Marvell Expertise Group Ltd. proclaims monetary outcomes for the third quarter of fiscal 12 months 2021

SANTA CLARA, California, 3rd December 2020 / PRNewswire / – Marvell Technology Group Ltd. (NASDAQ: MRVL), a leading provider of infrastructure semiconductor solutions, today announced financial results for the third quarter of fiscal 2021.

Revenue for the third quarter of fiscal year 2021 was $ 750 million. The GAAP net loss for the third quarter of fiscal 2021 was (23) million US dollars, or $ (0.03) per diluted share. Non-GAAP earnings for the third quarter of fiscal 2021 were $ 168 million, or $ 0.25 per diluted share. The cash flow from operating activities was in the third quarter $ 258 million.

On October 29, 2020, Marvell Technology Group Ltd. announced that it has entered into a definitive agreement to acquire Inphi Corporation for cash and consideration. The transaction is expected to close in the second half of the 2021 calendar, subject to the approval of Marvell and Inphi shareholders and customary closing conditions, including applicable regulatory approvals.

"Marvell continued to deliver strong revenue growth in the third fiscal quarter. Total revenue increased 13% year over year, driven by our network business, which increased revenue 35% year over year. Strong 5G and cloud product ramps fuel our continued success in these strategic growth markets, "said Matt Murphy, Marvell's President and CEO. "Demand continues to grow and we expect revenue to grow sequentially about 5% in the fourth fiscal quarter by mid-year. Our team is working to mitigate the impact of industry-wide supply restrictions that are currently limiting our ability to fully meet requirements . " rising demand. "

Marvell's guidance for the fourth quarter takes into account the US government's export restrictions on certain Chinese customers. Given the ongoing uncertainty surrounding COVID-19 and related public health measures, we have temporarily expanded the guideline range for revenue.

Financial report for the fourth quarter of fiscal year 2021

• Sales will be expected $ 785 million +/- 5%.
• The GAAP gross margin is expected to be around 52.8%.
• The non-GAAP gross margin is expected to be around 64%.
• GAAP operating costs are expected to be approximate $ 379 million.
• Non-GAAP operating costs are expected to be approximate $ 280 million.
• The weighted average common stock outstanding is expected to be 673 million.
• The diluted weighted average number of shares in issue is expected to be 686 million.
• The GAAP diluted earnings per share are expected $ (0.03) to $ 0.07 per share.
• Diluted non-GAAP earnings per share are expected $ 0.25 to $ 0.33 per share.

GAAP diluted EPS is calculated using the weighted average outstanding of the shares if there is a GAAP net loss and the diluted weighted average of the outstanding shares if there is a GAAP net income outstanding. Diluted Non-GAAP EPS is calculated using the diluted weighted average of the average shares in issue.

telephone conference

Marvell will host a conference call on Thursday 3rd December 2020 at the 1:45 p.m. Pacific time Interested parties can join the conference call by dialing 1-844-647-5488 or 1-615-247-0258, passcode 3247376. The conference call will be webcast and will be available on the Marvell Investor Relations website at http://investor.marvell.com/ with a replay available after the call until Thursday 10th December 2020.

Discussion of non-GAAP financial measures

Non-GAAP financial measures include the impact of share-based compensation expenses, amortization of fair value adjustments to inventories related to the Acquisitions of Aquantia and Avera, amortization of acquired intangible assets, acquisition and disposal costs, restructuring and other related costs (including ) from, but not limited to, asset impairment losses, employee severance pay and facility-related costs), legal resolution, and certain expenses and benefits primarily attributable to discreet events that management does not consider to be directly related to Marvell's core business .

