EX-99.2
Published on July 9, 2007
Exhibit 99.2
Marvell Technology
Group Ltd.
Unaudited GAAP Consolidated Statements of Operations
(In thousands, except per share amounts)
|
|
|
Q106 |
|
Q206 |
|
Q306 |
|
Q406 |
|
Q107 |
|
Q207 |
|
Q307 |
|
Q407 |
|
Q108 |
|
|||||||||
|
|
|
(restated) |
|
(restated) |
|
(restated) |
|
(restated) |
|
(restated) |
|
|
|
|
|
|
|
|
|
|||||||||
|
Net revenue |
|
$ |
364,770 |
|
$ |
390,454 |
|
$ |
426,026 |
|
$ |
489,016 |
|
$ |
521,196 |
|
$ |
573,985 |
|
$ |
520,398 |
|
$ |
621,974 |
|
$ |
635,050 |
|
|
Operating costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Cost of goods sold |
|
175,785 |
|
185,451 |
|
197,580 |
|
224,428 |
|
240,233 |
|
279,075 |
|
256,090 |
|
324,843 |
|
327,417 |
|
|||||||||
|
Research and development and other |
|
77,950 |
|
88,105 |
|
83,043 |
|
117,642 |
|
129,228 |
|
152,645 |
|
152,939 |
|
223,399 |
|
234,133 |
|
|||||||||
|
Selling and marketing |
|
22,022 |
|
26,139 |
|
23,129 |
|
33,428 |
|
38,862 |
|
39,267 |
|
37,875 |
|
60,099 |
|
50,392 |
|
|||||||||
|
General and administrative |
|
9,568 |
|
17,450 |
|
11,833 |
|
24,193 |
|
18,558 |
|
19,689 |
|
40,427 |
|
35,480 |
|
23,988 |
|
|||||||||
|
Amortization of acquired intangible assets |
|
19,759 |
|
19,753 |
|
19,746 |
|
32,480 |
|
17,351 |
|
27,405 |
|
27,405 |
|
37,826 |
|
37,320 |
|
|||||||||
|
Acquired in-process research and development |
|
|
|
|
|
|
|
4,300 |
|
|
|
|
|
|
|
77,800 |
|
|
|
|||||||||
|
Total operating costs and expenses |
|
305,084 |
|
336,898 |
|
335,331 |
|
436,471 |
|
444,232 |
|
518,081 |
|
514,736 |
|
759,447 |
|
673,250 |
|
|||||||||
|
Operating income (loss) |
|
59,686 |
|
53,556 |
|
90,695 |
|
52,545 |
|
76,964 |
|
55,904 |
|
5,662 |
|
(137,473 |
) |
(38,200 |
) |
|||||||||
|
Interest and other income (expense), net |
|
3,612 |
|
4,384 |
|
5,244 |
|
6,129 |
|
7,616 |
|
1,091 |
|
6,845 |
|
(2,003 |
) |
(8,656 |
) |
|||||||||
|
Income (loss) before income taxes |
|
63,298 |
|
57,940 |
|
95,939 |
|
58,674 |
|
84,580 |
|
56,995 |
|
12,507 |
|
(139,476 |
) |
(46,856 |
) |
|||||||||
|
Provision for income taxes |
|
9,351 |
|
10,841 |
|
12,584 |
|
43,585 |
|
15,863 |
|
12,114 |
|
6,461 |
|
1,109 |
|
5,972 |
|
|||||||||
|
Income (loss) before change in accounting principle |
|
53,947 |
|
47,099 |
|
83,355 |
|
15,089 |
|
68,717 |
|
44,881 |
|
6,046 |
|
(140,585 |
) |
(52,828 |
) |
|||||||||
|
Cumulative effect of change in accounting principle, net of tax effect |
|
|
|
|
|
|
|
|
|
8,846 |
|
|
|
|
|
|
|
|
|
|||||||||
|
Net income (loss) |
|
$ |
53,947 |
|
$ |
47,099 |
|
$ |
83,355 |
|
$ |
15,089 |
|
$ |
77,563 |
|
$ |
44,881 |
|
$ |
6,046 |
|
$ |
(140,585 |
) |
$ |
(52,828 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Basic income (loss) per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Income (loss) before change in accounting principle |
