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Marvell Technology Reports Fiscal Fourth Quarter and Fiscal 2009 Results

Revenue: $513 Million, FQ409; $2.95 Billion, FY2009

Free Cash Flow: $95 Million, FQ409; $607 Million, FY2009

Announces Significant Operating Expense Reduction Actions

Marvell Technology Reports Fiscal Fourth Quarter and Fiscal 2009 Results

SANTA CLARA, Calif., March 5 /PRNewswire-FirstCall/ -- Marvell Technology Group Ltd. (Nasdaq: MRVL), a world leader in storage, communications and consumer silicon solutions, today reported financial results for the fourth quarter and fiscal year 2009, ended January 31, 2009.

(Logo: http://www.newscom.com/cgi-bin/prnh/20070411/SFW034LOGO)

Net revenue for the fourth quarter of fiscal 2009 was $513 million, a 39 percent decrease from $845 million in the fourth quarter of fiscal 2008, ended February 2, 2008, and a 35 percent sequential decrease from $791 million in the third quarter of fiscal 2009, ended November 1, 2008.

Net revenue for the fiscal year ended January 31, 2009 was $2.95 billion, an increase of approximately 2 percent over net revenue of $2.89 billion for the fiscal year ended February 2, 2008.

GAAP net loss was $65 million, or $0.11 per share (diluted), for the fourth quarter of fiscal 2009, compared with GAAP net income of $1 million, or essentially break-even per share, for the fourth quarter of fiscal 2008. GAAP net income was $71 million, or $0.11 per share (diluted) in the third quarter of fiscal 2009.

GAAP net income was $147 million, or $0.23 per share (diluted), for the year ended January 31, 2009, compared with a GAAP net loss of $114 million, or $0.19 per share (diluted), for the year ended February 2, 2008.

Non-GAAP net income declined to $32 million, or $0.05 per share (diluted), for the fourth quarter of fiscal 2009, a 74 percent decrease compared with non-GAAP net income of $123 million, or $0.20 per share (diluted), for the fourth quarter of fiscal 2008 and a decrease of 78 percent from non-GAAP net income of $145 million, or $0.23 per share (diluted), for the third quarter of fiscal 2009.

Non-GAAP net income was $482 million, or $0.76 per share (diluted), for the fiscal year ended January 31, 2009, compared with non-GAAP net income of $280 million, or $0.44 per share (diluted), for the fiscal year ended February 2, 2008.

"The results for our fourth quarter reflect the challenging business environment our company, and the world, currently faces," said Dr. Sehat Sutardja, Marvell Chairman and Chief Executive Officer. "Notwithstanding the challenges we encountered during our fourth quarter, we were able to sustain gross margins, act quickly to lower our operating expenses and generate a healthy free cash flow. However, we believe the current economic climate will not substantially improve over the short term. Consequently, we are taking actions to re-align our business to reflect the realities of the current economic environment. We are focused on improving the operating efficiency of our business and lowering the expenses under our control, while reinforcing the long-term financial strength of Marvell. Our results in our fourth quarter demonstrate initial progress toward these goals."

Marvell is implementing plans to lower the overall costs and expenses of the company in response to the deteriorating economic environment. As a result of this plan and combined with certain cost reduction measures taken in the fourth quarter of fiscal 2009, Marvell plans to reduce its global workforce by approximately 15 percent, or approximately 850 employees. Marvell estimates that the restructuring charges associated with the reduction in force and consolidation of facilities taken to date will be approximately $20 million, including approximately $14 million related to severance and other employee benefit payments and approximately $6 million related to facility consolidation. Marvell expects the expense reduction actions in the plan to be implemented through calendar year 2009. This estimate includes restructuring charges recorded in the fiscal fourth quarter of 2009 of approximately $9.7 million, comprised of $6.7 million of severance and other employee benefit costs and $3.0 million of facilities consolidation. Marvell estimates that the restructuring measures taken to date will result in approximately $15 million in cash payments in calendar year 2009 and the remainder will be a non-cash accounting-related charge associated with facilities consolidation. As Marvell implements the remaining portions of this plan, additional charges will be incurred, the amount of which Marvell cannot reasonably estimate at this time, but which will likely include additional severance and other employee benefit related costs, lease termination costs, facility site consolidations or closures, and impaired asset charges.

