Marvell Technology, Inc.

Reconciliations from GAAP to Non-GAAP (Unaudited)

(In millions, except per share amounts)

Three Months Ended

April 29,
2023

January 28,
2023

April 30,
2022

GAAP gross profit:

$     557.2

$     673.3

$     750.9

Special items:

Stock-based compensation

12.0

9.5

12.4

Amortization of acquired intangible assets

183.7

185.4

174.4

Other cost of goods sold (a)

39.6

32.4

9.3

Total special items

235.3

227.3

196.1

Non-GAAP gross profit

$     792.5

$     900.6

$     947.0

GAAP gross margin

42.2 %

47.5 %

51.9 %

Non-GAAP gross margin

60.0 %

63.5 %

65.5 %

Total GAAP operating expenses

$     739.6

$     650.0

$     681.1

Special items:

Stock-based compensation

(131.2)

(121.2)

(118.7)

Restructuring related charges (b)

(59.9)

(3.5)

(1.3)

Amortization of acquired intangible assets

(86.3)

(87.8)

(98.1)

Other (c)

(3.6)

(6.8)

(27.7)

Total special items

(281.0)

(219.3)

(245.8)

Total non-GAAP operating expenses

$     458.6

$     430.7

$     435.3

GAAP operating margin

(13.8) %

1.6 %

4.8 %

Other cost of goods sold (a)

3.0 %

2.3 %

0.6 %

Stock-based compensation

10.8 %

9.2 %

9.1 %

Restructuring related charges (b)

4.5 %

0.2 %

0.1 %

Amortization of acquired intangible assets

20.4 %

19.3 %

18.8 %

Other (c)

0.3 %

0.5 %

2.0 %

Non-GAAP operating margin 

25.2 %

33.1 %

35.4 %

GAAP interest and other loss, net

$      (49.9)

$      (46.5)

$      (30.6)

Special items:

Other (c)

0.1

(1.8)

(4.1)

Total special items

0.1

(1.8)

(4.1)

Total non-GAAP interest and other loss, net

$      (49.8)

$      (48.3)

$      (34.7)

GAAP net loss

$   (168.9)

$      (15.4)

$   (165.7)

Special items:

Other cost of goods sold (a)

39.6

32.4

9.3

Stock-based compensation

143.2

130.7

131.1

Restructuring related charges (b)

59.9

3.5

1.3

Amortization of acquired intangible assets

270.0

273.2

272.5

Other (c)

3.7

5.0

23.6

Pre-tax total special items

516.4

444.8

437.8

Other income tax effects and adjustments (d)

(83.3)

(33.1)

176.3

Non-GAAP net income

$     264.2

$     396.3

$     448.4

GAAP weighted average shares — basic

856.7

854.1

848.0

GAAP weighted average shares — diluted

856.7

854.1

848.0

Non-GAAP weighted average shares — diluted (e)

861.2

859.0

861.4

GAAP diluted net loss per share

$      (0.20)

$      (0.02)

$      (0.20)

Non-GAAP diluted net income per share

$        0.31

$        0.46

$        0.52

(a)

Other cost of goods sold includes amortization of acquired inventory fair value adjustments, acquisition integration related inventory costs, and charges for an intellectual property licensing matter.

(b)

Restructuring and other related items include employee severance costs, asset impairment charges, facilities related charges, and other.

(c)

Other includes acquisition related costs and charges related to settlement of a contractual dispute.

(d)

Other income tax effects and adjustments are based on a non-GAAP income tax rate of 7.0% for the three months ended April 29, 2023 and 6.0% for the three months ended January 28, 2023 and April 30, 2022. In the three months ended January 28, 2023, $18.3 million of non-recurring income tax expense is excluded and relates to the claw back of incentive benefits that resulted from the election of a preferential temporary tax provision in Israel. Additionally, during 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 non-GAAP income tax expense.

(e)

Non-GAAP diluted weighted average shares differs from GAAP diluted weighted average shares due to the non-GAAP net income reported.