|
$ |
0.10 |
|
$ |
0.08 |
|
$ |
0.15 |
|
$ |
0.03 |
|
$ |
0.12 |
|
$ |
0.08 |
|
$ |
0.01 |
|
$ |
(0.24 |
) |
$ |
(0.09 |
) |
|
Cumulative effect of change in accounting principle |
|
|
|
|
|
|
|
|
|
0.01 |
|
|
|
|
|
|
|
|
|
|||||||||
|
Basic net income (loss) per share |
|
$ |
0.10 |
|
$ |
0.08 |
|
$ |
0.15 |
|
$ |
0.03 |
|
$ |
0.13 |
|
$ |
0.08 |
|
$ |
0.01 |
|
$ |
(0.24 |
) |
$ |
(0.09 |
) |
|
Weighted average shares basic |
|
557,586 |
|
561,832 |
|
567,310 |
|
576,752 |
|
583,702 |
|
586,133 |
|
587,348 |
|
587,424 |
|
587,426 |
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Diluted income (loss) per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Income (loss) before change in accounting principle |
|
$ |
0.09 |
|
$ |
0.08 |
|
$ |
0.13 |
|
$ |
0.02 |
|
$ |
0.11 |
|
$ |
0.07 |
|
$ |
0.01 |
|
$ |
(0.24 |
) |
$ |
(0.09 |
) |
|
Cumulative effect of change in accounting principle |
|
|
|
|
|
|
|
|
|
0.01 |
|
|
|
|
|
|
|
|
|
|||||||||
|
Diluted net income (loss) per share |
|
$ |
0.09 |
|
$ |
0.08 |
|
$ |
0.13 |
|
$ |
0.02 |
|
$ |
0.12 |
|
$ |
0.07 |
|
$ |
0.01 |
|
$ |
(0.24 |
) |
$ |
(0.09 |
) |
|
Weighted average shares diluted |
|
621,472 |
|
626,205 |
|
632,424 |
|
645,137 |
|
639,516 |
|
633,533 |
|
628,104 |
|
587,424 |
|
587,426 |
|
|||||||||
Certain prior period adjustments have been reclassified to conform to the current period adjustments.
Marvell Technology
Group Ltd.
Unaudited Reconciliation of Non-GAAP Adjustments
(In thousands, except per share amounts)
|
|
|
Q106 |
|
Q206 |
|
Q306 |
|
Q406 |
|
Q107 |
|
Q207 |
|
Q307 |
|
Q407 |
|
Q108 |
|
|||||||||
|
|
|
(restated) |
|
(restated) |
|
(restated) |
|
(restated) |
|
(restated) |
|
|
|
|
|
|
|
|
|
|||||||||
|
Reconciliation of GAAP net income to non-GAAP net income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
GAAP net income (loss) |
|
$ |
53,947 |
|
$ |
47,099 |
|
$ |
83,355 |
|
$ |
15,089 |
|
$ |
77,563 |
|
$ |
44,881 |
|
$ |
6,046 |
|
$ |
(140,585 |
) |
$ |
(52,828 |
) |
|
Acquisition related and other special charges: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Stock-based compensation included in: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Cost of goods sold |
|
541 |
|
1,805 |
|
503 |
|
3,763 |
|
2,434 |
|
3,461 |
|
2,602 |
|
2,842 |
|
3,018 |
|
|||||||||
|
Research and development and other |
|
5,497 |
|
14,307 |
|
4,878 |
|
27,610 |
|
30,437 |
|
36,244 |
|
26,322 |
|
28,478 |
|
32,042 |
|
|||||||||
|
Selling and marketing |
|
770 |
|
4,470 |
|
1,415 |
|
8,107 |
|
8,234 |
|
8,462 |
|
6,502 |
|
7,254 |
|
7,151 |
|
|||||||||
|
General and administrative |
|
2,782 |
|
9,055 |
|
2,771 |
|
12,738 |
|
7,657 |
|
7,437 |
|
6,702 |
|
7,053 |
|
4,557 |
|
|||||||||
