Marvell Technology Group Ltd. Reports Second Quarter of Fiscal Year 2019 Financial Results
SANTA CLARA, Calif., Sept. 6, 2018 /PRNewswire/ -- Marvell Technology Group Ltd. (NASDAQ: MRVL), a leader in infrastructure semiconductor solutions, today reported financial results for the second fiscal quarter of fiscal year 2019.
Marvell completed the acquisition of Cavium Inc. ("Cavium") on July 6, 2018 ("the acquisition date"), approximately four weeks before the end of the second quarter of fiscal year 2019. Marvell's results for the second quarter of fiscal 2019 include the results of Cavium from the acquisition date, while the prior periods presented do not.
Financial highlights presented below are for the combined company and Marvell stand-alone (excluding Cavium results) for the second quarter of fiscal year 2019 (in thousands, except percentages and per share amounts). We are providing the Marvell stand-alone non-GAAP results on a one time basis this quarter in light of the fact that our previously provided financial outlook for the second quarter excluded any impact of the Cavium acquisition.
Three Months Ended
August 4, 2018
Combined Combined Marvell
GAAP Non-GAAP Stand-alone
Non-GAAP
--------
Net
revenue $665,310 $665,310 $623,963
Gross
margin 56.7% 63.7% 63.5%
Operating
margin (1.2)% 26.7% 30.1%
Net
income $6,759 $161,961 $183,349
Diluted
net
income
per
share $0.01 $0.28 $0.35
The financial outlook for the third quarter of fiscal year 2019 includes expected results of Cavium for the full quarter.
Revenue for the second quarter of fiscal 2019 was $665 million.
GAAP net income from continuing operations for the second quarter of fiscal 2019 was $7 million, or $0.01 per diluted share. Non-GAAP net income from continuing operations for the second quarter of fiscal 2019 was $162 million, or $0.28 per diluted share. Cash flow from operations for the second quarter was $62 million.
"Marvell standalone delivered strong second-quarter financial results. We achieved our operating margin target 18 months ahead of plan," said Matt Murphy, Marvell's President and Chief Executive Officer. "During the quarter, we also took another major step in our transformation by closing the acquisition of Cavium, on schedule with our original plan. Our combined talent and portfolio now positions Marvell to lead some of the most exciting trends driving growth in the infrastructure market, including Cloud and Edge computing, 5G and automotive."
Third Quarter of Fiscal 2019 Financial Outlook
-- Revenue is expected to be $825 million to $865 million.
-- GAAP gross margin is expected to be in the range of 44% to 45%.
-- Non-GAAP gross margin is expected to be in the range of 64% to 65%.
-- GAAP operating expenses are expected to be $390 million to $400 million.
-- Non-GAAP operating expenses are expected to be $300 million to $305
million.
-- GAAP diluted EPS from continuing operations is expected to be in the
range of $(0.08) to $(0.04) per share.
-- Non-GAAP diluted EPS from continuing operations is expected to be in the
range of $0.30 to $0.34 per share.
Conference Call
Marvell will conduct a conference call on Thursday, September 6, 2018 at 1:45 p.m. Pacific Time to discuss results for the second quarter of fiscal 2019. Interested parties may join the conference call by dialing 1-844-647-5488 or 1-615-247-0258, pass-code 5196554. 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 Friday, September 14, 2018.
Discussion of Non-GAAP Financial Measures
Non-GAAP financial measures exclude the effect of share-based compensation expense, amortization of the inventory fair value step up, 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 business.
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 GAAP income in calculating 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. 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; significant changes in Marvell's geographic mix of revenue and expenses; or changes to Marvell's corporate structure. For the second quarter of fiscal 2019, a non-GAAP tax rate of 4% has been applied to the non-GAAP financial results.
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.
