- Q1 Net Revenue: $1.447 billion,
grew by 74% year-on-year
- Q1 Gross Margin: 51.9% GAAP gross margin; 65.5% non-GAAP gross
margin
- Q1 Diluted income (loss) per share: $(0.20) GAAP diluted loss per share; $0.52 non-GAAP diluted income per share
SANTA
CLARA, Calif., May 26, 2022
/PRNewswire/ -- Marvell Technology, Inc. (NASDAQ: MRVL), a
leader in infrastructure semiconductor solutions, today reported
financial results for the first quarter of fiscal year 2023.
Net revenue for the first quarter of fiscal 2023 was
$1.447 billion, which exceeded the
midpoint of the Company's guidance provided on March 3, 2022. GAAP net loss for the first
quarter of fiscal 2023 was $(166)
million, or $(0.20) per
diluted share. Non-GAAP net income for the first quarter of fiscal
2023 was $448 million, or
$0.52 per diluted share. Cash flow
from operations for the first quarter was $194.8 million.
"We had a strong start to fiscal 2023, delivering record first
quarter revenue of $1.45
billion, which grew 8 percent sequentially and 74
percent year over year. Revenue exceeded the midpoint of guidance,
driven by higher-than-forecasted results from the datacenter end
market. Our new product ramps and growth in content have been
instrumental in driving strong revenue growth," said Matt Murphy, Marvell's President and CEO. "We
are guiding for growth to continue in the second quarter,
projecting revenue at the midpoint to grow 5 percent sequentially
and 41 percent year over year. With 88 percent of our overall
revenue derived from data infrastructure, we are confident that our
unique secular growth drivers in cloud, 5G, and auto, will continue
to help drive sustainable long-term growth."
Second Quarter of Fiscal 2023 Financial Outlook
- Net revenue is expected to be $1.515
billion +/- 3%.
- GAAP gross margin is expected to be 49.6% to 51.9%.
- Non-GAAP gross margin is expected to be 65.0% to 65.5%.
- GAAP operating expenses are expected to be approximately
$669 million.
- Non-GAAP operating expenses are expected to be approximately
$435 million.
- Basic weighted average shares outstanding are expected to be
853 million.
- Diluted weighted average shares outstanding are expected to be
862 million.
- GAAP diluted income per share is expected to be $0.06 +/- $0.04 per
share.
- Non-GAAP diluted income per share is expected to be
$0.56 +/- $0.03 per share.
GAAP diluted EPS is calculated using basic weighted average
shares outstanding when there is a GAAP net loss, and calculated
using diluted weighted average shares outstanding when there is a
GAAP net income. Non-GAAP diluted EPS is calculated using diluted
weighted average shares outstanding.
Conference Call
Marvell will conduct a conference call on Thursday, May 26, 2022 at 1:45 p.m. Pacific Time to discuss results for the
first quarter of fiscal 2023. Interested parties may join the
conference call by dialing 1-888-317-6003 or 1-412-317-6061,
passcode 0732684. The call will be webcast and can be accessed at
the Marvell Investor Relations website at
http://investor.marvell.com/. A replay of the call can be accessed
by dialing 1-877-344-7529 or 1-412-317-0088, passcode 1605605 until
Thursday, June 2, 2022.
Discussion of Non-GAAP Financial Measures
Non-GAAP financial measures exclude the effect of stock-based
compensation expense, amortization of the inventory fair value
adjustment associated with acquisitions, amortization of acquired
intangible assets, acquisition and divestiture-related costs,
restructuring and other related charges (including, but not limited
to, asset impairment charges, employee severance costs, and
facilities 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 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, and excludes tax deductions and benefits
from acquired tax loss and credit carryforwards and changes in
valuation allowance on acquired deferred tax assets. 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;
acquisitions; significant changes in Marvell's geographic mix of
revenue and expenses; or changes to Marvell's corporate structure.
