StockSelector.com
  Research, Select, & Monitor Wednesday, October 18, 2017 9:46:40 PM ET  
Trade Ideas The Market Industries Stocks Portfolio

 
Ticker Lookup
Marvell Technology Group Ltd.$18.45$.09.49%

  Quote | Ranking | Chart | Valuations | Sentiment | Industry | News | Earnings | Analysts | More...

Your Target?

 Marvell Technology Group Ltd. Reports Fourth Quarter and Fiscal Year 2017 Financial Results
   Thursday, March 02, 2017 4:05:00 PM ET

-- Q4 Revenue: $571 Million

-- Q4 GAAP gross margin of 57.3%; Non-GAAP gross margin of 57.6%

-- Q4 GAAP diluted loss per share from continuing operations of ($0.15); Non-GAAP diluted earnings per share from continuing operations of $0.22

-- Cash and short-term investments: $1.67 Billion

Marvell Technology Group Ltd. (MRVL ), a leader in storage, networking, and wireless connectivity semiconductor solutions, today reported financial results for the fourth fiscal quarter and the full fiscal year, ended January 28, 2017. Revenues for the fourth quarter of fiscal 2017 were $571 million, which exceeded the midpoint of the Company’s guidance provided on November 17, 2016.

GAAP net loss from continuing operations for the fourth quarter of fiscal 2017 was $77 million, or ($0.15) per share. Non-GAAP net income from continuing operations for the fourth quarter of fiscal 2017 was $114 million, or $0.22 per diluted share. Cash flow from operations for the quarter was $119 million.

Revenue for fiscal year 2017 was $2.3 billion. GAAP net income from continuing operations for the full year was $44 million or $0.09 per diluted share. Non-GAAP net income from continuing operations for the full year was $331 million, or $0.63 per diluted share.

"Marvell delivered another strong performance in Q4’17, which demonstrates our team’s ongoing commitment to the Company’s transformation and the growing power of our business model," said Matt Murphy, President and Chief Executive Officer. "Our performance also demonstrates the strength of our portfolio in the data storage, network infrastructure and wireless connectivity markets, which are core to our business."

First Quarter of Fiscal 2018 Financial Outlook

-- Revenue is expected to be $570 million plus or minus 2%, better than normal seasonality.

-- GAAP and Non-GAAP Gross Margins are expected to be approximately 59%.

-- GAAP Operating Expenses are expected to be $250 million to $265 million.

-- Non-GAAP Operating Expenses are expected to be $220 million to $225 million.

-- GAAP Diluted EPS from continuing operations are expected to be in the range of $0.12 to $0.18.

-- Non-GAAP Diluted EPS from continuing operations are expected to be in the range of $0.19 to $0.23.

Discontinued Operations The Company’s financial results for prior periods presented herein have been recast to reflect certain businesses that were classified as discontinued operations during the fourth quarter of fiscal year 2017.

Conference Call Marvell will conduct a conference call on Thursday, March 2, 2017 at 1:45 p.m. Pacific Time to discuss results for the fourth quarter and full fiscal year 2017. Interested parties may join the conference call by dialing 1-844-647-5488 or 1-615-247-0258, pass-code 67685468. 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 March 10, 2017.

Investor Day Marvell will hold its 2017 Investor Day at the St. Regis Hotel in New York City on March 10, 2017 from 9:30 a.m. - 12:30 p.m. Eastern Time. The live webcast and presentation materials will be available at www.marvell.com/investors. During the presentation, Marvell’s leadership team will provide an update on the company’s strategy, business and products, and answer questions from attendees.

Discussion of Non-GAAP Financial Measures Non-GAAP financial measures exclude the effect of share-based compensation expense, 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 operating performance. 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.

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 expectations regarding its first quarter of fiscal 2018 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: adverse impacts of litigation or regulatory activities; 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; 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; severe financial hardship or bankruptcy of one or more of Marvell’s major customers; 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; risks associated with acquisition and consolidation activity in the semiconductor industry; 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 October 29, 2016 as filed with the SEC on December 6, 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.

