MRVL
$17.76
Marvell Tech Group
($.33)
(1.82%)
Earnings Details
2nd Quarter July 2018
Thursday, September 06, 2018 4:05:00 PM
Tweet Share Watch
Summary

Marvell Tech Group Misses

Marvell Tech Group (MRVL) reported 2nd Quarter July 2018 earnings of $0.23 per share on revenue of $665.3 million. The consensus earnings estimate was $0.34 per share on revenue of $615.5 million. The Earnings Whisper number was $0.35 per share. Revenue grew 10.0% on a year-over-year basis.

The company said it expects third quarter earnings of $0.30 to $0.34 per share on revenue of $825.0 million to $865.0 million. The current consensus earnings estimate is $0.35 per share on revenue of $895.5 million for the quarter ending October 31, 2018.

Marvell Technology Group Ltd is a fabless semiconductor provider of analog, mixed-signal, digital signal processing and embedded microprocessor integrated circuits.

Results
Reported Earnings
$0.23
Earnings Whisper
$0.35
Consensus Estimate
$0.34
Reported Revenue
$665.3 Mil
Revenue Estimate
$615.5 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Marvell Technology Group Ltd. Reports Second Quarter of Fiscal Year 2019 Financial Results

SANTA CLARA, Calif., Sept. 6, 2018 /PRNewswire/ -- Marvell Technology Group Ltd. (NASDAQ: MRVL), a leader in infrastructure semiconductor solutions, today reported financial results for the second fiscal quarter of fiscal year 2019.

Marvell completed the acquisition of Cavium Inc. ("Cavium") on July 6, 2018 ("the acquisition date"), approximately four weeks before the end of the second quarter of fiscal year 2019. Marvell's results for the second quarter of fiscal 2019 include the results of Cavium from the acquisition date, while the prior periods presented do not.

Financial highlights presented below are for the combined company and Marvell stand-alone (excluding Cavium results) for the second quarter of fiscal year 2019 (in thousands, except percentages and per share amounts). We are providing the Marvell stand-alone non-GAAP results on a one time basis this quarter in light of the fact that our previously provided financial outlook for the second quarter excluded any impact of the Cavium acquisition.


Three Months Ended
August 4, 2018


Combined
GAAP


Combined
Non-GAAP


Marvell
Stand-alone
Non-GAAP

Net revenue

$

665,310



$

665,310



$

623,963








Gross margin

56.7

%


63.7

%


63.5

%







Operating margin

(1.2)

%


26.7

%


30.1

%







Net income

$

6,759



$

161,961



$

183,349








Diluted net income per share

$

0.01



$

0.28



$

0.35


The financial outlook for the third quarter of fiscal year 2019 includes expected results of Cavium for the full quarter.

Revenue for the second quarter of fiscal 2019 was $665 million.

GAAP net income from continuing operations for the second quarter of fiscal 2019 was $7 million, or $0.01 per diluted share. Non-GAAP net income from continuing operations for the second quarter of fiscal 2019 was $162 million, or $0.28 per diluted share. Cash flow from operations for the second quarter was $62 million.

"Marvell standalone delivered strong second-quarter financial results. We achieved our operating margin target 18 months ahead of plan," said Matt Murphy, Marvell's President and Chief Executive Officer. "During the quarter, we also took another major step in our transformation by closing the acquisition of Cavium, on schedule with our original plan. Our combined talent and portfolio now positions Marvell to lead some of the most exciting trends driving growth in the infrastructure market, including Cloud and Edge computing, 5G and automotive."

Third Quarter of Fiscal 2019 Financial Outlook

  • Revenue is expected to be $825 million to $865 million.
  • GAAP gross margin is expected to be in the range of 44% to 45%.
  • Non-GAAP gross margin is expected to be in the range of 64% to 65%.
  • GAAP operating expenses are expected to be $390 million to $400 million.
  • Non-GAAP operating expenses are expected to be $300 million to $305 million.
  • GAAP diluted EPS from continuing operations is expected to be in the range of $(0.08) to $(0.04) per share.
  • Non-GAAP diluted EPS from continuing operations is expected to be in the range of $0.30 to $0.34 per share.

