Marvell Technology, Inc.

Reconciliations from GAAP to Non-GAAP (Unaudited)

(In millions, except per share amounts)

Three Months Ended

Year Ended

January 28,
2023

October 29,
2022

January 29,
2022

January 28,
2023

January 29,
2022

GAAP gross profit:

$     673.3

$     777.3

$     686.4

$  2,987.5

$  2,064.2

Special items:

Stock-based compensation

9.5

12.1

9.2

43.3

31.1

Amortization of acquired intangible assets

185.4

181.9

178.7

725.6

609.5

Other cost of goods sold (a)

32.4

13.0

2.5

61.0

193.5

Total special items

227.3

207.0

190.4

829.9

834.1

Non-GAAP gross profit

$     900.6

$     984.3

$     876.8

$  3,817.4

$  2,898.3

GAAP gross margin

47.5 %

50.6 %

51.1 %

50.5 %

46.3 %

Non-GAAP gross margin

63.5 %

64.0 %

65.3 %

64.5 %

64.9 %

Total GAAP operating expenses

$     650.0

$     671.5

$     651.7

$  2,749.5

$  2,411.9

Special items:

Stock-based compensation

(121.2)

(134.0)

(125.6)

(509.1)

(446.5)

Restructuring related charges (b)

(3.5)

(15.6)

(1.3)

(21.6)

(32.4)

Amortization of acquired intangible assets

(87.8)

(88.0)

(116.1)

(361.8)

(369.9)

Legal settlement (c)

—

—

—

(100.0)

—

Other operating expenses (d)

(6.8)

(13.5)

(18.9)

(39.0)

(130.0)

Total special items

(219.3)

(251.1)

(261.9)

(1,031.5)

(978.8)

Total non-GAAP operating expenses

$     430.7

$     420.4

$     389.8

$  1,718.0

$  1,433.1

GAAP operating margin

1.6 %

6.9 %

2.6 %

4.0 %

(7.8) %

Other cost of goods sold (a)

2.3 %

0.8 %

0.2 %

1.0 %

4.3 %

Stock-based compensation

9.2 %

9.5 %

10.0 %

9.3 %

10.7 %

Restructuring related charges (b)

0.2 %

1.0 %

0.1 %

0.4 %

0.7 %

Amortization of acquired intangible assets

19.3 %

17.6 %

22.0 %

18.4 %

21.9 %

Legal settlement (c)

— %

— %

— %

1.7 %

— %

Other operating expenses (d)

0.5 %

0.9 %

1.4 %

0.7 %

3.0 %

Non-GAAP operating margin 

33.1 %

36.7 %

36.3 %

35.5 %

32.8 %

GAAP interest and other income (loss), net

$      (46.5)

$      (40.5)

$      (32.6)

$   (152.9)

$   (135.8)

Special items:

      Debt issuance related costs and other (e)

(1.8)

(0.5)

(3.1)

(8.0)

16.7

Total special items

(1.8)

(0.5)

(3.1)

(8.0)

16.7

Total non-GAAP interest and other income (loss), net

$      (48.3)

$      (41.0)

$      (35.7)

$   (160.9)

$   (119.1)

Marvell Technology, Inc.

Reconciliations from GAAP to Non-GAAP (Unaudited)

(In millions, except per share amounts)

Three Months Ended

Year Ended

January 28,
2023

October 29,
2022

January 29,
2022

January 28,
2023

January 29,
2022

GAAP net income (loss)

$      (15.4)

$        13.3

$          6.2

$   (163.5)

$   (421.0)

Special items:

Other cost of goods sold (a)

32.4

13.0

2.5

61.0

193.5

Stock-based compensation

130.7

146.1

134.8

552.4

477.6

Restructuring related charges (b)

3.5

15.6

1.3

21.6

32.4

Legal settlement (c)

—

—

—

100.0

—

Other operating expenses (d)

6.8

13.5

18.9

39.0

130.0

Amortization of acquired intangible assets

273.2

269.9

294.8

1,087.4

979.4

Debt issuance related costs and other (e)

(1.8)

(0.5)

(3.1)

(8.0)

16.7

Pre-tax total special items

444.8

457.6

449.2

1,853.4

1,829.6

Other income tax effects and adjustments (f)

(33.1)

20.6

(26.7)

132.3

(129.8)

Non-GAAP net income

$     396.3

$     491.5

$     428.7

$  1,822.2

$  1,278.8

GAAP weighted average shares — basic

854.1

852.6

844.4

851.4

796.9

GAAP weighted average shares — diluted

854.1

858.4

862.1

851.4

796.9

Non-GAAP weighted average shares — diluted (g)

859.0

858.4

862.1

859.2

813.1

GAAP diluted net income (loss) per share

$      (0.02)

$        0.02

$        0.01

$      (0.19)

$      (0.53)

Non-GAAP diluted net income per share

$        0.46

$        0.57

$        0.50

$        2.12

$        1.57

(a)

Other cost of goods sold includes amortization of acquired inventory fair value adjustments and charges for an intellectual property licensing matter.

(b)

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

(c)

Relates to a settlement of a contractual dispute.

(d)

Other operating expenses include acquisition related costs.

(e)

Debt issuance related costs and other includes the partial term loan repayment and bridge financing, and gains or losses on investments.

(f)

Other income tax effects and adjustments relate to tax provision based on a non-GAAP income tax rate of 6.0% for the three months ended January 28, 2023, October 29, 2022, and year ended January 28, 2023. Our non-GAAP income taxes for the year ended January 28, 2023 excluded certain significant non-recurring income tax items that arose during our fiscal quarters. 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. Additionally, during the three months ended October 29, 2022, we excluded $22.4 million (which was subsequently reduced to $18.3 million in the three months ended January 28, 2023) of non-recurring income tax expense associated with the claw back of incentive benefits that resulted from our election to avail ourselves of a preferential temporary tax provision in Israel. Other income tax effects and adjustments relate to tax provision based on a non-GAAP income tax rate of 5.0% for the three months ended January 29, 2022 and year ended January 29, 2022.

(g)

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