- Q1 Net Revenue: $1.161 billion,
declined by (12)% year-on-year
- Q1 Gross Margin: 45.5% GAAP gross margin; 62.4% non-GAAP gross
margin
- Q1 Diluted income (loss) per share: $(0.25) GAAP diluted loss per share; $0.24 non-GAAP diluted income per share
SANTA
CLARA, Calif., May 30, 2024
/PRNewswire/ -- Marvell Technology, Inc. (NASDAQ: MRVL), a leader
in data infrastructure semiconductor solutions, today reported
financial results for the first quarter of fiscal year 2025.
Net revenue for the first quarter of fiscal 2025 was
$1.161 billion, $11.0 million above the mid-point of the
Company's guidance provided on March 7,
2024. GAAP net loss for the first quarter of fiscal 2025 was
$(215.6) million, or $(0.25) per diluted share. Non-GAAP net income
for the first quarter of fiscal 2025 was $206.7 million, or $0.24 per diluted share. Cash flow from
operations for the first quarter was $324.5
million.
"Marvell delivered first quarter fiscal 2025 revenue of
$1.161 billion, above the mid-point
of guidance, driven by stronger than forecasted demand from AI. Our
data center revenue grew 87% year over year, with the start of a
ramp in our custom AI programs complementing our substantial base
of electro-optics revenue," said Matt
Murphy, Marvell's Chairman and CEO. "For the second quarter
of fiscal 2025, we are guiding an 8% sequential increase in revenue
at the mid-point, fueled by ramping custom AI silicon. We see a
favorable setup for the second half of this fiscal year, driven by
continued growth in data center and the beginning of a recovery in
enterprise networking and carrier infrastructure."
Second Quarter of Fiscal 2025 Financial Outlook
- Net revenue is expected to be $1.250
billion +/- 5%.
- GAAP gross margin is expected to be approximately 46.2%.
- Non-GAAP gross margin is expected to be approximately
62.0%.
- GAAP operating expenses are expected to be approximately
$688 million.
- Non-GAAP operating expenses are expected to be approximately
$455 million.
- Basic weighted-average shares outstanding are expected to be
867 million.
- Diluted weighted-average shares outstanding are expected to be
877 million.
- GAAP diluted loss per share is expected to be $(0.20) +/- $0.05
per share.
- Non-GAAP diluted income per share is expected to be
$0.29 +/- $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, May 30, 2024 at 1:45 p.m. Pacific Time to discuss results for the
first quarter of fiscal year 2025. Interested parties may join the
conference call without operator assistance by registering and
entering their phone number at https://emportal.ink/4dgLjlZ to
receive an instant automated call back. To join the call with
operator assistance, please dial 1-800-836-8184 or 1-646-357-8785.
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 1-888-660-6345 or
1-646-517-4150, passcode 60615# until Thursday, June 6, 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 first quarter of fiscal 2025, a non-GAAP tax rate of 7.0%
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 high or 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, 5G markets, and
Artificial Intelligence (AI) markets; 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; our dependence on
a small number of customers;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; 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 high or 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
|
|
|
May 4,
2024
|
|
February 3,
2024
|
|
April 29,
2023
|
Net revenue
|
|
$ 1,160.9
|
|
$ 1,426.5
|
|
$ 1,321.7
|
Cost of goods
sold
|
|
633.1
|
|
762.4
|
|
764.5
|
Gross
profit
|
|
527.8
|
|
664.1
|
|
557.2
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
Research and
development
|
|
476.1
|
|
459.6
|
|
480.7
|
Selling, general and
administrative
|
|
199.9
|
|
212.0
|
|
199.0
|
Restructuring related
charges
|
|
4.1
|
|
25.8
|
|
59.9
|
Total operating
expenses
|
|
680.1
|
|
697.4
|
|
739.6
|
Operating
loss
|
|
(152.3)
|
|
(33.3)
|
|
(182.4)
|
Interest
expense
|
|
(48.8)
|
|
(52.6)
|
|
(52.7)
|
Interest income and
other, net
|
|
3.3
|
|
(1.4)
|
|
2.8
|
Interest and other
