Marvell Technology, Inc.

Reconciliations from GAAP to Non-GAAP (Unaudited)

(In millions, except per share amounts)

Three Months Ended

Six Months Ended

July 29,
2023

April 29,
2023

July 30,
2022

July 29,
2023

July 30,
2022

GAAP gross profit

$     521.1

$     557.2

$     786.0

$  1,078.3

$  1,536.9

Special items:

Stock-based compensation

11.0

12.0

9.3

23.0

21.7

Amortization of acquired intangible assets

185.8

183.7

183.9

369.5

358.3

Other cost of goods sold (a)

90.2

39.6

6.3

129.8

15.6

Total special items

287.0

235.3

199.5

522.3

395.6

Non-GAAP gross profit

$     808.1

$     792.5

$     985.5

$  1,600.6

$  1,932.5

GAAP gross margin

38.9 %

42.2 %

51.8 %

40.5 %

51.9 %

Non-GAAP gross margin

60.3 %

60.0 %

65.0 %

60.1 %

65.2 %

Total GAAP operating expenses

$     726.8

$     739.6

$     746.9

$  1,466.4

$  1,428.0

Special items:

Stock-based compensation

(141.8)

(131.2)

(135.2)

(273.0)

(253.9)

Restructuring related charges (b)

(42.0)

(59.9)

(1.2)

(101.9)

(2.5)

Amortization of acquired intangible assets

(86.0)

(86.3)

(87.9)

(172.3)

(186.0)

Legal settlement (c)

—

—

(85.0)

—

(100.0)

Other (d)

(9.0)

(3.6)

(6.0)

(12.6)

(18.7)

Total special items

(278.8)

(281.0)

(315.3)

(559.8)

(561.1)

Total non-GAAP operating expenses

$     448.0

$     458.6

$     431.6

$     906.6

$     866.9

GAAP operating margin

(15.3) %

(13.8) %

2.6 %

(14.6) %

3.7 %

Other cost of goods sold (a)

6.7 %

3.0 %

0.4 %

4.9 %

0.5 %

Stock-based compensation

11.4 %

10.8 %

9.5 %

11.1 %

9.3 %

Restructuring related charges (b)

3.1 %

4.5 %

0.1 %

3.8 %

0.1 %

Amortization of acquired intangible assets

20.3 %

20.4 %

17.9 %

20.3 %

18.4 %

Legal settlement (c)

— %

— %

5.6 %

— %

3.4 %

Other (d)

0.7 %

0.3 %

0.4 %

0.6 %

0.6 %

Non-GAAP operating margin 

26.9 %

25.2 %

36.5 %

26.1 %

36.0 %

GAAP interest and other loss, net

$      (45.9)

$      (49.9)

$      (35.3)

$      (95.8)

$      (65.9)

Special items:

Other (d)

(8.5)

0.1

(1.6)

(8.4)

(5.7)

Total special items

(8.5)

0.1

(1.6)

(8.4)

(5.7)

Total non-GAAP interest and other loss, net

$      (54.4)

$      (49.8)

$      (36.9)

$   (104.2)

$      (71.6)

GAAP net income (loss)

$   (207.5)

$   (168.9)

$          4.3

$   (376.4)

$   (161.4)

Special items:

Other cost of goods sold (a)

90.2

39.6

6.3

129.8

15.6

Stock-based compensation

152.8

143.2

144.5

296.0

275.6

Restructuring related charges (b)

42.0

59.9

1.2

101.9

2.5

Amortization of acquired intangible assets

271.8

270.0

271.8

541.8

544.3

Legal settlement (c)

—

—

85.0

—

100.0

Other (d)

0.5

3.7

4.4

4.2

13.0

Pre-tax total special items

557.3

516.4

513.2

1,073.7

951.0

Other income tax effects and adjustments (e)

(59.6)

(83.3)

(31.5)

(142.9)

144.8

Non-GAAP net income

$     290.2

$     264.2

$     486.0

$     554.4

$     934.4

GAAP weighted average shares — basic

860.9

856.7

850.9

858.8

849.4

GAAP weighted average shares — diluted

860.9

856.7

857.9

858.8

849.4

Non-GAAP weighted average shares — diluted (f)

869.4

861.2

857.9

865.3

859.7

GAAP diluted net income (loss) per share

$      (0.24)

$      (0.20)

$        0.01

$      (0.44)

$      (0.19)

Non-GAAP diluted net income per share

$        0.33

$        0.31

$        0.57

$        0.64

$        1.09

(a)

Other cost of goods sold includes charges for product claim related matters, acquisition integration related inventory costs, and amortization of acquired inventory fair value adjustments.

(b)

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

(c)

Relates to settlement of a contractual dispute.

(d)

Other includes gain or losses on investments and acquisition related costs.

(e)

Other income tax effects and adjustments are based on a non-GAAP income tax rate of 5.1% for the three months ended July 29, 2023. Other income tax effects and adjustments are based on a non-GAAP income tax rate of 7.0% for the three months ended April 29, 2023. Other income tax effects and adjustments are based on a non-GAAP income tax rate of 6.0% for the six months ended July 29, 2023 and three and six months ended July 30, 2022. In the three months ended April 30, 2022, $213.6 million of non-recurring income tax expense associated with the extension of a tax incentive in Singapore was excluded from our non-GAAP income tax expense.

(f)

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