Marvell Technology, Inc.

Reconciliations from GAAP to Non-GAAP (Unaudited)

(In millions, except per share amounts)

Three Months Ended

Six Months Ended

August 3,
2024

May 4,
2024

July 29,
2023

August 3,
2024

July 29,
2023

GAAP gross profit

$     587.6

$     527.8

$     521.1

$  1,115.4

$  1,078.3

Special items:

Stock-based compensation

11.2

9.7

11.0

20.9

23.0

Amortization of acquired intangible assets

191.3

180.5

185.8

371.8

369.5

Other cost of goods sold (a)

(2.6)

6.0

90.2

3.4

129.8

Total special items

199.9

196.2

287.0

396.1

522.3

Non-GAAP gross profit

$     787.5

$     724.0

$     808.1

$  1,511.5

$  1,600.6

GAAP gross margin

46.2 %

45.5 %

38.9 %

45.8 %

40.5 %

Stock-based compensation

0.9 %

0.8 %

0.8 %

0.9 %

0.9 %

Amortization of acquired intangible assets

15.0 %

15.5 %

13.9 %

15.3 %

13.9 %

Other cost of goods sold (a)

(0.2) %

0.6 %

6.7 %

0.1 %

4.8 %

Non-GAAP gross margin

61.9 %

62.4 %

60.3 %

62.1 %

60.1 %

Total GAAP operating expenses

$     688.0

$     680.1

$     726.8

$  1,368.1

$  1,466.4

Special items:

Stock-based compensation

(143.7)

(126.8)

(141.8)

(270.5)

(273.0)

Restructuring related charges (b)

(4.0)

(4.1)

(42.0)

(8.1)

(101.9)

Amortization of acquired intangible assets

(84.4)

(84.4)

(86.0)

(168.8)

(172.3)

Other (c)

(0.1)

(11.0)

(9.0)

(11.1)

(12.6)

Total special items

(232.2)

(226.3)

(278.8)

(458.5)

(559.8)

Total non-GAAP operating expenses

$     455.8

$     453.8

$     448.0

$     909.6

$     906.6

GAAP operating margin

(7.9) %

(13.1) %

(15.3) %

(10.4) %

(14.6) %

Other cost of goods sold (a)

(0.2) %

0.5 %

6.7 %

0.1 %

4.9 %

Stock-based compensation

12.2 %

11.8 %

11.4 %

12.0 %

11.1 %

Restructuring related charges (b)

0.3 %

0.4 %

3.1 %

0.3 %

3.8 %

Amortization of acquired intangible assets

21.7 %

22.8 %

20.3 %

22.2 %

20.3 %

Other (c)

— %

0.9 %

0.7 %

0.5 %

0.6 %

Non-GAAP operating margin 

26.1 %

23.3 %

26.9 %

24.7 %

26.1 %

GAAP interest and other loss, net

$      (45.8)

$      (45.5)

$      (45.9)

$      (91.3)

$      (95.8)

Special items:

Other (c)

0.3

(2.4)

(8.5)

(2.1)

(8.4)

Total special items

0.3

(2.4)

(8.5)

(2.1)

(8.4)

Total non-GAAP interest and other loss, net

$      (45.5)

$      (47.9)

$      (54.4)

$      (93.4)

$   (104.2)

GAAP net loss

$   (193.3)

$   (215.6)

$   (207.5)

$   (408.9)

$   (376.4)

Special items:

Other cost of goods sold (a)

(2.6)

6.0

90.2

3.4

129.8

Stock-based compensation

154.9

136.5

152.8

291.4

296.0

Restructuring related charges (b)

4.0

4.1

42.0

8.1

101.9

Amortization of acquired intangible assets

275.7

264.9

271.8

540.6

541.8

Other (c)

0.4

8.6

0.5

9.0

4.2

Pre-tax total special items

432.4

420.1

557.3

852.5

1,073.7

Other income tax effects and adjustments (d)

27.1

2.2

(59.6)

29.3

(142.9)

Non-GAAP net income

$     266.2

$     206.7

$     290.2

$     472.9

$     554.4

GAAP weighted-average shares — basic

865.7

865.0

860.9

865.4

858.8

GAAP weighted-average shares — diluted

865.7

865.0

860.9

865.4

858.8

Non-GAAP weighted-average shares — diluted (e)

875.7

876.0

869.4

875.9

865.3

GAAP diluted net loss per share

$      (0.22)

$      (0.25)

$      (0.24)

$      (0.47)

$      (0.44)

Non-GAAP diluted net income per share

$        0.30

$        0.24

$        0.33

$        0.54

$        0.64

(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 in operating expenses and interest and other loss, net include gain or loss 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 and six months ended August 3, 2024 and three months ended May 4, 2024. Other income tax effects and adjustments are based on a non-GAAP income tax rate of 5.1% for the three months ended July 29, 2023. Other income tax effects and adjustments are based on a non-GAAP income tax rate of 6.0% for the six months ended July 29, 2023.

(e)

Non-GAAP diluted weighted-average shares differs from GAAP diluted weighted-average shares due to the non-GAAP net income reported.