loss, net
|
|
(45.5)
|
|
(54.0)
|
|
(49.9)
|
Loss before income
taxes
|
|
(197.8)
|
|
(87.3)
|
|
(232.3)
|
Provision (benefit)
for income taxes
|
|
17.8
|
|
305.4
|
|
(63.4)
|
Net loss
|
|
$
(215.6)
|
|
$
(392.7)
|
|
$
(168.9)
|
|
|
|
|
|
|
|
Net loss per share —
basic
|
|
$
(0.25)
|
|
$
(0.45)
|
|
$
(0.20)
|
|
|
|
|
|
|
|
Net loss per share —
diluted
|
|
$
(0.25)
|
|
$
(0.45)
|
|
$
(0.20)
|
|
|
|
|
|
|
|
Weighted-average
shares:
|
|
|
|
|
|
|
Basic
|
|
865.0
|
|
864.7
|
|
856.7
|
Diluted
|
|
865.0
|
|
864.7
|
|
856.7
|
Marvell Technology,
Inc. Condensed Consolidated Balance Sheets
(Unaudited) (In millions)
|
|
|
|
May 4,
2024
|
|
February 3,
2024
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
847.7
|
|
$
950.8
|
Accounts receivable,
net
|
|
881.9
|
|
1,121.6
|
Inventories
|
|
826.4
|
|
864.4
|
Prepaid expenses and
other current assets
|
|
91.7
|
|
125.9
|
Total current
assets
|
|
2,647.7
|
|
3,062.7
|
Property and
equipment, net
|
|
758.0
|
|
756.0
|
Goodwill
|
|
11,586.9
|
|
11,586.9
|
Acquired intangible
assets, net
|
|
3,739.2
|
|
4,004.1
|
Deferred tax
assets
|
|
327.0
|
|
311.9
|
Other non-current
assets
|
|
1,432.2
|
|
1,506.9
|
Total
assets
|
|
$
20,491.0
|
|
$
21,228.5
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
|
$
320.9
|
|
$
411.3
|
Accrued
liabilities
|
|
861.0
|
|
1,032.9
|
Accrued employee
compensation
|
|
167.5
|
|
262.7
|
Short-term
debt
|
|
118.3
|
|
107.3
|
Total current
liabilities
|
|
1,467.7
|
|
1,814.2
|
Long-term
debt
|
|
4,027.6
|
|
4,058.6
|
Other non-current
liabilities
|
|
517.0
|
|
524.3
|
Total
liabilities
|
|
6,012.3
|
|
6,397.1
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
Common
stock
|
|
1.7
|
|
1.7
|
Additional paid-in
capital
|
|
14,760.7
|
|
14,845.3
|
Accumulated other
comprehensive income
|
|
0.4
|
|
1.1
|
Accumulated
deficit
|
|
(284.1)
|
|
(16.7)
|
Total stockholders'
equity
|
|
14,478.7
|
|
14,831.4
|
Total liabilities and
stockholders' equity
|
|
$
20,491.0
|
|
$
21,228.5
|
Marvell Technology,
Inc.
|
Condensed
Consolidated Statements of Cash Flows (Unaudited)
|
(In
millions)
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
May 4,
2024
|
|
April 29,
2023
|
Cash flows from
operating activities:
|
|
|
|
|
Net loss
|
|
$
(215.6)
|
|
$
(168.9)
|
Adjustments to
reconcile net loss to net cash provided by operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
|
72.6
|
|
78.4
|
Stock-based
compensation
|
|
136.5
|
|
143.2
|
Amortization of
acquired intangible assets
|
|
264.9
|
|
270.0
|
Restructuring related
impairment charges
|
|
0.7
|
|
10.1
|
Deferred income
taxes
|
|
(22.2)
|
|
(139.1)
|
Other expense,
net
|
|
21.8
|
|
12.8
|
Changes in assets and
liabilities:
|
|
|
|
|
Accounts
receivable
|
|
239.7
|
|
191.3
|
Prepaid expenses and
other assets
|
|
85.8
|
|
7.9
|
Inventories
|
|
38.8
|
|
41.2
|
Accounts
payable
|
|
(58.3)
|
|
(104.8)
|
Accrued employee
compensation
|
|
(92.2)
|
|
(60.1)
|
Accrued liabilities
and other non-current liabilities
|
|
(148.0)
|
|
(73.6)
|
Net cash provided by
operating activities
|
|
324.5
|
|
208.4
|
Cash flows from
investing activities:
|
|
|
|
|
Purchases of
technology licenses
|
|
(0.5)
|
|
(2.8)
|
Purchases of property
and equipment
|
|
(91.5)
|
|
(99.8)
|
Other, net
|
|
(9.9)
|
|
(0.1)
|
Net cash used in
investing activities
|
|
(101.9)
|
|
(102.7)
|
Cash flows from
financing activities:
|
|
|
|
|
Repurchases of common
stock
|
|
(150.0)
|
|
—
|
Proceeds from employee
stock plans
|
|
2.3
|
|
7.5
|
Tax withholding paid
on behalf of employees for net share settlement
|
|
(74.1)
|
|
(72.6)
|
Dividend payments to
stockholders
|
|
(51.8)
|
|
(51.4)
|
Payments on technology
license obligations
|
|
(30.2)
|
|
(50.0)
|
Proceeds from
borrowings
|
|
—
|
|
200.0
|
Principal payments of
debt
|
|
(21.9)
|
|
(21.9)
|
Net cash provided by
(used in) financing activities
|
|
(325.7)
|
|
11.6
|
Net increase
(decrease) in cash and cash equivalents
|
|
(103.1)
|
|
117.3
|
Cash and cash
equivalents at beginning of period
|
|
950.8
|
|
911.0
|
Cash and cash
equivalents at end of period
|
|
$
847.7
|
|
$
1,028.3
|
Marvell Technology,
Inc.