Marvell Technology Group Ltd.
Condensed Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share amounts)
                                                                               Three Months Ended                                                Year Ended
                                                                               January 28,          October 29,             January 30,          January 28,            January 30,
                                                                               2017                 2016                    2016                 2017                   2016
Net revenue                                                                    $       571,400      $           626,092     $        602,513     $       2,317,674      $       2,649,216
Cost of goods sold                                                             243,883              268,313                 292,288              1,029,527              1,442,517
Gross profit                                                                   327,517              357,779                 310,225              1,288,147              1,206,699
Operating expenses:
           Research and development                                            228,669              209,905                 225,577              880,050                1,041,922
           Selling and marketing                                               29,154               29,237                  29,849               118,311                126,113
           General and administrative                                          80,347               28,754                  37,566               181,416                804,071
           Amortization and write-off of acquired intangible assets            1,480                2,299                   2,300                8,376                  10,098
                       Total operating expenses                                339,650              270,195                 295,292              1,188,153              1,982,204
Operating income (loss)                                                        (12,133)             87,584                  14,933               99,994                 (775,505)
Interest and other income, net                                                 3,780                5,470                   1,084                17,022                 17,685
Income (loss) from continuing operations before income taxes                   (8,353)              93,054                  16,017               117,016                (757,820)
Provision (benefit) for income taxes                                           68,524               15,600                  (1,156)              73,022                 11,335
Income (loss) from continuing operations                                       (76,877)             77,454                  17,173               43,994                 (769,155)
Loss from discontinued operations, net of tax                                  (3,214)              (4,838)                 (12,973)             (22,843)               (42,245)
Net income (loss)                                                              $        (80,091)    $             72,616    $            4,200   $            21,151    $        (811,400)
Net income (loss) per share - Basic:
           Continuing operations                                               $            (0.15)  $                 0.15  $              0.03  $                0.09  $              (1.51)
           Discontinued operations                                             (0.01)               (0.01)                  (0.02)               (0.05)                 (0.08)
Net income (loss) per share basic                                              $            (0.16)  $                 0.14  $              0.01  $                0.04  $              (1.59)
Net income (loss) per share - Diluted:
Continuing operations                                                          $            (0.15)  $                 0.15  $              0.03  $                0.09  $              (1.51)
Discontinued operations                                                        (0.01)               (0.01)                  (0.02)               (0.05)                 (0.08)
Net income (loss) per share diluted                                            $            (0.16)  $                 0.14  $              0.01  $                0.04  $              (1.59)
Shares used in computing basic earnings (loss) per share                       507,834              511,090                 506,352              509,738                510,945
Shares used in computing diluted earnings (loss) per share                     507,834              522,091                 508,590              517,513                510,945
Marvell Technology Group Ltd.
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands)
                                                                                      January 28,          January 30,
Assets                                                                                2017                 2016
Current assets:
        Cash, cash equivalents and short-term investments                             $        1,668,360   $        2,282,749
        Accounts receivable, net                                                      335,384              323,300
        Inventories                                                                   171,969              200,958
        Prepaid expenses and other current assets                                     58,771               102,560
        Current assets held for sale                                                  45,846               45,095
                 Total current assets                                                 2,280,330            2,954,662
Property and equipment, net                                                           243,397              296,778
Long-term investments                                                                 4,615                11,296
Goodwill and acquired intangible assets, net                                          2,006,984            2,015,360
Other non-current assets                                                              113,324              164,031
                 Total assets                                                         $        4,648,650   $        5,442,127
Liabilities and Shareholders’ Equity
Current liabilities:
        Accounts payable                                                              $           143,484  $           180,372
        Accrued liabilities                                                           283,138              253,691
        Carnegie Mellon University accrued litigation settlement                      -                    736,000
        Deferred income                                                               68,124               53,973
        Current liabilities held for sale                                             1,670                1,749
                 Total current liabilities                                            496,416              1,225,785
Other non-current liabilities                                                         124,583              76,219
                 Total liabilities                                                    620,999              1,302,004
Shareholders’ equity:
        Common stock                                                                  1,012                1,015
        Additional paid-in capital                                                    3,016,775            3,028,921
        Accumulated other comprehensive income (loss)                                 23                   (795)
        Retained earnings                                                             1,009,841            1,110,982
                 Total shareholders’ equity                                           4,027,651            4,140,123
                 Total liabilities and shareholders’ equity                           $        4,648,650   $        5,442,127
Marvell Technology Group Ltd.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(in thousands)
                                                                                                                                   Three Months Ended                                                                                       Year Ended
                                                                                                                                   January 28,                                         January 30,                                          January 28,                                         January 30,
                                                                                                                                   2017                                                2016                                                 2017                                                2016
