Marvell Technology Group Ltd. Reports First Fiscal Quarter 2013 Financial Results
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Revenue for the first quarter of fiscal 2013 was
GAAP net income for the first quarter of fiscal 2013 was
Non-GAAP net income was
"Our results in the first quarter were better than anticipated driven in part by our TD smartphone products, which grew about 25% sequentially and increased deployment of our 500 gigabyte per platter mobile storage solutions to all the hard disk drive manufacturers," said Dr.
GAAP gross margin for the first quarter of fiscal 2013 was 54.0 percent, compared to 54.1 percent for the fourth quarter of fiscal 2012 and 58.3 percent for the first quarter of fiscal 2012.
Non-GAAP gross margin for the first quarter of fiscal 2013 was 54.5 percent, compared to 54.5 percent for the fourth quarter of fiscal 2012 and 58.5 percent for the first quarter of fiscal 2012.
Shares used to compute GAAP net income per diluted share for the first quarter of fiscal 2013 were 595 million shares, compared with 599 million shares in the fourth quarter of fiscal 2012 and 657 million shares in the first quarter of fiscal 2012. Shares used to compute non-GAAP net income per diluted share for the first quarter of fiscal 2013 were 606 million shares, compared with 606 million shares for the fourth quarter of fiscal 2012 and 663 million shares for the first quarter of fiscal 2012.
Cash flow from operations for the first quarter of fiscal 2013 was
Under the share repurchase program,
Conference Call
Discussion of Non-GAAP Financial Measures
Non-GAAP financial measures exclude the effect of stock-based compensation expense, amortization of acquired intangible assets, acquisition-related costs, restructuring costs, and certain one-time expenses and benefits that are driven primarily by discrete events that management does not consider to be directly related to
About Marvell
Forward-Looking Statements under the Private Securities Litigation Reform Act of 1995
This press release contains forward-looking statements that involve risks and uncertainties, including statements regarding confidence in our growth prospects; relating to the declaration of, timing of, funding of and quarterly amount of dividends;
Marvell® and the
For further information, contact: |
|
Sukhi Nagesh |
Daniel Yoo |
Investor Relations |
Media Relations |
408-222-8373 |
408-222-2187 |
Marvell Technology Group Ltd. |
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Condensed Consolidated Statements of Operations |
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(Unaudited) |
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(In thousands, except per share amounts) |
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Three Months Ended |
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April 28, |
January 28, |
April 30, |
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Net revenue |
$ 796,351 |
$ 742,701 |
$ 802,402 |
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Cost of goods sold |
366,322 |
341,113 |
334,475 |
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Gross profit |
430,029 |
401,588 |
467,927 |
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Operating expenses: |
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Research and development |
255,970 |
255,282 |
242,537 |
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Selling and marketing |
40,066 |
40,392 |
38,152 |
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General and administrative |
25,705 |
23,184 |
24,784 |
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Amortization of acquired intangible assets |
14,355 |
12,723 |
14,341 |
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Total operating expenses |
336,096 |
331,581 |
319,814 |
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Operating income |
93,933 |
70,007 |
148,113 |
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Interest and other income (expense), net |
1,057 |
5,338 |
(218) |
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Income before income taxes |
94,990 |
75,345 |
147,895 |
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Provision (benefit) for income taxes |
447 |
(5,372) |
1,034 |
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Net income |
$ 94,543 |
$ 80,717 |
$ 146,861 |
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Basic net income per share |
$ 0.16 |
$ 0.14 |
$ 0.23 |
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Diluted net income per share |
$ 0.16 |
$ 0.13 |
$ 0.22 |
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Shares used in computing basic earnings per share |
580,024 |
583,466 |
638,946 |
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Shares used in computing diluted earnings per share |
594,739 |
599,300 |
657,140 |
Marvell Technology Group Ltd. |
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Reconciliations from GAAP to Non-GAAP |
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(Unaudited) |