|
Reconciliations from
GAAP to Non-GAAP (Unaudited)
|
(In millions, except
per share amounts)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
May 4,
2024
|
|
February 3,
2024
|
|
April 29,
2023
|
GAAP gross
profit
|
|
$ 527.8
|
|
$ 664.1
|
|
$ 557.2
|
Special
items:
|
|
|
|
|
|
|
Stock-based
compensation
|
|
9.7
|
|
10.4
|
|
12.0
|
Amortization of
acquired intangible assets
|
|
180.5
|
|
194.3
|
|
183.7
|
Other cost of goods
sold (a)
|
|
6.0
|
|
42.3
|
|
39.6
|
Total special
items
|
|
196.2
|
|
247.0
|
|
235.3
|
Non-GAAP gross
profit
|
|
$ 724.0
|
|
$ 911.1
|
|
$ 792.5
|
|
|
|
|
|
|
|
GAAP gross
margin
|
|
45.5 %
|
|
46.6 %
|
|
42.2 %
|
Stock-based
compensation
|
|
0.8 %
|
|
0.7 %
|
|
0.9 %
|
Amortization of
acquired intangible assets
|
|
15.5 %
|
|
13.6 %
|
|
13.9 %
|
Other cost of goods
sold (a)
|
|
0.6 %
|
|
3.0 %
|
|
3.0 %
|
Non-GAAP gross
margin
|
|
62.4 %
|
|
63.9 %
|
|
60.0 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total GAAP operating
expenses
|
|
$ 680.1
|
|
$ 697.4
|
|
$ 739.6
|
Special
items:
|
|
|
|
|
|
|
Stock-based
compensation
|
|
(126.8)
|
|
(144.9)
|
|
(131.2)
|
Restructuring related
charges (b)
|
|
(4.1)
|
|
(25.8)
|
|
(59.9)
|
Amortization of
acquired intangible assets
|
|
(84.4)
|
|
(92.0)
|
|
(86.3)
|
Other (c)
|
|
(11.0)
|
|
(6.2)
|
|
(3.6)
|
Total special
items
|
|
(226.3)
|
|
(268.9)
|
|
(281.0)
|
Total non-GAAP
operating expenses
|
|
$ 453.8
|
|
$ 428.5
|
|
$ 458.6
|
|
|
|
|
|
|
|
GAAP operating
margin
|
|
(13.1) %
|
|
(2.3) %
|
|
(13.8) %
|
Other cost of goods
sold (a)
|
|
0.5 %
|
|
3.0 %
|
|
3.0 %
|
Stock-based
compensation
|
|
11.8 %
|
|
10.9 %
|
|
10.8 %
|
Restructuring related
charges (b)
|
|
0.4 %
|
|
1.8 %
|
|
4.5 %
|
Amortization of
acquired intangible assets
|
|
22.8 %
|
|
20.1 %
|
|
20.4 %
|
Other (c)
|
|
0.9 %
|
|
0.3 %
|
|
0.3 %
|
Non-GAAP operating
margin
|
|
23.3 %
|
|
33.8 %
|
|
25.2 %
|
|
|
|
|
|
|
|
GAAP interest and
other loss, net
|
|
$ (45.5)
|
|
$ (54.0)
|
|
$ (49.9)
|
Special
items:
|
|
|
|
|
|
|
Other (c)
|
|
(2.4)
|
|
(1.3)
|
|
0.1
|
Total special
items
|
|
(2.4)
|
|
(1.3)
|
|
0.1
|
Total non-GAAP
interest and other loss, net
|
|
$ (47.9)
|
|
$ (55.3)
|
|
$ (49.8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net
loss
|
|
$
(215.6)
|
|
$
(392.7)
|
|
$
(168.9)
|
Special
items:
|
|
|
|
|
|
|
Other cost of goods
sold (a)
|
|
6.0
|
|
42.3
|
|
39.6
|
Stock-based
compensation
|
|
136.5
|
|
155.3
|
|
143.2
|
Restructuring related
charges (b)
|
|
4.1
|
|
25.8
|
|
59.9
|
Amortization of
acquired intangible assets
|
|
264.9
|
|
286.3
|
|
270.0
|
Other (c)
|
|
8.6
|
|
4.9
|
|
3.7
|
Pre-tax total special
items
|
|
420.1
|
|
514.6
|
|
516.4
|
Other income tax
effects and adjustments (d)
|
|
2.2
|
|
279.7
|
|
(83.3)
|
Non-GAAP net
income
|
|
$ 206.7
|
|
$ 401.6
|
|
$ 264.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP weighted-average
shares — basic
|
|
865.0
|
|
864.7
|
|
856.7
|
GAAP weighted-average
shares — diluted
|
|
865.0
|
|
864.7
|
|
856.7
|
Non-GAAP
weighted-average shares — diluted (e)
|
|
876.0
|
|
873.9
|
|
861.2
|
|
|
|
|
|
|
|
GAAP diluted net loss
per share
|
|
$ (0.25)
|
|
$ (0.45)
|
|
$ (0.20)
|
Non-GAAP diluted net
income per share
|
|
$
0.24
|
|
$
0.46
|
|
$
0.31
|
|
|
(a)
|
Other cost of goods
sold includes charges for an intellectual property licensing claim,
product claim related
matters that were fully resolved in the fourth quarter of fiscal
2024, and acquisition integration related
inventory costs.
