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 |