For the first quarter of fiscal 2023, a non-GAAP tax rate of 6.0%
has been applied to the non-GAAP financial results.
Marvell believes that the presentation of non-GAAP financial
measures provides 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:
- Management's evaluation of Marvell's operating
performance;
- Management's establishment of internal operating budgets;
- Management's performance comparisons with internal forecasts
and targeted business models; and
- Management's determination of the achievement and measurement
of certain performance-based equity awards (adjustments may vary
from award to award).
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. The exclusion of the above items from our GAAP financial
metrics does not necessarily mean that these costs are unusual or
infrequent.
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," "outlook," "forecast," "targets" 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. Forward-looking statements are predictions,
projections and other statements about future events that are based
on current expectations and assumptions and, as a result, are
subject to risks and uncertainties. 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:
our ability to retain and hire key personnel; risks related to the
rapid growth of the Company; risks related to changes in general
economic conditions such as economic slowdowns, recessions,
inflation, and stagflation; risks related to the impact of the
COVID-19 pandemic which have impacted, and may continue to impact
our business and operations, the transportation and manufacturing
of our products, and the operations of our customers, distributors,
vendors, suppliers, and partners; the impact of COVID-19, or other
future pandemics, on the U.S. and global economies; disruptions
caused by COVID-19, including as a result of restrictions that may
be imposed by us or third parties, resulting in worker absenteeism,
turnover, quarantines and restrictions on our employees' ability to
work, innovate, collaborate, and travel; the effects that the
current credit and market conditions caused by, or resulting from,
COVID-19 could have on the liquidity and financial condition of us
and our customers and suppliers, including any impact on the
ability to meet contractual obligations; supply chain disruptions
or component shortages that may impact the production of our
products including our kitting process or may impact the price of
components which in turn may impact our margins on any impacted
products and any constrained availability from other electronic
suppliers impacting our customers' ability to ship their products,
which in turn may adversely impact our sales to those customers;
our reliance on our manufacturing partners for the manufacture,
assembly and testing of our products; risks related to the ASIC
business model which requires us to use third-party IP including
the risk that we may lose business or experience reputational harm
if third parties, including customers, lose confidence in our
ability to protect their IP rights; the impact of international
conflict and economic volatility in either domestic or foreign
markets including risks related to trade conflicts, regulations,
and tariffs, including but not limited to, restrictions imposed on
our Chinese customers; the risks associated with manufacturing and
selling products and customers' products outside of the United States; our ability to define,
design and develop products for the Cloud and 5G markets; our
ability to secure design wins from our customers and prospective
customers; our ability to market our 5G products to Tier 1
infrastructure customers; our ability to complete and realize the
anticipated benefits of any acquisitions, divestitures and
investments; cancellations, rescheduling or deferrals of
significant customer orders or shipments, as well as the ability of
our customers to manage inventory; our ability to estimate customer
demand and future sales accurately; decreases in gross margin and
results of operations in the future due to a number of factors,
including increasing interest rates and volatility in foreign
exchange rates; severe financial hardship or bankruptcy of one or
more of our major customers; our ability to realize the expected
benefits from restructuring activities; the effects of
transitioning to smaller geometry process technologies; the impact
of any change in the income tax laws in jurisdictions where we
operate and the loss of any beneficial tax treatment that we
currently enjoy; our ability to limit costs related to defective
products; the risk of downturns in the semiconductor industry;
risks related to our debt obligations; the outcome of pending or
future litigation and legal and regulatory proceedings; risk
related to our ESG program; our dependence on a small number of
customers; the impact and costs associated with changes in
international financial and regulatory conditions; our ability and
the ability of our customers to successfully compete in the markets
in which we serve; our ability and our customers' ability to
develop new and enhanced products and the adoption of those
products in the market; our ability to accurately categorize our
products by end markets; our ability to scale our 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; our ability to protect our
intellectual property; our maintenance of an effective system of
internal controls; and other risks detailed in our SEC filings from
time to time. The foregoing list of factors is not exhaustive. You
should carefully consider the foregoing factors and the other risks
and uncertainties that affect our business described in the "Risk
Factors" section of our Annual Reports on Form 10-K, Quarterly
Reports on Form 10-Q and other documents filed by us from time to
time with the SEC. Forward-looking statements speak only as of the
date they are made. Readers are cautioned not to put undue reliance
on forward-looking statements, and we assume no obligation and do
not intend to update or revise these forward-looking statements,
whether as a result of new information, future events or
otherwise.
