Marvell Technology, Inc.

Reconciliations from GAAP to Non-GAAP (Unaudited)

(In millions, except per share amounts)

Three Months Ended

Nine Months Ended

November 2,
2024

August 3,
2024

October 28,
2023

November 2,
2024

October 28,
2023

GAAP gross profit

$     349.4

$     587.6

$     551.2

$  1,464.8

$  1,629.5

Special items:

Stock-based compensation

16.3

11.2

15.7

37.2

38.7

Amortization of acquired intangible assets

180.4

191.3

184.3

552.2

553.8

Restructuring related charges (a)

356.8

—

—

356.8

—

Other cost of goods sold (b)

14.2

(2.6)

108.0

17.6

237.8

Total special items

567.7

199.9

308.0

963.8

830.3

Non-GAAP gross profit

$     917.1

$     787.5

$     859.2

$  2,428.6

$  2,459.8

GAAP gross margin

23.0 %

46.2 %

38.9 %

37.1 %

39.9 %

Stock-based compensation

1.1 %

0.9 %

1.1 %

0.9 %

0.9 %

Amortization of acquired intangible assets

11.9 %

15.0 %

13.0 %

14.0 %

13.6 %

Restructuring related charges (a)

23.5 %

— %

— %

9.0 %

— %

Other cost of goods sold (b)

1.0 %

(0.2) %

7.6 %

0.5 %

5.9 %

Non-GAAP gross margin

60.5 %

61.9 %

60.6 %

61.5 %

60.3 %

Total GAAP operating expenses

$  1,052.2

$     688.0

$     697.5

$  2,420.3

$  2,163.9

Special items:

Stock-based compensation

(142.1)

(143.7)

(142.8)

(412.6)

(415.8)

Amortization of acquired intangible assets

(84.5)

(84.4)

(85.5)

(253.3)

(257.8)

Restructuring related charges (a)

(358.3)

(4.0)

(3.4)

(366.4)

(105.3)

Other (c)

(0.4)

(0.1)

(28.7)

(11.5)

(41.3)

Total special items

(585.3)

(232.2)

(260.4)

(1,043.8)

(820.2)

Total non-GAAP operating expenses

$     466.9

$     455.8

$     437.1

$  1,376.5

$  1,343.7

GAAP operating margin

(46.4) %

(7.9) %

(10.3) %

(24.2) %

(13.1) %

Stock-based compensation

10.5 %

12.2 %

11.2 %

11.4 %

11.1 %

Amortization of acquired intangible assets

17.5 %

21.7 %

19.0 %

20.4 %

19.9 %

Restructuring related charges (a)

47.2 %

0.3 %

0.2 %

18.3 %

2.6 %

Other cost of goods sold (b)

0.9 %

(0.2) %

7.6 %

0.4 %

5.8 %

Other (c)

— %

— %

2.1 %

0.3 %

1.0 %

Non-GAAP operating margin 

29.7 %

26.1 %

29.8 %

26.6 %

27.3 %

GAAP interest and other loss, net

$      (47.7)

$      (45.8)

$      (41.2)

$   (139.0)

$   (137.0)

Special items:

Other (c)

(1.4)

0.3

(4.2)

(3.5)

(12.6)

Total special items

(1.4)

0.3

(4.2)

(3.5)

(12.6)

Total non-GAAP interest and other loss, net

$      (49.1)

$      (45.5)

$      (45.4)

$   (142.5)

$   (149.6)

GAAP net loss

$   (676.3)

$   (193.3)

$   (164.3)

$  (1,085.2)

$   (540.7)

Special items:

Stock-based compensation

158.4

154.9

158.5

449.8

454.5

Amortization of acquired intangible assets

264.9

275.7

269.8

805.5

811.6

Restructuring related charges (a)

715.1

4.0

3.4

723.2

105.3

Other cost of goods sold (b)

14.2

(2.6)

108.0

17.6

237.8

Other (c)

(1.0)

0.4

24.5

8.0

28.7

Pre-tax total special items

1,151.6

432.4

564.2

2,004.1

1,637.9

Other income tax effects and adjustments (d)

(102.3)

27.1

(45.8)

(73.0)

(188.7)

Non-GAAP net income

$     373.0

$     266.2

$     354.1

$     845.9

$     908.5

GAAP weighted-average shares — basic

865.7

865.7

862.6

865.5

860.1

GAAP weighted-average shares — diluted

865.7

865.7

862.6

865.5

860.1

Non-GAAP weighted-average shares — diluted (e)

875.5

875.7

872.2

875.8

867.6

GAAP diluted net loss per share

$      (0.78)

$      (0.22)

$      (0.19)

$      (1.25)

$      (0.63)

Non-GAAP diluted net income per share

$        0.43

$        0.30

$        0.41

$        0.97

$        1.05

(a)

Restructuring and other related items include asset impairment charges, recognition of future contractual obligations, employee severance costs, facilities related charges, and other.

(b)

Other cost of goods sold includes charges for an intellectual property licensing claim, product claim related matters that were fully resolved in the fourth quarter of fiscal 2024, and acquisition integration related inventory costs.

(c)

Other costs in operating expenses and interest and other loss, net include gain or loss on investments and asset acquisition related costs.

(d)

Other income tax effects and adjustments relate to tax provision based on a non-GAAP income tax rate of 7.0% for the three and nine months ended November 2, 2024 and three months ended August 3, 2024. 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.

(e)

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