Form: 8-K

Current report

February 28, 2003

Documents

EXHIBIT 99.1

Published on February 28, 2003

Exhibit 99.1

NEWS RELEASE

Marvell(R) Technology Group Ltd. Reports

Record Fourth Quarter Fiscal 2003 Results

Sunnyvale, CA. (February 27, 2003) - Marvell(R) Technology Group Ltd. (NASDAQ:
MRVL), the technology leader in the development of extreme broadband
communications and storage solutions, today reported financial results for its
fourth fiscal quarter and year ended February 1, 2003.

Net revenue for the fourth quarter of fiscal 2003 was a record $150.8 million,
an increase of 82% over net revenue of $82.8 million for the fourth quarter of
fiscal 2002 and a 11% sequential increase from net revenue of $135.9 million for
the third quarter of fiscal 2003. Net loss under generally accepted accounting
principles (GAAP), which includes the effect of acquisition-related expenses,
amortization of stock-based compensation and a charge related to the write-off
of a trade name was $24.2 million, or $0.20 per share (diluted), for the fourth
quarter of fiscal 2003, compared with net loss under GAAP of $99.9 million, or
$0.86 per share (diluted), for the fourth quarter of fiscal 2002.

Net revenue for the year ended February 1, 2003 was $505.3 million, an increase
of 75% over net revenue of $288.8 million for the year ended February 2, 2002.
Net loss under GAAP was $72.2 million, or $0.61 per share (diluted), for the
year ended February 1, 2003, compared with net loss under GAAP of $415.2
million, or $3.63 per share (diluted), for the year ended February 2, 2002.

Pro forma net income, where applicable, excludes the effect of
acquisition-related expenses, amortization of stock-based compensation, a
special charge related to facilities consolidation and a charge related to the
write-off of a trade name in fiscal 2003. Pro forma net income was $20.3
million, or $0.16 per share (diluted), for the fourth quarter of fiscal 2003,
compared with pro forma net income of $7.4 million, or $0.06 per share
(diluted), for the fourth quarter of fiscal 2002. Pro forma net income was $62.5
million, or $0.48 per share (diluted), for the year ended February 1, 2003,
compared with pro forma net income of $18.7 million, or $0.15 per share
(diluted), for the year ended February 2, 2002.

"Fiscal 2003 was another strong year for Marvell. In a very challenging economic
climate, we increased our revenues by 75% from the prior year and significantly
improved our profitability," stated Dr. Sehat Sutardja, Marvell's President and
CEO. "As we enter fiscal 2004, we are excited about the strength of our
technology and product
leadership in both our data communications and storage businesses. By
successfully executing our strategies, we have increased our market share in
wireless LAN, enterprise and desktop switching as well as Gigabit Ethernet,
including transceivers, NIC and LOM solutions. In our storage business, we have
gained a leadership position in both the enterprise and mobile markets with our
advanced read channel and integrated System-on-Chip solutions, and continue to
capture increased market share in the desktop segment."

Added Dr. Sutardja, "The continued growth of our communications and storage
businesses will afford us the opportunity to aggressively invest in many new,
exciting products and technologies, which will allow us to further expand our
markets and increase our revenues in the coming fiscal year."


Marvell will be conducting a conference call today at 1:45 p.m. PST to discuss
its fourth quarter and fiscal 2003 financial results. To listen to the
conference call, investors can dial (706) 679-0800 approximately fifteen minutes
prior to the initiation of the teleconference and refer to conference code
8086952. Replay of the conference call will be available until March 6, 2003 at
midnight by calling (706) 645-9291. The conference call will also be available
via the web at www.marvell.com until March 27, 2003.

ABOUT MARVELL

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 Semiconductor Israel Ltd. (MSIL), 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. Statements
that refer to, or are based on projections, uncertain events or assumptions also
identify forward-looking statements. All such 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 year ended February 2, 2002 and Marvell's subsequent
reports on Form 10-Q. We undertake no obligation to revise or update publicly
any forward-looking statements.

Marvell(R) and the Marvell logo are trademarks of Marvell. All other trademarks
are the property of their respective owners.



MARVELL TECHNOLOGY GROUP LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)



THREE MONTHS ENDED YEAR ENDED
----------------------------- -----------------------------
FEBRUARY 1, FEBRUARY 2, FEBRUARY 1, FEBRUARY 2,
2003 2002 2003 2002
--------- --------- --------- ---------

Net revenue $ 150,847 $ 82,816 $ 505,285 $ 288,795
Cost of goods sold 70,301 35,736 233,039 130,807
--------- --------- --------- ---------
Gross profit 80,546 47,080 272,246 157,988
Operating expenses:
Research and development 42,697 27,441 145,722 93,422
Selling and marketing 12,860 10,542 48,491 40,170
General and administrative 3,556 3,143 14,303 13,191
Amortization of stock-based compensation 830 2,763 7,491 15,022
Amortization and write-off of goodwill and
acquired intangible assets 43,676 104,508 107,645 418,032
Facilities consolidation charge -- -- 19,562 --
--------- --------- --------- ---------
Total operating expenses 103,619 148,397 343,214 579,837
--------- --------- --------- ---------
Operating loss (23,073) (101,317) (70,968) (421,849)
Interest and other income, net 1,603 2,751 7,318 9,994
--------- --------- --------- ---------
Loss before income taxes (21,470) (98,566) (63,650) (411,855)
Provision for income taxes 2,764 1,304 8,524 3,299
--------- --------- --------- ---------
Net loss $ (24,234) $ (99,870) $ (72,174) $(415,154)
========= ========= ========= =========

