Marvell Technology Group Ltd. Reports Fourth Fiscal Quarter and Fiscal Year 2016 Financial Results
Key Fourth Quarter of Fiscal 2016 and Fiscal Year 2016 Financial Highlights
- Revenue: Q4 FY 2016,
\\$616 Million ; FY 2016,\\$2.7 Billion - GAAP Net Earnings (Loss): Q4 FY 2016,
\\$4 Million ; FY 2016,(\\$811) Million (includes the settlement with CMU described below) - GAAP Diluted Earnings (Loss) Per Share: Q4 FY 2016,
\\$0.01 ; FY 2016,(\\$1.59) - Non-GAAP Net Income: Q4 FY 2016,
\\$55 Million ; FY 2016\\$194 Million - Non-GAAP Diluted EPS: Q4 FY 2016,
\\$0.11 ; FY 2016\\$0.37 - Cash Flow from Operations: Q4 FY 2016,
\\$53 Million ; FY 2016\\$205 Million - Cash and ST Investments:
\\$2.3 Billion (prior to giving effect to the settlement with CMU described below)
Fourth Quarter of Fiscal 2016 and Fiscal Year 2016 Summary
Revenues for the fourth quarter of fiscal 2016 were
In the fourth quarter of fiscal 2016, storage revenue increased 12 percent sequentially, reflecting improved demand from HDD customers but was partially offset by slightly lower SSD controller sales. Networking revenue in the fourth quarter of fiscal 2016 grew 8 percent sequentially due to broad-based demand improvement across most of our product areas. Mobile and wireless revenue decreased 34 percent sequentially, mainly driven by the previously anticipated declines in revenue resulting from
For the fiscal year end
GAAP net earnings for the fourth quarter of fiscal 2016 was
For the fiscal year ended
Non-GAAP net income for the fourth quarter of fiscal 2016 was
For the fiscal year ended
GAAP gross margin percentage for the fourth quarter of fiscal 2016 was 50.9 percent, compared to 43.8 percent for the third quarter of fiscal 2016 and 51.4 percent for the fourth quarter of fiscal 2015. GAAP gross margin for fiscal year 2016 was 45.2 percent as compared to 50.3 percent in fiscal year 2015.
Non-GAAP gross margin percentage for the fourth quarter of fiscal 2016 was 51.9 percent, compared to 46.0 percent for the third quarter of fiscal 2016 and 51.8 percent for the fourth quarter of fiscal 2015. The sequential improvement in fourth quarter GAAP and Non-GAAP gross margin percentages was mainly due to a more lower mix of lower margin mobile handset platform-related revenues relative the prior quarter. Non-GAAP gross margin for fiscal year 2016 was 49.1 percent compared to 50.5 percent in fiscal year 2015. The decline in GAAP and non-GAAP gross margin percentages in fiscal year 2016 was mainly due to a higher mix of lower margin mobile handset platform-related revenues relative to fiscal year 2015. Refer to the GAAP to Non-GAAP reconciliation table and related footnotes at the end of this press release for more details.
Operating expenses on a GAAP basis for the fourth quarter of fiscal 2016 were
Non-GAAP operating expenses were
Shares used to compute GAAP net income per diluted share for the fourth quarter of fiscal 2016 were 509 million shares, compared with 505 million shares in the third quarter of fiscal 2016 and 522 million shares in the fourth quarter of fiscal 2015. Shares used to compute GAAP net income per diluted share for fiscal year 2016 were 511 million shares as compared with 521 million shares for fiscal year 2015.
Shares used to compute non-GAAP net income per diluted share for the fourth quarter of fiscal 2016 were 519 million shares, compared with 519 million shares for the third quarter of fiscal 2016 and 533 million shares for the fourth quarter of fiscal 2015. Shares used to compute non-GAAP net income per diluted share for fiscal year 2016 were 526 million shares as compared with 532 million shares for fiscal year 2015.
