• Q2 Internet Income: $1.517 billion, grew by 41% year-on-year
• Q2 Gross Margin: 51.8% GAAP gross margin; 65.0% non-GAAP gross margin
• Q2 Diluted revenue per share: $0.01 GAAP diluted revenue per share; $0.57 non-GAAP diluted revenue per share

SANTA CLARA, Calif., Aug. 25, 2022 /PRNewswire/ — Marvell Know-how, Inc. (NASDAQ: MRVL), a pacesetter in infrastructure semiconductor options, immediately reported monetary outcomes for the second quarter of fiscal yr 2023.

Internet income for the second quarter of fiscal 2023 was $1.517 billion, in keeping with the midpoint of the Firm’s steerage supplied on Could 26, 2022. GAAP internet revenue for the second quarter of fiscal 2023 was $4 million, or $0.01 per diluted share. Non-GAAP internet revenue for the second quarter of fiscal 2023 was $486 million, or $0.57 per diluted share. Money stream from operations for the second quarter was $331.5 million.

“Within the second quarter of fiscal 2023, we delivered file income of $1.52 billion, which grew 41 p.c yr over yr and 5 p.c sequentially. This was the 9^th straight quarter of sequential income progress, and we’re guiding for progress to proceed within the third quarter, as we broaden our management in knowledge infrastructure,” stated Matt Murphy, Marvell’s President and CEO. “Trying forward, we anticipate sequential income progress to speed up within the fourth quarter as provide constraints start to ease. We consider we’re effectively positioned to proceed to learn from our favorable finish market publicity tied to sturdy secular progress developments and vital anticipated upcoming income contributions from various Marvell-specific product ramps.”

Third Quarter of Fiscal 2023 Monetary Outlook

• Internet income is anticipated to be $1.560 billion +/- 3%.
• GAAP gross margin is anticipated to be 51.1% +/- 1.1%.
• Non-GAAP gross margin is anticipated to be 65.0% +/- 0.25%.
• GAAP working bills are anticipated to be $667 million to $677 million.
• Non-GAAP working bills are anticipated to be $435 million to $440 million.
• Fundamental weighted common shares excellent are anticipated to be 854 million.
• Diluted weighted common shares excellent are anticipated to be 862 million.
• GAAP diluted revenue per share is anticipated to be $0.09 +/- $0.04 per share.
• Non-GAAP diluted revenue per share is anticipated to be $0.59 +/- $0.03 per share.

GAAP diluted EPS is calculated utilizing fundamental weighted common shares excellent when there’s a GAAP internet loss, and calculated utilizing diluted weighted common shares excellent when there’s a GAAP internet revenue. Non-GAAP diluted EPS is calculated utilizing diluted weighted common shares excellent.

Convention Name

Marvell will conduct a convention name on Thursday, August 25, 2022 at 1:45 p.m. Pacific Time to debate outcomes for the second quarter of fiscal 2023. events might be a part of the convention name by dialing 1-888-317-6003 or 1-412-317-6061, passcode 6112887. The decision might be webcast and may be accessed on the Marvell Investor Relations web site at http://investor.marvell.com/. A replay of the decision may be accessed by dialing 1-877-344-7529 or 1-412-317-0088, passcode 2421301 till Thursday, September 1, 2022.

Dialogue of Non-GAAP Monetary Measures

Non-GAAP monetary measures exclude the impact of stock-based compensation expense, amortization of the stock truthful worth adjustment related to acquisitions, amortization of acquired intangible property, acquisition and divestiture-related prices, restructuring and different associated prices (together with, however not restricted to, asset impairment prices, worker severance prices, and services associated prices), decision of authorized issues, and sure bills and advantages which might be pushed primarily by discrete occasions that administration doesn’t take into account to be straight associated to Marvell’s core enterprise.