Cash flows from operating activities:
Net income (loss)                                                                                                                  $        (80,091)                                   $            4,200                                   $         21,151                                    $       (811,400)
Adjustments to reconcile net income (loss) to net cash provided
by operating activities:
          Depreciation and amortization                                                                                            26,683                                              22,800                                               107,851                                             100,176
          Share-based compensation                                                                                                 24,058                                              32,419                                               113,970                                             133,779
          Amortization and write-off of acquired intangible assets                                                                 1,965                                               2,947                                                10,641                                              12,688
          Impairment of long-lived assets and restructuring related charges                                                        50,500                                              289                                                  52,581                                              16,032
          Other non-cash expense (income), net                                                                                     (1,013)                                             7,885                                                7                                                   13,811
          Excess tax benefits from share-based compensation                                                                        (27)                                                1                                                    (37)                                                (26)
          Changes in assets and liabilities:
                         Accounts receivable                                                                                       26,811                                              57,628                                               (12,084)                                            97,655
                         Inventories                                                                                               18,381                                              69,544                                               29,325                                              90,586
                         Prepaid expenses and other assets(a)                                                                      12,300                                              (35,245)                                             9,722                                               (17,113)
                         Accounts payable                                                                                          (38,694)                                            (62,163)                                             (28,153)                                            (105,898)
                         Accrued liabilities and other non-current liabilities (a)                                                 64,238                                              (25,933)                                             (695,497)                                           720,798
                         Accrued employee compensation                                                                             7,597                                               (18,702)                                             18,016                                              (33,338)
                         Deferred income                                                                                           6,138                                               (2,364)                                              14,072                                              (12,398)
                                                                            Net cash provided by (used in) operating activities    118,846                                             53,306                                               (358,435)                                           205,352
Cash flows from investing activities:
          Purchases of available-for-sale securities                                                                               (146,046)                                           (133,215)                                            (489,856)                                           (1,056,045)
          Sales and maturities of available-for-sale securities                                                                    199,217                                             477,301                                              856,254                                             1,303,500
          Purchase of time deposits                                                                                                (75,000)                                            -                                                    (275,000)                                           -
          Maturities of time deposits                                                                                              75,000                                              -                                                    125,000                                             -
          Distribution from (investments in) privately-held companies                                                              (258)                                               (119)                                                16                                                  (41)
          Purchases of technology licenses                                                                                         (1,870)                                             (1,579)                                              (10,309)                                            (8,236)
          Purchases of property and equipment                                                                                      (6,786)                                             (3,894)                                              (44,510)                                            (37,255)
          Purchase of equipment previously leased                                                                                  -                                                   -                                                    -                                                   (10,240)
          Net proceeds from sale of equipment held for sale                                                                        -                                                   -                                                    -                                                   10,007
                                                                            Net cash provided by investing activities              44,257                                              338,494                                              161,595                                             201,690
Cash flows from financing activities:
          Repurchase of common stock (b)                                                                                           (125,033)                                           -                                                    (181,564)                                           (260,875)
          Proceeds from employee stock plans                                                                                       62,383                                              21,369                                               74,219                                              80,717
          Minimum tax withholding paid on behalf of employees
          for net share settlement                                                                                                 (402)                                               (482)                                                (16,683)                                            (24,358)
          Dividend payments to shareholders                                                                                        (30,457)                                            (30,447)                                             (122,292)                                           (122,821)
          Payments on technology license obligations                                                                               (7,117)                                             (1,112)                                              (20,965)                                            (12,528)
