- Q4 Net Revenue: $1.427 billion,
grew by 1% year-on-year
- Q4 Gross Margin: 46.6% GAAP gross margin; 63.9% non-GAAP gross
margin
- Q4 Diluted income (loss) per share: $(0.45) GAAP diluted loss per share; $0.46 non-GAAP diluted income per share
SANTA
CLARA, Calif., March 7,
2024 /PRNewswire/ -- Marvell Technology, Inc.
(NASDAQ: MRVL), a leader in data infrastructure semiconductor
solutions, today reported financial results for the fourth fiscal
quarter and fiscal year ended February 3,
2024.
Net revenue for the fourth quarter of fiscal 2024 was
$1.427 billion, above the mid-point
of the Company's guidance provided on November 30, 2023. GAAP net loss for the fourth
quarter of fiscal 2024 was $(392.7)
million, or $(0.45) per
diluted share. Non-GAAP net income for the fourth quarter of fiscal
2024 was $401.6 million, or
$0.46 per diluted share. Cash flows
from operations for the fourth quarter was $546.6 million.
Net revenue for fiscal 2024 was $5.508
billion. GAAP net loss for fiscal 2024 was $(933.4) million, or $(1.08) per diluted share. Non-GAAP net income
for fiscal 2024 was $1.310 billion,
or $1.51 per diluted share.
"Marvell delivered fourth quarter fiscal 2024 revenue of
$1.427 billion, above the mid-point
of guidance. AI drove strong growth in our data center end market
revenue which increased 38% sequentially and 54% year-over-year. As
a critical enabler of accelerated infrastructure for AI, Marvell is
well positioned to capitalize on this massive technology
inflection, which continues to gain momentum," said Matt Murphy, Marvell's Chairman and CEO. "In the
first quarter of fiscal 2025, we expect continued sequential growth
in our data center revenue with initial shipments of our cloud
optimized silicon programs for AI complementing our electro-optics
franchise. While we are forecasting soft demand impacting consumer,
carrier infrastructure, and enterprise networking in the near term,
we expect revenue declines in these end markets to be behind us
after the first quarter, and project a recovery in the second half
of the fiscal year."
First Quarter of Fiscal 2025 Financial Outlook
- Net revenue is expected to be $1.150
billion +/- 5%.
- GAAP gross margin is expected to be 44.5% - 47.2%.
- Non-GAAP gross margin is expected to be 62.0% - 63.0%.
- GAAP operating expenses are expected to be approximately
$676 million.
- Non-GAAP operating expenses are expected to be approximately
$455 million.
- Basic weighted-average shares outstanding are expected to be
866 million.
- Diluted weighted-average shares outstanding are expected to be
875 million.
- GAAP diluted loss per share is expected to be $(0.23) +/- $0.05
per share.
- Non-GAAP diluted income per share is expected to be
$0.23 +/- $0.05 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, March 7, 2024 at 1:30 p.m. Pacific Time to discuss results for the
fourth quarter and fiscal year 2024. Interested parties may join
the conference call by dialing 1-888-317-6003 or 1-412-317-6061,
passcode 0056377. 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 3453492 until
Thursday, March 14, 2024.
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. Although Marvell excludes the amortization
of all acquired intangible assets from these non-GAAP financial
measures, management believes that it is important for investors to
understand that such intangible assets were recorded as part of
purchase price accounting arising from acquisitions, and that such
amortization of intangible assets that relate to past acquisitions
will recur in future periods until such intangible assets have been
fully amortized. Investors should note that the use of intangible
assets contributed to Marvell's revenues earned during the periods
presented and are expected to contribute to Marvell's future period
revenues as well.
