Marvell Technology Group Ltd.

Reconciliations from GAAP to Non-GAAP

(Unaudited)

(In thousands, except per share amounts)

Three Months Ended

Six Months Ended

July 29, 2017

April 29, 2017

July 30, 2016

July 29, 2017

July 30, 2016

GAAP gross profit:

$

365,178

$

345,511

$

326,919

$

710,689

$

600,619

Special items:

Share-based compensation

1,810

1,426

2,720

3,236

4,504

Other cost of goods sold (a)

3,000

—

—

3,000

—

Total special items

4,810

1,426

2,720

6,236

4,504

Non-GAAP gross profit

$

369,988

$

346,937

$

329,639

$

716,925

$

605,123

GAAP gross margin

60.4

%

60.3

%

54.7

%

60.4

%

54.1

%

Non-GAAP gross margin

61.2

%

60.6

%

55.2

%

60.9

%

54.5

%

Total GAAP operating expenses

$

240,815

$

244,086

$

276,560

$

484,901

$

564,477

Special items:

Share-based compensation

(19,557)

(20,313)

(30,359)

(39,870)

(50,003)

Restructuring related charges (b)

(4,285)

(886)

(721)

(5,171)

(5,162)

Amortization of and write-off acquired intangible assets

(1,065)

(1,071)

(2,299)

(2,136)

(4,597)

Other operating expenses (c)

(1,687)

(2,303)

13

(3,990)

(1,229)

Total special items

(26,594)

(24,573)

(33,366)

(51,167)

(60,991)

Total non-GAAP operating expenses

$

214,221

$

219,513

$

243,194

$

433,734

$

503,486

GAAP operating margin

20.6

%

17.7

%

8.4

%

19.2

%

3.3

%

Other cost of goods sold (a)

0.5

%

—

%

—

%

0.3

%

—

%

Share-based compensation

3.5

%

3.8

%

5.5

%

3.7

%

4.9

%

Restructuring related charges (b)

0.7

%

0.2

%

0.1

%

0.4

%

0.5

%

Amortization and write-off of acquired intangible assets

0.2

%

0.2

%

0.5

%

0.2

%

0.3

%

Other operating expenses (c)

0.3

%

0.3

%

—

%

0.3

%

0.1

%

Non-GAAP operating margin

25.8

%

22.2

%

14.5

%

24.1

%

9.1

%

GAAP interest and other income, net

$

7,188

$

3,333

$

6,284

$

10,521

$

7,772

Special items:

Restructuring related items (d)

(3,085)

—

—

(3,085)

—

Total special items

(3,085)

—

—

(3,085)

—

Total non-GAAP interest and other income, net

$

4,103

$

3,333

$

6,284

$

7,436

$

7,772

GAAP net income

$

165,259

$

106,621

$

51,305

$

271,880

$

28,626

Loss (income) from discontinued   operations, net of tax

(29,809)

(7,029)

11,161

(36,838)

26,548

GAAP net income from continuing operations

135,450

99,592

62,466

235,042

55,174

Special items:

Other cost of goods sold ( a )

3,000

—

—

3,000

—

Share-based compensation

21,367

21,739

33,079

43,106

54,507

Restructuring related charges (b)

1,200

886

721

2,086

5,162

Amortization of and write-off acquired intangible assets

1,065

1,071

2,299

2,136

4,597

Other operating expenses (c)

1,687

2,303

(13)

3,990

1,229

Pre-tax total special items

28,319

25,999

36,086

54,318

65,495

Other income tax effects and         adjustments (e)

(10,298)

(64)

—

(10,362)

(1,071)

Non-GAAP net income from continuing operations

$

153,471

$

125,527

$

98,552

$

278,998

$

119,598

Weighted average shares — basic

500,817

503,790

511,235

502,303

510,014

Weighted average shares — diluted

510,309

517,592

514,314

513,951

513,669

Non-GAAP weighted average shares — diluted (f)

519,438

523,154

526,453

521,296

524,408

GAAP diluted net income (loss) per share from continuing operations

$

0.26

$

0.19

$

0.12

$

0.46

$

0.11

Non-GAAP diluted net income per share from continuing operations

$

0.30

$

0.24

$

0.19

$

0.54

$

0.23

(a)

Other costs of goods sold in the three and six months ended July 29, 2017 include charges for past intellectual property licensing matters.

(b)

Restructuring related charges include costs that are a direct result of restructuring. Such charges include employee severance, facilities related costs, contract cancellation charges and impairment of equipment.

(c)

Other operating expenses in the three and six months ended July 29, 2017 include costs of retention bonuses offered to employees who remained through the ramp down of certain operations due to the restructuring actions.

(d)

Interest and other income, net includes restructuring related items such as gain on sale of a business and foreign currency losses related to restructuring related accruals.

(e)

Other income tax effects and adjustments in the three months ended July 29, 2017 and April 29, 2017 includes adjustment to the tax provision based on a non-GAAP tax rate of 4%. Other income tax effects and adjustments in the six months ended July 29, 2017 includes adjustment to the tax provision based on a non-GAAP tax rate of 4%.

(f)

Non-GAAP diluted share count excludes the impact of share-based compensation expense expected to be incurred in future periods and not yet recognized in the Company's financial statements, which would otherwise be assumed to be used to repurchase shares under the GAAP treasury stock method.