Marvell uses a non-GAAP tax rate to calculate non-GAAP tax law. This non-GAAP tax rate is based on Marvell's estimated annual GAAP income tax forecast, which has been adjusted to reflect the items excluded from GAAP income when calculating Marvell's non-GAAP income, as well as the effects of material one-time and period-specific tax items vary in size and frequency. Marvell's non-GAAP tax rate is determined annually and can be adjusted during the year to reflect events that could materially affect the non-GAAP tax rate, such as: B. Changes in Tax Law. material changes in Marvell's geographic mix of income and expenses; or changes in Marvell's corporate structure. For the third quarter of fiscal 2021, a non-GAAP tax rate of 5.0% was applied to non-GAAP financial results.

Marvell believes that the presentation of non-GAAP financial measures provides management and investors with important supplemental information about financial and business trends relating to Marvell's financial condition and results of operations. While Marvell uses non-GAAP financial measures as a tool to improve understanding of certain aspects of its financial performance, Marvell does not consider these measures to be a substitute for or superior to GAAP financial measures. Consistent with this approach, Marvell believes that disclosing non-GAAP financial measures to the readers of its financial statements provides those readers with useful supplemental information that, while not a substitute for GAAP financial measures, provides greater transparency in reviewing their financials and financial metrics enable operational performance.

Externally, management believes that investors may find Marvell's non-GAAP financial metrics useful in assessing Marvell's operational performance and evaluating Marvell. Internally, Marvell's non-GAAP financial measures are applied in the following areas:

• Management's assessment of Marvell's operational performance;
• Preparation of internal operating budgets by management;
• Management benchmarks with internal forecasts and targeted business models; and
• Management's decision on the achievement and evaluation of certain performance-based share awards (adjustments may vary from award to award).

Non-GAAP financial measures have limitations in that they do not reflect all of the costs associated with Marvell's business that are determined in accordance with GAAP. Therefore, you should not view these measures in isolation or as a substitute for analyzing Marvell's GAAP results. The exclusion of the above items from our GAAP financial metrics does not necessarily mean that these costs are unusual or infrequent.

Forward-looking statements under the Private Securities Litigation Reform Act of 1995