Conference Call

Marvell will conduct a conference call on Thursday, September 6, 2018 at 1:45 p.m. Pacific Time to discuss results for the second quarter of fiscal 2019. Interested parties may join the conference call by dialing 1-844-647-5488 or 1-615-247-0258, pass-code 5196554. The call will be webcast by Thomson Reuters and can be accessed at the Marvell Investor Relations website at http://investor.marvell.com/ with a replay available following the call until Friday, September 14, 2018.

Discussion of Non-GAAP Financial Measures

Non-GAAP financial measures exclude the effect of share-based compensation expense, amortization of the inventory fair value step up, amortization and write-off of acquired intangible assets, acquisition-related costs, restructuring and other related charges, litigation settlement, 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 GAAP income in calculating 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. 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; significant changes in Marvell's geographic mix of revenue and expenses; or changes to Marvell's corporate structure. For the second quarter of fiscal 2019, a non-GAAP tax rate of 4% has been applied to the non-GAAP financial results.

Non-GAAP diluted net income per share from continuing operations is calculated by dividing non-GAAP net income from continuing operations by non-GAAP weighted average shares outstanding (diluted). For purposes of calculating non-GAAP diluted net income per share, the GAAP weighted average shares outstanding (diluted) is adjusted to exclude the potential benefits of share-based compensation expected to be incurred in future periods but not yet recognized in the financial statements. The expected compensation costs are treated as additional proceeds assumed to be used to repurchase shares under the GAAP treasury stock method.

Marvell believes that the presentation of non-GAAP financial measures provide 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. Marvell expects to continue to incur expenses similar to the non-GAAP adjustments described above, and exclusion of these items from Marvell's non-GAAP net income should not be construed as an inference that these costs are unusual, infrequent or non-recurring.

Marvell stand-alone non-GAAP results represent combined non-GAAP results after excluding Cavium results for the portion of the second quarter falling after the acquisition date.  We are providing the Marvell stand-alone non-GAAP results on a one time basis for the second quarter of fiscal 2019 in light of the fact that our previously provided financial outlook for the second quarter excluded any impact of the Cavium acquisition.

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, including: the impact on future performance of Marvell's newly announced products; Marvell's expectations regarding its second quarter of fiscal 2019 financial outlook; and Marvell's use of non-GAAP financial measures as important supplemental information. Words such as "anticipates," "expects," "intends," "plans," "projects," "believes," "seeks," "estimates," "can," "may," "will," "would" 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. 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: the effect of the announcement or pendency of the consummation of our acquisition of Cavium  on the combined company's business relationships, operating results, and business generally; potential difficulties in Cavium employee retention as a result of the transaction;  the ability of Marvell to successfully integrate Cavium's operations and product lines; the ability of Marvell to implement its plans, forecasts, and other expectations with respect to Cavium's business and realize the anticipated synergies and cost savings in the time frame anticipated or at all, and identify and realize additional opportunities; the risk of downturns in the highly cyclical semiconductor industry; Marvell's dependence upon the storage and networking markets, which are highly cyclical and intensely competitive; the outcome of pending or future litigation and legal and regulatory proceedings; Marvell's dependence on a small number of customers; severe financial hardship or bankruptcy of one or more of Marvell's major customers; Marvell's ability and the ability of its customers to successfully compete in the markets in which it serves; Marvell's reliance on independent foundries and subcontractors for the manufacture, assembly and testing of its products; Marvell's ability and its customers' ability to develop new and enhanced products and the adoption of those products in the market; decreases in gross margin and results of operations in the future due to a number of factors; Marvell's ability to estimate customer demand and future sales accurately; Marvell's ability to scale its operations in response to changes in demand for existing or new products and services; the impact of international conflict and continued economic volatility in either domestic or foreign markets; the effects of transitioning to smaller geometry process technologies; the risks associated with manufacturing and selling a majority of products and customers' products outside of the United States; risks associated with acquisition and consolidation activity in the semiconductor industry; the impact of any change in the income tax laws in jurisdictions where Marvell operates and the loss of any beneficial tax treatment that Marvell currently enjoys; the effects of any potential acquisitions or investments; Marvell's ability to protect its intellectual property; the impact and costs associated with changes in international financial and regulatory conditions; Marvell's maintenance of an effective system of internal controls; and other risks detailed in Marvell's SEC filings from time to time. For other factors that could cause Marvell's results to vary from expectations, please see the risk factors identified in Marvell's Annual Report on Form 10-K for the fiscal year ended February 3, 2018 as filed with the SEC on March 29, 2018, and other factors detailed from time to time in Marvell's filings with the SEC. Marvell undertakes no obligation to revise or update publicly any forward-looking statements.