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(In thousands, except per share amounts) |
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Three Months Ended |
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April 28, 2012 |
January 28, |
April 30, |
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GAAP net income |
$ 94,543 |
$ 80,717 |
$146,861 |
||||||||
Stock-based compensation |
27,192 |
31,417 |
27,480 |
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Amortization of acquired intangible assets |
14,355 |
12,723 |
14,341 |
||||||||
Acquisition-related costs (a) |
2,456 |
1,961 |
- |
||||||||
Restructuring |
115 |
565 |
619 |
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Legal/Tax related matters (b) |
- |
(750) |
- |
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Non-GAAP net income |
$ 138,661 |
$ 126,633 |
$189,301 |
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GAAP weighted average shares - diluted |
594,739 |
599,300 |
657,140 |
||||||||
Non-GAAP adjustment |
10,814 |
6,397 |
5,808 |
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Non-GAAP weighted average shares diluted (c) |
605,553 |
605,697 |
662,948 |
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GAAP diluted net income per share |
$ 0.16 |
$ 0.13 |
$ 0.22 |
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Non-GAAP diluted net income per share |
$ 0.23 |
$ 0.21 |
$ 0.29 |
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GAAP gross profit: |
$ 430,029 |
$ 401,588 |
$467,927 |
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Stock-based compensation |
2,123 |
1,444 |
1,695 |
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Acquisition-related costs (a) |
1,929 |
1,457 |
- |
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Non-GAAP gross profit |
$ 434,081 |
$ 404,489 |
$ 469,622 |
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GAAP gross margin |
54.0% |
54.1% |
58.3% |
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Stock-based compensation |
0.3% |
0.2% |
0.2% |
||||||||
Acquisition-related costs (a) |
0.2% |
0.2% |
- |
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Non-GAAP gross margin |
54.5% |
54.5% |
58.5% |
||||||||
GAAP research and development: |
$ 255,970 |
$ 255,282 |
$ 242,537 |
||||||||
Stock-based compensation |
(17,174) |
(22,298) |
(19,593) |
||||||||
Acquisition-related costs (a) |
(442) |
(279) |
- |
||||||||
Restructuring |
(2) |
(420) |
(168) |
||||||||
Non-GAAP research and development |
$ 238,352 |
$ 232,285 |
$ 222,776 |
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GAAP selling and marketing: |
$ 40,066 |
$ 40,392 |
$ 38,152 |
||||||||
Stock-based compensation |
(3,036) |
(3,657) |
(2,654) |
||||||||
Acquisition-related costs (a) |
(46) |
(40) |
- |
||||||||
Restructuring |
7 |
(8) |
- |
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Non-GAAP selling and marketing |
$ 36,991 |
$ 36,687 |
$ 35,498 |
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GAAP general and administrative: |
$ 25,705 |
$ 23,184 |
$ 24,784 |
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Stock-based compensation |
(4,859) |
(4,018) |
(3,538) |
||||||||
Acquisition-related costs (a) |
(39) |
(185) |
- |
||||||||
Restructuring |
(120) |
(137) |
(451) |
||||||||
Legal/Tax related matters (b) |
- |
750 |
- |
||||||||
Non-GAAP general and administrative |
$ 20,687 |
$ 19,594 |
$ 20,795 |
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(a) |
Acquisition-related costs include the step-up in fair value of acquired inventory that was sold |
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(b) |
The three months ended January 28, 2012 include proceeds related to a concluded legal matter. |
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(c) |
For purposes of calculating non-GAAP diluted net income per share, the GAAP diluted weighted |
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Marvell Technology Group Ltd. |
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Condensed Consolidated Balance Sheets |
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(Unaudited) |
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(In thousands) |
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April 28, |
January 28, |
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Assets |
2012 |
2012 |
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Current assets: |
||||||||||
Cash, cash equivalents, and short-term investments |
$ 2,202,681 |
$ 2,246,498 |
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Accounts receivable, net |
417,382 |
407,263 |
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Inventories |
353,387 |
354,119 |
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Prepaid expenses and other current assets |
68,176 |
71,081 |
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Total current assets |
3,041,626 |
3,078,961 |
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Property and equipment, net |
382,374 |