Marvell stand-alone non-GAAP results represent combined non-GAAP results after excluding Cavium results for the portion of the second quarter falling after the acquisition date. We are providing the Marvell stand-alone non-GAAP results on a one time basis for the second quarter of fiscal 2019 in light of the fact that our previously provided financial outlook for the second quarter excluded any impact of the Cavium acquisition.
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: the impact on future performance of Marvell's newly announced products; Marvell's expectations regarding its second quarter of fiscal 2019 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: the effect of the announcement or pendency of the consummation of our acquisition of Cavium on the combined company's business relationships, operating results, and business generally; potential difficulties in Cavium employee retention as a result of the transaction; the ability of Marvell to successfully integrate Cavium's operations and product lines; the ability of Marvell to implement its plans, forecasts, and other expectations with respect to Cavium's business and realize the anticipated synergies and cost savings in the time frame anticipated or at all, and identify and realize additional opportunities; the risk of downturns in the highly cyclical semiconductor industry; Marvell's dependence upon the storage and networking markets, which are highly cyclical and intensely competitive; the outcome of pending or future litigation and legal and regulatory proceedings; Marvell's dependence on a small number of customers; severe financial hardship or bankruptcy of one or more of Marvell's major customers; Marvell's ability and the ability of its customers to successfully compete in the markets in which it serves; Marvell's reliance on independent foundries and subcontractors for the manufacture, assembly and testing of its products; Marvell's ability and its customers' ability to develop new and enhanced products and the adoption of those products in the market; decreases in gross margin and results of operations in the future due to a number of factors; Marvell's ability to estimate customer demand and future sales accurately; Marvell's ability to scale its operations in response to changes in demand for existing or new products and services; the impact of international conflict and continued economic volatility in either domestic or foreign markets; the effects of transitioning to smaller geometry process technologies; the risks associated with manufacturing and selling a majority of products and customers' products outside of the United States; risks associated with acquisition and consolidation activity in the semiconductor industry; the impact of any change in the income tax laws in jurisdictions where Marvell operates and the loss of any beneficial tax treatment that Marvell currently enjoys; the effects of any potential acquisitions or investments; Marvell's ability to protect its intellectual property; the impact and costs associated with changes in international financial and regulatory conditions; Marvell's maintenance of an effective system of internal controls; 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 Annual Report on Form 10-K for the fiscal year ended February 3, 2018 as filed with the SEC on March 29, 2018, 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, networking and 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 Six Months Ended
August 4, May 5, July 29, August 4, July 29,
2018 2018 2017 2018 2017
---- ---- ---- ---- ----
Net revenue $665,310 $604,631 $604,750 $1,269,941 $1,177,459
Cost of goods sold 288,200 228,938 239,572 517,138 466,770
Gross profit 377,110 375,693 365,178 752,803 710,689
------- ------- ------- ------- -------
Operating expenses:
Research and development 216,285 176,734 180,871 393,019 368,967
Selling, general and administrative 133,701 72,313 55,659 206,014 110,763
Restructuring related charges 35,415 1,567 4,285 36,982 5,171
------ ----- ----- ------ -----
Total operating expenses 385,401 250,614 240,815 636,015 484,901
------- ------- ------- ------- -------
Operating income from continuing
operations (8,291) 125,079 124,363 116,788 225,788
Interest income 3,575 6,069 3,830 9,644 7,342
Interest expense (15,795) (244) (80) (16,039) (131)
Other income (loss), net (2,701) 1,471 3,438 (1,230) 3,310
Interest and other income (loss), net (14,921) 7,296 7,188 (7,625) 10,521
------- ----- ----- ------ ------
Income from continuing operations
before income taxes (23,212) 132,375 131,551 109,163 236,309
Provision (benefit) for income taxes (29,971) 3,763 (3,899) (26,208) 1,267
Income from continuing operations,
net of tax 6,759 128,612 135,450 135,371 235,042
----- ------- ------- ------- -------
Income from discontinued operations,
net of tax - - 29,809 - 36,838
Net income $6,759 $128,612 $165,259 $135,371 $271,880
====== ======== ======== ======== ========
Net income per share - Basic:
Continuing operations $0.01 $0.26 $0.27 $0.26 $0.47
===== ===== ===== ===== =====
Discontinued operations $ - $ - $0.06 $ - $0.07
=== === === === ===== === === =====
Net income per share - Basic $0.01 $0.26 $0.33 $0.26 $0.54
Net income per share - Diluted:
Continuing operations $0.01 $0.25 $0.26 $0.25 $0.46
===== ===== ===== ===== =====
Discontinued operations $ - $ - $0.06 $ - $0.07
=== === === === ===== === === =====
Net income per share - Diluted $0.01 $0.25 $0.32 $0.25 $0.53
Weighted average shares:
Basic 552,238 497,335 500,817 524,787 502,303
Diluted 562,149 508,716 510,309 535,433 513,951
Marvell Technology Group Ltd.