Marvell reports net income (loss), basic and diluted net income (loss) 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 (loss) to non-GAAP net income for the three months ended January 31, 2009, November 1, 2008 and February 2, 2008 and fiscal years ended January 31, 2009 and February 2, 2008, respectively, 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 fourth quarter of fiscal 2009 was 50.7 percent, compared to 48.1 percent for the fourth quarter of fiscal 2008, and 52.1 percent for the third quarter of fiscal 2009. GAAP gross margin for fiscal 2009 was 51.6% compared to 48.3% for fiscal 2008.

Non-GAAP gross margin for the fourth quarter of fiscal 2009 was 51.3 percent, compared to 48.7 percent for the fourth quarter of fiscal 2008 and 52.3 percent for the third quarter of fiscal 2009. Non-GAAP gross margin for fiscal 2009 was 52 percent compared to 48.8 percent for fiscal 2008.

Shares used to compute GAAP net loss per diluted share, for the fourth quarter of fiscal 2009 were 615 million shares, compared with 627 million shares in the fourth quarter of fiscal 2008 and 631 million shares in the third quarter of fiscal 2009. Shares used to compute non-GAAP net income per diluted share for the fourth quarter of fiscal 2009 were 629 million shares compared with 627 million shares for the fourth quarter of fiscal 2008 and 633 million shares for the third quarter of fiscal 2009.

Shares used to compute GAAP net income per diluted share, for the fiscal year ended January 31, 2009 were 630 million shares, compared with shares used to compute GAAP net loss per diluted share of 590 million shares for the fiscal year ended February 2, 2008. Shares used to compute non-GAAP net income per diluted share for the fiscal year ended January 31, 2009 were 630 million shares compared with 630 million shares for the fiscal year ended February 2, 2008.

Cash flow from operations for the fourth quarter of fiscal 2009 was $109 million, down 33 percent from the $163 million in the fourth quarter of fiscal 2008 and down 58 percent sequentially from the $258 million reported in the third quarter of fiscal 2009. Cash flow from operations for fiscal 2009 was $681 million, as compared to $177 million for fiscal 2008. Free cash flow, defined as cash flow from operations, less capital expenditures, was $95 million, down 27 percent from the $131 million in the fourth quarter of fiscal 2008 and down 61 percent sequentially from the $246 million reported in the third quarter of fiscal 2009. Free cash flow for the year was $607 million in fiscal 2009 as compared to $64 million in fiscal 2008.

Conference Call

Marvell will be conducting a conference call on March 5, 2009 at 2:00 p.m. PST to discuss results for the fourth quarter and fiscal year ended January 31, 2009. Interested parties may dial-in to the conference call at 1-800-299-9630, pass-code 70089700. The call is being webcast by ThomsonReuters and can be accessed at Marvell's website under the Investor Events section of the Investor Relations page at http://www.marvell.com/investors/events.jsp. Replay on the internet will be available following the call until April 4, 2009.

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 Technology (NASDAQ: MRVL) 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 terms "Company" and "Marvell" refer to Marvell Technology Group Ltd. and its subsidiaries. For more information visit www.marvell.com

Forward-Looking Statements

This press release contains forward-looking statements that involve risks and uncertainties, including statements regarding our expectations about when the current economic climate may change; our ability to re-align our business to the current economic environment; the magnitude and financial impact of the reduction in force; and statements concerning the Company'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, the Company's reliance on major customers and suppliers; market acceptance of new products; uncertainty in the worldwide economic environment; successful execution of the Company's restructuring plan and other risks detailed in Marvell's SEC filings. When Marvell files its Form 10-K for fiscal year 2009, 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. The Company's results also remain subject to review by the Company'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 Quarterly Report on Form 10-Q for the quarter ended November 1, 2008 and Current Reports on Form 8-K, 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.