383,801 |
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Long-term investments |
23,215 |
23,215 |
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Goodwill and acquired intangible assets, net |
2,159,141 |
2,173,496 |
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Other non-current assets |
112,169 |
108,146 |
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Total assets |
$ 5,718,525 |
$ 5,767,619 |
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Liabilities and Shareholders' Equity |
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Current liabilities: |
||||||||||
Accounts payable |
$ 323,392 |
$ 304,695 |
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Accrued liabilities |
244,739 |
224,900 |
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Deferred income |
65,413 |
59,959 |
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Total current liabilities |
633,544 |
589,554 |
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Other long-term liabilities |
162,451 |
164,047 |
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Total liabilities |
795,995 |
753,601 |
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Shareholders' equity: |
||||||||||
Common stock |
1,146 |
1,167 |
||||||||
Additional paid-in capital |
3,495,561 |
3,683,112 |
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Accumulated other comprehensive income |
2,317 |
776 |
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Retained earnings |
1,423,506 |
1,328,963 |
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Total shareholders' equity |
4,922,530 |
5,014,018 |
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Total liabilities and shareholders' equity |
$ 5,718,525 |
$ 5,767,619 |
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Marvell Technology Group Ltd. |
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Condensed Consolidated Statements of Cash Flows |
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(Unaudited) |
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(in thousands) |
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Three Months Ended |
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April 28, |
April 30, |
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Cash flows from operating activities: |
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Net income |
$ 94,543 |
$ 146,861 |
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Adjustments to reconcile net income to net cash provided |
|||||||||||
by operating activities: |
|||||||||||
Depreciation and amortization |
21,199 |
24,037 |
|||||||||
Stock-based compensation |
27,192 |
27,480 |
|||||||||
Amortization of acquired intangible assets |
14,355 |
14,341 |
|||||||||
Other (income) expense, net |
2,903 |
3,854 |
|||||||||
Excess tax benefits from stock-based compensation |
(41) |
(3) |
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Changes in assets and liabilities: |
|||||||||||
Accounts receivable |
(10,119) |
33,938 |
|||||||||
Inventories |
201 |
(53,107) |
|||||||||
Prepaid expenses and other assets |
4,242 |
644 |
|||||||||
Accounts payable |
21,249 |
(5,295) |
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Accrued liabilities and other |
18,143 |
(5,450) |
|||||||||
Accrued employee compensation |
(648) |
(14,880) |
|||||||||
Deferred income |
5,454 |
4,729 |
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Net cash provided by operating activities |
198,673 |
177,149 |
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Cash flows from investing activities: |
|||||||||||
Purchases of marketable securities |
(421,652) |
(677,179) |
|||||||||
Purchases of strategic investments |
(5,000) |
(1,750) |
|||||||||
Sales and maturities of investments |
558,777 |
272,547 |
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Cash paid for acquisitions, net |
- |
(16,330) |
|||||||||
Purchases of technology licenses |
(2,045) |
(3,290) |
|||||||||
Purchases of property and equipment |
(18,904) |
(17,018) |
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Net cash provided by (used in) investing activities |
111,176 |
(443,020) |
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Cash flows from financing activities: |
|||||||||||
Repurchase of common stock |
(223,157) |
(803,501) |
|||||||||
Proceeds from employee stock plans |
17,803 |
9,841 |
|||||||||
Minimum tax withholding paid on behalf of employees |
|||||||||||
for net share settlement |
(8,879) |
(4,634) |
|||||||||
Principal payments on capital lease obligations |
- |
(511) |
|||||||||
Excess tax benefits from stock-based compensation |
41 |
3 |
|||||||||
Net cash used in financing activities |
(214,192) |
(798,802) |
|||||||||
Net increase (decrease) in cash and cash equivalents |
95,657 |
(1,064,673) |
|||||||||
Cash and cash equivalents at beginning of period |
784,902 |
1,847,074 |
|||||||||
Cash and cash equivalents at end of period |
$ 880,559 |
$ 782,401 |
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SOURCE