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SANTA CLARA, Calif., May 26, 2011 /PRNewswire/ -- Marvell Technology Group Ltd. (NASDAQ: MRVL), a global leader in integrated silicon solutions, today reported financial results for the first quarter of fiscal 2012, ended April 30, 2011.

(Logo:  https://investor.marvell.com/image/Marvell_logo.jpg)

Revenue for the first quarter of fiscal 2012 was $802 million, a 6 percent decrease from $856 million in the first quarter of fiscal 2011, ended May 1, 2010, and a 11 percent sequential decrease from $901 million in the fourth quarter of fiscal 2011, ended January 29, 2011.  

GAAP net income was $147 million, or $0.22 per share (diluted), for the first quarter of fiscal 2012, compared with GAAP net income of $206 million, or $0.30 per share (diluted), for the first quarter of fiscal 2011. GAAP net income in the fourth quarter of fiscal 2011 was $223 million, or $0.33 per share (diluted).  

Non-GAAP net income was $189 million, or $0.29 per share (diluted), for the first quarter of fiscal 2012, compared with non-GAAP net income of $260 million, or $0.38 per share (diluted), for the first quarter of fiscal 2011. Non-GAAP net income for the fourth quarter of fiscal 2011 was $273 million, or $0.40 per share (diluted).  

"The results for our first quarter reflected the typical seasonality of our consumer centric end markets," said Dr. Sehat Sutardja, Marvell's Chairman and Chief Executive Officer. "Even at this low point in the revenue cycle, we were an industry leader in profitability for both operating and cash flow margins, demonstrating the strength of our long-term business model. We remain confident that the investments we are making such as in TD-SCDMA and SSD will result in improved results throughout the year."

Marvell reports net income, basic and diluted net income per share in accordance with U.S. generally accepted accounting principles (GAAP) and on a non-GAAP basis as outlined below. Reconciliations of GAAP net income to non-GAAP net income for the three months ended April 30, 2011, January 29, 2011 and May 1, 2010 appear in the financial statements below. Non-GAAP net income, where applicable, excludes the effect of stock-based compensation, amortization and write-offs of acquired intangible assets, restructuring costs and certain one-time expenses or benefits.  

GAAP gross margin for the first quarter of fiscal 2012 was 58.3 percent, compared to 59.8 percent for the first quarter of fiscal 2011 and 58.7 percent for the fourth quarter of fiscal 2011.  

Non-GAAP gross margin for the first quarter of fiscal 2012 was 58.5 percent, compared to 60.6 percent for the first quarter of fiscal 2011 and 59.4 percent for the fourth quarter of fiscal 2011.  

Shares used to compute GAAP net income per diluted share for the first quarter of fiscal 2012 were 657 million shares, compared with 678 million shares in the first quarter of fiscal 2011 and 679 million shares in the fourth quarter of fiscal 2011. Shares used to compute non-GAAP net income per diluted share for the first quarter of fiscal 2012 were 663 million shares, compared with 681 million shares for the first quarter of fiscal 2011 and 685 million shares for the fourth quarter of fiscal 2011.  

Cash flow from operations for the first quarter of fiscal 2012 was $177 million, down from the $256 million in the first quarter of fiscal 2011 and down from the $251 million reported in the fourth quarter of fiscal 2011. Free cash flow for the first quarter of fiscal 2012 was $157 million, down from the $237 million in first quarter of fiscal 2011 and down from the $213 million reported in the fourth quarter of fiscal 2011. Free cash flow as presented above is defined as cash flow from operations, less capital expenditures and purchases of IP licenses.  

Under the share repurchase program, Marvell repurchased approximately 50 million shares for a total of $800 million in first quarter of fiscal 2012 demonstrating a commitment to returning shareholder value.

Conference Call

Marvell will be conducting a conference call on May 26, 2011 at 1:45 p.m. Pacific Time to discuss results for the first quarter of fiscal 2012. Interested parties may join the conference call by dialing 1-866-700-7173 or 1-617-213-8838 , pass-code 96722601. The call will be webcast by Thomson Reuters and can be accessed at the Marvell Investor Relations website at http://investor.marvell.com/ with a replay available following the call until June 26, 2011.  

Discussion of Non-GAAP Financial Measures

Non-GAAP financial measures exclude stock-based compensation expense as well as charges related to acquisitions, restructuring, gains and other charges that are driven primarily by discrete events that management does not consider to be directly related to Marvell's core operating performance. Non-GAAP earnings per share is calculated by dividing non-GAAP net income by non-GAAP weighted average shares outstanding (diluted). For purposes of calculating non-GAAP earnings per share, the GAAP weighted average shares outstanding (diluted) is adjusted to exclude the potential benefits of compensation costs expected to be incurred in future periods, but not yet recognized in the financial statements. The expected compensation costs are treated as proceeds assumed to be used to repurchase shares under the GAAP treasury stock method and also include the dilutive/antidilutive effects of common stock options and restricted stock.  

Marvell believes that the presentation of non-GAAP financial measures provide important supplemental information to management and investors regarding financial and business trends relating to Marvell's financial condition and results of operations. While Marvell uses non-GAAP financial measures as a tool to enhance its understanding of certain aspects of its financial performance, Marvell does not consider these measures to be a substitute for, or superior to, the information provided by GAAP financial measures. Consistent with this approach, Marvell believes that disclosing non-GAAP financial measures to the readers of its financial statements provides such readers with useful supplemental data that, while not a substitute for GAAP financial measures, allows for greater transparency in the review of its financial and operational performance. For further information regarding why Marvell believes that these non-GAAP measures provide useful information to investors, the specific manner in which management uses these measures, and some of the limitations associated with the use of these measures, please refer to Marvell's Current Report on Form 8-K filed today with the SEC. The Form 8-K is available on the SEC's website at www.sec.gov as well as on the Marvell website in the Investor Relations section at www.marvell.com.  

About Marvell  

Marvell is a global leader in the development of storage, communications and consumer silicon solutions. Marvell'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 term "Marvell" refers to Marvell Technology Group Ltd. and its subsidiaries. For more information please visit www.marvell.com.    

Forward-Looking Statements

This press release contains forward-looking statements that involve risks and uncertainties, including statements regarding the strength of Marvell's long-term business model; the ability of Marvell's investments to result in improved results throughout the year; and statements concerning Marvell's use of non-GAAP net income and net income per share as important supplemental information. These statements are not guarantees of results and should not be considered as an indication of future performance. Actual events or results may differ materially from those described in this document due to a number of risks and uncertainties, including, among others, Marvell's reliance on major customers and suppliers; market acceptance of new products; uncertainty in the worldwide economic environment and other risks detailed in Marvell's SEC filings. When Marvell files its Form 10-Q for the first quarter of fiscal 2012, the financial statements may differ from the results disclosed in this press release because judgments and estimates that management used in preparing the financial results reported in this press release may need to be updated to the date of the filing. Marvell's results also remain subject to review by Marvell's independent registered public accounting firm. For other factors that could cause Marvell's results to vary from expectations, please see the risk factors identified in the Marvell's latest Annual Report on Form 10-K for fiscal year 2011, ended January 29, 2011, as filed with the SEC and other factors detailed from time to time in Marvell's filings with the SEC. Marvell undertakes no obligation to revise or update publicly any forward-looking statements.  

Marvell® and the Marvell logo are registered trademarks of Marvell and/or its affiliates.

SOURCE Marvell Technology Group Ltd.