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 fourth quarter of fiscal 2024, 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 Section 27A of the Securities Act of 1933, as
amended (the "Securities Act"), and Section 21E of the Securities
Exchange Act of 1934, as amended (the "Exchange Act"), which are
subject to the "safe harbor" created by those sections. These
statements involve known and unknown risks, uncertainties and other
factors, which may cause our actual results to differ materially
from those implied by the forward-looking statements. Words such as
"anticipates," "expects," "intends," "plans," "projects,"
"believes," "seeks," "estimates," "forecasts," "targets," "may,"
"can," "will," "would" and similar expressions identify such
forward-looking statements. Forward-looking statements contained in
this press release include, but are not limited to, the statements
describing our financial outlook and future period revenues. 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:
risks related to changes in general macroeconomic conditions, or
expectations of such conditions, such as rising interest rates,
macroeconomic slowdowns, recessions, inflation, and stagflation;
risks related to our ability to estimate customer demand and future
sales accurately; our ability to define, design, develop and market
products for the Cloud and 5G markets, as well as for Artificial
Intelligence (AI) solutions; risks related to higher inventory
levels; risks related to cancellations, rescheduling or deferrals
of significant customer orders or shipments, as well as the ability
of our customers to manage inventory; the risk of downturns in the
semiconductor industry or our customer end markets; the impact of
international conflict (such as the current armed conflicts in the
Ukraine and in Israel and the Gaza
Strip) and economic volatility in either domestic or foreign
markets including risks related to trade conflicts or tensions,
regulations, and tariffs, including but not limited to, trade
restrictions imposed on our Chinese customers; our ability to
retain and hire key personnel; our ability to limit costs related
to defective products; our dependence on a small number of
customers; risks related to our debt obligations; risks related to
the rapid growth of the Company; delays or increased costs related
to completing the design, development, production and introduction
of our new products due to a variety of issues, including supply
chain cross-dependencies, dependencies on EDA and similar tools,
dependencies on the use of third-party, business partner or
customer intellectual property, collaboration and synchronization
requirements with business partners and customers, requirements to
establish new manufacturing, testing, assembly and packing
processes, and other issues; our reliance on our manufacturing
partners for the manufacture, assembly, testing and packaging 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 risks associated with manufacturing and
selling products and customers' products outside of the United States; our ability to secure
design wins from our customers and prospective customers; our
ability to complete and realize the anticipated benefits of any
acquisitions, divestitures and investments; 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; risks
related to use of a hybrid work model; 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; the
outcome of pending or future litigation and legal and regulatory
proceedings; risk related to our Sustainability program; 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; 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 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, including any consolidation of our
manufacturing partners; our ability to protect our intellectual
property; risks related to the impact of the COVID-19 pandemic (or