          Excess tax benefits from share-based compensation                                                                        27                                                  (1)                                                  37                                                  26
                                                                            Net cash used in financing activities                  (100,599)                                           (10,673)                                             (267,248)                                           (339,839)
Net increase (decrease) in cash and cash equivalents                                                                               62,504                                              381,127                                              (464,088)                                           67,203
Cash and cash equivalents at beginning of period                                                                                   751,588                                             897,053                                              1,278,180                                           1,210,977
Cash and cash equivalents at end of period                                                                                         $       814,092                                     $     1,278,180                                      $       814,092                                     $      1,278,180
(a)                      The Company agreed to pay a total of $750.0 million to CMU in connection with the settlement agreement that was reached in February 2016. Of this settlement, the Company recognized a charge of $736.0 million in fiscal 2016. The remaining $14.0 million was recorded in prepaid expenses and other assets, to be recognized in cost of goods sold over the remaining term of the license from February 2016 through April 2018. For further detail of the accounting for the settlement, see "Note 13 - Carnegie Mellon University Settlement" in the Notes to the Unaudited Condensed  Consolidated Financial Statements included in the Company’s Quarterly Report on Form 10-Q for the quarter ended October 29, 2016.
(b)                      Marvell records all repurchases of common stock consistent with the way it records investment purchases and sales, based on trade date in accordance with U.S. GAAP.
Marvell Technology Group Ltd.
Reconciliations from GAAP to Non-GAAP
(Unaudited)
(In thousands, except per share amounts)
                                                                        Three Months Ended                                                                                                                                 Year Ended
                                                                        January 28,                                      October 29,                                      January 30,                                      January 28,                                      January 30,
                                                                        2017                                             2016                                             2016                                             2017                                             2016
GAAP gross profit from continuing operations:                           $       327,517                                  $    357,779                                     $      310,225                                   $     1,288,147                                  $     1,206,699
Special items:
              Share-based compensation                                  1,641                                            2,189                                            1,826                                            8,334                                            7,787
              Restructuring and other related charges (a)               -                                                -                                                7                                                -                                                10,292
              Amortization of and write-off acquired intangible assets  -                                                -                                                -                                                -                                                733
              Other cost of good sold (b)                               -                                                -                                                3,710                                            -                                                84,558
Total special items                                                     1,641                                            2,189                                            5,543                                            8,334                                            103,370
Non-GAAP gross profit                                                   $       329,158                                  $    359,968                                     $      315,768                                   $     1,296,481                                  $     1,310,069
GAAP gross margin from continuing operations                            57.3%                                            57.1%                                            51.5%                                            55.6%                                            45.5%
Non-GAAP gross margin                                                   57.6%                                            57.5%                                            52.4%                                            55.9%                                            49.5%
Total GAAP operating expenses from continuing operations                $       339,650                                  $    270,195                                     $      295,292                                   $     1,188,153                                  $     1,982,204
Special items:
              Share-based compensation                                  (20,764)                                         (23,826)                                         (28,365)                                         (96,426)                                         (118,174)
              Restructuring and other related charges (a)               (98,860)                                         (1,164)                                          (4,389)                                          (105,186)                                        (53,251)
              Amortization of and write-off acquired intangible assets  (1,480)                                          (2,299)                                          (2,300)                                          (8,376)                                          (10,098)
              CMU Litigation settlement                                 -                                                -                                                -                                                -                                                (654,667)
              Other operating expenses (c)                              (315)                                            -                                                (6,836)                                          (1,544)                                          (43,914)
Total special items                                                     (121,419)                                        (27,289)                                         (41,890)                                         (211,532)                                        (880,104)
Total non-GAAP operating expenses                                       $        218,231                                 $    242,906                                     $      253,402                                   $        976,621                                 $     1,102,100
GAAP net income (loss)                                                  $        (80,091)                                $      72,616                                    $          4,200                                 $          21,151                                $      (811,400)
              Net loss from discontinued operations                     3,214                                            4,838                                            12,973                                           22,843                                           42,245
GAAP net income (loss) from continuing operations                       (76,877)                                         77,454                                           17,173                                           43,994                                           (769,155)
Special items:
