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Marvell Technology Group Ltd. | ||||||||||
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Reconciliations from GAAP to Non-GAAP | ||||||||||
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(Unaudited) | ||||||||||
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(In thousands, except per share amounts) | ||||||||||
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Three Months Ended | ||||||
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April 30, |
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January 30, |
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May 2, |
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2016 |
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2016 |
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2015 |
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(Preliminary) |
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GAAP net income (loss) |
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$ (22,679) |
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$ 4,200 |
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$ 14,090 |
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Share-based compensation |
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24,453 |
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32,419 |
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33,221 |
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Restructuring and other related charges (a) |
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4,441 |
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4,396 |
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592 |
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Amortization and write-off of acquired intangible assets |
2,946 |
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2,947 |
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3,493 |
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Litigation matters (b) |
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100 |
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3,791 |
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(1,700) |
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Other (c) |
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(2,743) |
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6,754 |
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21,382 |
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Non-GAAP net income |
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$ 6,518 |
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$ 54,507 |
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$ 71,078 |
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GAAP weighted average shares - diluted |
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508,794 |
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508,590 |
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527,167 |
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Non-GAAP adjustment |
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13,569 |
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9,978 |
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7,993 |
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Non-GAAP weighted average shares diluted (d) |
522,363 |
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518,568 |
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535,160 |
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GAAP diluted net income per share |
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$ (0.04) |
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$ 0.01 |
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$ 0.03 |
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Non-GAAP diluted net income per share |
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$ 0.01 |
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$ 0.11 |
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$ 0.13 |
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GAAP gross profit: |
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$ 281,612 |
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$ 313,548 |
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$ 373,135 |
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Share-based compensation |
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1,802 |
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1,862 |
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1,547 |
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Restructuring and other related charges (a) |
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- |
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7 |
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- |
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Amortization of acquired intangible assets |
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485 |
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485 |
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925 |
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Litigation matters (b) |
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- |
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3,711 |
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(1,700) |
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Non-GAAP gross profit |
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$ 283,899 |
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$ 319,613 |
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$ 373,907 |
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GAAP gross margin |
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52.1% |
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50.9% |
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51.5% |
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Share-based compensation |
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0.3% |
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0.3% |
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0.2% |
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Restructuring and other related charges (a) |
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0.0% |
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0.0% |
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0.0% |
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Amortization of acquired intangible assets |
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0.1% |
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0.1% |
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0.1% |
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Litigation matters (b) |
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0.0% |
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0.6% |
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-0.2% |
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Non-GAAP gross margin |
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52.5% |
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51.9% |
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51.6% |
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GAAP research and development: |
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$ 241,271 |
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$ 239,703 |
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$ 280,114 |
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Share-based compensation |
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(24,396) |
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(23,630) |
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(24,781) |
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Restructuring and other related charges (a) |
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(813) |
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(3,703) |
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- |
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Other (c) |
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49 |
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(3,485) |
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- |
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Non-GAAP research and development |
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$ 216,111 |
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$ 208,885 |
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$ 255,333 |
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GAAP selling and marketing: |
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$ 31,379 |
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$ 31,301 |
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$ 36,174 |
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Share-based compensation |
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(2,942) |
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(3,214) |
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(2,577) |
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Restructuring and other related charges (a) |
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1 |
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(118) |
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- |
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Other (c) |
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(304) |
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(393) |
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- |
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Non-GAAP selling and marketing |
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$ 28,134 |
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$ 27,576 |
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$ 33,597 |
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GAAP general and administrative: |
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$ 35,623 |
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$ 37,812 |
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$ 41,027 |
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Share-based compensation |
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4,687 |
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(3,713) |
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(4,316) |
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Restructuring and other related charges (a) |
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(3,629) |
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(568) |
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(592) |
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Litigation matters (b) |
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(100) |
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(80) |
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- |
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Other (c) |
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(886) |
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(2,876) |
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(18,302) |
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Non-GAAP general and administrative |
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$ 35,695 |
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$ 30,575 |
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$ 17,817 |
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GAAP provision (benefit) for income taxes |
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$ (4,955) |
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$ (846) |
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$ 4,329 |
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Other (c) |
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3,884 |
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- |
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(3,080) |
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Non-GAAP provision (benefit) for income taxes |
$ (1,071) |
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$ (846) |
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$ 1,249 |
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(a) |
Restructuring and other related charges include costs that qualify under U.S. GAAP as restructuring costs and other incremental charges that are a direct result of restructuring. For the three months ended April 30, 2016, such charges include $3.5 million for a remaining lease obligation and $0.9 million for the impairment of certain mobile-related equipment. For the three months ended January 30, 2016, such other related charges include $0.4 million for the impairment of certain leasehold improvements due to the restructuring of the mobile platform business, in addition to $4.0 million of restructuring charges, primarily for severance and facility-related costs. For the three months ended May 2, 2015, such charges includes $0.6 million for the impairment of equipment held for sale. | |||||||||
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(b) |
The amounts recorded represent charges recognized for pending litigation proceedings. | |||||||||
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(c) |
Other costs include a $3.9 million tax effect from restructuring charges within the income tax provision for the three months ended April 30, 2016. Other costs for each of the three months ended April 30, 2016 and January 30, 2016 include expenses related to retention bonuses offered to mobile employees expected to remain through the ramp down of certain operations. Other costs for the three months ended May 2, 2015 include a payment of $15.4 million to Dr. Sehat Surtardja, the Company's former Chief Executive Officer, and its related tax effect on the income tax provision. | |||||||||
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(d) |
For purposes of calculating non-GAAP diluted net income per share, the GAAP diluted weighted average shares outstanding is adjusted to exclude the potential benefits of share-based compensation costs expected to be incurred in future periods but not yet recognized in the financial statements. | |||||||||
