Marvell Technology Group Ltd. Reports Record Third Quarter Fiscal 2004 Results
Sunnyvale, California (November 19, 2003) –
Marvell® Technology Group Ltd. (NASDAQ: MRVL), the technology leader in the development of extreme broadband communications and storage solutions, today reported financial results for its third fiscal quarter ended November 1, 2003.
Net revenue for the third quarter of fiscal 2004 was a record $215.3 million, an increase of 58% over net revenue of $135.9 million for the third quarter of fiscal 2003 and a 12% sequential increase from net revenue of $192.9 million for the second quarter of fiscal 2004. Net income under generally accepted accounting principles (GAAP) was $12.0 million, or $0.08 per share (diluted), for the third quarter of fiscal 2004, compared with net loss under GAAP of $7.7 million, or $0.06 per share (diluted), for the third quarter of fiscal 2003.
Net revenue for the nine months ended November 1, 2003 was $576.5 million, an increase of 63% over net revenue of $354.4 million for nine months ended November 2, 2002. Net income under GAAP was $25.7 million, or $0.19 per share (diluted), for the nine months ended November 1, 2003, compared with net loss under GAAP of $47.9 million, or $0.40 per share (diluted), for the nine months ended November 2, 2002.
Marvell reports net income (loss) and basic and diluted net income (loss) per share in accordance with GAAP and additionally on a non-GAAP basis, referred to as pro forma. Pro forma net income, where applicable, excludes the effect of acquisition-related expenses, amortization of stock-based compensation and charges related to facilities consolidation. Pro forma net income was $35.1 million, or $0.25 per share (diluted), for the third quarter of fiscal 2004, compared with pro forma net income of $17.6 million, or $0.14 per share (diluted), for the third quarter of fiscal 2003. Shares used in computing pro forma net income per share for the third quarter of fiscal 2004 increased to 142.4 million, compared with 127.6 million for the third quarter of fiscal 2003.
Pro forma net income was $89.6 million, or $0.66 per share (diluted), for the nine months ended November 1, 2003, compared with pro forma net income of $42.3 million, or $0.33 per share (diluted), for the nine months ended November 2, 2002. Shares used in computing pro forma net income per share for the nine months ended November 1, 2003 were 136.3 million, compared to 129.9 million for the nine months ended November 2, 2002. 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 (loss) to pro forma net income is included in the financial statements portion 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 pro forma 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.
“Q3 was another very strong quarter for Marvell,” stated Dr. Sehat Sutardja, Marvell’s President and CEO. “Our continued growth is being fueled by our market share gains in the data storage market and our leadership position in driving the adoption of gigabit Ethernet. During the quarter we continued to improve our profitability and strengthen our balance sheet.”
Marvell will be conducting a conference call today at 1:45 p.m. PT to discuss its third quarter fiscal 2004 financial results. To listen to the conference call, investors can dial (706) 679-0800 approximately ten minutes prior to the initiation of the teleconference and refer to conference code 3757158. Replay of the conference call will be available until November 26, 2003 at midnight by calling (706) 645-9291. The conference call will also be available via the web at www.marvell.com until November 19, 2004.
Marvell (NASDAQ: MRVL) is the leading global semiconductor provider of complete broadband communications and storage 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 Sunnyvale, 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 continued growth being fueled by market share gains in the data storage market and leadership position in driving the adoption of gigabit Ethernet. 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. Some risks and uncertainties that may adversely impact the statements in this release include, but are not limited to, the timing, cost and successful completion of development and volume production, 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 February 1, 2003 and Marvell’s subsequent reports on Form 10-Q. We undertake no obligation to revise or update publicly any forward-looking statements.
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