MARVELL TECHNOLOGY GROUP LTD 
SANTA CLARA, Calif., March 2, 2017 /PRNewswire/ --
-- 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. (NASDAQ: 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
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SOURCE Marvell Technology Group Ltd.
