SANTA CLARA, Calif.,
Nov. 17, 2016 /PRNewswire/
-- Marvell Technology Group Ltd. (NASDAQ: MRVL), a leader in
storage, networking, and connectivity semiconductor solutions,
today announced that the Board of Directors has authorized a
$1 billion share buyback
program. This newly authorized stock repurchase program
replaces in its entirety the prior $3.25
billion stock repurchase program, which had approximately
$115 million of repurchase authority
remaining. The Company currently intends to repurchase
approximately $500 million worth of
shares over the next 12 months.
Under the program authorized by its Board of Directors, Marvell
may repurchase shares in open-market purchases or through privately
negotiated transactions. The extent to which Marvell repurchases
its shares and the timing of such repurchases will depend upon
market conditions and other corporate considerations, as determined
by Marvell's management team. The repurchase program may be
suspended or discontinued at any time.
In addition to the share buyback program, the Board of Directors
has approved a dividend payment of $0.06 per share to all shareholders of record as
of December 6, 2016. Marvell intends
to pay the dividend on December 28,
2016.
"As Marvell continues to drive profitable growth, we will both
invest in our core businesses and return cash to shareholders,"
said Matt Murphy, President
and Chief Executive Officer. "The stock repurchase program we
are announcing today demonstrates our confidence in our long-term
growth prospects and commitment to delivering shareholder
value."
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:
Marvell's intention to repurchase approximately $500 million worth of shares over the next 12
months, and extent and timing of such repurchases. 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: market conditions and
other business considerations that may affect the timing and extent
of the Company's share repurchase program; Marvell's ability to
implement its restructuring in a timely manner; the amount and
timing of anticipated charges associated with the restructuring;
Marvell's ability to increase its operational efficiency and
decrease its operating expenses to the anticipated level; its
ability to divest certain non-strategic businesses within the
anticipated timeframes and with the anticipated cost savings;
actions that may be taken by Marvell as a result of the Audit
Committee's investigation; adverse impacts of litigation or
regulatory activities; Marvell's ability to compete in products and
prices in an intensely competitive industry; Marvell's reliance on
the hard disk drive and wireless markets, which are highly cyclical
and intensely competitive; costs and liabilities relating to
current and future litigation; Marvell's reliance on a few
customers for a significant portion of its revenue; Marvell's
ability to develop and introduce new and enhanced products in a
timely and cost effective manner and the adoption of those products
in the market; seasonality in sales of consumer devices in which
Marvell's products are incorporated; uncertainty in the worldwide
economic conditions; risks associated with manufacturing and
selling a majority of Marvell's products and Marvell's customers'
products outside of the United
States; 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 Quarterly Report on Form 10-Q for the
fiscal quarter ended July 30, 2016 as
filed with the SEC on September 8,
2016, 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, network infrastructure, and
wireless 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.
For further information, contact:
John Spencer Ahn
Investor Relations
408-222-7544
johnahn@marvell.com
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SOURCE Marvell Technology Group Ltd.