    For further information, contact:
    Jeff Palmer               Tom Hayes
    Investor Relations        Corporate Communications
    408-222-8373              408-222-2815
    jpalmer@marvell.com       tom@marvell.com




                         Marvell Technology Group Ltd.
                 Condensed Consolidated Statements of Operations
                                  (Unaudited)
                   (In thousands, except per share amounts)

                             Three Months Ended             Year Ended
                   January 31, November 1, February 2, January 31, February 2,
                         2009      2008       2008         2009        2008

    Net revenue        $512,867  $791,046  $844,686   $2,950,563   $2,894,693
    Cost of goods sold  252,732   379,137   438,640    1,426,624    1,497,796
    Gross profit        260,135   411,909   406,046    1,523,939    1,396,897
    Operating expenses:
      Research and
       development      207,579   234,222   266,464      929,990      988,996
      Selling and
       marketing         31,893    41,158    60,504      160,973      211,261
      General and
       administrative    31,979    28,869    48,340      104,788      138,640
      Amortization and
       write-off of
       acquired
       intangible assets 48,274    34,814    43,810      153,323      155,734
      Restructuring       9,689       -       7,856        9,689        7,856
        Total operating
         expenses       329,414   339,063   426,974    1,358,763    1,502,487
    Operating income
     (loss)             (69,279)   72,846   (20,928)     165,176     (105,590)
    Interest and other
     income (expense),
     net                   (440)   11,543    14,910        5,657      (12,398)
    Income (loss) before
     income taxes       (69,719)   84,389    (6,018)     170,833     (117,988)
    Provision (benefit)
     for income taxes    (4,709)   13,443    (7,311)      23,591       (3,561)
    Net income (loss)  $(65,010)  $70,946    $1,293     $147,242    $(114,427)

    Basic net income
     (loss) per share    $(0.11)    $0.12     $0.00        $0.24       $(0.19)
    Diluted net income
     (loss) per share    $(0.11)    $0.11     $0.00        $0.23       $(0.19)

    Shares used in
     computing basic
     earnings per
     share              614,960   611,945   595,512      608,747      590,308
    Shares used in
     computing diluted
     earnings per
     share              614,960   630,810   626,699      630,328      590,308



                       Marvell Technology Group Ltd.
                  Reconciliation of Non-GAAP Adjustments
                                (Unaudited)
                 (In thousands, except per share amounts)

                                                   Three Months Ended
                                                    January 31, 2009
                                             GAAP    Adjustments     Non-GAAP

    Net revenue                            $512,867       $-         $512,867
    Cost of goods sold                      252,732      3,021 (a)    249,711
    Gross profit                            260,135      3,021        263,156
       Gross margin                            50.7%                     51.3%
    Operating expenses:
       Research and development             207,579     33,358 (a)    177,873
                                                        (3,652)(b)
       Selling and marketing                 31,893      4,677 (a)     28,539
                                                        (1,323)(b)
       General and administrative            31,979      3,645 (a)     28,651
                                                          (317)(b)
       Amortization and write-off of
        acquired intangible assets           48,274     48,274 (c)        -
       Restructuring                          9,689      9,689 (d)        -
         Total operating expenses           329,414     94,351        235,063
    Operating income (loss)                 (69,279)    97,372         28,093
    Interest and other income (expense),
     net                                       (440)       -             (440)
    Income (loss) before income taxes       (69,719)    97,372         27,653
    Provision for income taxes               (4,709)       -           (4,709)
    Net income (loss)                      $(65,010)   $97,372        $32,362

    Basic net income (loss) per share        $(0.11)                    $0.05
    Diluted net income (loss) per share      $(0.11)                    $0.05

    Shares used in computing basic
     earnings per share                     614,960                   614,960
    Shares used in computing diluted
     earnings per share                     614,960                   628,992



                                                  Three Months Ended
                                                   November 1, 2008
                                             GAAP    Adjustments     Non-GAAP