future pandemics) which have impacted, and for which lingering
effects may continue to impact our business, employees and
operations, the transportation and manufacturing of our products,
and the operations of our customers, distributors, vendors,
suppliers, and partners; our maintenance of an effective system of
internal controls; financial institution instability; 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
|
|
Year
Ended
|
|
|
February 3,
2024
|
|
October 28,
2023
|
|
January 28,
2023
|
|
February 3,
2024
|
|
January 28,
2023
|
Net revenue
|
|
$ 1,426.5
|
|
$ 1,418.6
|
|
$ 1,418.5
|
|
$ 5,507.7
|
|
$ 5,919.6
|
Cost of goods
sold
|
|
762.4
|
|
867.4
|
|
745.2
|
|
3,214.1
|
|
2,932.1
|
Gross
profit
|
|
664.1
|
|
551.2
|
|
673.3
|
|
2,293.6
|
|
2,987.5
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
459.6
|
|
481.1
|
|
443.1
|
|
1,896.2
|
|
1,784.3
|
Selling, general and
administrative
|
|
212.0
|
|
213.0
|
|
203.4
|
|
834.0
|
|
843.6
|
Legal settlement
(a)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
100.0
|
Restructuring related
charges
|
|
25.8
|
|
3.4
|
|
3.5
|
|
131.1
|
|
21.6
|
Total operating
expenses
|
|
697.4
|
|
697.5
|
|
650.0
|
|
2,861.3
|
|
2,749.5
|
Operating income
(loss)
|
|
(33.3)
|
|
(146.3)
|
|
23.3
|
|
(567.7)
|
|
238.0
|
Interest
income
|
|
3.0
|
|
1.7
|
|
2.5
|
|
8.8
|
|
5.3
|
Interest
expense
|
|
(52.6)
|
|
(52.6)
|
|
(49.3)
|
|
(211.7)
|
|
(170.6)
|
Other income,
net
|
|
(4.4)
|
|
9.7
|
|
0.3
|
|
11.9
|
|
12.4
|
Interest and other
loss, net
|
|
(54.0)
|
|
(41.2)
|
|
(46.5)
|
|
(191.0)
|
|
(152.9)
|
Income (loss) before
income taxes
|
|
(87.3)
|
|
(187.5)
|
|
(23.2)
|
|
(758.7)
|
|
85.1
|
Provision (benefit)
for income taxes
|
|
305.4
|
|
(23.2)
|
|
(7.8)
|
|
174.7
|
|
248.6
|
Net loss
|
|
$ (392.7)
|
|
$ (164.3)
|
|
$
(15.4)
|
|
$ (933.4)
|
|
$ (163.5)
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share -
basic
|
|
$
(0.45)
|
|
$
(0.19)
|
|
$
(0.02)
|
|
$
(1.08)
|
|
$
(0.19)
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share -
diluted
|
|
$
(0.45)
|
|
$
(0.19)
|
|
$
(0.02)
|
|
$
(1.08)
|
|
$
(0.19)
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
864.7
|
|
862.6
|
|
854.1
|
|
861.3
|
|
851.4
|
Diluted
|
|
864.7
|
|
862.6
|
|
854.1
|
|
861.3
|
|
851.4
|
|
|
(a)
|
Relates to settlement
of a contractual dispute.
|
Marvell Technology,
Inc.
|
Condensed
Consolidated Balance Sheets (Unaudited)
|
(In
millions)
|
|
|
|
|
|
|
|
February 3,
2024
|
|
January 28,
2023
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
950.8
|
|
$
911.0
|
Accounts receivable,
net
|
|
1,121.6
|
|
1,192.2
|
Inventories
|
|
864.4
|
|
1,068.3
|
Prepaid expenses and
other current assets
|
|
125.9
|
|
109.6
|
Total current
assets
|
|
3,062.7
|
|
3,281.1
|
Property and
equipment, net
|
|
756.0
|
|
577.4
|
Goodwill
|
|
11,586.9
|
|
11,586.9
|
Acquired intangible
assets, net
|
|
4,004.1
|
|
5,102.0
|
Deferred tax
assets
|
|
311.9
|
|
465.9
|
Other non-current
assets
|
|
1,506.9
|
|
1,508.8
|
Total
assets
|
|
$
21,228.5
|
|
$
22,522.1
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
|
$
411.3
|
|
$
465.8
|
Accrued
liabilities
|
|
1,032.9
|
|
1,092.0
|
Accrued employee
compensation
|
|
262.7
|
|
244.5
|
Short-term
debt
|
|
107.3
|
|
584.4
|
Total current
liabilities
|
|
1,814.2
|
|
2,386.7
|
Long-term
debt
|
|
4,058.6
|
|
3,907.7
|
Other non-current
liabilities
|
|
524.3
|
|
590.5
|
Total
liabilities
|
|
6,397.1
|
|
6,884.9
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
Common
stock
|
|
1.7
|
|
1.7
|
Additional paid-in
capital
|
|
14,845.3
|
|
14,512.0
|
Accumulated other
comprehensive income
|
|
1.1
|
|
—
|
Retained earnings
(Accumulated deficit)
|
|
(16.7)
|
|
1,123.5
|
Total stockholders'
equity
|
|
14,831.4
|
|
15,637.2
|
Total liabilities and
stockholders' equity
|
|
$
21,228.5
|
|
$
22,522.1
|
Marvell Technology,
Inc.