Condensed Consolidated Balance Sheets (Unaudited)
(In thousands)
August 4, February 3,
2018 2018
---- ----
Assets
Current assets:
Cash and cash equivalents $498,659 $888,482
Short-term investments 25,000 952,790
Accounts receivable, net 443,276 280,395
Inventories 473,429 170,039
Prepaid expenses and other current assets 72,388 41,482
Assets held for sale 31,182 30,767
------ ------
Total current assets 1,543,934 2,363,955
Property and equipment, net 327,645 202,222
Goodwill 5,497,608 1,993,310
Acquired intangible assets, net 2,718,061 -
Other non-current assets 275,598 148,800
Total assets $10,362,846 $4,708,287
=========== ==========
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $196,297 $145,236
Accrued liabilities 277,098 86,958
Accrued employee compensation 127,381 127,711
Deferred income 3,511 61,237
Liabilities held for sale 3,935 -
----- ---
Total current liabilities 608,222 421,142
Long-term debt 1,878,617 -
Non-current income taxes payable 52,438 56,976
Deferred tax liabilities 114,312 52,204
Other non-current liabilities 44,191 36,552
------ ------
Total liabilities 2,697,780 566,874
Shareholders' equity:
Common stock 1,316 991
Additional paid-in capital 6,153,890 2,733,292
Accumulated other comprehensive loss - (2,322)
Retained earnings 1,509,860 1,409,452
--------- ---------
Total shareholders' equity 7,665,066 4,141,413
---------
Total liabilities and shareholders' equity $10,362,846 $4,708,287
=========== ==========
Marvell Technology Group Ltd.
Condensed Consolidated Statements of Cash Flows (Unaudited)
(In thousands)
Three Months Ended Six Months Ended
August 4, July 29, August 4, July 29,
2018 2017 2018 2017
---- ---- ---- ----
Cash flows from operating activities:
Net income $6,759 $165,259 $135,371 $271,880
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation and amortization 26,754 20,444 47,097 41,186
Share-based compensation 59,392 22,422 83,244 46,439
Amortization and write-off of acquired intangible
assets 25,939 1,065 25,939 2,136
Amortization of inventory fair value adjustment
associated with acquisition of Cavium 22,933 - 22,933 -
Amortization of deferred debt issuance costs and
debt discounts 7,073 - 7,073 -
Restructuring related impairment charges (gain) 1,993 70 1,993 (446)
Gain from investment in privately-held company - (750) (1,100) (750)
Amortization of premium /discount on available-
for-sale securities (537) 597 624 803
Other non-cash expense (income), net 3,414 (1,398) 4,227 (1,423)
Deferred income taxes (22,238) 2,008 (21,414) 2,791
Gain on sale of property and equipment (137) (341) (120) (283)
Gain on sale of discontinued operations - (34,032) - (42,187)
Gain on sale of business - (5,254) - (5,254)
Changes in assets and liabilities:
Accounts receivable (1,356) (14,550) (48,749) (36,313)
Inventories 4,186 (3,170) 6,866 (14,712)
Prepaid expenses and other assets (5,396) 2,460 (19,504) 7,854
Accounts payable (15,015) (27,455) (271) 3,968
Accrued liabilities and other non-current
liabilities (32,468) (21,793) (11,232) (33,418)
Accrued employee compensation (19,429) (846) (41,539) (8,375)
Deferred income 68 (3,732) (729) 1,284
Net cash provided by operating activities 61,935 101,004 190,709 235,180
------ ------- ------- -------
Cash flows from investing activities:
Purchases of available-for-sale securities (1,499) (177,811) (14,956) (376,227)
Sales of available-for-sale securities 553,623 37,936 623,896 116,700
Maturities of available-for-sale securities 59,165 87,377 187,985 169,612
Return of investment from privately-held companies - 2,388 - 2,388
Purchases of time deposits - (75,000) (25,000) (150,000)
Maturities of time deposits 75,000 75,000 150,000 150,000
Purchases of technology licenses (903) (608) (1,263) (1,701)
Purchases of property and equipment (20,801) (4,803) (34,389) (14,544)
Proceeds from sales of property and equipment 212 1,054 223 1,739
Cash payment for acquisition of Cavium, net of
cash and cash equivalents acquired (2,649,465) - (2,649,465) -
Net proceeds from sale of discontinued operations - 41,976 - 72,205
Net proceeds from sale of business 1,250 - 1,250 -
Other - - (5,000) -
--- --- ------ ---
Net cash used in investing activities (1,983,418) (12,491) (1,766,719) (29,828)
---------- ------- ---------- -------
Cash flows from financing activities:
Repurchases of common stock - (221,265) - (387,558)
Proceeds from employee stock plans 33,525 77,872 44,580 97,811
Minimum tax withholding paid on behalf of
employees for net share settlement (12,883) (3,005) (36,776) (24,814)
Dividend payments to shareholders (39,383) (30,095) (69,181) (60,086)
Payments on technology license obligations (9,017) (7,481) (29,478) (14,296)
Proceeds from issuance of debt 1,892,605 - 1,892,605 -
Principal payments of debt (606,128) - (606,128) -
Payment of equity and debt financing costs (5,835) - (9,435) -
------ ------
Net cash provided by (used in) financing
activities 1,252,884 (183,974) 1,186,187 (388,943)
--------- -------- --------- --------
Net decrease in cash and cash equivalents (668,599) (95,461) (389,823) (183,591)
Cash and cash equivalents at beginning of period 1,167,258 725,962 888,482 814,092
Cash and cash equivalents at end of period $498,659 $630,501 $498,659 $630,501
======== ======== ======== ========
Marvell Technology Group Ltd.
Reconciliations from GAAP to Non-GAAP (Unaudited)
(In thousands, except per share amounts)
Three Months Ended Six Months Ended
August 4, May 5, July 29, August 4, July 29,
2018 2018 2017 2018 2017
---- ---- ---- ---- ----
GAAP gross profit: $377,110 $375,693 $365,178 $752,803 $710,689
Special items:
Share-based compensation 4,748 1,905 1,810 6,653 3,236
Amortization of and write-off
acquired intangible assets 18,984 - - 18,984 -
Other cost of goods sold (a) 22,933 - 3,000 22,933 3,000
Total special items 46,665 1,905 4,810 48,570 6,236
Non-GAAP gross profit $423,775 $377,598 $369,988 $801,373 $716,925
======== ======== ======== ======== ========
GAAP gross margin 56.7% 62.1% 60.4% 59.3% 60.4%
==== ==== ==== ==== ====
Non-GAAP gross margin 63.7% 62.5% 61.2% 63.1% 60.9%
==== ==== ==== ==== ====
Total GAAP operating expenses $385,401 $250,614 $240,815 $636,015 $484,901
Special items:
Share-based compensation (68,675) (21,947) (19,557) (90,622) (39,870)
Restructuring related charges (b) (35,415) (1,567) (4,285) (36,982) (5,171)
Amortization of and write-off
acquired intangible assets (6,955) - (1,065) (6,955) (2,136)
Other operating expenses (c) (28,229) (15,252) (1,687) (43,481) (3,990)
------- ------- ------