              Share-based compensation                                  22,405                                           26,015                                           30,191                                           104,760                                          125,961
              Restructuring and other related charges (a)               98,860                                           1,164                                            4,396                                            105,186                                          63,543
              Amortization of and write-off acquired intangible assets  1,480                                            2,299                                            2,300                                            8,376                                            10,831
              CMU Litigation settlement                                 -                                                -                                                -                                                -                                                654,667
              Other operating expenses (c)                              315                                              -                                                10,546                                           1,544                                            128,472
Pre-tax total special items                                             123,060                                          29,478                                           47,433                                           219,866                                          983,474
Non-GAAP income before income taxes                                     46,183                                           106,932                                          64,606                                           263,860                                          214,319
Tax effect of special items (d)                                         67,989                                           -                                                -                                                66,918                                           11,511
Non-GAAP net income from continuing operations                          $       114,172                                  $    106,932                                     $        64,606                                  $        330,778                                 $        225,830
Weighted average shares - basic                                         507,834                                          511,090                                          506,352                                          509,738                                          510,945
Weighted average shares - diluted                                       507,834                                          522,091                                          508,590                                          517,513                                          510,945
Non-GAAP weighted average shares - diluted                              528,141                                          531,831                                          518,568                                          527,197                                          526,294
GAAP diluted net income (loss) per share from continuing operations     $            (0.15)                              $          0.15                                  $            0.03                                $              0.09                              $            (1.51)
Non-GAAP diluted net income per share from continuing operations        $              0.22                              $          0.20                                  $            0.12                                $              0.63                              $              0.43
(a)           Restructuring and other related charges include costs that qualify under U.S. GAAP as restructuring costs and other incremental charges that are a direct result of restructuring. Examples of other incremental charges include impairment of equipment specifically identified as part of the restructuring action and the write down of inventories.
(b)           Other COGS include charges recognized for pending and settled litigation proceedings in three and twelve months ended January 30, 2016.
(c)           Other operating expenses in the three and twelve months ended January 30, 2016 include costs of $2.9 million and $11.4 million, respectively, for the surety bonds related to the litigation with CMU, and expenses of $3.9 million and $5.0 million, respectively, related to retention bonuses offered to employees who remained through the ramp down of certain operations due to the restructuring action announced in September 2015. Other operating expenses for the twelve months ended January 30, 2016 include charges recognized for pending and settled litigation proceedings of $12.1 million, and for a payment of $15.4 million due to our former Chief Executive Officer.
(d)           Tax effect of special items in the three and twelve months ended January 28, 2017 include $68.0 million of tax expense related to restructuring actions taken, which was offset in the twelve months ended January 28, 2017 by $1.1 million related tax effect of the payment to our former Chief Executive Officer. For the twelve months ended January 30, 2016, tax effect of special items included $8.4 million of tax expense related to the restructuring actions in fiscal 2016 and $3.1 million related to the payment to our former Chief Executive Officer.
Marvell Technology Group Ltd.
Condensed Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share amounts)
                                                                               Three Months Ended
                                                                               January 28,          October 29,             July 30,             April 30,
                                                                               2017                 2016                    2016                 2016
Net revenue                                                                    $       571,400      $           626,092     $        600,799     $            519,383
Cost of goods sold                                                             243,883              268,313                 272,977              244,354
Gross profit                                                                   327,517              357,779                 327,822              275,029
Operating expenses:
           Research and development                                            228,669              209,905                 214,122              227,354
           Selling and marketing                                               29,154               29,237                  29,826               30,094
           General and administrative                                          80,347               28,754                  36,916               35,399
           Amortization and write-off of acquired intangible assets            1,480                2,299                   2,299                2,298
                       Total operating expenses                                339,650              270,195                 283,163              295,145
Operating income (loss)                                                        (12,133)             87,584                  44,659               (20,116)
Interest and other income, net                                                 3,780                5,470                   6,284                1,488
Income (loss) from continuing operations before income taxes                   (8,353)              93,054                  50,943               (18,628)
Provision (benefit) for income taxes                                           68,524               15,600                  (5,745)              (5,357)
Income (loss) from continuing operations                                       (76,877)             77,454                  56,688               (13,271)
Loss from discontinued operations, net of tax                                  (3,214)              (4,838)                 (5,383)              (9,408)
Net income (loss)                                                              $        (80,091)    $             72,616    $          51,305    $            (22,679)
Net income (loss) per share - Basic:
           Continuing operations                                               $            (0.15)  $                 0.15  $              0.11  $                (0.03)
           Discontinued operations                                             (0.01)               (0.01)                  (0.01)               (0.01)
Net income (loss) per share basic                                              $            (0.16)  $                 0.14  $              0.10  $                (0.04)
Net income (loss) per share - Diluted:
Continuing operations                                                          $            (0.15)  $                 0.15  $              0.11  $                (0.03)
Discontinued operations                                                        (0.01)               (0.01)                  (0.01)               (0.01)
Net income (loss) per share diluted                                            $            (0.16)  $                 0.14  $              0.10  $                (0.04)
Shares used in computing basic earnings (loss) per share                       507,834              511,090                 511,235              508,794
Shares used in computing diluted earnings (loss) per share                     507,834              522,091                 514,314              508,794
Marvell Technology Group Ltd.
Reconciliations from GAAP to Non-GAAP
(Unaudited)
(In thousands, except per share amounts)
                                                                                           Three Months Ended
                                                                                           January 28,                             October 29,                             July 30,                                April 30,
                                                                                           2017                                    2016                                    2016                                    2016
GAAP gross profit from continuing operations:                                              $    327,517                            $   357,779                             $ 327,822                               $ 275,029
Special items:
                                  Share-based compensation                                 1,641                                   2,189                                   2,720                                   1,784
Non-GAAP gross profit                                                                      $    329,158                            $   359,968                             $ 330,542                               $ 276,813
GAAP gross margin from continuing operations                                               57.3%                                   57.1%                                   54.6%                                   53.0%
Non-GAAP gross margin                                                                      57.6%                                   57.5%                                   55.0%                                   53.3%
Total GAAP operating expenses from continuing operations                                   $    339,650                            $   270,195                             $ 283,163                               $ 295,145
Special items:
                                  Share-based compensation                                 (20,764)                                (23,826)                                (31,440)                                (20,396)
                                  Restructuring and other related charges (a)              (98,860)                                (1,164)                                 (721)                                   (4,441)
                                  Amortization of and write-off acquired intangible assets (1,480)                                 (2,299)                                 (2,299)                                 (2,298)
                                  Other operating expenses                                 (315)                                   -                                       13                                      (1,242)
Total special items                                                                        (121,419)                               (27,289)                                (34,447)                                (28,377)
Total non-GAAP operating expenses                                                          $    218,231                            $   242,906                             $ 248,716                               $ 266,768
GAAP net income (loss)                                                                     $    (80,091)                           $     72,616                            $   51,305                              $ (22,679)
                                  Net loss from discontinued operations                    3,214                                   4,838                                   5,383                                   9,408
GAAP net income (loss) from continuing operations                                          (76,877)                                77,454                                  56,688                                  (13,271)
Special items:
                                  Share-based compensation                                 22,405                                  26,015                                  34,160                                  22,180
                                  Restructuring and other related charges (a)              98,860                                  1,164                                   721                                     4,441
                                  Amortization of and write-off acquired intangible assets 1,480                                   2,299                                   2,299                                   2,298
                                  Other operating expenses                                 315                                     -                                       (13)                                    1,242
Pre-tax total special items                                                                123,060                                 29,478                                  37,167                                  30,161
Non-GAAP income before income taxes                                                        46,183                                  106,932                                 93,855                                  16,890
Tax effect of special items (b)                                                            67,989                                  -                                       -                                       (1,071)
Non-GAAP net income from continuing operations                                             $    114,172                            $   106,932                             $   93,855                              $   15,819
Weighted average shares - basic                                                            507,834                                 511,090                                 511,235                                 508,794
Weighted average shares - diluted                                                          507,834                                 522,091                                 514,314                                 508,794
Non-GAAP weighted average shares - diluted                                                 528,141                                 531,831                                 526,453                                 522,363
GAAP diluted net income (loss) per share from continuing operations                        $        (0.15)                         $         0.15                          $       0.11                            $     (0.03)
Non-GAAP diluted net income per share from continuing operations                           $          0.22                         $         0.20                          $       0.18                            $       0.03
(a)                               Restructuring and other related charges include costs that qualify under U.S. GAAP as restructuring costs and other incremental charges that are a direct result of restructuring. Examples of other incremental charges include impairment of equipment specifically identified as part of the restructuring action.
(b)                               Tax effect of special items in the three months ended January 28, 2017 include $68.0 million of tax expense related to restructuring actions taken. Tax effect of special items in the three months ended April 30, 2016 include $1.1 million related tax effect of the payment to our former Chief Executive Officer.

T. Peter Andrew Vice President, Investor Relations 408-222-1145 pandrew@marvell.com

https://mma.prnewswire.com/media/356222/marvell_logo.jpg

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/marvell-technology-group-ltd-reports-fourth-quarter-and-fiscal-year-2017-financial-results-300417246.html

SOURCE Marvell Technology Group Ltd.

https://rt.prnewswire.com/rt.gif?NewsItemId=SF26963&Transmission_Id=201703021605PR_NEWS_USPR_____SF26963&DateId=20170302



Register |  Password |  Feedback |  Copyright |  Usage Agreement |  Privacy Policy |  Advertising |  About Us |  Contact Us |  FAQ 

Past performance is not indicative of future results

StockSelector.com, the StockSelector.com logo, and News Selects are trademarks of StockSelector.com.
Copyright © 1998 - 2017 StockSelector.com. All rights reserved.