Marvell Technology Group Ltd. Reports Second Quarter Earnings
SUNNYVALE, Calif., Aug 24, 2000 (BUSINESS WIRE) -- Marvell Technology Group Ltd. (NASDAQ: MRVL chart, msgs), a technology leader in the
development of extreme broadband DSP-based mixed-signal integrated circuits for communications-related markets, today reported financial results for the
second quarter ended July 29, 2000.
Net sales for the second quarter of fiscal 2001 were a record $32.2 million, an increase of 91% over the $16.9 million for the comparable quarter in fiscal
2000. Net income before non-cash charges for amortization of stock compensation for the quarter was $2.3 million, or $0.03 per share, compared to net
income before non-cash charges for amortization of stock compensation of $2.6 million, or $0.03 per share, for the comparable quarter in fiscal 2000. All per
share amounts are diluted earnings per share. Diluted shares used in computing earnings per share for the second quarter of fiscal 2001 were 90.1 million,
compared to 80.6 million shares for the second quarter of fiscal 2000.
Net sales for the first six months of fiscal 2001 totaled $61.8 million compared to $30.9 million for the first six months of fiscal 2000. Net income before
non-cash charges for amortization of stock compensation for the first six months of fiscal 2001 totaled $6.1 million, or $0.07 per share, compared to $4.8
million, or $0.06 per share, for the first six months of fiscal 2000. Diluted shares used in computing earnings per share for the first six months of fiscal 2001
were 87.4 million, compared to 79.6 million for the first six months of fiscal 2000.
On June 27, 2000, Marvell completed its initial public offering of 6.9 million shares at $15.00 per share, before underwriters' commissions and offering
expenses. The principal purposes of this offering were to obtain additional equity capital, create a public market for Marvell's Common Stock and facilitate
future access to public markets. The net proceeds from this offering have been invested in investment grade, interest-bearing securities until needed for working
capital and other general corporate purposes.
Net income including the non-cash charges for amortization of stock compensation for the second quarter of fiscal 2001 totaled $0.6 million, or $0.01 per
share, compared to $2.5 million, or $0.03 per share, for the second quarter of fiscal 2000.
Commenting on the quarter's results, Dr. Sehat Sutardja, president and CEO of Marvell Technology Group Ltd., stated, "Our world-class DSP-based
mixed-signal design team has executed on several new communications products, including the world's first 0.18 micron CMOS-based single and multiple port
Alaska(TM) family of Gigabit Ethernet over copper transceivers which features the industry's lowest power dissipation (1.8 Watts per port), smallest form
factor packaging and industry-leading performance. This, in addition to seven sequential profitable quarters, a well-received initial public offering of our stock,
and strong performance in our data storage business, has contributed to a successful second quarter for Marvell."
About Marvell
Marvell is comprised of Marvell Technology Group Ltd. (MTGL) and its subsidiaries, Marvell Semiconductor Inc. (MSI), Marvell Asia Pte Ltd. (MAPL) and
Marvell Japan K.K. (MJKK). On behalf of MTGL, MSI develops proprietary Communications Mixed-Signal Processing (CMSP) technology for increased
information capacity of data storage and data communications products. MAPL is headquartered in Singapore and is responsible for Marvell's production and
distribution operations. As used in this release, the terms "Company" and "Marvell" refer to the entire group of companies. The Company's proprietary CMSP
technology combines custom digital signal processing algorithms to allow technology customers to store and move digital data on demand at high data access
rates. MSI is headquartered at 645 Almanor Ave., Sunnyvale, Calif., 94085; phone: (408) 222-2500, fax: (408) 328-0120.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:
This release may contain projections or other forward-looking statements that involve substantial risks and uncertainties. You can identify these statements by
forward-looking words such as "may," "will," "expect," "intend," "anticipate," "believe," "estimate," and "continue," and other similar words. You should read
statements that contain these words carefully because they discuss Marvell's future expectations, make projections of its future results of operations or of its
financial condition, or state other "forward-looking" information. The Company believes that it is important to communicate its future expectations to the
Company's investors. However, there may be events in the future that Marvell is not able to accurately predict or control. Examples of these potential events
are outlined in Marvell's Form S-1 Registration Statement in "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of
Operations" sections and elsewhere in the Company's registration statement, dated June 26, 2000, for the Company's initial public offering. Such events could
have a material adverse effect on Marvell's business, operating results and financial condition.