Marvell makes use of a non-GAAP tax charge to compute the non-GAAP tax provision. This non-GAAP tax charge is predicated on Marvell’s estimated annual GAAP revenue tax forecast, adjusted to account for gadgets excluded from Marvell’s non-GAAP revenue, in addition to the consequences of great non-recurring and interval particular tax gadgets which range in dimension and frequency, and excludes tax deductions and advantages from acquired tax loss and credit score carryforwards and adjustments in valuation allowance on acquired deferred tax property. Marvell’s non-GAAP tax charge is set on an annual foundation and could also be adjusted in the course of the yr to take into consideration occasions that will materially have an effect on the non-GAAP tax charge corresponding to tax legislation adjustments; acquisitions; vital adjustments in Marvell’s geographic mixture of income and bills; or adjustments to Marvell’s company construction. For the second quarter of fiscal 2023, a non-GAAP tax charge of 6.0% has been utilized to the non-GAAP monetary outcomes.

Marvell believes that the presentation of non-GAAP monetary measures gives vital supplemental info to administration and traders relating to monetary and enterprise developments referring to Marvell’s monetary situation and outcomes of operations. Whereas Marvell makes use of non-GAAP monetary measures as a instrument to reinforce its understanding of sure features of its monetary efficiency, Marvell doesn’t take into account these measures to be an alternative to, or superior to, monetary measures calculated in accordance with GAAP. According to this strategy, Marvell believes that disclosing non-GAAP monetary measures to the readers of its monetary statements gives such readers with helpful supplemental knowledge that, whereas not an alternative to GAAP monetary measures, permits for larger transparency within the overview of its monetary and operational efficiency.

Externally, administration believes that traders might discover Marvell’s non-GAAP monetary measures helpful of their evaluation of Marvell’s working efficiency and the valuation of Marvell. Internally, Marvell’s non-GAAP monetary measures are used within the following areas:

• Administration’s analysis of Marvell’s working efficiency;
• Administration’s institution of inner working budgets;
• Administration’s efficiency comparisons with inner forecasts and focused enterprise fashions; and
• Administration’s willpower of the achievement and measurement of sure performance-based fairness awards (changes might range from award to award).

Non-GAAP monetary measures have limitations in that they don’t mirror the entire prices related to the operations of Marvell’s enterprise as decided in accordance with GAAP. In consequence, you shouldn’t take into account these measures in isolation or as an alternative to evaluation of Marvell’s outcomes as reported beneath GAAP. The exclusion of the above gadgets from our GAAP monetary metrics doesn’t essentially imply that these prices are uncommon or rare.

Ahead-Trying Statements beneath the Non-public Securities Litigation Reform Act of 1995