About Marvell
To deliver the data infrastructure technology that connects the
world, we're building solutions on the most powerful foundation:
our partnerships with our customers. Trusted by the world's leading
technology companies for over 25 years, we move, store, process and
secure the world's data with semiconductor solutions designed for
our customers' current needs and future ambitions. Through a
process of deep collaboration and transparency, we're ultimately
changing the way tomorrow's enterprise, cloud, automotive, and
carrier architectures transform—for the better.
Marvell® and the Marvell logo
are registered trademarks of Marvell and/or its affiliates.
Marvell Technology,
Inc. Condensed Consolidated Statements of Operations
(Unaudited) (In millions, except per share
amounts)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
April 30,
2022
|
|
January 29,
2022
|
|
May 1,
2021
|
Net revenue
|
|
$ 1,446.9
|
|
$ 1,343.0
|
|
$
832.3
|
Cost of goods
sold
|
|
696.0
|
|
656.6
|
|
414.1
|
Gross profit
|
|
750.9
|
|
686.4
|
|
418.2
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
Research and development
|
|
444.1
|
|
399.2
|
|
286.1
|
Selling, general and administrative
|
|
235.7
|
|
251.2
|
|
201.5
|
Restructuring related charges
|
|
1.3
|
|
1.3
|
|
12.9
|
Total operating
expenses
|
|
681.1
|
|
651.7
|
|
500.5
|
Operating income
(loss)
|
|
69.8
|
|
34.7
|
|
(82.3)
|
Interest income
|
|
0.5
|
|
0.2
|
|
0.2
|
Interest expense
|
|
(36.3)
|
|
(35.0)
|
|
(35.1)
|
Other income, net
|
|
5.2
|
|
2.2
|
|
1.2
|
Interest and other income
(loss), net
|
|
(30.6)
|
|
(32.6)
|
|
(33.7)
|
Income (loss) before
income taxes
|
|
39.2
|
|
2.1
|
|
(116.0)
|
Provision (benefit) for
income taxes
|
|
204.9
|
|
(4.1)
|
|
(27.8)
|
Net income
(loss)
|
|
$
(165.7)
|
|
$
6.2
|
|
$
(88.2)
|
|
|
|
|
|
|
|
Net income (loss) per
share — basic:
|
|
$
(0.20)
|
|
$
0.01
|
|
$
(0.13)
|
|
|
|
|
|
|
|
Net income (loss) per
share — diluted:
|
|
$
(0.20)
|
|
$
0.01
|
|
$
(0.13)
|
|
|
|
|
|
|
|
Weighted average shares:
|
|
|
|
|
|
|
Basic
|
|
848.0
|
|
844.4
|
|
693.4
|
Diluted
|
|
848.0
|
|
862.1
|
|
693.4
|
Marvell Technology,
Inc. Condensed Consolidated Balance Sheets
(Unaudited) (In millions)
|
|
|
|
April 30,
2022
|
|
January 29,
2022
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash equivalents
|
|
$
465.0
|
|
$
613.5
|
Accounts receivable, net
|
|
1,191.1
|
|
1,048.6
|
Inventories
|
|
835.5
|
|
720.3
|
Prepaid expenses and other current assets
|
|
107.3
|
|
111.0
|
Total current assets
|
|
2,598.9
|
|
2,493.4
|
Property and equipment,
net
|
|
502.2
|
|
462.8
|
Goodwill
|
|
11,539.0
|
|
11,511.1
|
Acquired intangible
assets, net
|
|
5,888.1
|
|
6,153.4
|
Deferred tax
assets
|
|
331.8
|
|
493.5
|
Other non-current
assets
|
|
1,178.7
|
|
994.4
|
Total assets
|
|
$
22,038.7
|
|
$
22,108.6
|
|
|
|
|
|
Liabilities and Stockholders'
Equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts payable
|
|
$
553.1
|
|
$
461.5
|
Accrued liabilities
|
|
735.0
|
|
622.6
|
Accrued employee compensation