|
Condensed
Consolidated Statements of Cash Flows (Unaudited)
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
February 3,
2024
|
|
January 28,
2023
|
|
February 3,
2024
|
|
January 28,
2023
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
(392.7)
|
|
$
(15.4)
|
|
$
(933.4)
|
|
$
(163.5)
|
Adjustments to
reconcile net loss to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
73.8
|
|
77.9
|
|
299.8
|
|
304.9
|
Stock-based
compensation
|
|
155.3
|
|
130.7
|
|
609.8
|
|
552.4
|
Amortization of
acquired intangible assets
|
|
286.3
|
|
273.2
|
|
1,097.9
|
|
1,087.4
|
Amortization of
inventory fair value adjustment associated with
acquisitions
|
|
—
|
|
12.7
|
|
—
|
|
38.7
|
Amortization of
deferred debt issuance costs and debt discounts
|
|
2.1
|
|
2.6
|
|
10.7
|
|
10.3
|
Restructuring related
impairment charges
|
|
0.7
|
|
0.7
|
|
32.9
|
|
5.6
|
Deferred income
taxes
|
|
434.5
|
|
(3.2)
|
|
150.8
|
|
50.4
|
Other expense,
net
|
|
12.9
|
|
6.5
|
|
44.2
|
|
52.4
|
Changes in assets and
liabilities, net of acquisitions:
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
93.0
|
|
198.8
|
|
70.6
|
|
(142.7)
|
Prepaid expenses and
other assets
|
|
(107.5)
|
|
(98.0)
|
|
(93.1)
|
|
(480.4)
|
Inventories
|
|
78.8
|
|
(122.5)
|
|
201.9
|
|
(385.9)
|
Accounts
payable
|
|
(61.6)
|
|
(53.9)
|
|
(149.1)
|
|
(87.8)
|
Accrued employee
compensation
|
|
17.6
|
|
(3.8)
|
|
18.3
|
|
2.5
|
Accrued liabilities
and other non-current liabilities
|
|
(46.6)
|
|
(54.8)
|
|
9.2
|
|
444.5
|
Net cash provided by
operating activities
|
|
546.6
|
|
351.5
|
|
1,370.5
|
|
1,288.8
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
Purchases of
technology licenses
|
|
(10.6)
|
|
(2.0)
|
|
(13.9)
|
|
(11.1)
|
Purchases of property
and equipment
|
|
(71.0)
|
|
(54.0)
|
|
(336.3)
|
|
(206.2)
|
Acquisitions, net of
cash acquired
|
|
—
|
|
(9.3)
|
|
—
|
|
(112.3)
|
Other, net
|
|
(0.1)
|
|
1.1
|
|
(0.3)
|
|
1.2
|
Net cash used in
investing activities
|
|
(81.7)
|
|
(64.2)
|
|
(350.5)
|
|
(328.4)
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
Repurchases of common
stock
|
|
(100.0)
|
|
—
|
|
(150.0)
|
|
(115.0)
|
Proceeds from employee
stock plans
|
|
38.1
|
|
38.8
|
|
99.2
|
|
91.3
|
Tax withholding paid
on behalf of employees for net share settlement
|
|
(55.0)
|
|
(26.4)
|
|
(223.7)
|
|
(227.6)
|
Dividend payments to
stockholders
|
|
(51.9)
|
|
(51.3)
|
|
(206.8)
|
|
(204.4)
|
Payments on technology
license obligations
|
|
(40.1)
|
|
(38.9)
|
|
(150.3)
|
|
(142.5)
|
Proceeds from
borrowings
|
|
—
|
|
—
|
|
1,295.3
|
|
200.0
|
Principal payments of
debt
|
|
(21.9)
|
|
(21.8)
|
|
(1,622.5)
|
|
(265.6)
|
Other, net
|
|
(8.9)
|
|
(0.1)
|
|
(21.4)
|
|
0.9
|
Net cash used in
financing activities
|
|
(239.7)
|
|
(99.7)
|
|
(980.2)
|
|
(662.9)
|
Net increase in cash
and cash equivalents
|
|
225.2
|
|
187.6
|
|
39.8
|
|
297.5
|
Cash and cash
equivalents at beginning of period
|
|
725.6
|
|
723.4
|
|
911.0
|
|
613.5
|
Cash and cash
equivalents at end of period
|
|
$
950.8
|
|
$
911.0
|
|
$
950.8
|
|
$
911.0
|
Marvell Technology,
Inc.