Marvell Technology Group Ltd.
Condensed Consolidated Statements of Income
(Unaudited)
(In thousands, except per share data)
Three Months Ended Six Months Ended
July 29, July 31, July 29, July 31,
2000 1999 2000 1999
----------------------------------------------------
Net revenue $ 32,175 $ 16,860 $ 61,839 $ 30,916
Cost of goods sold 15,080 7,120 28,260 13,315
-------- -------- -------- --------
Gross profit 17,095 9,740 33,579 17,601
Operating expenses:
Research and
development 7,812 2,946 13,930 5,368
Marketing and
selling 5,595 2,511 9,679 4,472
General and
administrative 1,427 784 2,931 1,435
Amortization
of stock
compensation 2,223 156 4,484 236
-------- -------- -------- --------
Total operating
expenses 17,057 6,397 31,024 11,511
-------- -------- -------- --------
Operating income 38 3,343 2,555 6,090
Interest income 795 72 1,037 124
Interest expense (1) (59) (3) (88)
-------- -------- -------- --------
Income before
income taxes 832 3,356 3,589 6,126
Provision for
income taxes 208 839 897 1,531
-------- -------- -------- --------
Net income $ 624 $ 2,517 $ 2,692 $ 4,595
======== ======== ======== ========
Net income per share:
Basic $ 0.01 $ 0.06 $ 0.05 $ 0.12
======== ======== ======== ========
Diluted $ 0.01 $ 0.03 $ 0.03 $ 0.06
======== ======== ======== ========
Weighted average
common shares
outstanding:
Basic 54,910 39,152 50,702 38,144
======== ======== ======== ========
Diluted 90,056 80,627 87,426 79,583
======== ======== ======== ========
Marvell Technology Group Ltd.
Supplemental Disclosure
Adjusted Net Income / EPS Calculation
(Unaudited)
(In thousands, except per share data)
Three Months Ended Six Months Ended
July 29, July 31, July 29, July 31,
2000 1999 2000 1999
------------------------------------------------
Net income $ 624 $ 2,517 $ 2,692 $ 4,595
Non-cash pro forma
adjustment:
Amortization
of stock
compensation 2,223 156 4,484 236
Tax effect (556) (39) (1,121) (59)
-------- -------- -------- --------
Adjusted net income $ 2,291 $ 2,634 $ 6,055 $ 4,772
======== ======== ======== ========
Shares used
in computing
diluted net
income per share 90,056 80,627 87,426 79,583
======== ======== ======== ========
Adjusted
diluted net
income per share $ 0.03 $ 0.03 $ 0.07 $ 0.06
======== ======== ======== ========
Marvell Technology Group Ltd.
Condensed Consolidated Balance Sheets
(In thousands, except share data)
July 29, January 29,
2000 2000
-----------------------------
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $ 112,298 $ 16,600
Restricted cash 3,068 --
Accounts receivable, net
of allowance for doubtful
accounts of $100 15,820 14,701
Inventory, net 10,819 4,830
Prepaid expenses and
other current assets 3,765 1,195
Deferred income taxes 1,456 1,456
Total current assets 147,226 38,782
Property and
equipment, net 10,324 7,413
Other noncurrent assets 3,500 305
Total assets $ 161,050 $ 46,500
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $ 10,207 $ 5,698
Accrued liabilities 8,947 4,524
Income taxes payable 6,295 5,875
Deferred revenue 619 --
Capital lease obligations 62 74
Total current liabilities 26,130 16,171
Capital lease obligations,
less current portion 10 36
Total liabilities 26,140 16,207
Mandatorily redeemable
convertible preferred stock -- 22,353
Shareholders' equity:
Common stock, $0.002 par value;
242,000,000 shares authorized;
85,479,620 and 48,931,560 shares
issued and outstanding at
July 29, 2000 and
January 29, 2000, respectively 171 98
Additional paid-in capital 143,061 17,580
Deferred stock-based compensation (13,173) (11,897)
Retained earnings 4,851 2,159
Total shareholders' equity 134,910 7,940
Total liabilities and
shareholders' equity $ 161,050 $ 46,500
Contact:
Marvell Technology Group
George Hervey, 408/222-2500 |