|
Amortization of acquired intangible assets |
|
19,759 |
|
19,753 |
|
19,746 |
|
32,480 |
|
17,351 |
|
27,405 |
|
27,405 |
|
37,826 |
|
37,320 |
|
|||||||||
|
Acquired in-process research and development |
|
|
|
|
|
|
|
4,300 |
|
|
|
|
|
|
|
77,800 |
|
|
|
|||||||||
|
Cumulative effect of change in accounting principle |
|
|
|
|
|
|
|
|
|
(8,846 |
) |
|
|
|
|
|
|
|
|
|||||||||
|
Non-GAAP net income (see note below) |
|
$ |
83,296 |
|
$ |
96,489 |
|
$ |
112,668 |
|
$ |
104,087 |
|
$ |
134,830 |
|
$ |
127,890 |
|
$ |
75,579 |
|
$ |
20,668 |
|
$ |
31,260 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
GAAP weighted average shares - diluted |
|
621,472 |
|
626,205 |
|
632,424 |
|
645,137 |
|
639,516 |
|
633,533 |
|
628,104 |
|
630,934 |
|
631,356 |
|
|||||||||
|
Non-GAAP adjustment (b) |
|
|
|
|
|
|
|
|
|
7,556 |
|
4,606 |
|
3,393 |
|
2,996 |
|
2,405 |
|
|||||||||
|
Non-GAAP weighted average shares - diluted |
|
621,472 |
|
626,205 |
|
632,424 |
|
645,137 |
|
647,072 |
|
638,139 |
|
631,497 |
|
633,930 |
|
633,761 |
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
GAAP diluted net income (loss) per share |
|
$ |
0.09 |
|
$ |
0.08 |
|
$ |
0.13 |
|
$ |
0.02 |
|
$ |
0.12 |
|
$ |
0.07 |
|
$ |
0.01 |
|
$ |
(0.24 |
) |
$ |
(0.09 |
) |
|
Effect of non-GAAP adjustments |
|
0.04 |
|
0.07 |
|
0.05 |
|
0.14 |
|
0.09 |
|
0.13 |
|
0.11 |
|
0.27 |
|
0.14 |
|
|||||||||
|
Non-GAAP diluted earnings per share (a) |
|
$ |
0.13 |
|
$ |
0.15 |
|
$ |
0.18 |
|
$ |
0.16 |
|
$ |
0.21 |
|
$ |
0.20 |
|
$ |
0.12 |
|
$ |
0.03 |
|
$ |
0.05 |
|
(a) Non-GAAP net income per share is calculated by dividing non-GAAP net income by non-GAAP weighted average shares - diluted.
(b) For purposes of calculating non-GAAP net income per share, the GAAP diluted weighted average shares outstanding is adjusted to exclude the benefits of SFAS 123R compensation costs attributable to future services and not yet recognized in the financial statements that are treated as proceeds assumed to be used to repurchased shares under the GAAP treasury stock method.
Note: Included in unaudited non-GAAP net income are the following items:
(1) Employers portion of payroll tax on certain stock option exercises included in the respective operating costs and expenses recorded in the quarter exercises occurred;
(2) Employees Internal Revenue Code Section 409A liability on certain stock option exercises included in the respective operating costs and expenses recorded in Q4 2007 of $24.2 million; and
(3) Provision for income taxes of $21.6 million relating to Internal Revenue Code Section 162(m) relating to deductibility limitations of certain compensation expenses recorded in Q4 2006.
Certain prior period adjustments have been reclassified to conform to the current period adjustments.