Total special items (139,274) (38,766) (26,594) (178,040) (51,167)
-------- ------- ------- -------- -------
Total non-GAAP operating expenses $246,127 $211,848 $214,221 $457,975 $433,734
======== ======== ======== ======== ========
GAAP operating margin (1.2)% 20.7% 20.6% 9.2% 19.2%
Other cost of goods sold (a) 3.5% - % 0.5% 1.9% 0.3%
Share-based compensation 11.0% 3.9% 3.5% 7.7% 3.7%
Restructuring related charges (b) 5.3% 0.3% 0.7% 2.9% 0.4%
Amortization and write-off of
acquired intangible assets 3.9% - % 0.2% 2.0% 0.2%
Other operating expenses (c) 4.2% 2.5% 0.3% 3.3% 0.3%
--- --- --- --- ---
Non-GAAP operating margin 26.7% 27.4% 25.8% 27.0% 24.1%
==== ==== ==== ==== ====
GAAP interest and other income
(loss), net $(14,921) $7,296 $7,188 $(7,625) $10,521
Special items:
Restructuring related items (d) (121) (1,512) (3,085) (1,633) (3,085)
Issuance cost related to
terminated standby loan 6,104 - - 6,104 -
----- --- --- ----- ---
Total special items 5,983 (1,512) (3,085) 4,471 (3,085)
----- ------ ------ ----- ------
Total non-GAAP interest and
other income (loss), net $(8,938) $5,784 $4,103 $(3,154) $7,436
======= ====== ====== ======= ======
GAAP net income $6,759 $128,612 $165,259 $135,371 $271,880
Less: Income from discontinued
operations, net of tax - - 29,809 - 36,838
GAAP net income from continuing
operations 6,759 128,612 135,450 135,371 235,042
----- ------- ------- ------- -------
Special items:
Other cost of goods sold (a) 22,933 - 3,000 22,933 3,000
Share-based compensation 73,423 23,852 21,367 97,275 43,106
Restructuring related charges in
operating expenses (b) 35,415 1,567 4,285 36,982 5,171
Restructuring related items in
interest and other income, net
(d) (121) (1,512) (3,085) (1,633) (3,085)
Amortization of and write-off
acquired intangible assets 25,939 - 1,065 25,939 2,136
Issuance cost related to
terminated standby loan 6,104 - - 6,104 -
Other operating expenses (c) 28,229 15,252 1,687 43,481 3,990
Pre-tax total special items 191,922 39,159 28,319 231,081 54,318
------- ------ ------ ------- ------
Other income tax effects and
adjustments (e) (36,720) (3,098) (10,298) (39,818) (10,362)
------- -------
Non-GAAP net income from
continuing operations $161,961 $164,673 $153,471 $326,634 $278,998
======== ======== ======== ======== ========
Weighted average shares - basic 552,238 497,335 500,817 524,787 502,303
======= ======= ======= ======= =======
Weighted average shares - diluted 562,149 508,716 510,309 535,433 513,951
======= ======= ======= ======= =======
Non-GAAP adjustment 13,123 6,871 9,129 9,997 7,345
====== ===== ===== ===== =====
Non-GAAP weighted average shares
- diluted (f) 575,272 515,587 519,438 545,430 521,296
======= ======= ======= ======= =======
GAAP diluted net income per share
from continuing operations $0.01 $0.25 $0.26 $0.25 $0.46
===== ===== ===== ===== =====
Non-GAAP diluted net income per
share from continuing operations $0.28 $0.32 $0.30 $0.60 $0.54
===== ===== ===== ===== =====
(a) Other costs of goods sold in the three
and six months ended August 4, 2018
include amortization of the Cavium
inventory fair value step up. Other
cost of goods sold in the three and
six months ended July 29, 2017
include charges for past intellectual
property licensing matters.
