Marvell Technology Group Ltd. Reports Third Quarter of Fiscal 2012 Financial Results
(Logo: http://photos.prnewswire.com/prnh/20100719/SF36559LOGO-b)
Revenue for the third quarter of fiscal 2012 was
GAAP net income was
Non-GAAP net income was
"We are pleased with our third quarter results as we demonstrated solid growth in the quarter driven by our Mobile and Wireless end market, which grew over 20% sequentially. Our TD mobile phone platforms have been extremely well received by customers," said Dr.
GAAP gross margin for the third quarter of fiscal 2012 was 56.6 percent, compared to 57.9 percent for the second quarter of fiscal 2012 and 59.3 percent for the third quarter of fiscal 2011.
Non-GAAP gross margin for the third quarter of fiscal 2012 was 56.8 percent, compared to 58.1 percent for the second quarter of fiscal 2012 and 59.5 percent for the third quarter of fiscal 2011.
Shares used to compute GAAP net income per diluted share for the third quarter of fiscal 2012 were 613 million shares, compared with 623 million shares in the second quarter of fiscal 2012 and 675 million shares in the third quarter of fiscal 2011. Shares used to compute non-GAAP net income per diluted share for the third quarter of fiscal 2012 were 615 million shares, compared with 625 million shares for the second quarter of fiscal 2012 and 677 million shares for the third quarter of fiscal 2011. The decrease in shares used to compute both
Cash flow from operations for the third quarter of fiscal 2012 was
Under the share repurchase program,
Conference Call
Discussion of Non-GAAP Financial Measures
Non-GAAP financial measures exclude stock-based compensation expense as well as charges related to acquisitions, restructuring, gains and other charges that are driven primarily by discrete events that management does not consider to be directly related to
About
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 market acceptance of
Marvell® and the
Marvell Technology Group Ltd. |
||||||||||||
Condensed Consolidated Statements of Operations |
||||||||||||
(Unaudited) |
||||||||||||
(In thousands, except per share amounts) |
||||||||||||
Three Months Ended |
Nine Months Ended |
|||||||||||
October 29, |
July 30, |
October 30, |
October 29, |
October 30, |
||||||||
2011 |
2011 |
2010 |
2011 |
2010 |
||||||||
Net revenue |
$ 950,417 |
$ 897,520 |
$ 959,327 |
$ 2,650,339 |
$ 2,711,380 |
|||||||
Cost of goods sold |
412,100 |
378,117 |
390,808 |
1,124,692 |
1,101,475 |
|||||||
Gross profit |
538,317 |
519,403 |
568,519 |
1,525,647 |
1,609,905 |
|||||||
Operating expenses: |
||||||||||||
Research and development |
266,255 |
249,604 |
218,420 |
758,396 |
665,742 |
|||||||
Selling and marketing |
40,500 |
40,390 |
39,751 |
119,042 |
115,037 |
|||||||
General and administrative |
29,021 |
23,631 |
29,576 |
77,436 |
78,124 |
|||||||
Amortization of acquired intangible assets |
11,155 |
11,138 |
21,770 |
36,634 |
65,533 |
|||||||
Total operating expenses |
346,931 |
324,763 |
309,517 |
991,508 |
924,436 |
|||||||
Operating income |
191,386 |
194,640 |
259,002 |
534,139 |