About Marvell

Marvell first revolutionized the digital storage industry by moving information at speeds never thought possible. Today, that same breakthrough innovation remains at the heart of the Company's storage, networking and connectivity solutions. With leading intellectual property and deep system-level knowledge, Marvell's semiconductor solutions continue to transform the enterprise, cloud, automotive, industrial, and consumer markets. To learn more, visit: www.marvell.com.

Marvell® and the Marvell logo are registered trademarks of Marvell and/or its affiliates.

Marvell Technology Group Ltd.

Condensed Consolidated Statements of Operations (Unaudited)

(In thousands, except per share amounts)



Three Months Ended


Six Months Ended


August 4,
2018


May 5,
2018


July 29,
2017


August 4,
2018


July 29,
2017

Net revenue

$

665,310



$

604,631



$

604,750



$

1,269,941



$

1,177,459


Cost of goods sold

288,200



228,938



239,572



517,138



466,770


Gross profit

377,110



375,693



365,178



752,803



710,689












Operating expenses:










Research and development

216,285



176,734



180,871



393,019



368,967


Selling, general and administrative

133,701



72,313



55,659



206,014



110,763


Restructuring related charges

35,415



1,567



4,285



36,982



5,171


Total operating expenses

385,401



250,614



240,815



636,015



484,901


Operating income from continuing operations

(8,291)



125,079



124,363



116,788



225,788


Interest income

3,575



6,069



3,830



9,644



7,342


Interest expense

(15,795)



(244)



(80)



(16,039)



(131)


Other income (loss), net

(2,701)



1,471



3,438



(1,230)



3,310


Interest and other income (loss), net

(14,921)



7,296



7,188



(7,625)



10,521


Income from continuing operations before income taxes

(23,212)



132,375



131,551



109,163



236,309


Provision (benefit) for income taxes

(29,971)



3,763



(3,899)



(26,208)



1,267


Income from continuing operations, net of tax

6,759



128,612



135,450



135,371



235,042


Income from discontinued operations, net of tax





29,809





36,838


Net income

$

6,759



$

128,612



$

165,259



$

135,371



$

271,880












Net income per share — Basic:










Continuing operations

$

0.01



$

0.26



$

0.27



$

0.26



$

0.47


Discontinued operations

$



$



$

0.06



$



$

0.07


Net income per share - Basic

$

0.01



$

0.26



$

0.33



$

0.26



$

0.54












Net income per share — Diluted:










Continuing operations

$

0.01



$

0.25



$

0.26



$

0.25



$

0.46


Discontinued operations

$



$



$

0.06



$



$

0.07


Net income per share - Diluted

$

0.01



$

0.25



$

0.32



$

0.25



$

0.53












Weighted average shares:










Basic

552,238



497,335


500,817



524,787


502,303


Diluted

562,149



508,716


510,309



535,433


513,951


 

Marvell Technology Group Ltd.

Condensed Consolidated Balance Sheets (Unaudited)

(In thousands)



August 4,
2018


February 3,
2018

Assets




Current assets:




Cash and cash equivalents

$

498,659


$

888,482

Short-term investments

25,000


952,790

Accounts receivable, net

443,276


280,395

Inventories

473,429


170,039

Prepaid expenses and other current assets

72,388


41,482

Assets held for sale

31,182


30,767

Total current assets

1,543,934


2,363,955

Property and equipment, net

327,645


202,222

Goodwill

5,497,608


1,993,310

Acquired intangible assets, net

2,718,061


Other non-current assets

275,598


148,800

Total assets

$

10,362,846


$

4,708,287





Liabilities and Shareholders' Equity




Current liabilities:




Accounts payable

$

196,297


$

145,236

Accrued liabilities

277,098


86,958

Accrued employee compensation

127,381


127,711

Deferred income

3,511


61,237

Liabilities held for sale

3,935


Total current liabilities

608,222


421,142

Long-term debt

1,878,617


Non-current income taxes payable

52,438


56,976

Deferred tax liabilities

114,312


52,204

Other non-current liabilities

44,191


36,552

Total liabilities

2,697,780


566,874





Shareholders' equity:




Common stock

1,316


991

Additional paid-in capital

6,153,890


2,733,292

Accumulated other comprehensive loss


(2,322)

Retained earnings

1,509,860


1,409,452

Total shareholders' equity

7,665,066


4,141,413

Total liabilities and shareholders' equity

$

10,362,846


$

4,708,287

 

Marvell Technology Group Ltd.