(b) Restructuring related charges include
employee severance, facilities
related costs, and impairment of
equipment.
(c) Other operating expenses primarily
include Cavium merger costs and costs
of retention bonuses offered to
employees who remained through the
ramp down of certain operations due
to restructuring actions.
(d) Interest and other income, net
includes restructuring related items
such as foreign currency
remeasurement associated with
restructuring related accruals.
(e) Other income tax effects and
adjustments relate to tax provision
based on a non-GAAP income tax rate
of 4%.
(f) Non-GAAP diluted share count excludes
the impact of share-based
compensation expense expected to be
incurred in future periods and not
yet recognized in the Company's
financial statements, which would
otherwise be assumed to be used to
repurchase shares under the GAAP
treasury stock method.
Marvell Technology Group Ltd.
Reconciliations from Combined Non-GAAP to Marvell Stand-alone Non-GAAP (Unaudited)
(In thousands, except per share amounts)
Three Months Ended
August 4, 2018
Combined Less: non- Marvell
Non-GAAP* GAAP Stand-alone
Results Non-GAAP*
Attributable
to Cavium
Acquisition
---
Net revenue $665,310 $41,347 $623,963
Gross profit $423,775 $27,808 $395,967
Total operating expenses $246,127 $38,251 $207,876
Interest and other income (loss), net $(8,938) $(11,836) $2,898
Net income (loss) $161,961 $(21,388) $183,349
Diluted net income (loss) per share $0.28 $(0.07) $0.35
Diluted weighted average shares 575,272 55,636 519,636
*Combined Non-GAAP net revenue is
equal to GAAP net revenue. See
"Reconciliations from GAAP to Non-
GAAP (Unaudited)" for a reconciliation
of other Combined Non-GAAP results to
GAAP results for the period.
Quarterly Revenue Trend (Unaudited)
(In thousands)
Three Months Ended % Change
August 4, May 5, July 29, YoY QoQ
2018* 2018 2017
---- ---- ----
Storage (1) $335,764 $317,069 $311,501 8% 6%
Networking (2) 283,330 244,228 245,821 15% 16%
------- ------- ------- --- ---
Total Core 619,094 561,297 557,322 11% 10%
Other (3) 46,216 43,334 47,428 (3)% 7%
------ ------
Total Revenue $665,310 $604,631 $604,750 10% 10%
======== ======== ======== === ===
* Results for the three
months ended August 4,
2018 include total
Cavium revenue from
the period July 6,
2018 to August 4,
2018.
Three Months Ended
% of Total August 4, May 5, July 29,
2018 2018 2017
---- ---- ----
Storage (1) 50% 52% 52%
Networking (2) 43% 40% 41%
--- --- ---
Total Core 93% 92% 93%
Other (3) 7% 8% 7%
Total Revenue 100% 100% 100%
=== === ===
(1) Storage products are comprised
primarily of HDD and SSD Controllers,
Fibre Channel Adapters and Data
Center Storage Solutions.
(2) Networking products are comprised
primarily of Ethernet Switches,
Ethernet Transceivers, Ethernet NICs,
Embedded Communication Processors,
Automotive Ethernet, Security
Adapters and Processors as well as
WiFi solutions including WiFi only,
WiFi/Bluetooth combos and WiFi
Microcontroller combos. In addition,
this grouping includes a few legacy
product lines in which we no longer
invest, but will generate revenue for
several years.
(3) Other products are comprised
primarily of Printer Solutions,
Application Processors and others.
For further information, contact:
Ashish Saran
Vice President, Investor Relations
408-222-0777
ir@marvell.com
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SOURCE Marvell Technology Group Ltd.
