Sunnyvale, California (August 19, 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 second fiscal quarter ended July 31, 2004.
Net revenue for the second quarter of fiscal 2005 was a record $297.2 million, an increase of 54% over net revenue of $192.9 million for the second quarter of fiscal 2004 and a 10% sequential increase from net revenue of $269.6 million for the first quarter of fiscal 2005. Net income under generally accepted accounting principles (GAAP) was $28.6 million, or $0.10 per share (diluted), for the second quarter of fiscal 2005, compared with a net income under GAAP of $9.4 million, or $0.03 per share (diluted), for the second quarter of fiscal 2004.
Net revenue for the six months ended July 31, 2004 was $566.7 million, an increase of 57% over net revenue of $361.1 million for the six months ended August 2, 2003. Net income under GAAP was $43.1 million, or $0.15 per share (diluted), for the six months ended July 31, 2004, compared with a net income under GAAP of $13.8 million, or $0.05 per share (diluted), for the six months ended August 2, 2003.
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 $59.7 million, or $0.20 per share (diluted), for the second quarter of fiscal 2005, compared with pro forma net income of $30.0 million, or $0.11 per share (diluted), for the second quarter of fiscal 2004. Shares used in computing pro forma net income per share for the second quarter of fiscal 2005 increased to 295.8 million, compared with 273.6 million for the second quarter of fiscal 2004.
Pro forma net income was $108.8 million, or $0.37 per share (diluted), for the six months ended July 31, 2004, compared with pro forma net income of $54.5 million, or $0.20 per share (diluted), for the six months ended August 2, 2003. Shares used in computing pro forma net income per share for the six months ended July 31, 2004 increased to 294.0 million, compared with 266.4 million for the six months ended August 2, 2003.
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.
“Q2 was a very successful quarter for Marvell. Along with another strong quarter of revenue growth, we also continued to expand our operating margins and further strengthen our balance sheet,” stated Dr. Sehat Sutardja, Marvell’s President and CEO. “We are enjoying strong momentum in both the enterprise and consumer markets. In particular, we are very excited about the rate of adoption of our wireless LAN and storage electronics for emerging consumer applications as well as continued strong design activity for our Linear DSP power management products.”
Revenue for the second quarter was a record for Marvell and represented the 27th consecutive quarter of sequential revenue growth. Also, the 10% sequential increase in the second quarter revenue was Marvell’s 11th consecutive quarter where sequential revenue growth was at least 10%. The following is a review of some of the recent highlights that occurred since last quarter’s earnings release:
Marvell will be conducting a conference call today at 1:45 p.m. PT to discuss its second 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 9073056. Replay of the conference call will be available until August 26, 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 August 19, 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.
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 the rate of our customers’ adoption of our wireless LAN and storage electronics, continued strong design activity for identified power management products, the commencement of volume shipments of WLAN products for consumer applications and the anticipated benefits of and the continued strong revenue growth and design win activity for our Prestera product family and hard disk drive products, including small form factor drives, and the anticipated benefits of our All-into-1 and LiveAP WLAN 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. 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 and Marvell’s subsequent reports on Form 10-Q. We undertake no obligation to revise or update publicly any forward-looking statements.
Marvell® and the Marvell logo are trademarks of Marvell. All other trademarks are the property of their respective owners.