|
Reconciliations from
GAAP to Non-GAAP (Unaudited)
|
(In millions, except
per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
February 3,
2024
|
|
October 28,
2023
|
|
January 28,
2023
|
|
February 3,
2024
|
|
January 28,
2023
|
GAAP gross
profit
|
|
$ 664.1
|
|
$ 551.2
|
|
$ 673.3
|
|
$
2,293.6
|
|
$
2,987.5
|
Special
items:
|
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation
|
|
10.4
|
|
15.7
|
|
9.5
|
|
49.1
|
|
43.3
|
Amortization of
acquired intangible assets
|
|
194.3
|
|
184.3
|
|
185.4
|
|
748.1
|
|
725.6
|
Other cost of goods
sold (a)
|
|
42.3
|
|
108.0
|
|
32.4
|
|
280.1
|
|
61.0
|
Total special
items
|
|
247.0
|
|
308.0
|
|
227.3
|
|
1,077.3
|
|
829.9
|
Non-GAAP gross
profit
|
|
$ 911.1
|
|
$ 859.2
|
|
$ 900.6
|
|
$
3,370.9
|
|
$
3,817.4
|
|
|
|
|
|
|
|
|
|
|
|
GAAP gross
margin
|
|
46.6 %
|
|
38.9 %
|
|
47.5 %
|
|
41.6 %
|
|
50.5 %
|
Non-GAAP gross
margin
|
|
63.9 %
|
|
60.6 %
|
|
63.5 %
|
|
61.2 %
|
|
64.5 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total GAAP operating
expenses
|
|
$ 697.4
|
|
$ 697.5
|
|
$ 650.0
|
|
$
2,861.3
|
|
$
2,749.5
|
Special
items:
|
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation
|
|
(144.9)
|
|
(142.8)
|
|
(121.2)
|
|
(560.7)
|
|
(509.1)
|
Restructuring related
charges (b)
|
|
(25.8)
|
|
(3.4)
|
|
(3.5)
|
|
(131.1)
|
|
(21.6)
|
Amortization of
acquired intangible assets
|
|
(92.0)
|
|
(85.5)
|
|
(87.8)
|
|
(349.8)
|
|
(361.8)
|
Legal settlement
(c)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(100.0)
|
Other (d)
|
|
(6.2)
|
|
(28.7)
|
|
(6.8)
|
|
(47.5)
|
|
(39.0)
|
Total special
items
|
|
(268.9)
|
|
(260.4)
|
|
(219.3)
|
|
(1,089.1)
|
|
(1,031.5)
|
Total non-GAAP
operating expenses
|
|
$ 428.5
|
|
$ 437.1
|
|
$ 430.7
|
|
$
1,772.2
|
|
$
1,718.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
margin
|
|
(2.3) %
|
|
(10.3) %
|
|
1.6 %
|
|
(10.3) %
|
|
4.0 %
|
Other cost of goods
sold (a)
|
|
3.0 %
|
|
7.6 %
|
|
2.3 %
|
|
5.1 %
|
|
1.0 %
|
Stock-based
compensation
|
|
10.9 %
|
|
11.2 %
|
|
9.2 %
|
|
11.1 %
|
|
9.3 %
|
Restructuring related
charges (b)
|
|
1.8 %
|
|
0.2 %
|
|
0.2 %
|
|
2.4 %
|
|
0.4 %
|
Amortization of
acquired intangible assets
|
|
20.1 %
|
|
19.0 %
|
|
19.3 %
|
|
19.9 %
|
|
18.4 %
|
Legal settlement
(c)
|
|
— %
|
|
— %
|
|
— %
|
|
— %
|
|
1.7 %
|
Other (d)
|
|
0.3 %
|
|
2.1 %
|
|
0.5 %
|
|
0.8 %
|
|
0.7 %
|
Non-GAAP operating
margin
|
|
33.8 %
|
|
29.8 %
|
|
33.1 %
|
|
29.0 %
|
|
35.5 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP interest and
other loss, net
|
|
$ (54.0)
|
|
$ (41.2)
|
|
$ (46.5)
|
|
$
(191.0)
|
|
$
(152.9)
|
Special
items:
|
|
|
|
|
|
|
|
|
|
|
Other (d)
|
|
(1.3)
|
|
(4.2)
|
|
(1.8)
|
|
(13.9)
|
|
(8.0)
|
Total special
items
|
|
(1.3)
|
|
(4.2)
|
|
(1.8)
|