    Net revenue                            $791,046       $-         $791,046
    Cost of goods sold                      379,137      1,795 (a)    377,342
    Gross profit                            411,909      1,795        413,704
       Gross margin                            52.1%                     52.3%
    Operating expenses:
       Research and development             234,222     30,607 (a)    203,615
                                                           -
       Selling and marketing                 41,158      6,896 (a)     34,262
                                                           -              -
       General and administrative            28,869        280 (a)     28,589
                                                           -
       Amortization and write-off of
        acquired intangible assets           34,814     34,814 (c)        -
       Restructuring                                       -              -
         Total operating expenses           339,063     72,597        266,466
    Operating income (loss)                  72,846     74,392        147,238
    Interest and other income (expense),
     net                                     11,543        -           11,543
    Income (loss) before income taxes        84,389     74,392        158,781
    Provision for income taxes               13,443        -           13,443
    Net income (loss)                       $70,946    $74,392       $145,338

    Basic net income (loss) per share         $0.12                     $0.24
    Diluted net income (loss) per share       $0.11                     $0.23

    Shares used in computing basic
     earnings per share                     611,945                   611,945
    Shares used in computing diluted
     earnings per share                     630,810                   632,550



                                                 Three Months Ended
                                                  February 2, 2008
                                            GAAP    Adjustments    Non-GAAP

    Net revenue                           $844,686       $-        $844,686
    Cost of goods sold                     438,640      4,911 (a)   433,729
    Gross profit                           406,046      4,911       410,957
       Gross margin                           48.1%                    48.7%
    Operating expenses:
       Research and development            266,464     45,627 (a)   220,837

       Selling and marketing                60,504     13,925 (a)    46,579

       General and administrative           48,340      5,497 (a)    42,843

       Amortization and write-off of
        acquired intangible assets          43,810     43,810 (c)       -
       Restructuring                         7,856      7,856 (d)       -
         Total operating expenses          426,974    116,715       310,259
    Operating income (loss)                (20,928)   121,626       100,698
    Interest and other income (expense),
     net                                    14,910        -          14,910
    Income (loss) before income taxes       (6,018)   121,626       115,608
    Provision for income taxes              (7,311)       -          (7,311)
    Net income (loss)                       $1,293   $121,626      $122,919

    Basic net income (loss) per share        $0.00                    $0.21
    Diluted net income (loss) per share      $0.00                    $0.20

    Shares used in computing basic
     earnings per share                    595,512                  595,912
    Shares used in computing diluted
     earnings per share                    626,699                  627,241

    (a) Consists of employee stock-based compensation expense

    (b) Consists of reversal of remaining payroll related tax liabilities
     initially recorded in prior years in connection with the stock option
     backdating.

    (c) Consists of amortization and write-off of intangible assets

    (d) Consists of
          For three months ending January 31, 2009, severance and facilities
          related restructuring charges.

          For three months ending February 2, 2008, severance related
          restructuring charges.



                       Marvell Technology Group Ltd.
                  Reconciliation of Non-GAAP Adjustments
                                (Unaudited)
                 (In thousands, except per share amounts)

                                                      Year Ended
                                                   January 31, 2009
                                              GAAP   Adjustments     Non-GAAP

    Net revenue                           $2,950,563      $-       $2,950,563
    Cost of goods sold                     1,426,624    11,644 (a)  1,414,980
    Gross profit                           1,523,939    11,644      1,535,583
       Gross margin                             51.6%                    52.0%
    Operating expenses:
       Research and development              929,990   126,895 (a)    806,747
                                                        (3,652)(b)
       Selling and marketing                 160,973    25,080 (a)    137,216
                                                        (1,323)(b)
       General and administrative            104,788    13,513 (a)     91,592
                                                          (317)(b)
       Amortization and write-off of
        acquired intangible assets           153,323   153,323 (c)        -
       Restructuring                           9,689     9,689 (d)        -
         Total operating expenses          1,358,763   323,208      1,035,555
    Operating income (loss)                  165,176   334,852        500,028
    Interest and other income (expense),
     net                                       5,657       -            5,657
    Income (loss) before income taxes        170,833   334,852        505,685
    Provision for income taxes                23,591       -           23,591
    Net income (loss)                       $147,242  $334,852       $482,094

