Sunnyvale, California (May 20, 2004) – arvell® Technology Group Ltd. (NASDAQ: MRVL), the technology leader in the development of extreme broadband communications and storage solutions, today reported financial results for its first fiscal quarter ended May 1, 2004.
Net revenue for the first quarter of fiscal 2005 was a record $269.6 million, an increase of 60% over net revenue of $168.3 million for the first quarter of fiscal 2004 and a 11% sequential increase from net revenue of $243.3 million for the fourth quarter of fiscal 2004. Net income under generally accepted accounting principles (GAAP) was $14.5 million, or $0.10 per share (diluted), for the first quarter of fiscal 2005, compared with a net income under GAAP of $4.4 million, or $0.03 per share (diluted), for the first quarter of fiscal 2004.
Marvell reports net income and basic and diluted net income 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 amortization and write-off of acquired intangible assets and other, and amortization of stock-based compensation. Pro forma net income was $49.1 million, or $0.34 per share (diluted), for the first quarter of fiscal 2005, compared with pro forma net income of $24.5 million, or $0.19 per share (diluted), for the first quarter of fiscal 2004. Shares used in computing pro forma net income per share for the first quarter of fiscal 2005 increased to 146.1 million, compared with 129.6 million for the first quarter of fiscal 2004.
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 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.
“Q1 was another very successful quarter for Marvell. Our financial results reflect the hard work and dedication of our employees, the strong positioning of our world class technologies and the support of our customers and partners,” stated Dr. Sehat Sutardja, Marvell’s President and CEO. “Our solid execution is driving strong revenue growth and momentum in both the Enterprise and Consumer markets. Also, we continue to receive strong design activity for our new Linear DSP power management products, the DSP Switcher™ and this week’s announcement of our high-performance embedded microprocessors marks a major strategic move that will further enable us to offer superior products to our customers while greatly expanding our high volume market opportunities.”
Revenue for the first quarter was a record for Marvell and represented the 26th consecutive quarter for sequential revenue growth. Also, the 11% sequential increase in first quarter revenue was Marvell’s 10th consecutive quarter where sequential revenue growth was greater than 10%. The following is a review of some of the recent highlights that occurred since our last earnings release:
Marvell will be conducting a conference call today at 1:45 p.m. PT to discuss its first quarter 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 7270279. Replay of the conference call will be available until May 27, 2004 at midnight PDT by dialing (706) 645-9291. 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 May 20, 2005.
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.
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 expanding high volume market opportunities through high-performance embedded microprocessors, revenue growth opportunities for Marvell in the hard disk market, partnering with customers to drive rapid adoption of small form factor disk drive technology, our continuing revenue growth being driven by the accelerating adoption of Gigabit Ethernet for infrastructure switching and by the continued adoption of our Wireless and Storage products, our expectations regarding our products and new technology reaching many new large volume markets and applications such as consumer electronics. 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 January 31, 2004. We undertake no obligation to revise or update publicly any forward-looking statements.
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