|
|
|
(b)
|
Restructuring and other
related items include employee severance costs, asset impairment
charges,
facilities related charges, and other.
|
|
|
(c)
|
Other costs included in
operating expenses and other income, net include charges for an
intellectual
property matter, net gains on investments, and asset acquisition
related costs.
|
|
|
(d)
|
Other income tax
effects and adjustments relate to tax provision based on a non-GAAP
income tax rate of
7.0% for the three months ended May 4, 2024 and April 29, 2023.
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 February 3, 2024. In the three months ended February 3, 2024,
we excluded $289 million of non-
recurring income tax expense.
|
|
|
(e)
|
Non-GAAP diluted
weighted-average shares differs from GAAP diluted weighted-average
shares due to
the non-GAAP net income reported.
|
Marvell
Technology, Inc.
|
Outlook for
the Second Quarter of Fiscal Year 2025
|
Reconciliations from
GAAP to Non-GAAP (Unaudited)
|
(In millions,
except per share amounts)
|
|
|
|
Outlook for Three
Months Ended
August 3,
2024
|
GAAP net
revenue
|
$1,250 +/-
5%
|
Special
items:
|
—
|
Non-GAAP net
revenue
|
$1,250 +/-
5%
|
|
|
GAAP gross
margin
|
~ 46.2%
|
Special
items:
|
|
Stock-based
compensation
|
0.8 %
|
Amortization of
acquired intangible assets
|
15.0 %
|
Non-GAAP gross
margin
|
~ 62.0%
|
|
|
Total GAAP
operating expenses
|
~ $688
|
Special
items:
|
|
Stock-based
compensation
|
149
|
Amortization of
acquired intangible assets
|
84
|
Total non-GAAP
operating expenses
|
~ $455
|
|
|
|
|
GAAP diluted loss
per share
|
$(0.20) +/-
$0.05
|
Special
items:
|
|
Stock-based
compensation
|
0.18
|
Amortization of
acquired intangible assets
|
0.31
|
Non-GAAP diluted net
income per share
|
$0.29 +/-
$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)
|
May 4,
2024
|
|
February 3,
2024
|
|
April 29,
2023
|
|
YoY
|
|
QoQ
|
Data center
|
$
816.4
|
|
$
765.3
|
|
$
435.8
|
|
87 %
|
|
7 %
|
Enterprise
networking
|
153.1
|
|
265.0
|
|
364.6
|
|
(58) %
|
|
(42) %
|
Carrier
infrastructure
|
71.8
|
|
170.0
|
|
289.9
|
|
(75) %
|
|
(58) %
|
Consumer
|
42.0
|
|
143.9
|
|
142.1
|
|
(70) %
|
|
(71) %
|
Automotive/industrial
|
77.6
|
|
82.3
|
|
89.3
|
|
(13) %
|
|
(6) %
|
Total Net
Revenue
|
$
1,160.9
|
|
$
1,426.5
|
|
$
1,321.7
|
|
(12) %
|
|
(19) %
|
|
|
|
|
|
Three Months
Ended
|
Revenue by End
Market
% of
Total
|
|
|
|
|
May 4,
2024
|
|
February 3,
2024
|
|
April 29,
2023
|
Data center
|
|
|
|
|
70 %
|
|
54 %
|
|
33 %
|
Enterprise
networking
|
|
|
|
|
13 %
|
|
19 %
|
|
27 %
|
Carrier
infrastructure
|
|
|
|
|
6 %
|
|
12 %
|
|
22 %
|
Consumer
|
|
|
|
|
4 %
|
|
10 %
|
|
11 %
|
Automotive/industrial
|
|
|
|
|
7 %
|
|
5 %
|
|
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