Marvell Technology Group Ltd. Reports Record First Quarter Fiscal 2007 Results
Santa Clara, California (May 18, 2006) – arvell Technology Group Ltd. (NASDAQ: MRVL), the leader in development of storage, communications, and consumer silicon solutions, today reported financial results for its first fiscal quarter ended April 29, 2006.
Net revenue for the first quarter of fiscal 2007 was a record $521.2 million, an increase of 42.9% over net revenue of $364.8 million for the first quarter of fiscal 2006 and a 6.6% sequential increase from net revenue of $489.0 million for the fourth quarter of fiscal 2006. Net income under generally accepted accounting principles (GAAP) was $75.3 million, or $0.23 per share (diluted), for the first quarter of fiscal 2007, compared with a net income under GAAP of $63.5 million, or $0.20 per share (diluted), for the first quarter of fiscal 2006. Shares used to compute GAAP net income per diluted share for the first quarter ended April 29, 2006 increased to 320.4 million shares, compared with 310.7 million shares for the first quarter ended April 30, 2005.
Marvell reports net income and basic and diluted net income per share in accordance with GAAP and additionally on a non-GAAP basis. Non-GAAP net income, where applicable, excludes the effect of stock-based compensation, amortization of acquired intangible assets and acquisition related charges. Non-GAAP net income was $141.1 million, or $0.44 per share (diluted), for the first quarter of fiscal 2007, compared with non-GAAP net income of $84.2 million, or $0.27 per share (diluted), for the first quarter of fiscal 2006. Shares used to compute non-GAAP net income per diluted share for the first quarter ended April 29, 2006 increased to 323.6 million shares, compared with 310.7 million shares for the first quarter ended April 30, 2005.
These non-GAAP measures should be considered in addition to, and not as a substitute for, the results prepared in accordance with GAAP. A reconciliation of GAAP net income to non-GAAP net income is included in the financial tables of this release as well as on our website in the Investors section at www.marvell.com.
Marvell’s management believes the non-GAAP information is useful because it can enhance the understanding of the Company’s ongoing economic performance and Marvell therefore uses non-GAAP reporting internally to evaluate and manage the Company’s operations. Marvell has chosen to provide this information to investors to enable them to perform comparisons of operating results in a manner similar to how the Company analyzes its operating results internally.
“Q1 was another very strong quarter for Marvell” stated Dr. Sehat Sutardja, Marvell’s President and CEO. “We are having strong success in driving the adoption of our advanced technologies into a number of exciting high volume Consumer and Enterprise markets. With this success, we are continuing to diversify our revenues which we expect will provide us with new high volume market opportunities and enable us to build upon our strong track record of solid revenue growth.”
Revenue for the first quarter was a record for Marvell and represented the 34th consecutive quarter for sequential revenue growth. The following is a review of some of the recent highlights that occurred since last quarter’s earnings release:
- In April, Marvell announced first customer shipment of its TopDog™ branded family of 802.11n IEEE draft compliant products for consumer, enterprise, and mobile markets. Marvell’s TopDog products feature the highest data rates, longest range and lowest power profile in the industry. With industry-leading ease of use and multiple antennae configuration support including 3x3, 2x3, 2x2 and 1x2; Marvell TopDog WLAN solutions are designed to enable seamless connectivity for data intensive applications such as wireless streaming of HDTV and multimedia content throughout the home.
- Earlier this month at Interop 2006 in Las Vegas, Marvell demonstrated its leadership position in the switching market. During this show, Marvell displayed customer equipment ranging from the very high-end metro class equipment to the high-volume value class switches. Marvell also announced a number of products including the Prestera™ 98DX2x5 family of packet processors for the secure enterprise and metro Ethernet markets. Also, Marvell introduced a new set of Ethernet packet processor solutions optimized for the Small and Medium Business market. The new Prestera 98DX249 and 98DX269 SecureSmartStackable family of products extends the flexibility and scalability of clustering and stacking, offering resilient networks and business continuity architecture.
- In March, Marvell introduced the next generation of Marvell’s industry leading Yukon family of Ethernet controllers - Marvell Yukon™ Ultra. The Yukon Ultra controller is the world’s highest performance, lowest power PCI Express™ Gigabit Ethernet solution for notebook and desktop PCs. The Yukon Ultra is part of Marvell’s family of pin-compatible Ethernet controllers for PCs. The Yukon family’s pin-compatibility is designed to provide PC vendors with the flexibility to leverage a single motherboard design across a broad range of consumer and enterprise platforms. The latest addition to the Yukon pin-compatible family further enhances Marvell’s leadership position by providing the lowest power solutions for notebooks to enable improved battery life for users. Yukon Ultra delivers greater than 30% power savings over similar competing solutions while offering the industry’s highest throughput.
Marvell will be conducting a conference call today at 1:45 p.m. PST to discuss its first quarter financial results. The call is being webcast by Thomson/CCBN and can be accessed at Marvell’s web site at www.marvell.com. The webcast is also being distributed through Thomson StreetEvents Network. Individual investors can listen to the call at www.earnings.com, Thomson’s individual investor portal, powered by StreetEvents. Institutional investors can access the call via Thomson StreetEvents (www.streetevents.com), a password-protected event management site. The conference call will also be available via the web at www.marvell.com. Please visit the Investor Events section. Replay on the Internet will be available until February 23, 2007.
Marvell (NASDAQ: MRVL) is the leader in storage, communications and consumer silicon solutions. The Company’s diverse product portfolio includes switching, transceiver, communications controller, wireless, and storage solutions that power the entire communications infrastructure, including enterprise, metro, home, and storage networking. As used in this release, the terms “Company” and “Marvell” refer to Marvell Technology Group Ltd. and its subsidiaries, including Marvell Semiconductor, Inc. (MSI), Marvell Asia Pte Ltd (MAPL), Marvell Japan K.K., Marvell Taiwan Ltd., Marvell International Ltd. (MIL), Marvell U.K. Limited, Marvell Semiconductor Israel Ltd. (MSIL), RADLAN Computer Communications Ltd., and SysKonnect GmbH. MSI is headquartered in Santa Clara, Calif., and designs, develops and markets products on behalf of MIL and MAPL. MSI may be contacted at (408) 222-2500 or at www.marvell.com.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995:
This release contains forward-looking statements based on projections and assumptions about our products and our markets. Words such as "anticipates," "expects," "intends," "plans," "believes," "seeks," "estimates," "may," "will," "should," and their variations identify forward-looking statements. These statements include those relating to our strong success in the adoption of our technologies in consumer and enterprise markets, continuing to diversify our revenues, new high volume market opportunities, our strong track record of revenue growth and the anticipated features and benefits of our solutions. Statements that refer to, or are based on projections, uncertain events or assumptions also identify forward-looking statements. These statements are not guarantees of results and are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward-looking statements. These risks and uncertainties include, but are not limited to, the timing, cost and successful completion of development and volume production of the Company’s products, end-customer qualification and adoption, and the timing, pricing, rescheduling, or cancellation of orders. For other factors that could cause Marvell's results to vary from expectations, please see the sections titled “Additional Factors That May Affect Future Results” in Marvell's annual report on Form 10-K for the fiscal year ended January 28, 2006 and other factors detailed from time to time in Marvell’s filings with the Securities and Exchange Commission. We undertake no obligation to revise or update publicly any forward-looking statements.
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