Marvell Technology, Inc.

Reconciliations from GAAP to Non-GAAP (Unaudited)

(In thousands, except per share amounts)

Three Months Ended

Six Months Ended

July 31,

2021

May 1,

2021

August 1,

2020

July 31,

2021

August 1,

2020

GAAP gross profit:

$

371,830

$

418,141

$

359,256

$

789,971

$

686,158

Special items:

Share-based compensation

2,665

9,803

4,082

12,468

7,620

Amortization of acquired intangible assets

167,253

93,812

85,225

261,065

171,792

Other cost of goods sold (a)

155,840

13,723

11,630

169,563

30,192

Total special items

325,758

117,338

100,937

443,096

209,604

Non-GAAP gross profit

$

697,588

$

535,479

$

460,193

$

1,233,067

$

895,762

GAAP gross margin

34.6

%

50.2

%

49.4

%

41.4

%

48.3

%

Non-GAAP gross margin

64.8

%

64.3

%

63.3

%

64.6

%

63.0

%

Total GAAP operating expenses

$

638,498

$

500,452

$

510,523

$

1,138,950

$

933,421

Special items:

Share-based compensation

(111,440)

(99,790)

(58,504)

(211,230)

(114,653)

Restructuring related charges (b)

(12,294)

(12,886)

(120,590)

(25,180)

(141,877)

Amortization of acquired intangible assets

(109,419)

(34,827)

(26,354)

(144,246)

(52,709)

Other operating expenses (c)

(38,948)

(46,684)

(8,125)

(85,632)

(27,528)

Total special items

(272,101)

(194,187)

(213,573)

(466,288)

(336,767)

Total non-GAAP operating expenses

$

366,397

$

306,265

$

296,950

$

672,662

$

596,654

GAAP operating margin

(24.8)

%

(9.9)

%

(20.8)

%

(18.3)

%

(17.4)

%

Other cost of goods sold (a)

14.5

%

1.6

%

1.6

%

8.9

%

2.1

%

Share-based compensation

10.6

%

13.2

%

8.6

%

11.7

%

8.6

%

Restructuring related charges (b)

1.1

%

1.5

%

16.6

%

1.3

%

10.0

%

Amortization of acquired intangible assets

25.7

%

15.5

%

15.3

%

21.2

%

15.8

%

Other operating expenses (c)

3.7

%

5.6

%

1.1

%

4.6

%

1.9

%

Non-GAAP operating margin 

30.8

%

27.5

%

22.4

%

29.4

%

21.1

%

GAAP interest and other income (loss), net

$

(35,318)

$

(33,696)

$

(15,498)

$

(69,014)

$

(27,516)

Special items:

Debt issuance related costs and other (d)

3,022

16,901

—

19,923

434

Total special items

3,022

16,901

—

19,923

434

Total non-GAAP interest and other income (loss), net

$

(32,296)

$

(16,795)

$

(15,498)

$

(49,091)

$

(27,082)

GAAP net loss

$

(276,428)

$

(88,242)

$

(157,893)

$

(364,670)

$

(270,926)

Special items:

Other cost of goods sold (a)

155,840

13,723

11,630

169,563

30,192

Share-based compensation

114,105

109,593

62,586

223,698

122,273

Restructuring related charges (b)

12,294

12,886

120,590

25,180

141,877

Other operating expenses (c)

38,948

46,684

8,125

85,632

27,528

Amortization of acquired intangible assets

276,672

128,639

111,579

405,311

224,501

Debt issuance related costs and other (d)

3,022

16,901

—

19,923

434

Pre-tax total special items

600,881

328,426

314,510

929,307

546,805

Other income tax effects and adjustments (e)

(40,503)

(38,385)

(16,226)

(78,888)

(17,455)

Non-GAAP net income

$

283,950

$

201,799

$

140,391

$

485,749

$

258,424

GAAP weighted average shares — basic

821,062

693,378

667,574

757,205

665,541

GAAP weighted average shares — diluted

821,062

693,378

667,574

757,205

665,541

Non-GAAP weighted average shares — diluted (f)

836,648

707,488

678,304

772,053

674,553

GAAP diluted net loss per share

$

(0.34)

$

(0.13)

$

(0.24)

$

(0.48)

$

(0.41)

Non-GAAP diluted net income per share

$

0.34

$

0.29

$

0.21

$

0.63

$

0.38

(a)

Other costs of goods sold includes amortization of acquired inventory fair value adjustments.

(b)

Restructuring and other related items include asset impairment charges, employee severance costs, facilities related charges, and other.

(c)

Other operating expenses include integration and merger costs associated with acquisitions.

(d)

Debt issuance related costs and other includes the partial term loan repayment and bridge financing.

(e)

Other income tax effects and adjustments relate to tax provision based on a non-GAAP income tax rate of 5.0%.

(f)

Non-GAAP diluted weighted average shares differs from GAAP diluted weighted average shares due to the non-GAAP net income reported.