|
|
191.9
|
|
241.3
|
Short-term debt
|
|
74.1
|
|
63.2
|
Total current
liabilities
|
|
1,554.1
|
|
1,388.6
|
Long-term
debt
|
|
4,465.3
|
|
4,484.8
|
Other non-current
liabilities
|
|
554.3
|
|
533.1
|
Total liabilities
|
|
6,573.7
|
|
6,406.5
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
Common stock
|
|
1.7
|
|
1.7
|
Additional paid-in capital
|
|
14,188.5
|
|
14,209.0
|
Retained earnings
|
|
1,274.8
|
|
1,491.4
|
Total stockholders'
equity
|
|
15,465.0
|
|
15,702.1
|
Total liabilities and
stockholders' equity
|
|
$
22,038.7
|
|
$
22,108.6
|
Marvell Technology, Inc.
|
Condensed Consolidated Statements of Cash Flows
(Unaudited)
|
(In millions)
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
April 30,
2022
|
|
May 1,
2021
|
Cash flows from operating
activities:
|
|
|
|
|
Net loss
|
|
$
(165.7)
|
|
$
(88.2)
|
Adjustments to
reconcile net loss to net cash provided by operating activities:
|
|
|
|
|
Depreciation and amortization
|
|
75.7
|
|
51.8
|
Stock-based compensation
|
|
131.1
|
|
92.7
|
Amortization of acquired intangible assets
|
|
272.5
|
|
128.6
|
Amortization of inventory fair value adjustment associated
with acquisitions
|
|
9.3
|
|
13.7
|
Other expense, net
|
|
6.7
|
|
31.4
|
Deferred income taxes
|
|
165.0
|
|
(22.6)
|
Changes in assets and liabilities, net of
acquisitions:
|
|
|
|
|
Accounts receivable
|
|
(139.5)
|
|
(58.0)
|
Inventories
|
|
(125.8)
|
|
(13.2)
|
Prepaid expenses and other assets
|
|
(142.9)
|
|
4.4
|
Accounts payable
|
|
61.4
|
|
(51.6)
|
Accrued liabilities and other non-current
liabilities
|
|
97.0
|
|
(47.0)
|
Accrued employee compensation
|
|
(50.0)
|
|
(55.7)
|
Net cash provided by (used in)
operating activities
|
|
194.8
|
|
(13.7)
|
Cash flows from investing
activities:
|
|
|
|
|
Purchases of technology licenses
|
|
(1.6)
|
|
(3.4)
|
Purchases of property and equipment
|
|
(36.9)
|
|
(21.4)
|
Acquisitions, net of cash acquired
|
|
(44.0)
|
|
(3,600.2)
|
Other, net
|
|
0.1
|
|
0.4
|
Net cash used in investing
activities
|
|
(82.4)
|
|
(3,624.6)
|
Cash flows from financing
activities:
|
|
|
|
|
Repurchases of common stock
|
|
(15.0)
|
|
—
|
Proceeds from employee stock plans
|
|
2.5
|
|
0.5
|
Tax
withholding paid on behalf of employees for net share
settlement
|
|
(137.6)
|
|
(73.2)
|
Dividend payments to stockholders
|
|
(50.9)
|
|
(40.6)
|
Payments on technology license obligations
|
|
(49.0)
|
|
(44.1)
|
Proceeds from issuance of debt
|
|
—
|
|
3,731.1
|
Principal payments of debt
|
|
(10.9)
|
|
(200.0)
|
Payment for repurchases and settlement of convertible
notes
|
|
—
|
|
(71.1)
|
Proceeds from capped calls
|
|
—
|
|
111.2
|
Payment of equity and debt financing costs
|
|
—
|
|
(1.5)
|
Net cash provided by (used in)
financing activities
|
|
(260.9)
|
|
3,412.3
|
Net decrease in cash
and cash equivalents
|
|
(148.5)
|
|
(226.0)
|
Cash and cash
equivalents at beginning of period
|
|
613.5
|
|
748.5
|
Cash and cash
equivalents at end of period
|
|
$
465.0
|
|
$
522.5
|
Marvell Technology, Inc.
