To: Kirk © who wrote (30528 ) 5/18/2006 4:59:29 PM From: Donald Wennerstrom Read Replies (1) | Respond to of 95520 Marvell(R) Technology Group Ltd. Reports Record First Quarter Fiscal 2007 Results May 18, 2006 16:05:59 (ET) SANTA CLARA, Calif., May 18, 2006 /PRNewswire-FirstCall via COMTEX/ -- Marvell(R) Technology Group Ltd. (MRVL, Trade), the leader in development of storage, communications, and consumer silicon solutions, today reported financial results for its first fiscal quarter ended April 29, 2006.Net revenue for the first quarter of fiscal 2007 was a record $521.2 million, an increase of 42.9% over net revenue of $364.8 million for the first quarter of fiscal 2006 and a 6.6% sequential increase from net revenue of $489.0 million for the fourth quarter of fiscal 2006 . Net income under generally accepted accounting principles (GAAP) was $75.3 million, or $0.23 per share (diluted), for the first quarter of fiscal 2007, compared with a net income under GAAP of $63.5 million, or $0.20 per share (diluted), for the first quarter of fiscal 2006. Shares used to compute GAAP net income per diluted share for the first quarter ended April 29, 2006 increased to 320.4 million shares, compared with 310.7 million shares for the first quarter ended April 30, 2005. Marvell reports net income and basic and diluted net income per share in accordance with GAAP and additionally on a non-GAAP basis. Non-GAAP net income, where applicable, excludes the effect of stock-based compensation, amortization of acquired intangible assets and acquisition related charges. Non-GAAP net income was $141.1 million, or $0.44 per share (diluted), for the first quarter of fiscal 2007, compared with non-GAAP net income of $84.2 million, or $0.27 per share (diluted), for the first quarter of fiscal 2006. Shares used to compute non-GAAP net income per diluted share for the first quarter ended April 29, 2006 increased to 323.6 million shares, compared with 310.7 million shares for the first quarter ended April 30, 2005. These non-GAAP measures should be considered in addition to, and not as a substitute for, the results prepared in accordance with GAAP. A reconciliation of GAAP net income to non-GAAP net income is included in the financial tables of this release as well as on our website in the Investors section at www.marvell.com. Marvell's management believes the non-GAAP information is useful because it can enhance the understanding of the Company's ongoing economic performance and Marvell therefore uses non-GAAP reporting internally to evaluate and manage the Company's operations. Marvell has chosen to provide this information to investors to enable them to perform comparisons of operating results in a manner similar to how the Company analyzes its operating results internally. "Q1 was another very strong quarter for Marvell," stated Dr. Sehat Sutardja, Marvell's President and CEO. "We are having strong success in driving the adoption of our advanced technologies into a number of exciting high volume Consumer and Enterprise markets. With this success, we are continuing to diversify our revenues which we expect will provide us with new high volume market opportunities and enable us to build upon our strong track record of solid revenue growth."Revenue for the first quarter was a record for Marvell and represented the 34th consecutive quarter for sequential revenue growth.