685,469 |
|||||||
Interest and other income (expense), net |
7,729 |
2,064 |
(1,665) |
9,575 |
(1,205) |
|||||||
Income before income taxes |
199,115 |
196,704 |
257,337 |
543,714 |
684,264 |
|||||||
Provision for income taxes |
3,994 |
4,312 |
1,605 |
9,340 |
2,988 |
|||||||
Net income |
$ 195,121 |
$ 192,392 |
$ 255,732 |
$ 534,374 |
$ 681,276 |
|||||||
Basic net income per share |
$ 0.32 |
$ 0.32 |
$ 0.39 |
$ 0.87 |
$ 1.05 |
|||||||
Diluted net income per share |
$ 0.32 |
$ 0.31 |
$ 0.38 |
$ 0.85 |
$ 1.01 |
|||||||
Shares used in computing basic earnings per share |
600,504 |
608,511 |
649,782 |
615,987 |
646,246 |
|||||||
Shares used in computing diluted earnings per share |
613,499 |
623,132 |
674,789 |
631,257 |
676,023 |
|||||||
Marvell Technology Group Ltd. |
|||||||||||
Reconciliations from GAAP to Non-GAAP |
|||||||||||
(Unaudited) |
|||||||||||
(In thousands, except per share amounts) |
|||||||||||
Three Months Ended |
Nine Months Ended |
||||||||||
October 29, |
July 30, |
October 30, |
October 29, |
October 30, |
|||||||
2011 |
2011 |
2010 |
2011 |
2010 |
|||||||
GAAP net income |
$ 195,121 |
$ 192,392 |
$ 255,732 |
$ 534,374 |
$ 681,276 |
||||||
Stock-based compensation |
30,611 |
30,355 |
29,541 |
88,446 |
87,126 |
||||||
Amortization of acquired intangible assets |
11,155 |
11,138 |
21,770 |
36,634 |
65,533 |
||||||
Restructuring |
105 |
567 |
259 |
1,291 |
2,504 |
||||||
Legal/Tax related matters (a) |
7,459 |
- |
- |
7,459 |
4,373 |
||||||
Non-GAAP net income |
$ 244,451 |
$ 234,452 |
$ 307,302 |
$ 668,204 |
$ 840,812 |
||||||
GAAP weighted average shares - diluted |
613,499 |
623,132 |
674,789 |
631,257 |
676,023 |
||||||
Non-GAAP adjustment |
1,558 |
1,645 |
2,710 |
2,983 |
3,050 |
||||||
Non-GAAP weighted average shares diluted (b) |
615,057 |
624,777 |
677,499 |
634,240 |
679,073 |
||||||
GAAP diluted net income per share |
$ 0.32 |
$ 0.31 |
$ 0.38 |
$ 0.85 |
$ 1.01 |
||||||
Non-GAAP diluted net income per share |
$ 0.40 |
$ 0.38 |
$ 0.45 |
$ 1.05 |
$ 1.24 |
||||||
GAAP gross profit: |
$ 538,317 |
$ 519,403 |
$ 568,519 |
$ 1,525,647 |
$ 1,609,905 |
||||||
Stock-based compensation |
1,940 |
1,916 |
1,818 |
5,551 |
5,746 |
||||||
Legal/Tax related matters (a) |
- |
- |
- |
- |
4,373 |
||||||
Non-GAAP gross profit |
$ 540,257 |
$ 521,319 |
$ 570,337 |
$ 1,531,198 |
$ 1,620,024 |
||||||
GAAP gross profit as a % of revenue |
56.6% |
57.9% |
59.3% |
57.6% |
59.4% |
||||||
Stock-based compensation |
0.2% |
0.2% |
0.2% |
0.2% |
0.2% |
||||||
Legal/Tax related matters (a) |
- |
- |
- |
- |
0.1% |
||||||
Non-GAAP gross profit |
56.8% |
58.1% |
59.5% |
57.8% |
59.7% |
||||||
GAAP research and development: |
$ 266,255 |
$ 249,604 |
$ 218,420 |
$ 758,396 |
$ 665,742 |
||||||
Stock-based compensation |
(21,905) |
(22,128) |
(19,795) |
(63,626) |
(60,735) |
||||||
Restructuring |
(1) |
(139) |
(187) |
(308) |
(1,686) |
||||||
Legal/Tax related matters (a) |
(3,137) |
- |
- |
(3,137) |
- |
||||||
Non-GAAP research and development |
$ 241,212 |
$ 227,337 |
$ 198,438 |
$ 691,325 |
$ 603,321 |
||||||
GAAP selling and marketing: |
$ 40,500 |