    Basic net income (loss) per share          $0.24                    $0.79
    Diluted net income (loss) per share        $0.23                    $0.76

    Shares used in computing basic
     earnings per share                      608,747                  608,747
    Shares used in computing diluted
     earnings per share                      630,328                  630,456



                                                      Year Ended
                                                   February 2, 2008
                                              GAAP   Adjustments     Non-GAAP

    Net revenue                           $2,894,693      $-       $2,894,693
    Cost of goods sold                     1,497,796    15,530 (a)  1,482,266
    Gross profit                           1,396,897    15,530      1,412,427
       Gross margin                             48.3%                    48.8%
    Operating expenses:
       Research and development              988,996   152,249 (a)    836,747

       Selling and marketing                 211,261    39,022 (a)    172,239

       General and administrative            138,640    24,179 (a)    114,461

       Amortization and write-off of
        acquired intangible assets           155,734   155,734 (c)        -
       Restructuring                           7,856     7,856 (d)        -
         Total operating expenses          1,502,487   379,040      1,123,447
    Operating income (loss)                 (105,590)  394,570        288,980
    Interest and other income (expense),
     net                                     (12,398)      -          (12,398)
    Income (loss) before income taxes       (117,988)  394,570        276,582
    Provision for income taxes                (3,561)      -           (3,561)
    Net income (loss)                      $(114,427) $394,570       $280,143

    Basic net income (loss) per share         $(0.19)                   $0.47
    Diluted net income (loss) per share       $(0.19)                   $0.44

    Shares used in computing basic
     earnings per share                      590,308                  590,308
    Shares used in computing diluted
     earnings per share                      590,308                  630,468

    (a) Consists of employee stock-based compensation expense.

    (b) Consists of reversal of remaining payroll related tax liabilities
     initially recorded in prior years in connection with the stock option
     backdating.

    (c) Consists of amortization and write-off of intangible assets.

    (d) Consists of
          For year ending January 31, 2009, severance and facilities related
          restructuring charges.

          For year ending February 2, 2008, severance related restructuring
          charges.



                       Marvell Technology Group Ltd.
                   Condensed Consolidated Balance Sheets
                               (Unaudited)
                              (In thousands)

                                                  January 31,     February 2,
     Assets                                            2009           2008
     Current assets:
         Cash, cash equivalents, and short-term
          investments                                $951,909       $630,902
         Accounts receivable, net                     222,101        332,020
         Inventories                                  310,654        419,494
         Prepaid expenses, deferred income taxes
          and other current assets                     75,651        121,325
             Total current assets                   1,560,315      1,503,741
     Property and equipment, net                      390,853        416,241
     Long-term investments                             40,541         45,628
     Goodwill and acquired intangible assets, net   2,284,164      2,427,877
     Other non-current assets                         138,327        157,107
             Total assets                          $4,414,200     $4,550,594

     Liabilities and Shareholders' Equity
     Current liabilities:
         Accounts payable                            $139,028       $231,135
         Accrued liabilities                          175,135        241,062
         Income taxes payable                          35,803         39,132
         Deferred income                               57,895         69,420
         Current portion of capital lease obligations   1,787          2,463
             Total current liabilities                409,648        583,212
     Capital lease obligations, net of current
      portion                                           2,451          4,238
     Term loan obligations, long-term portion               -        390,750
     Other long-term liabilities                      173,034        160,875
             Total liabilities                        585,133      1,139,075

     Shareholders' equity:
         Common stock                                   1,233          1,200
         Additional paid-in capital                 4,372,265      4,100,659
         Accumulated other comprehensive income
          (loss)                                         (718)           615
         Accumulated deficit                         (543,713)      (690,955)
             Total shareholders' equity             3,829,067      3,411,519
             Total liabilities and
              shareholders' equity                 $4,414,200     $4,550,594



                       Marvell Technology Group Ltd.
               Condensed Consolidated Statements of Cash Flows
                                (Unaudited)
                               (in thousands)