|
Reconciliations from GAAP to Non-GAAP
(Unaudited)
|
(In millions, except per share
amounts)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
April 30,
2022
|
|
January 29,
2022
|
|
May 1,
2021
|
GAAP gross
profit:
|
|
$ 750.9
|
|
$ 686.4
|
|
$ 418.2
|
Special
items:
|
|
|
|
|
|
|
Stock-based compensation
|
|
12.4
|
|
9.2
|
|
9.8
|
Amortization of acquired intangible assets
|
|
174.4
|
|
178.7
|
|
93.8
|
Other cost of goods sold (a)
|
|
9.3
|
|
2.5
|
|
13.7
|
Total special
items
|
|
196.1
|
|
190.4
|
|
117.3
|
Non-GAAP gross
profit
|
|
$ 947.0
|
|
$ 876.8
|
|
$ 535.5
|
|
|
|
|
|
|
|
GAAP gross
margin
|
|
51.9 %
|
|
51.1 %
|
|
50.2 %
|
Non-GAAP gross
margin
|
|
65.5 %
|
|
65.3 %
|
|
64.3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total GAAP operating
expenses
|
|
$ 681.1
|
|
$ 651.7
|
|
$ 500.5
|
Special
items:
|
|
|
|
|
|
|
Stock-based compensation
|
|
(118.7)
|
|
(125.6)
|
|
(99.8)
|
Restructuring related charges (b)
|
|
(1.3)
|
|
(1.3)
|
|
(12.9)
|
Amortization of acquired intangible assets
|
|
(98.1)
|
|
(116.1)
|
|
(34.8)
|
Other operating expenses (c)
|
|
(27.7)
|
|
(18.9)
|
|
(46.7)
|
Total special
items
|
|
(245.8)
|
|
(261.9)
|
|
(194.2)
|
Total non-GAAP
operating expenses
|
|
$ 435.3
|
|
$ 389.8
|
|
$ 306.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
margin
|
|
4.8 %
|
|
2.6 %
|
|
(9.9) %
|
Other cost of goods sold (a)
|
|
0.6 %
|
|
0.2 %
|
|
1.6 %
|
Stock-based compensation
|
|
9.1 %
|
|
10.0 %
|
|
13.2 %
|
Restructuring related charges (b)
|
|
0.1 %
|
|
0.1 %
|
|
1.5 %
|
Amortization of acquired intangible assets
|
|
18.8 %
|
|
22.0 %
|
|
15.5 %
|
Other operating expenses (c)
|
|
2.0 %
|
|
1.4 %
|
|
5.6 %
|
Non-GAAP operating
margin
|
|
35.4 %
|
|
36.3 %
|
|
27.5 %
|
|
|
|
|
|
|
|
GAAP interest and other
income (loss), net
|
|
$ (30.6)
|
|
$ (32.6)
|
|
$ (33.7)
|
Special
items:
|
|
|
|
|
|
|
Debt issuance related costs and other (d)
|
|
(4.1)
|
|
(3.1)
|
|
16.9
|
Total special
items
|
|
(4.1)
|
|
(3.1)
|
|
16.9
|
Total non-GAAP interest
and other income (loss), net
|
|
$ (34.7)
|
|
$ (35.7)
|
|
$ (16.8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marvell Technology,
Inc.