$ 40,390 |
$ 39,751 |
$ 119,042 |
$ 115,037 |
||||||
Stock-based compensation |
(3,402) |
(3,207) |
(3,208) |
(9,263) |
(8,778) |
||||||
Non-GAAP selling and marketing |
$ 37,098 |
$ 37,183 |
$ 36,543 |
$ 109,779 |
$ 106,259 |
||||||
GAAP general and administrative: |
$ 29,021 |
$ 23,631 |
$ 29,576 |
$ 77,436 |
$ 78,124 |
||||||
Stock-based compensation |
(3,364) |
(3,104) |
(4,720) |
(10,006) |
(11,867) |
||||||
Restructuring |
(104) |
(428) |
(72) |
(983) |
(818) |
||||||
Legal/Tax related matters (a) |
(4,322) |
- |
- |
(4,322) |
- |
||||||
Non-GAAP general and administrative |
$ 21,231 |
$ 20,099 |
$ 24,784 |
$ 62,125 |
$ 65,439 |
||||||
(a) |
The nine months ended October 30, 2010 and the three and nine months ended October 29, 2011 include portions of |
||||||||||
settlements related to previous periods. The three and nine months ended October 29, 2011 include assessments of |
|||||||||||
payroll taxes on employee benefits in certain jurisdictions. |
|||||||||||
(b) |
For purposes of calculating non-GAAP diluted net income per share, the GAAP diluted weighted average shares |
||||||||||
outstanding is adjusted to exclude the benefits of stock compensation costs attributable to future services and not |
|||||||||||
yet recognized in the financial statements. |
|||||||||||
Marvell Technology Group Ltd. |
||||||
Condensed Consolidated Balance Sheets |
||||||
(Unaudited) |
||||||
(In thousands) |
||||||
October 29, |
January 29, |
|||||
Assets |
2011 |
2011 |
||||
Current assets: |
||||||
Cash, cash equivalents, and short-term investments |
$ 2,424,698 |
$ 2,930,030 |
||||
Accounts receivable, net |
451,108 |
459,406 |
||||
Inventories |
309,968 |
245,448 |
||||
Prepaid expenses and other current assets |
61,741 |
77,763 |
||||
Total current assets |
3,247,515 |
3,712,647 |
||||
Property and equipment, net |
373,628 |
358,440 |
||||
Long-term investments |
23,218 |
26,226 |
||||
Goodwill and acquired intangible assets, net |
2,112,094 |
2,129,464 |
||||
Other non-current assets |
110,920 |
111,380 |
||||
Total assets |
$ 5,867,375 |
$ 6,338,157 |
||||
Liabilities and Shareholders' Equity |
||||||
Current liabilities: |
||||||
Accounts payable |
$ 355,404 |
$ 332,007 |
||||
Accrued liabilities |
237,119 |
232,518 |
||||
Deferred income |
69,244 |
76,161 |
||||
Total current liabilities |
661,767 |
640,686 |
||||
Other long-term liabilities |
166,309 |
175,602 |
||||
Total liabilities |
828,076 |
816,288 |
||||
Shareholders' equity: |
||||||
Common stock |
1,179 |
1,317 |
||||
Additional paid-in capital |
3,790,169 |
4,805,588 |
||||
Accumulated other comprehensive income |
(295) |
1,092 |
||||
Retained earnings |
1,248,246 |
713,872 |
||||
Total shareholders' equity |
5,039,299 |
5,521,869 |
||||
Total liabilities and shareholders' equity |
$ 5,867,375 |
$ 6,338,157 |
||||
Marvell Technology Group Ltd. |
|||||||||||
Condensed Consolidated Statements of Cash Flows |
|||||||||||
(Unaudited) |
|||||||||||
(in thousands) |
|||||||||||
Three Months Ended |
Nine Months Ended |
||||||||||
October 29, |
October 30, |
October 29, |
October 30, |