|
(13.9)
|
|
(8.0)
|
Total non-GAAP
interest and other loss, net
|
|
$ (55.3)
|
|
$ (45.4)
|
|
$ (48.3)
|
|
$
(204.9)
|
|
$
(160.9)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net
loss
|
|
$
(392.7)
|
|
$
(164.3)
|
|
$ (15.4)
|
|
$
(933.4)
|
|
$
(163.5)
|
Special
items:
|
|
|
|
|
|
|
|
|
|
|
Other cost of goods
sold (a)
|
|
42.3
|
|
108.0
|
|
32.4
|
|
280.1
|
|
61.0
|
Stock-based
compensation
|
|
155.3
|
|
158.5
|
|
130.7
|
|
609.8
|
|
552.4
|
Restructuring related
charges (b)
|
|
25.8
|
|
3.4
|
|
3.5
|
|
131.1
|
|
21.6
|
Amortization of
acquired intangible assets
|
|
286.3
|
|
269.8
|
|
273.2
|
|
1,097.9
|
|
1,087.4
|
Legal settlement
(c)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
100.0
|
Other (d)
|
|
4.9
|
|
24.5
|
|
5.0
|
|
33.6
|
|
31.0
|
Pre-tax total special
items
|
|
514.6
|
|
564.2
|
|
444.8
|
|
2,152.5
|
|
1,853.4
|
Other income tax
effects and adjustments (e)
|
|
279.7
|
|
(45.8)
|
|
(33.1)
|
|
91.0
|
|
132.3
|
Non-GAAP net
income
|
|
$ 401.6
|
|
$ 354.1
|
|
$ 396.3
|
|
$
1,310.1
|
|
$
1,822.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP weighted-average
shares — basic
|
|
864.7
|
|
862.6
|
|
854.1
|
|
861.3
|
|
851.4
|
GAAP weighted-average
shares — diluted
|
|
864.7
|
|
862.6
|
|
854.1
|
|
861.3
|
|
851.4
|
Non-GAAP
weighted-average shares — diluted (f)
|
|
873.9
|
|
872.2
|
|
859.0
|
|
869.3
|
|
859.2
|
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted net loss
per share
|
|
$ (0.45)
|
|
$ (0.19)
|
|
$ (0.02)
|
|
$ (1.08)
|
|
$ (0.19)
|
Non-GAAP diluted net
income per share
|
|
$
0.46
|
|
$
0.41
|
|
$
0.46
|
|
$
1.51
|
|
$
2.12
|
|
|
(a)
|
Other cost of goods
sold includes charges for product claim related matters that were
fully resolved in the fourth quarter of fiscal 2024, acquisition
integration related inventory costs, and amortization of acquired
inventory fair value adjustments.
|
|
|
(b)
|
Restructuring and other
related items include employee severance costs, asset impairment
charges, facilities related charges, and other.
|
|
|
(c)
|
Relates to settlement
of a contractual dispute.
|
|
|
(d)
|
Other costs included in
operating expenses and other income, net include charges for an
intellectual property matter, net gains on investments, and
acquisition related costs.
|
|
|
(e)
|
Other income tax
effects and adjustments relate to the tax provision based on a
non-GAAP income tax rate of 6.0%. In the three months and year
ended February 3, 2024, we excluded $289 million and $158 million,
respectively, of non-recurring income tax expense relating to
guidance issued by the IRS on December 22, 2023 clarifying the
requirement to capitalize certain U.S. R&D costs, which became
effective for us retroactively to the year ended January 28, 2023.
