Marvell Technology, Inc.

Reconciliations from GAAP to Non-GAAP (Unaudited)

(In millions, except per share amounts)

Three Months Ended

Nine Months Ended

October 28,
2023

July 29,
2023

October 29,
2022

October 28,
2023

October 29,
2022

GAAP gross profit

$     551.2

$     521.1

$     777.3

$  1,629.5

$  2,314.2

Special items:

Stock-based compensation

15.7

11.0

12.1

38.7

33.8

Amortization of acquired intangible assets

184.3

185.8

181.9

553.8

540.2

Other cost of goods sold (a)

108.0

90.2

13.0

237.8

28.6

Total special items

308.0

287.0

207.0

830.3

602.6

Non-GAAP gross profit

$     859.2

$     808.1

$     984.3

$  2,459.8

$  2,916.8

GAAP gross margin

38.9 %

38.9 %

50.6 %

39.9 %

51.4 %

Non-GAAP gross margin

60.6 %

60.3 %

64.0 %

60.3 %

64.8 %

Total GAAP operating expenses

$     697.5

$     726.8

$     671.5

$  2,163.9

$  2,099.5

Special items:

Stock-based compensation

(142.8)

(141.8)

(134.0)

(415.8)

(387.9)

Restructuring related charges (b)

(3.4)

(42.0)

(15.6)

(105.3)

(18.1)

Amortization of acquired intangible assets

(85.5)

(86.0)

(88.0)

(257.8)

(274.0)

Legal settlement (c)

—

—

—

—

(100.0)

Other (d)

(28.7)

(9.0)

(13.5)

(41.3)

(32.2)

Total special items

(260.4)

(278.8)

(251.1)

(820.2)

(812.2)

Total non-GAAP operating expenses

$     437.1

$     448.0

$     420.4

$  1,343.7

$  1,287.3

GAAP operating margin

(10.3) %

(15.3) %

6.9 %

(13.1) %

4.8 %

Other cost of goods sold (a)

7.6 %

6.7 %

0.8 %

5.8 %

0.6 %

Stock-based compensation

11.2 %

11.4 %

9.5 %

11.1 %

9.4 %

Restructuring related charges (b)

0.2 %

3.1 %

1.0 %

2.6 %

0.4 %

Amortization of acquired intangible assets

19.0 %

20.3 %

17.6 %

19.9 %

18.1 %

Legal settlement (c)

— %

— %

— %

— %

2.2 %

Other (d)

2.1 %

0.7 %

0.9 %

1.0 %

0.7 %

Non-GAAP operating margin 

29.8 %

26.9 %

36.7 %

27.3 %

36.2 %

GAAP interest and other loss, net

$      (41.2)

$      (45.9)

$      (40.5)

$   (137.0)

$   (106.4)

Special items:

Other (d)

(4.2)

(8.5)

(0.5)

(12.6)

(6.2)

Total special items

(4.2)

(8.5)

(0.5)

(12.6)

(6.2)

Total non-GAAP interest and other loss, net

$      (45.4)

$      (54.4)

$      (41.0)

$   (149.6)

$   (112.6)

GAAP net income (loss)

$   (164.3)

$   (207.5)

$        13.3

$   (540.7)

$   (148.1)

Special items:

Other cost of goods sold (a)

108.0

90.2

13.0

237.8

28.6

Stock-based compensation

158.5

152.8

146.1

454.5

421.7

Restructuring related charges (b)

3.4

42.0

15.6

105.3

18.1

Amortization of acquired intangible assets

269.8

271.8

269.9

811.6

814.2

Legal settlement (c)

—

—

—

—

100.0

Other (d)

24.5

0.5

13.0

28.7

26.0

Pre-tax total special items

564.2

557.3

457.6

1,637.9

1,408.6

Other income tax effects and adjustments (e)

(45.8)

(59.6)

20.6

(188.7)

165.4

Non-GAAP net income

$     354.1

$     290.2

$     491.5

$     908.5

$  1,425.9

GAAP weighted average shares — basic

862.6

860.9

852.6

860.1

850.5

GAAP weighted average shares — diluted

862.6

860.9

858.4

860.1

850.5

Non-GAAP weighted average shares — diluted (f)

872.2

869.4

858.4

867.6

859.3

GAAP diluted net income (loss) per share

$      (0.19)

$      (0.24)

$        0.02

$      (0.63)

$      (0.17)

Non-GAAP diluted net income per share

$        0.41

$        0.33

$        0.57

$        1.05

$        1.66

(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 costs included in operating expenses and other income, net include charges for an intellectual property matter, net gains on investments, and acquisition related costs.

(e)

Other income tax effects and adjustments relate to tax provision based on a non-GAAP income tax rate of 6% for the three and nine months ended October 28, 2023. 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 relate to tax provision based on a non-GAAP income tax rate of 6.0% for the three and nine months ended October 29, 2022. In the nine months ended October 29, 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.