Marvell Technology, Inc. | ||||||||||||
Reconciliations from GAAP to Non-GAAP (Unaudited) | ||||||||||||
(In thousands, except per share amounts) | ||||||||||||
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| Three Months Ended | ||||||||||
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| May 1,
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| January 30,
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| May 2,
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GAAP gross profit: |
| $ | 418,141 |
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| $ | 421,132 |
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| $ | 326,902 |
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Special items: |
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Share-based compensation |
| 9,803 |
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| 4,265 |
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| 3,538 |
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Amortization of acquired intangible assets |
| 93,812 |
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| 83,327 |
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| 86,567 |
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Other cost of goods sold (a) |
| 13,723 |
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| 796 |
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| 18,562 |
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Total special items |
| 117,338 |
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| 88,388 |
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| 108,667 |
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Non-GAAP gross profit |
| $ | 535,479 |
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| $ | 509,520 |
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| $ | 435,569 |
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GAAP gross margin |
| 50.2 | % |
| 52.8 | % |
| 47.1 | % | |||
Non-GAAP gross margin |
| 64.3 | % |
| 63.9 | % |
| 62.8 | % | |||
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Total GAAP operating expenses |
| $ | 500,452 |
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| $ | 422,868 |
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| $ | 422,898 |
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Special items: |
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Share-based compensation |
| (99,790) |
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| (55,214) |
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| (56,149) |
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Restructuring related charges (b) |
| (12,886) |
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| (9,570) |
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| (21,287) |
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Amortization of acquired intangible assets |
| (34,827) |
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| (26,355) |
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| (26,355) |
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Legal settlement (c) |
| — |
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| (36,000) |
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| — |
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Other operating expenses (d) |
| (46,684) |
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| (12,480) |
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| (19,403) |
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Total special items |
| (194,187) |
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| (139,619) |
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| (123,194) |
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Total non-GAAP operating expenses |
| $ | 306,265 |
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| $ | 283,249 |
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| $ | 299,704 |
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GAAP operating margin |
| (9.9) | % |
| (0.2) | % |
| (13.8) | % | |||
Other cost of goods sold (a) |
| 1.6 | % |
| 0.1 | % |
| 2.7 | % | |||
Share-based compensation |
| 13.2 | % |
| 7.5 | % |
| 8.6 | % | |||
Restructuring related charges (b) |
| 1.5 | % |
| 1.2 | % |
| 3.1 | % | |||
Amortization of acquired intangible assets |
| 15.5 | % |
| 13.7 | % |
| 16.3 | % | |||
Legal settlement (c) |
| — | % |
| 4.5 | % |
| — | % | |||
Other operating expenses (d) |
| 5.6 | % |
| 1.6 | % |
| 2.7 | % | |||
Non-GAAP operating margin |
| 27.5 | % |
| 28.4 | % |
| 19.6 | % | |||
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GAAP interest and other income (loss), net |
| $ | (33,696) |
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| $ | (21,104) |
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| $ | (12,018) |
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Special items: |
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Restructuring and other related items (b) |
| — |
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| (28) |
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| 434 |
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Debt issuance related costs (e) |
| 16,901 |
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| 6,045 |
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| — |
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Total special items |
| 16,901 |
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| 6,017 |
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| 434 |
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Total non-GAAP interest and other income (loss), net |
| $ | (16,795) |
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| $ | (15,087) |
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| $ | (11,584) |
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GAAP net loss |
| $ | (88,242) |
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| $ | 16,536 |
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| $ | (113,033) |
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Special items: |
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Other cost of goods sold (a) |
| 13,723 |
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| 796 |
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| 18,562 |
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Share-based compensation |
| 109,593 |
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| 59,479 |
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| 59,687 |
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Restructuring related charges (b) |
| 12,886 |
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| 9,542 |
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| 21,721 |
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Legal settlement (c) |
| — |
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| 36,000 |
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| — |
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Other operating expenses (d) |
| 46,684 |
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| 12,480 |
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| 19,403 |
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Amortization of acquired intangible assets |
| 128,639 |
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| 109,682 |
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| 112,922 |
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Debt issuance related costs (e) |
| 16,901 |
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| 6,045 |
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| — |
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Pre-tax total special items |
| 328,426 |
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| 234,024 |
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| 232,295 |
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Other income tax effects and adjustments (f) |
| (38,385) |
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| (49,936) |
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| (1,229) |
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Non-GAAP net income |
| $ | 201,799 |
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| $ | 200,624 |
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| $ | 118,033 |
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GAAP weighted average shares — basic |
| 693,378 |
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| 673,529 |
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| 663,547 |
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GAAP weighted average shares — diluted |
| 693,378 |
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| 687,959 |
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| 663,547 |
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Non-GAAP weighted average shares — diluted (g) |
| 707,488 |
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| 687,959 |
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| 670,841 |
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GAAP diluted net loss per share |
| $ | (0.13) |
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| $ | 0.02 |
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| $ | (0.17) |
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Non-GAAP diluted net income per share |
| $ | 0.29 |
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| $ | 0.29 |
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| $ | 0.18 |
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(a) | Other costs of goods sold includes amortization of acquired inventory fair value adjustments. |
(b) | Restructuring related charges include employee severance costs, facilities related charges, and other. |
(c) | Represents a legal settlement relating to a commercial agreement. |
(d) | Other operating expenses include integration and merger costs associated with acquisitions. |
(e) | Debt issuance related costs is associated with partial term loan repayment and bridge financing. |
(f) | Other income tax effects and adjustments relate to tax provision based on a non-GAAP income tax rate of 5.0%. |
(g) | Non-GAAP diluted weighted average shares differs from GAAP diluted weighted average shares due to the non-GAAP net income reported. |