||||||||
2011 |
2010 |
2011 |
2010 |
||||||||
Cash flows from operating activities: |
|||||||||||
Net income |
$ 195,121 |
$ 255,732 |
$ 534,374 |
$ 681,276 |
|||||||
Adjustments to reconcile net income to net cash provided |
|||||||||||
by operating activities: |
|||||||||||
Depreciation and amortization |
20,179 |
23,140 |
66,653 |
68,991 |
|||||||
Stock-based compensation |
30,611 |
29,541 |
88,446 |
87,126 |
|||||||
Amortization of acquired intangible assets |
11,155 |
21,770 |
36,634 |
65,533 |
|||||||
Other (income) expense, net |
4,266 |
4,756 |
11,411 |
9,568 |
|||||||
Facilities impairment |
- |
- |
- |
1,140 |
|||||||
Fair market value adjustment to acquired inventory sold |
- |
(401) |
- |
(2,391) |
|||||||
Excess tax benefits from stock-based compensation |
(85) |
(440) |
(99) |
(669) |
|||||||
Changes in assets and liabilities: |
|||||||||||
Accounts receivable |
(45,351) |
22,780 |
8,298 |
(111,179) |
|||||||
Inventories |
12,037 |
11,940 |
(63,967) |
15,856 |
|||||||
Prepaid expenses and other assets |
16,791 |
(15,201) |
34,229 |
(10,204) |
|||||||
Accounts payable |
(2,806) |
(34,508) |
4,193 |
63,935 |
|||||||
Accrued liabilities and other |
(17,939) |
13,515 |
(18,030) |
17,948 |
|||||||
Accrued employee compensation |
36,191 |
33,065 |
6,924 |
26,965 |
|||||||
Deferred income |
1,417 |
2,197 |
(6,917) |
28,820 |
|||||||
Net cash provided by operating activities |
261,587 |
367,886 |
702,149 |
942,715 |
|||||||
Cash flows from investing activities: |
|||||||||||
Purchases of marketable securities |
(443,008) |
(312,890) |
(1,582,892) |
(1,021,950) |
|||||||
Purchases of strategic investments |
(1,250) |
- |
(3,503) |
(1,750) |
|||||||
Sales and maturities of investments |
402,145 |
330,993 |
1,083,214 |
678,738 |
|||||||
Cash paid for acquisitions, net |
(2,000) |
- |
(18,760) |
(20,679) |
|||||||
Purchases of technology licenses |
(2,978) |
(5,830) |
(9,593) |
(12,649) |
|||||||
Purchases of property and equipment |
(20,085) |
(23,969) |
(62,330) |
(63,267) |
|||||||
Net cash used in investing activities |
(67,176) |
(11,696) |
(593,864) |
(441,557) |
|||||||
Cash flows from financing activities: |
|||||||||||
Repurchase of common stock |
(215,155) |
(60,594) |
(1,154,396) |
(60,594) |
|||||||
Proceeds from employee stock plans |
8,638 |
17,196 |
50,393 |
97,673 |
|||||||
Principal payments on capital lease and term loan obligations |
- |
(490) |
(511) |
(1,440) |
|||||||
Excess tax benefits from stock-based compensation |
85 |
440 |
99 |
669 |
|||||||
Net cash (used in) provided by financing activities |
(206,432) |
(43,448) |
(1,104,415) |
36,308 |
|||||||
Net increase (decrease) in cash and cash equivalents |
(12,021) |
312,742 |
(996,130) |
537,466 |
|||||||
Cash and cash equivalents at beginning of period |
862,965 |
1,330,152 |
1,847,074 |
1,105,428 |
|||||||
Cash and cash equivalents at end of period |
$ 850,944 |
$ 1,642,894 |
$ 850,944 |
$ 1,642,894 |
|||||||
For further information, contact: |
||
Sukhi Nagesh |
Daniel Yoo |
|
Investor Relations |
Media Relations |
|
408-222-8373 |
408-222-2187 |
|
SOURCE