Condensed Consolidated Statements of Cash Flows (Unaudited)

(In thousands)



Three Months Ended


Six Months Ended


August 4,
2018


July 29,
2017


August 4,
2018


July 29,
2017

Cash flows from operating activities:








Net income

$

6,759



$

165,259



$

135,371



$

271,880


Adjustments to reconcile net income to net cash provided by operating activities:








Depreciation and amortization

26,754



20,444



47,097



41,186


Share-based compensation

59,392



22,422



83,244



46,439


Amortization and write-off of acquired intangible assets

25,939



1,065



25,939



2,136


Amortization of inventory fair value adjustment associated with acquisition of Cavium

22,933





22,933




Amortization of deferred debt issuance costs and debt discounts

7,073





7,073




Restructuring related impairment charges (gain)

1,993



70



1,993



(446)


Gain from investment in privately-held company



(750)



(1,100)



(750)


Amortization of premium /discount on available-for-sale securities

(537)



597



624



803


Other non-cash expense (income), net

3,414



(1,398)



4,227



(1,423)


Deferred income taxes

(22,238)



2,008



(21,414)



2,791


Gain on sale of property and equipment

(137)



(341)



(120)



(283)


Gain on sale of discontinued operations



(34,032)





(42,187)


Gain on sale of business



(5,254)





(5,254)


Changes in assets and liabilities:








Accounts receivable

(1,356)



(14,550)



(48,749)



(36,313)


Inventories

4,186



(3,170)



6,866



(14,712)


Prepaid expenses and other assets

(5,396)



2,460



(19,504)



7,854


Accounts payable

(15,015)



(27,455)



(271)



3,968


Accrued liabilities and other non-current liabilities

(32,468)



(21,793)



(11,232)



(33,418)


Accrued employee compensation

(19,429)



(846)



(41,539)



(8,375)


Deferred income

68



(3,732)



(729)



1,284


Net cash provided by operating activities

61,935



101,004



190,709



235,180


Cash flows from investing activities:








Purchases of available-for-sale securities

(1,499)



(177,811)



(14,956)



(376,227)


Sales of available-for-sale securities

553,623



37,936



623,896



116,700


Maturities of available-for-sale securities

59,165



87,377



187,985



169,612


Return of investment from privately-held companies



2,388





2,388


Purchases of time deposits



(75,000)



(25,000)



(150,000)


Maturities of time deposits

75,000



75,000



150,000



150,000


Purchases of technology licenses

(903)



(608)



(1,263)



(1,701)


Purchases of property and equipment

(20,801)



(4,803)



(34,389)



(14,544)


Proceeds from sales of property and equipment

212



1,054



223



1,739


Cash payment for acquisition of Cavium, net of cash and cash equivalents acquired

(2,649,465)





(2,649,465)




Net proceeds from sale of discontinued operations



41,976





72,205


Net proceeds from sale of business

1,250





1,250




Other





(5,000)




Net cash used in investing activities

(1,983,418)



(12,491)



(1,766,719)



(29,828)


Cash flows from financing activities:








Repurchases of common stock



(221,265)





(387,558)


Proceeds from employee stock plans

33,525



77,872



44,580



97,811


Minimum tax withholding paid on behalf of employees for net share settlement

(12,883)



(3,005)



(36,776)



(24,814)


Dividend payments to shareholders

(39,383)



(30,095)



(69,181)



(60,086)


Payments on technology license obligations

(9,017)



(7,481)



(29,478)



(14,296)


Proceeds from issuance of debt

1,892,605





1,892,605




Principal payments of debt

(606,128)





(606,128)




Payment of equity and debt financing costs

(5,835)





(9,435)




Net cash provided by (used in) financing activities

1,252,884



(183,974)



1,186,187



(388,943)


Net decrease in cash and cash equivalents

(668,599)



(95,461)



(389,823)



(183,591)


Cash and cash equivalents at beginning of period

1,167,258



725,962



888,482



814,092


Cash and cash equivalents at end of period

$

498,659



$

630,501



$

498,659



$

630,501


 

Marvell Technology Group Ltd.