Basic and diluted net loss per share $ (0.20) $ (0.86) $ (0.61) $ (3.63)
========= ========= ========= =========

Weighted average shares -- basic and diluted 120,410 116,395 119,240 114,353
--------- --------- --------- ---------



MARVELL TECHNOLOGY GROUP LTD.
PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)



THREE MONTHS ENDED YEAR ENDED
----------------------------- -----------------------------
FEBRUARY 1, FEBRUARY 2, FEBRUARY 1, FEBRUARY 2,
2003 2002 2003 2002
--------- --------- --------- ---------

Net revenue $ 150,847 $ 82,816 $ 505,285 $ 288,795
Cost of goods sold 70,301 35,736 233,039 130,011
--------- --------- --------- ---------
Gross profit 80,546 47,080 272,246 158,784
Operating expenses:
Research and development 42,697 27,441 145,722 93,422
Selling and marketing 12,860 10,542 48,491 40,170
General and administrative 3,556 3,143 14,303 13,191
--------- --------- --------- ---------
Total operating expenses 59,113 41,126 208,516 146,783
--------- --------- --------- ---------
Operating income 21,433 5,954 63,730 12,001
Interest and other income, net 1,603 2,751 7,318 9,994
--------- --------- --------- ---------
Income before income taxes 23,036 8,705 71,048 21,995
Provision for income taxes 2,764 1,304 8,524 3,299
--------- --------- --------- ---------
Pro forma net income $ 20,272 $ 7,401 $ 62,524 $ 18,696
========= ========= ========= =========

Basic pro forma net income per share $ 0.17 $ 0.06 $ 0.52 $ 0.16
========= ========= ========= =========
Diluted pro forma net income per share $ 0.16 $ 0.06 $ 0.48 $ 0.15
========= ========= ========= =========

Weighted average shares -- basic 120,410 116,395 119,240 114,353
--------- --------- --------- ---------
Weighted average shares -- diluted 129,327 131,265 129,750 127,779
--------- --------- --------- ---------
RECONCILIATION TO GAAP NET LOSS:

Pro forma net income $ 20,272 $ 7,401 $ 62,524 $ 18,696
Amortization of stock-based compensation (830) (2,763) (7,491) (15,022)
Amortization and write-off of goodwill and
acquired intangible assets (43,676) (104,508) (107,645) (418,032)
Facilities consolidation charge -- -- (19,562) --
Amortization of inventory fair value adjustment -- -- -- (796)
--------- --------- --------- ---------
GAAP net loss $ (24,234) $ (99,870) $ (72,174) $(415,154)
========= ========= ========= =========


The above pro forma statements of operations are for informational purposes only
and are provided for understanding our operating results. The pro forma
statements of operations have not been prepared in accordance with GAAP, should
not be considered a substitute for our historical financial information prepared
in accordance with GAAP and may be different from pro forma measures used by
other companies. The pro forma income has been derived by adjusting the net loss
under generally accepted accounting principles with the impact of non cash
stock-based compensation charges, charges associated with purchase accounting,
charges for facilities consolidation and the write-off of a trade name.


MARVELL TECHNOLOGY GROUP LTD.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(IN THOUSANDS)



FEBRUARY 1, FEBRUARY 2,
ASSETS 2003 2002
------------ ------------

Current assets:
Cash and cash equivalents $ 125,316 $ 114,483
Short-term investments 139,912 135,761
Accounts receivable, net 86,175 42,150
Inventory, net 39,712 23,600
Prepaid expenses and other current assets 19,979 23,422
------------ ------------
Total current assets 411,094 339,416
Property and equipment, net 69,246 52,924
Goodwill and acquired intangible assets 1,570,643 1,680,740
Other noncurrent assets 49,313 17,975
------------ ------------
Total assets $ 2,100,296 $ 2,091,055
============ ============

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 47,672 $ 30,990
Accrued liabilities 26,955 25,838
Income taxes payable 2,247 17,744
Deferred revenue 12,481 8,907
Current portion of capital lease obligations 5,019 1,039
------------ ------------

Total current liabilities 94,374 84,518
Capital lease obligations 13,755 10,017
Other long-term liabilities 42,029 6,793
------------ ------------
Total liabilities 150,158 101,328
------------ ------------
Shareholders' equity:
Common stock 243 238
Additional paid-in capital 2,674,095 2,646,757
Deferred stock-based compensation (5,899) (10,099)
Accumulated other comprehensive income
1,988 946
Accumulated deficit (720,289) (648,115)
------------ ------------
Total shareholders' equity 1,950,138 1,989,727
------------ ------------
Total liabilities and shareholders' equity $ 2,100,296 $ 2,091,055
============ ============