This press release contains forward-looking statements within the meaning of federal securities laws that involve risks and uncertainties. Words such as "anticipate", "expect", "intend", "plan", "project", "believe", "seek", "estimate", "can", "can", "will", "would" and similar expressions identify such forward-looking statements. These statements are not guarantees of results and should not be taken as an indication of future activities or future performance. Forward-looking statements are predictions, forecasts and other statements about future events that are based on current expectations and assumptions and are therefore subject to risks and uncertainties. Actual events or results could differ materially from those described in this press release due to a number of risks and uncertainties including, but not limited to: the completion of the proposed transaction with Inphi Corporation on foreseeable terms and at the expected time, or at all, including the Obtaining shareholder and regulatory approvals, anticipated tax treatment, contingencies and other conditions for the completion of the transaction; Failure to realize the anticipated benefits of the proposed transaction with Inphi, including due to a delay in closing the transaction or our ability to integrate the Marvell and Inphi businesses, or due to unexpected costs, liabilities, delays or other factors affecting the semiconductor industry ;; our ability to obtain or complete financing in connection with the Inphi Transaction on acceptable terms or at all; potential litigation related to the proposed Inphi transaction that may be initiated against Marvell or Inphi or our respective directors; the risk that any disruption from the proposed transaction with Inphi will affect our or Inphi's business, including current plans and operations; Marvell or Inphi's ability to retain and hire key personnel; possible adverse reactions or changes in business relationships resulting from the announcement or completion of the proposed transaction with Inphi; Risks relating to the value of the shares to be issued in the Inphi Transaction; Risks in connection with contracts with third parties that contain consents and / or other provisions that may be triggered by the proposed transaction with Inphi; potential business uncertainty, including changes in existing business relationships, during the upcoming transaction that could affect Marvell and / or Inphi's financial performance; Limitations while the Proposed Transaction is pending, which may affect Marvell or Inphi's ability to pursue certain business opportunities or strategic transactions; Failure to obtain the consent of Marvell and / or Inphi Securityholders; the occurrence of an event, change, or other circumstance that could result in the termination of the Merger Agreement with Inphi; Risks related to the impact of the novel pandonavirus pandemic (COVID-19) on our business, which has affected our workforce and operations, and the transportation and manufacture of our products, and may continue to do so; Risks related to the effects of the COVID-19 pandemic that have impacted the operations of our customers, dealers, suppliers, suppliers and partners and may continue to do so; increased disruption and volatility in capital and credit markets as a result of COVID-19, which could adversely affect our liquidity and capital resources; the impact of COVID-19 or other future pandemics on the US economy and the global economy; Disruptions caused by COVID-19 resulting in absenteeism, quarantines and restrictions on our employees' ability to work, innovate, collaborate and travel; the impact of current credit and market conditions caused by or resulting from COVID-19 on the liquidity and financial condition of our customers and suppliers, including any impact on their ability to meet their contractual obligations; the impact of international conflict and economic volatility on domestic or overseas markets, including risks related to trade disputes, regulations and tariffs, including but not limited to restrictions imposed on our Chinese customers; the risks associated with manufacturing and selling products and customer products outside of The United States;; our ability to define, design and develop products for the 5G market; our ability to commercialize our 5G products to tier 1 infrastructure customers; Increase in lead time due to supply chain disruptions or component bottlenecks that can affect the production of our products, as well as limited availability from other electronic suppliers that affect our customers' ability to ship their products, which in turn is detrimental may affect our sales to these customers; our reliance on independent foundries and subcontractors to manufacture, assemble and test our products; Cancellations, rescheduling, or postponements of significant customer orders or shipments, and our customers' ability to manage inventory; our ability to realize the anticipated benefits of restructuring activities; the impact of moving to smaller geometry process technologies; the impact of a change in income tax laws in the countries in which we operate and the loss of tax-favorable treatment that Marvell currently enjoys; the risk of downturns in the high cycle semiconductor industry; the risk that we will not realize the anticipated benefits of our previous acquisitions and disposals; our reliance on storage and networking markets, which are highly cyclical and highly competitive; the outcome of pending or future legal disputes as well as legal and regulatory proceedings; our dependence on a small number of customers; the impact and costs associated with changes in international financial and regulatory conditions; our ability and the ability of our customers to compete successfully in the markets in which we operate; our ability and the ability of our customers to develop new and improved products and bring those products to market; Future gross margin and earnings decline due to a number of factors; our ability to accurately gauge customer demand and future sales; our ability to scale our business in response to changes in demand for existing or new products and services; Risks related to acquisition and consolidation activities in the semiconductor industry; the effects of other potential acquisitions, sales, or investments; Marvell's ability to protect its intellectual property; our maintenance of an effective system of internal controls; severe financial hardship or bankruptcy of one or more of our key customers; and other risks that are listed from time to time in our SEC filings. The list of factors above is not intended to be exhaustive. You should carefully consider the above factors and the other risks and uncertainties affecting our business as set out in the "Risk Factors" section of our Annual Reports on Form 10-K, the Quarterly Reports on Form 10-Q, and others from Marvell from Time Documents currently filed are currently described with the SEC. Forward-looking statements only apply at the time they are made. Readers are cautioned not to place undue reliance on forward-looking statements. We assume no obligation and do not intend to update or revise these forward-looking statements as a result of new information, future events or for any other reason.

About Marvell

To provide the data infrastructure technology that connects the world, we build solutions on the most powerful foundation: our partnerships with our customers. We have trusted the world's leading technology companies for 25 years and move, store, process and secure the world's data with semiconductor solutions tailored to the current needs and future ambitions of our customers. Through a process of intensive cooperation and transparency, we are ultimately changing the transformation of the corporate, cloud, automotive and carrier architectures of tomorrow – for the better.

Marvell® and the Marvell logo are registered trademarks of Marvell and / or its affiliates.

For more information, please contact:

Ashish Saran

Vizepräsident, Investor Relations

408-222-0777

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