Marvell Technology, Inc.

Reconciliations from GAAP to Non-GAAP (Unaudited)

(In thousands, except per share amounts)

Three Months Ended

Nine Months Ended

October 30,
2021

July 31,
2021

October 31,
2020

October 30,
2021

October 31,
2020

GAAP gross profit:

$

587,820

$

371,830

$

381,060

$

1,377,791

$

1,067,218

Special items:

Share-based compensation

9,370

2,665

4,435

21,838

12,055

Amortization of acquired intangible assets

169,691

167,253

83,078

430,756

254,870

Other cost of goods sold (a)

21,470

155,840

4,296

191,033

34,488

Total special items

200,531

325,758

91,809

643,627

301,413

Non-GAAP gross profit

$

788,351

$

697,588

$

472,869

$

2,021,418

$

1,368,631

GAAP gross margin

48.5

%

34.6

%

50.8

%

44.2

%

49.2

%

Non-GAAP gross margin

65.1

%

64.8

%

63.0

%

64.8

%

63.0

%

Total GAAP operating expenses

$

621,161

$

638,498

$

390,450

$

1,760,111

$

1,323,871

Special items:

Share-based compensation

(109,720)

(111,440)

(55,352)

(320,950)

(170,005)

Restructuring related charges (b)

(5,861)

(12,294)

(19,312)

(31,041)

(161,189)

Amortization of acquired intangible assets

(109,591)

(109,419)

(26,355)

(253,837)

(79,064)

Other operating expenses (c)

(25,460)

(38,948)

(9,490)

(111,092)

(37,018)

Total special items

(250,632)

(272,101)

(110,509)

(716,920)

(447,276)

Total non-GAAP operating expenses

$

370,529

$

366,397

$

279,941

$

1,043,191

$

876,595

GAAP operating margin

(2.8)

%

(24.8)

%

(1.3)

%

(12.3)

%

(11.8)

%

Other cost of goods sold (a)

1.8

%

14.5

%

0.6

%

6.1

%

1.6

%

Share-based compensation

9.8

%

10.6

%

8.0

%

11.0

%

8.4

%

Restructuring related charges (b)

0.5

%

1.1

%

2.6

%

1.0

%

7.4

%

Amortization of acquired intangible assets

23.1

%

25.7

%

14.6

%

21.9

%

15.4

%

Other operating expenses (c)

2.1

%

3.7

%

1.2

%

3.7

%

1.7

%

Non-GAAP operating margin 

34.5

%

30.8

%

25.7

%

31.4

%

22.7

%

GAAP interest and other income (loss), net

$

(34,235)

$

(35,318)

$

(15,159)

$

(103,249)

$

(42,675)

Special items:

Debt issuance related costs and other (d)

(98)

3,022

(549)

19,825

(115)

Total special items

(98)

3,022

(549)

19,825

(115)

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

$

(34,333)

$

(32,296)

$

(15,708)

$

(83,424)

$

(42,790)

GAAP net loss

$

(62,532)

$

(276,428)

$

(22,908)

$

(427,202)

$

(293,834)

Special items:

Other cost of goods sold (a)

21,470

155,840

4,296

191,033

34,488

Share-based compensation

119,090

114,105

59,787

342,788

182,060

Restructuring related charges (b)

5,861

12,294

19,312

31,041

161,189

Other operating expenses (c)

25,460

38,948

9,490

111,092

37,018

Amortization of acquired intangible assets

279,282

276,672

109,433

684,593

333,934

Debt issuance related costs and other (d)

(98)

3,022

(549)

19,825

(115)

Pre-tax total special items

451,065

600,881

201,769

1,380,372

748,574

Other income tax effects and adjustments (e)

(24,218)

(40,503)

(10,502)

(103,106)

(27,957)

Non-GAAP net income

$

364,315

$

283,950

$

168,359

$

850,064

$

426,783

GAAP weighted average shares — basic

828,635

821,062

670,487

781,008

667,186

GAAP weighted average shares — diluted

828,635

821,062

670,487

781,008

667,186

Non-GAAP weighted average shares — diluted (f)

845,937

836,648

682,724

796,790

677,273

GAAP diluted net loss per share

$

(0.08)

$

(0.34)

$

(0.03)

$

(0.55)

$

(0.44)

Non-GAAP diluted net income per share

$

0.43

$

0.34

$

0.25

$

1.07

$

0.63

(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.