This press launch accommodates forward-looking statements inside the which means of the federal securities legal guidelines that contain dangers and uncertainties. Phrases corresponding to “anticipates,” “expects,” “intends,” “plans,” “initiatives,” “believes,” “seeks,” “estimates,” “can,” “might,” “will,” “would,” “outlook,” “forecast,” “targets” and related expressions determine such forward-looking statements. These statements should not ensures of outcomes and shouldn’t be thought of as a sign of future exercise or future efficiency. Ahead-looking statements are predictions, projections and different statements about future occasions which might be primarily based on present expectations and assumptions and, because of this, are topic to dangers and uncertainties. Precise occasions or outcomes might differ materially from these described on this press launch as a result of various dangers and uncertainties, together with, however not restricted to: our potential to retain and rent key personnel; dangers associated to the speedy progress of the Firm; dangers associated to adjustments on the whole financial circumstances corresponding to rising rates of interest, financial slowdowns, recessions, inflation, and stagflation; dangers associated to the affect of the COVID-19 pandemic which have impacted, and should proceed to affect our enterprise and operations, the transportation and manufacturing of our merchandise, and the operations of our prospects, distributors, distributors, suppliers, and companions; disruptions brought on by COVID-19, together with on account of restrictions which may be imposed by us or third events, leading to employee absenteeism, turnover, quarantines and restrictions on our workers’ potential to work, innovate, collaborate, and journey; provide chain disruptions or part shortages that will affect the manufacturing of our merchandise together with our kitting course of or might affect the worth of elements which in flip might affect our margins on any impacted merchandise and any constrained availability from different digital suppliers impacting our prospects’ potential to ship their merchandise, which in flip might adversely affect our gross sales to these prospects; our reliance on our manufacturing companions for the manufacture, meeting, testing and packaging of our merchandise; dangers associated to the ASIC enterprise mannequin which requires us to make use of third-party IP together with the danger that we might lose enterprise or expertise reputational hurt if third events, together with prospects, lose confidence in our potential to guard their IP rights; the affect of worldwide battle and financial volatility in both home or overseas markets together with dangers associated to commerce conflicts, rules, and tariffs, together with however not restricted to, restrictions imposed on our Chinese language prospects; the dangers related to manufacturing and promoting merchandise and prospects’ merchandise exterior of the US; our potential to outline, design and develop merchandise for the Cloud and 5G markets; our potential to safe design wins from our prospects and potential prospects; our potential to market our 5G merchandise to Tier 1 infrastructure prospects; our potential to finish and understand the anticipated advantages of any acquisitions, divestitures and investments; cancellations, rescheduling or deferrals of great buyer orders or shipments, in addition to the power of our prospects to handle stock; our potential to estimate buyer demand and future gross sales precisely; decreases in gross margin and outcomes of operations sooner or later as a result of various elements, together with growing rates of interest and volatility in overseas trade charges; extreme monetary hardship or chapter of a number of of our main prospects; our potential to understand the anticipated advantages from restructuring actions; the consequences of transitioning to smaller geometry course of applied sciences; the affect of any change within the revenue tax legal guidelines in jurisdictions the place we function and the lack of any helpful tax remedy that we presently take pleasure in; our potential to restrict prices associated to faulty merchandise; the danger of downturns within the semiconductor trade; dangers associated to our debt obligations; the end result of pending or future litigation and authorized and regulatory proceedings; threat associated to our ESG program; our dependence on a small variety of prospects; the affect and prices related to adjustments in worldwide monetary and regulatory circumstances; our potential and the power of our prospects to efficiently compete within the markets during which we serve; our potential and our prospects’ potential to develop new and enhanced merchandise and the adoption of these merchandise out there; our potential to precisely categorize our merchandise by finish markets; our potential to scale our operations in response to adjustments in demand for present or new services; dangers related to acquisition and consolidation exercise within the semiconductor trade, together with any consolidation of our manufacturing companions; our potential to guard our mental property; our upkeep of an efficient system of inner controls; and different dangers detailed in our SEC filings occasionally. The foregoing listing of things will not be exhaustive. You need to rigorously take into account the foregoing elements and the opposite dangers and uncertainties that have an effect on our enterprise described within the “Threat Elements” part of our Annual Reviews on Type 10-Ok, Quarterly Reviews on Type 10-Q and different paperwork filed by us occasionally with the SEC. Ahead-looking statements converse solely as of the date they’re made. Readers are cautioned to not put undue reliance on forward-looking statements, and we assume no obligation and don’t intend to replace or revise these forward-looking statements, whether or not on account of new info, future occasions or in any other case.

About Marvell

To ship the info infrastructure expertise that connects the world, we’re constructing options on probably the most highly effective basis: our partnerships with our prospects. Trusted by the world’s main expertise firms for over 25 years, we transfer, retailer, course of and safe the world’s knowledge with semiconductor options designed for our prospects’ present wants and future ambitions. By means of a strategy of deep collaboration and transparency, we’re finally altering the best way tomorrow’s enterprise, cloud, automotive, and provider architectures rework—for the higher.

Marvell^® and the Marvell emblem are registered logos of Marvell and/or its associates.

Quarterly Income Development (Unaudited)

Our product options serve 5 giant finish markets the place our expertise is crucial: (i) knowledge middle, (ii) provider infrastructure, (iii) enterprise networking, (iv) shopper, and (v) automotive/industrial. These markets and their corresponding buyer merchandise and functions are famous within the desk beneath:

For additional info, contact:
Ashish Saran
Senior Vice President, Investor Relations
408-222-0777
[email protected]

SOURCE Marvell