                                 Three Months Ended         Year Ended
                               January 31, February 2, January 31, February 2,
                                     2009       2008       2009       2008
    Cash flows from operating
     activities:
    Net income (loss)               $(65,010)   $1,293    $147,242  $(114,427)
    Adjustments to reconcile net
     income (loss) to net cash
     provided by operating activities:
      Depreciation and amortization   27,038    27,008     112,824    105,812
      Stock-based compensation        44,701    69,960     177,132    230,980
      Amortization and write-off of
       acquired intangible assets     48,274    43,810     153,323    155,734
      Gain (loss) from disposal of
       assets                            -       3,300         -       (1,822)
      Fair market value adjustment
       to Intel inventory sold        (1,196)   (5,348)    (15,359)  (109,262)
      Termination of supply contract     -     (22,069)        -      (22,069)
      Interest expense related to
       supply contract                   -       1,165         -        5,833
      Deferred tax (provision)
       benefit                       (17,467)  (13,783)    (17,467)   (13,783)
      Excess tax benefits from
       stock-based compensation           (9)       22        (365)      (278)
      Changes in assets and
       liabilities, net of assets
       acquired and liabilities
       assumed in acquisitions:
        Restricted cash                  -         -       (24,500)       -
        Accounts receivable          175,735    55,169     109,919     (1,763)
        Inventories                   31,088   (43,441)    126,938   (202,275)
        Prepaid expenses and other
         assets                        1,629     8,798      63,476    108,321
        Accounts payable             (82,791)   22,920     (88,795)    (8,187)
        Accrued liabilities and
         other                       (13,016)   17,134     (36,709)    10,880
        Accrued employee
         compensation                (44,615)   (1,645)    (26,956)     8,852
        Income taxes payable          11,607     6,037      11,507      1,845
        Deferred income               (6,825)   (6,872)    (11,525)    22,961
          Net cash provided by
           operating activities      109,143   163,458     680,685    177,352
    Cash flows from investing
     activities:
      Cash paid in acquisitions, net  (5,287)  (12,846)     (5,287)   (19,987)
      Purchases of investments           -     (96,979)    (10,172)  (263,209)
      Sales and maturities of short-
       term and long-term investments    -     110,390      29,181    230,906
      Acquisition costs                  -        (132)        -       (1,340)
      Purchases of technology
       licenses                       (2,550)   (3,650)     (5,200)   (23,175)
      Purchases of property and
       equipment                     (13,931)  (32,327)    (73,243)  (113,462)
      Proceeds from sale of assets
       under construction                -         -           -        5,122
          Net cash used in investing
           activities                (21,768)  (35,544)    (64,721)  (185,145)
    Cash flows from financing
     activities:
      Proceeds from the issuance of
       common shares                  12,192    33,614      92,645     65,903
      Principal payments on capital
       lease and debt obligations   (192,174)   (1,159)   (397,213)   (10,748)
      Excess tax benefits from
       stock-based compensation            9       (22)        365        278
          Net cash provided by
          (used in) financing
          activities                (179,973)   32,433    (304,203)    55,433
    Net increase (decrease) in cash
     and cash equivalents            (92,598)  160,347     311,761     47,640
    Cash and cash equivalents at
     beginning of period           1,020,007   455,301     615,648    568,008
    Cash and cash equivalents at end
     of period                      $927,409  $615,648    $927,409   $615,648



SOURCE  Marvell Technology Group Ltd.

    -0-                           03/05/2009
    /CONTACT:  Jeff Palmer, Investor Relations, +1-408-222-8373,
jpalmer@marvell.com, or Tom Hayes, Corporate Communications, +1-408-222-2815,
tom@marvell.com, both of Marvell Technology Group Ltd./
    /Photo:  http://www.newscom.com/cgi-bin/prnh/20070411/SFW034LOGO
             http://photoarchive.ap.org
             PRN Photo Desk, photodesk@prnewswire.com/
    /Web Site:  http://www.marvell.com /
    (MRVL)

CO:  Marvell Technology Group Ltd.

ST:  California
IN:  CPR STW NET TLS
SU:  ERN CCA

PR
-- SF79626 --
1226 03/05/200916:15 ESThttp://www.prnewswire.com