EXHIBIT 99.1
Published on May 20, 2004
EXHIBIT 99.1
NEWS RELEASE
MARVELL(R) TECHNOLOGY GROUP LTD. REPORTS
RECORD FIRST QUARTER FISCAL 2005 RESULTS
Q1 NET REVENUES INCREASE 60% FROM PRIOR YEAR TO $269.6 MILLION
Sunnyvale, CA. (May 20, 2004) -- 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
first fiscal quarter ended May 1, 2004.
Net revenue for the first quarter of fiscal 2005 was a record $269.6 million, an
increase of 60% over net revenue of $168.3 million for the first quarter of
fiscal 2004 and a 11% sequential increase from net revenue of $243.3 million for
the fourth quarter of fiscal 2004. Net income under generally accepted
accounting principles (GAAP) was $14.5 million, or $0.10 per share (diluted),
for the first quarter of fiscal 2005, compared with a net income under GAAP of
$4.4 million, or $0.03 per share (diluted), for the first quarter of fiscal
2004.
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 $49.1
million, or $0.34 per share (diluted), for the first quarter of fiscal 2005,
compared with pro forma net income of $24.5 million, or $0.19 per share
(diluted), for the first quarter of fiscal 2004. Shares used in computing pro
forma net income per share for the first quarter of fiscal 2005 increased to
146.1 million, compared with 129.6 million for the first quarter of fiscal 2004.
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.
"Q1 was another very successful quarter for Marvell. Our financial results
reflect the hard work and dedication of our employees, the strong positioning of
our world class technologies and the support of our customers and partners,"
stated Dr. Sehat Sutardja, Marvell's President and CEO. "Our solid execution is
driving strong revenue growth and momentum in both the Enterprise and Consumer
markets. Also, we continue to receive strong design activity for our new Linear
DSP power management products, the DSP Switcher(TM) and this week's announcement
of our high-performance embedded microprocessors marks a major strategic move
that will further enable us to offer superior products to our customers while
greatly expanding our high volume market opportunities."
Revenue for the first quarter was a record for Marvell and represented the 26th
consecutive quarter for sequential revenue growth. Also, the 11% sequential
increase in first quarter revenue was Marvell's 10th consecutive quarter where
sequential revenue growth was greater than 10%. The following is a review of
some of the recent highlights that occurred since our last earnings release:
- This week, Marvell announced its first family of high performance
embedded microprocessors that support the ARM architecture. The new
microprocessors incorporate advanced RISC design techniques normally
found in high-end microprocessors and achieve 500+MHz-operating
frequencies using standard foundry CMOS processes. By using Marvell
proprietary, targeted custom design techniques, the new
microprocessors are able to achieve many times the typical operating
speed of fully synthesizable processor cores. This important
initiative of integrating high-performance embedded microprocessors
in Marvell's system-on-chip and custom ASIC products enables Marvell
to offer its customers very advanced and highly integrated solutions
broadly across many diverse end applications and markets.
- Q1 was another very strong quarter for Marvell's storage electronics
for the hard disk drive market. The hard disk drive market continues
to offer large revenue growth opportunities for Marvell and is now
expected to grow over $3 billion this year. During the quarter
Marvell enjoyed strong revenue growth from continued market share
gains in the traditional hard disk drive market. Additionally, the
emerging consumer small form factor drive market continues to grow
as these exciting drives are designed into a variety of consumer
electronic devices. Marvell continues to aggressively expand its
technological capabilities for these rapidly growing consumer small
form factor drives and is partnering closely with its customers to
drive rapid adoption of this storage technology.
- Marvell continues to have great success in driving the adoption of
WLAN into consumer electronic devices by offering the highest
performance, lowest power and smallest form factor products enabling
for the most cost effective designs. During the quarter, Marvell
further increased its number of designs with large consumer
electronics OEMs. Marvell's WLAN solutions are now designed into
such high volume applications as cellular handsets, gaming devices,
PDA's, and emerging home entertainment multimedia client devices.
- The accelerating adoption of Gigabit Ethernet for infrastructure
switching continues to drive revenue growth for Marvell's Alaska(TM)
Gigabit PHYs and Prestera(TM) Switch Family. This week, Marvell once
again raised the technology bar by achieving an industry milestone
with the introduction of the world's lowest power of under 0.5 watt
per port and most advanced Gigabit Ethernet (GbE) copper PHY
technology. The Alaska GbE PHY family is also further enhanced with
advanced proprietary Mixed-Signal, Digital Signal Processing and
power management techniques, which enables the highest density and
most compact form-factor Gigabit switches on the market today.
- Marvell also introduced new innovative WLAN technology to enable new
applications and its customers to quickly develop highly
differentiated products. Marvell's All-into-1 technology for the
first time allows the integration of many WLAN functions into a
single device that were previously separate functions handled by
multiple devices. Now, in just a size of a credit card, one can add
wireless capability to any Ethernet enabled device, extend the range
of any 802.11 g/b Access Point or wireless router, provide easier
setup for broadband wireless gaming over the Internet, allow
personal 54Mbps `hot-spot' connectivity, and much more. In addition,
Marvell also demonstrated LiveAP(TM) at the Networld + Interop
tradeshow in Las Vegas last week. LiveAP(TM) is an embedded access
point product that utilizes Marvell's extreme low power and
integrated processor technology to offer "on-demand" access to the
wireless network and Internet even when the host device is turned
off.
Marvell will be conducting a conference call today at 1:45 p.m. PT to discuss
its first 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 7270279. Replay of the conference
call will be available until May 27, 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 May 20, 2005.
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 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 expanding high volume market opportunities
through high-performance embedded microprocessors, revenue growth opportunities
for Marvell in the hard disk market, partnering with customers to drive rapid
adoption of small form factor disk drive technology, our continuing revenue
growth being driven by the accelerating adoption of Gigabit Ethernet for
infrastructure switching and by the continued adoption of our Wireless and
Storage products our expectations regarding our products and new technology
reaching many new large volume markets and applications such as consumer
electronics. 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. 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)
MARVELL TECHNOLOGY GROUP LTD.
PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
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
income under generally accepted accounting principles for the impact of non
cash stock-based compensation charges, non-cash charges associated with purchase
accounting and other write-off related expenses.
MARVELL TECHNOLOGY GROUP LTD.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(IN THOUSANDS)