Reconciliations from GAAP to Non-GAAP (Unaudited)

(In thousands, except per share amounts)












Three Months Ended


Six Months Ended


August 4,
2018


May 5,
2018


July 29,
2017


August 4,
2018


July 29,
2017

GAAP gross profit:

$

377,110



$

375,693



$

365,178



$

752,803



$

710,689


Special items:










Share-based compensation

4,748



1,905



1,810



6,653



3,236


Amortization of and write-off acquired  intangible assets

18,984







18,984




Other cost of goods sold (a)

22,933





3,000



22,933



3,000


Total special items

46,665



1,905



4,810



48,570



6,236


Non-GAAP gross profit

$

423,775



$

377,598



$

369,988



$

801,373



$

716,925












GAAP gross margin

56.7

%


62.1

%


60.4

%


59.3

%


60.4

%

Non-GAAP gross margin

63.7

%


62.5

%


61.2

%


63.1

%


60.9

%































Total GAAP operating expenses

$

385,401



$

250,614



$

240,815



$

636,015



$

484,901


Special items:










Share-based compensation

(68,675)



(21,947)



(19,557)



(90,622)



(39,870)


Restructuring related charges (b)

(35,415)



(1,567)



(4,285)



(36,982)



(5,171)


Amortization of and write-off acquired intangible assets

(6,955)





(1,065)



(6,955)



(2,136)


Other operating expenses (c)

(28,229)



(15,252)



(1,687)



(43,481)



(3,990)


Total special items

(139,274)



(38,766)



(26,594)



(178,040)



(51,167)


Total non-GAAP operating expenses

$

246,127



$

211,848



$

214,221



$

457,975



$

433,734
































GAAP operating margin

(1.2)

%


20.7

%


20.6

%


9.2

%


19.2

%

Other cost of goods sold (a)

3.5

%


%


0.5

%


1.9

%


0.3

%

Share-based compensation

11.0

%


3.9

%


3.5

%


7.7

%


3.7

%

Restructuring related charges (b)

5.3

%


0.3

%


0.7

%


2.9

%


0.4

%

Amortization and write-off of acquired intangible assets

3.9

%


%


0.2

%


2.0

%


0.2

%

Other operating expenses (c)

4.2

%


2.5

%


0.3

%


3.3

%


0.3

%

Non-GAAP operating margin

26.7

%


27.4

%


25.8

%


27.0

%


24.1

%

GAAP interest and other income (loss), net

$

(14,921)



$

7,296



$

7,188



$

(7,625)



$

10,521


Special items:










Restructuring related items (d)

(121)



(1,512)



(3,085)



(1,633)



(3,085)


Issuance cost related to terminated standby loan

6,104







6,104




Total special items

5,983



(1,512)



(3,085)



4,471



(3,085)


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

$

(8,938)



$

5,784



$

4,103



$

(3,154)



$

7,436
































GAAP net income

$

6,759



$

128,612



$

165,259



$

135,371



$

271,880


Less: Income from discontinued operations, net of tax





29,809





36,838


GAAP net income from continuing operations

6,759



128,612



135,450



135,371



235,042


Special items:










Other cost of goods sold (a)

22,933





3,000



22,933



3,000


Share-based compensation

73,423



23,852



21,367



97,275



43,106


Restructuring related charges in operating expenses (b)

35,415



1,567



4,285



36,982



5,171


Restructuring related items in interest and other income, net (d)

(121)



(1,512)



(3,085)



(1,633)



(3,085)


Amortization of and write-off acquired intangible assets

25,939





1,065



25,939



2,136


Issuance cost related to terminated standby loan

6,104







6,104




Other operating expenses (c)

28,229



15,252



1,687



43,481



3,990


Pre-tax total special items

191,922



39,159



28,319



231,081



54,318


Other income tax effects and adjustments (e)

(36,720)



(3,098)



(10,298)



(39,818)



(10,362)


Non-GAAP net income from continuing operations

$

161,961



$

164,673



$

153,471



$

326,634



$

278,998
































Weighted average shares — basic

552,238



497,335



500,817



524,787



502,303


Weighted average shares — diluted

562,149



508,716



510,309



535,433



513,951


Non-GAAP adjustment

13,123



6,871



9,129



9,997



7,345


Non-GAAP weighted average shares — diluted (f)

575,272



515,587



519,438



545,430



521,296












GAAP diluted net income per share from continuing operations

$

0.01



$

0.25



$

0.26



$

0.25



$

0.46


Non-GAAP diluted net income per share from continuing operations

$

0.28



$

0.32



$

0.30



$

0.60



$

0.54




(a)

Other costs of goods sold in the three and six months ended August 4, 2018 include amortization of the Cavium inventory fair value step up.  Other cost of goods sold in the three and six months ended July 29, 2017 include charges for past intellectual property licensing matters.