As a result of this IRS guidance, which is intended to be part of
published Treasury Regulations, we have determined that such costs
are currently deductible in computing our taxable income, and no
longer have to be capitalized. This discrete change in treatment
reduced the amount of R&D credits we utilized to offset our
taxes, which reduced the deferred tax benefits that we previously
recognized for utilization of such credits because they carried a
full valuation allowance. As a result of this change, we have
reinstated these R&D credit carryforwards with a full valuation
allowance (consistent with past practice), and reduced our income
taxes payable for the years ended January 28, 2023 and February 3,
2024. In the year ended January 28, 2023, $213.6 million of
non-recurring income tax expense associated with the extension of a
tax incentive in Singapore was excluded from our non-GAAP income
tax expense. Additionally, we excluded $18.3 million of
non-recurring income tax expense associated with the claw back of
incentive benefits that resulted from our election to avail
ourselves of a preferential temporary tax provision in
Israel.
|
|
|
(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 First Quarter of Fiscal Year 2025
|
Reconciliations from
GAAP to Non-GAAP (Unaudited)
|
(In millions,
except per share amounts)
|
|
|
|
|
|
Outlook for Three
Months Ended
May 4,
2024
|
GAAP net
revenue
|
$1,150 +/-
5%
|
Special
items:
|
—
|
Non-GAAP net
revenue
|
$1,150 +/-
5%
|
|
|
GAAP gross
margin
|
44.5% -
47.2%
|
Special
items:
|
|
Stock-based
compensation
|
0.8 %
|
Amortization of
acquired intangible assets
|
15.8 %
|
Non-GAAP gross
margin
|
62.0% -
63.0%
|
|
|
Total GAAP
operating expenses
|
~ $676
|
Special
items:
|
|
Stock-based
compensation
|
135
|
Amortization of
acquired intangible assets
|
84
|
Restructuring related
charges
|
2
|
Total non-GAAP
operating expenses
|
~ $455
|
|
|
|
|
GAAP diluted net
loss per share
|
$(0.23) +/-
$0.05
|
Special
items:
|
|
Stock-based
compensation
|
0.17
|
Amortization of
acquired intangible assets
|
0.31
|
Other income tax
effects and adjustments
|
(0.02)
|
Non-GAAP diluted net
income per share
|
$0.23 +/-
$0.05
|
Quarterly Revenue Trend (Unaudited)
Our product solutions serve five large end markets where our
technology is essential: (i) data center, (ii) enterprise
networking, (iii) carrier infrastructure, (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 AI
servers
•
Cloud and on-premise general-purpose
servers
•
Cloud and on-premise storage area
networks
•
Cloud and on-premise storage
systems
•
Data center interconnect (DCI)
|
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
|
Carrier
infrastructure
|
•
Broadband access systems
•
Ethernet switches
•
Optical transport systems
•
Routers
•
Wireless radio access network (RAN)
systems
|
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)
|
February 3,
2024
|
|
October 28,
2023
|
|
January 28,
2023
|
|
YoY
|
|
QoQ
|
Data center
|
$
765.3
|
|
$
555.8
|
|
$
497.6
|
|
54 %
|
|
38 %
|
Enterprise
networking
|
265.0
|
|
271.1
|
|
366.3
|
|
(28) %
|
|
(2) %
|
Carrier
infrastructure
|
170.0
|
|
316.5
|
|
275.4
|
|
(38) %
|
|
(46) %
|
Consumer
|
143.9
|
|
168.7
|
|
179.8
|
|
(20) %
|
|
(15) %
|
Automotive/industrial
|
82.3
|
|
106.5
|
|
99.4
|
|
(17) %
|
|
(23) %
|
Total Net
Revenue
|
$
1,426.5
|
|
$
1,418.6
|
|
$
1,418.5
|
|
1 %
|
|
1 %
|
|
|
|
|
|
Three Months
Ended
|
Revenue by End
Market % of
Total
|
|
|
|
|
February 3,
2024
|
|
October 28,
2023
|
|
January 28,
2023
|
Data center
|
|
|
|
|
54 %
|
|
39 %
|
|
35 %
|
Enterprise
networking
|
|
|
|
|
19 %
|
|
19 %
|
|
26 %
|
Carrier
infrastructure
|
|
|
|
|
12 %
|
|
22 %
|
|
19 %
|
Consumer
|
|
|
|
|
10 %
|
|
12 %
|
|
13 %
|
Automotive/industrial
|
|
|
|
|
5 %
|
|
8 %
|
|
7 %
|
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