Reconciliations from GAAP to Non-GAAP (Unaudited)
(In millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
April 30,
2022
|
|
January 29,
2022
|
|
May 1,
2021
|
GAAP net income
(loss)
|
|
$
(165.7)
|
|
$
6.2
|
|
$ (88.2)
|
Special
items:
|
|
|
|
|
|
|
Other cost of goods sold (a)
|
|
9.3
|
|
2.5
|
|
13.7
|
Stock-based compensation
|
|
131.1
|
|
134.8
|
|
109.6
|
Restructuring related charges (b)
|
|
1.3
|
|
1.3
|
|
12.9
|
Other operating expenses (c)
|
|
27.7
|
|
18.9
|
|
46.7
|
Amortization of acquired intangible assets
|
|
272.5
|
|
294.8
|
|
128.6
|
Debt issuance related costs and other (d)
|
|
(4.1)
|
|
(3.1)
|
|
16.9
|
Pre-tax total special
items
|
|
437.8
|
|
449.2
|
|
328.4
|
Other income tax effects and adjustments (e)
|
|
176.3
|
|
(26.7)
|
|
(38.4)
|
Non-GAAP net
income
|
|
$ 448.4
|
|
$ 428.7
|
|
$ 201.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP weighted average
shares — basic
|
|
848.0
|
|
844.4
|
|
693.4
|
GAAP weighted average
shares — diluted
|
|
848.0
|
|
862.1
|
|
693.4
|
Non-GAAP weighted
average shares — diluted (f)
|
|
861.4
|
|
862.1
|
|
707.5
|
|
|
|
|
|
|
|
GAAP diluted net income
(loss) per share
|
|
$ (0.20)
|
|
$ 0.01
|
|
$ (0.13)
|
Non-GAAP diluted net
income per share
|
|
$ 0.52
|
|
$ 0.50
|
|
$ 0.29
|
|
|
(a)
|
Other cost 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 acquisition related costs and costs related to
intellectual property disputes.
|
|
|
(d)
|
Debt issuance related
costs and other includes the partial term loan repayment and bridge
financing, and gains or losses on investments.
|
|
|
(e)
|
Other income tax
effects and adjustments relate to tax provision based on a non-GAAP
income tax rate of 6.0% for the three months ended April 30, 2022.
Other income tax effects and adjustments relate to tax provision
based on a non-GAAP income tax rate of 5.0% for the three months
ended January 29, 2022 and the three months ended May 1,
2021.
|
|
|
(f)
|
Non-GAAP diluted
weighted average shares differs from GAAP diluted weighted average
shares due to the non-GAAP net income reported.
|
Marvell Technology, Inc.
|
Outlook for the Second Quarter of Fiscal Year
2023
|
Reconciliations from GAAP to Non-GAAP
(Unaudited)
|
(In millions, except per share
amounts)
|
|
|
|
|
|
Outlook for Three Months Ended
July 30, 2022
|
GAAP net revenue
|
$1,515 +/-
3%
|
Special
items:
|
—
|
Non-GAAP net
revenue
|
$1,515 +/-
3%
|
|
|
GAAP gross margin
|
49.6% -
51.9%
|
Special
items:
|
|
Stock-based compensation
|
0.7%
|
Amortization of acquired intangible assets
|
12.2%
|
Other costs of goods sold
|
1.6%
|
Non-GAAP gross
margin
|
65.0% ~
65.5%
|
|
|
Total GAAP operating expenses
|
~ $669
|
Special
items:
|
|
Stock-based compensation
|
138
|
Amortization of acquired intangible assets
|
88
|
Restructuring related charges
|
2
|
Other operating expenses
|
6
|
Total non-GAAP
operating expenses
|
~ $435
|
|
|
|
|
GAAP diluted net income per
share
|
$0.06 +/-
$0.04
|
Special
items:
|
|
Stock-based compensation
|
0.17
|