(b)

Restructuring related charges include employee severance, facilities related costs, and impairment of equipment.



(c)

Other operating expenses primarily include Cavium merger costs and costs of retention bonuses offered to employees who remained through the ramp down of certain operations due to restructuring actions.



(d)

Interest and other income, net includes restructuring related items such as foreign currency remeasurement associated with restructuring related accruals.



(e)

Other income tax effects and adjustments relate to tax provision based on a non-GAAP income tax rate of 4%.



(f)

Non-GAAP diluted share count excludes the impact of share-based compensation expense expected to be incurred in future periods and not yet recognized in the Company's financial statements, which would otherwise be assumed to be used to repurchase shares under the GAAP treasury stock method.

 

Marvell Technology Group Ltd.

Reconciliations from Combined Non-GAAP to Marvell Stand-alone Non-GAAP (Unaudited)

(In thousands, except per share amounts)



Three Months Ended

August 4, 2018


Combined
Non-GAAP*


Less: non-
GAAP
Results
Attributable
to Cavium
Acquisition


Marvell
Stand-alone
Non-GAAP*

Net revenue

$

665,310



$

41,347



$

623,963


Gross profit

$

423,775



$

27,808



$

395,967


Total operating expenses

$

246,127



$

38,251



$

207,876


Interest and other income (loss), net

$

(8,938)



$

(11,836)



$

2,898


Net income (loss)

$

161,961



$

(21,388)



$

183,349














Diluted net income (loss) per share

$

0.28



$

(0.07)



$

0.35








Diluted weighted average shares

575,272



55,636



519,636



*Combined Non-GAAP net revenue is equal to GAAP net revenue.  See "Reconciliations from GAAP to Non-GAAP (Unaudited)" for a reconciliation of other Combined Non-GAAP results to GAAP results for the period.

 

Quarterly Revenue Trend (Unaudited)

(In thousands)



Three Months Ended


% Change


August 4,
2018*


May 5,
2018


July 29,
2017


YoY


QoQ

Storage (1)

$

335,764



$

317,069



$

311,501



8

%


6

%

Networking (2)

283,330



244,228



245,821



15

%


16

%

   Total Core

619,094



561,297



557,322



11

%


10

%

Other (3)

46,216



43,334



47,428



(3)

%


7

%

Total Revenue

$

665,310



$

604,631



$

604,750



10

%


10

%


* Results for the three months ended August 4, 2018 include total Cavium revenue from the period July 6, 2018 to August 4, 2018.

 


Three Months Ended

% of Total

August 4,
2018


May 5,
2018


July 29,
2017

Storage (1)

50

%


52

%


52

%

Networking (2)

43

%


40

%


41

%

   Total Core

93

%


92

%


93

%

Other (3)

7

%


8

%


7

%

Total Revenue

100

%


100

%


100

%


(1) Storage products are comprised primarily of HDD and SSD Controllers, Fibre Channel Adapters and Data Center Storage Solutions.

(2) Networking products are comprised primarily of Ethernet Switches, Ethernet Transceivers, Ethernet NICs, Embedded Communication Processors, Automotive Ethernet, Security Adapters and Processors as well as WiFi solutions including WiFi only, WiFi/Bluetooth combos and WiFi Microcontroller combos.  In addition, this grouping includes a few legacy product lines in which we no longer invest, but will generate revenue for several years.

(3) Other products are comprised primarily of Printer Solutions, Application Processors and others.

For further information, contact:
Ashish Saran
Vice President, Investor Relations
408-222-0777
ir@marvell.com

Marvell is a world leader in storage, cloud infrastructure, Internet of Things (IoT), connectivity and multimedia semiconductor solutions. (PRNewsfoto/Marvell Technology Group Ltd.)

 

Cision View original content with multimedia:http://www.prnewswire.com/news-releases/marvell-technology-group-ltd-reports-second-quarter-of-fiscal-year-2019-financial-results-300708404.html

SOURCE Marvell Technology Group Ltd.