2 | % |
| 49.4 | % |
| 41.4 | % |
| 48.3 | % | |||||
| Non-GAAP gross margin |
| 64.8 | % |
| 64.3 | % |
| 63.3 | % |
| 64.6 | % |
| 63.0 | % | |||||
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| Total GAAP operating expenses |
| $ | 638,498 |
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| $ | 500,452 |
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| $ | 510,523 |
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| $ | 1,138,950 |
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| $ | 933,421 |
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| Special items: |
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| Share-based compensation |
| (111,440) |
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| (99,790) |
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| (58,504) |
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| (211,230) |
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| (114,653) |
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| Restructuring related charges (b) |
| (12,294) |
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| (12,886) |
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| (120,590) |
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| (25,180) |
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| (141,877) |
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| Amortization of acquired intangible assets |
| (109,419) |
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| (34,827) |
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| (26,354) |
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| (144,246) |
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| (52,709) |
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| Other operating expenses (c) |
| (38,948) |
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| (46,684) |
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| (8,125) |
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| (85,632) |
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| (27,528) |
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| Total special items |
| (272,101) |
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| (194,187) |
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| (213,573) |
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| (466,288) |
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| (336,767) |
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| Total non-GAAP operating expenses |
| $ | 366,397 |
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| $ | 306,265 |
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| $ | 296,950 |
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| $ | 672,662 |
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| $ | 596,654 |
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| GAAP operating margin |
| (24.8) | % |
| (9.9) | % |
| (20.8) | % |
| (18.3) | % |
| (17.4) | % | |||||
| Other cost of goods sold (a) |
| 14.5 | % |
| 1.6 | % |
| 1.6 | % |
| 8.9 | % |
| 2.1 | % | |||||
| Share-based compensation |
| 10.6 | % |
| 13.2 | % |
| 8.6 | % |
| 11.7 | % |
| 8.6 | % | |||||
| Restructuring related charges (b) |
| 1.1 | % |
| 1.5 | % |
| 16.6 | % |
| 1.3 | % |
| 10.0 | % | |||||
| Amortization of acquired intangible assets |
| 25.7 | % |
| 15.5 | % |
| 15.3 | % |
| 21.2 | % |
| 15.8 | % | |||||
| Other operating expenses (c) |
| 3.7 | % |
| 5.6 | % |
| 1.1 | % |
| 4.6 | % |
| 1.9 | % | |||||
| Non-GAAP operating margin |
| 30.8 | % |
| 27.5 | % |
| 22.4 | % |
| 29.4 | % |
| 21.1 | % | |||||
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| GAAP interest and other income (loss), net |
| $ | (35,318) |
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| $ | (33,696) |
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| $ | (15,498) |
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| $ | (69,014) |
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| $ | (27,516) |
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| Special items: |
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| Debt issuance related costs and other (d) |
| 3,022 |
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| 16,901 |
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| — |
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| 19,923 |
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| 434 |
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| Total special items |
| 3,022 |
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| 16,901 |
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| — |
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| 19,923 |
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| 434 |
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| Total non-GAAP interest and other income (loss), net |
| $ | (32,296) |
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| $ | (16,795) |
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| $ | (15,498) |
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| $ | (49,091) |
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| $ | (27,082) |
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| GAAP net loss |
| $ | (276,428) |
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| $ | (88,242) |
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| $ | (157,893) |
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| $ | (364,670) |
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| $ | (270,926) |
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| Special items: |
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| Other cost of goods sold (a) |
| 155,840 |
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| 13,723 |
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| 11,630 |
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| 169,563 |
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| 30,192 |
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| Share-based compensation |
| 114,105 |
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| 109,593 |
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| 62,586 |
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| 223,698 |
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| 122,273 |
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| Restructuring related charges (b) |
| 12,294 |
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| 12,886 |
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| 120,590 |
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| 25,180 |
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| 141,877 |
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| Other operating expenses (c) |
| 38,948 |
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| 46,684 |
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| 8,125 |
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| 85,632 |
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| 27,528 |
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| Amortization of acquired intangible assets |
| 276,672 |
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| 128,639 |
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| 111,579 |
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| 405,311 |
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| 224,501 |
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| Debt issuance related costs and other (d) |
| 3,022 |
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| 16,901 |
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| 19,923 |
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| 434 |
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| Pre-tax total special items |
| 600,881 |
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| 328,426 |
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| 314,510 |
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| 929,307 |
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| 546,805 |
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| Other income tax effects and adjustments (e) |
| (40,503) |
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| (38,385) |
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| (16,226) |
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| (78,888) |
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| (17,455) |
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| Non-GAAP net income |
| $ | 283,950 |
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| $ | 201,799 |
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| $ | 140,391 |
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| $ | 485,749 |
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| $ | 258,424 |
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| GAAP weighted average shares — basic |
| 821,062 |
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| 693,378 |
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| 667,574 |
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| 757,205 |
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| 665,541 |
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| GAAP weighted average shares — diluted |
| 821,062 |
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| 693,378 |
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| 667,574 |
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| 757,205 |
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| 665,541 |
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| Non-GAAP weighted average shares — diluted (f) |
| 836,648 |
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| 707,488 |
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| 678,304 |
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| 772,053 |
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| 674,553 |
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| GAAP diluted net loss per share |
| $ | (0.34) |
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| $ | (0.13) |
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| $ | (0.24) |
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| $ | (0.48) |
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| $ | (0.41) |
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| Non-GAAP diluted net income per share |
| $ | 0.34 |
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| $ | 0.29 |
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| $ | 0.21 |
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| $ | 0.63 |
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| $ | 0.38 |
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| (a) | Other costs of goods sold includes amortization of acquired inventory fair value adjustments. |
| (b) | Restructuring and other related items include asset impairment charges, employee severance costs, facilities related charges, and other. |
| (c) | Other operating expenses include integration and merger costs associated with acquisitions. |
| (d) | Debt issuance related costs and other includes the partial term loan repayment and bridge financing. |
| (e) | Other income tax effects and adjustments relate to tax provision based on a non-GAAP income tax rate of 5.0%. |
| (f) | Non-GAAP diluted weighted average shares differs from GAAP diluted weighted average shares due to the non-GAAP net income reported. |