Amortization of acquired intangible assets
|
0.32
|
Other cost of goods sold
|
0.03
|
Other operating expenses
|
0.01
|
Other income tax effects and adjustments
|
(0.03)
|
Non-GAAP diluted net
income per share
|
$0.56 +/-
$0.03
|
Quarterly Revenue Trend
(Unaudited)
|
|
Our product solutions
serve five large end markets where our technology is essential: (i)
data center, (ii) carrier infrastructure, (iii) enterprise
networking,
(iv) consumer, and (v) automotive/industrial. These markets and
their corresponding customer products and applications are noted in
the table below:
|
|
End market
|
Customer products and
applications
|
Data center
|
- Cloud and
on-premise Artificial intelligence (AI) systems
- Cloud and on-premise ethernet switching
- Cloud and on-premise network-attached storage
(NAS)
- Cloud and on-premise servers
- Cloud and on-premise storage area
networks
- Cloud and on-premise storage systems
- Data center interconnect (DCI)
|
Carrier
infrastructure
|
- Digital Subscriber
Line Access Multiplexers (DSLAMs)
- Ethernet switches
- Optical transport systems
- Routers
- Wireless radio access network (RAN)
systems
|
Enterprise
networking
|
- Campus and small
medium enterprise routers
- Campus and small medium enterprise ethernet
switches
- Campus and small medium enterprise wireless
access points (WAPs)
- Network appliances (firewalls, and load balancers)
- Workstations
|
Consumer
|
- Broadband gateways
and routers
- Gaming consoles
- Home data storage
- Home wireless access points (WAPs)
- Personal Computers (PCs)
- Printers
- Set-top boxes
|
Automotive/industrial
|
- Advanced
driver-assistance systems (ADAS)
- Autonomous vehicles (AV)
- In-vehicle networking
- Industrial ethernet switches
- United States military and government
solutions
- Video surveillance
|
Quarterly Revenue
Trend (Unaudited) (Continued)
|
|
|
|
Three Months Ended
|
|
% Change
|
Revenue by End Market (In
millions)
|
April 30,
2022
|
|
January 29,
2022
|
|
May 1,
2021
|
|
YoY
|
|
QoQ
|
Data center
|
$
640.5
|
|
$
574.1
|
|
$
277.1
|
|
131 %
|
|
12 %
|
Carrier
infrastructure
|
252.0
|
|
241.0
|
|
167.6
|
|
50 %
|
|
5 %
|
Enterprise
networking
|
286.6
|
|
263.0
|
|
174.8
|
|
64 %
|
|
9 %
|
Consumer
|
178.5
|
|
185.4
|
|
166.7
|
|
7 %
|
|
(4) %
|
Automotive/industrial
|
89.3
|
|
79.5
|
|
46.1
|
|
94 %
|
|
12 %
|
Total Net Revenue
|
$
1,446.9
|
|
$
1,343.0
|
|
$
832.3
|
|
74 %
|
|
8 %
|
|
|
|
|
|
|
Three Months Ended
|
Revenue by End Market %
of Total
|
|
|
|
|
April 30,
2022
|
|
January 29,
2022
|
|
May 1,
2021
|
Data center
|
|
|
|
|
44 %
|
|
43 %
|
|
33 %
|
Carrier
infrastructure
|
|
|
|
|
18 %
|
|
18 %
|
|
20 %
|
Enterprise
networking
|
|
|
|
|
20 %
|
|
19 %
|
|
21 %
|
Consumer
|
|
|
|
|
12 %
|
|
14 %
|
|
20 %
|
Automotive/industrial
|
|
|
|
|
6 %
|
|
6 %
|
|
6 %
|
Total Net Revenue
|
|
|
|
|
100 %
|
|
100 %
|
|
100 %
|
For further information, contact:
Ashish Saran
Senior Vice President, Investor Relations
408-222-0777
ir@marvell.com
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SOURCE Marvell