Cash flow from operations for the fourth quarter of fiscal 2016 was
The payment of future quarterly cash dividends on
Key Third Quarter of Fiscal 2016 Financial Highlights (Updated)
- Revenue: Q3 FY 2016,
\\$675 Million - GAAP Net Loss: Q3 FY 2016,
(\\$58) Million - GAAP Diluted Loss Per Share: Q3 FY 2016,
(\\$0.11) - Non-GAAP Net Income: Q3 FY 2016,
\\$29 Million - Non-GAAP Diluted EPS: Q3 FY 2016,
\\$0.06 - Cash Flow from Operations: Q3 FY 2016,
\\$67 Million
On
Key Second Quarter of Fiscal 2016 Financial Highlights (Updated)
- Revenue: Q2 FY 2016,
\\$710 Million - GAAP Net Loss: Q2 FY 2016,
(\\$772) Million - GAAP Diluted Loss Per Share: Q2 FY 2016,
(\\$1.49) - Non-GAAP Net Income: Q2 FY 2016,
\\$39 Million - Non-GAAP Diluted EPS: Q2 FY 2016,
\\$0.07 - Cash Flow from Operations: Q2 FY 2016,
\\$27 Million
On
From time to time, our customers agreed to take shipments in an earlier fiscal quarter than the fiscal quarter they originally requested delivery. When such agreement would not have occurred but for the request made by
CMU Settlement
On
NASDAQ Compliance Plan
On
On
Additions to Company Leadership
On
Sehat Sutardja and President
Weili Dai from their management positions. On
Richard S. Hill was appointed Chairman of the Board. Mr. Hill will also serve as the company's principal executive officer through the filing of
On
Matthew J. Murphy joined
In addition to Mr. Murphy and Mr. Hill, joining the Board of Directors since
Peter A. Feld,
Oleg Khaykin,
Robert E. Switz and
Michael Strachan. Recent additions to the executive team include
Mitchell Gaynor, Executive Vice President and Chief Legal Officer,
Chris Koopmans, Executive Vice President Marketing and Sales, and
Andy Micallef, Chief Operations Officer. Maya Strelar-Migotti has returned to her role as Executive Vice President of the
Pantelis Alexopoulos has returned to his role as Executive Vice President of the
Willem Meintjes as Senior Vice President of Finance.
Conference Call
Discussion of Non-GAAP Financial Measures
Non-GAAP financial measures exclude the effect of share-based compensation expense, amortization and write-off of acquired intangible assets, acquisition-related costs, restructuring and other related charges, litigation settlement, and certain one-time expenses and benefits that are driven primarily by discrete events that management does not consider to be directly related to
Forward-Looking Statements under the Private Securities Litigation Reform Act of 1995
This press release contains forward-looking statements within the meaning of the federal securities laws that involve risks and uncertainties, including: its use of non-GAAP financial measures as important supplemental information. Words such as "anticipates," "expects," "intends," "plans," "believes," "seeks," "estimates," "can," "will" and similar expressions identify such forward-looking statements. These statements are not guarantees of results and should not be considered as an indication of future activity or future performance. Actual events or results may differ materially from those described in this press release due to a number of risks and uncertainties, including, but not limited to: actions that may be taken by
About Marvell
As used in this release, the term "
Marvell® and the
Condensed Consolidated Statements of Operations |
|||||||||||||||||||||
(Unaudited) |
|||||||||||||||||||||
(In thousands, except per share amounts) |
|||||||||||||||||||||
Fiscal 2016 |
Fiscal 2015 |
||||||||||||||||||||
Three Months Ended |
Three Months Ended |
Year Ended |
|||||||||||||||||||
January 30, |
October 31, |
August 1, |
January 31, |
November 1, |
August 2, |
January 30, |
January 31, |
||||||||||||||
2016 (a) |
2015 (a) (b) |
2015 (a) (c) |
2015 |
2014 |
2014 |
2016 (a) |
2015 |
||||||||||||||
(Preliminary) |
(Preliminary) |
||||||||||||||||||||
Net revenue |
\\$ 616,158 |
\\$ 674,890 |
\\$ 710,492 |
\\$ 857,452 |
\\$ 930,136 |
\\$ 961,545 |
\\$ 2,725,828 |
\\$ 3,706,963 |
|||||||||||||
Cost of goods sold |
302,610 |
379,254 |
461,719 |
417,131 |
454,974 |
477,741 |
1,494,736 |
1,843,706 |
|||||||||||||
Gross profit |
313,548 |
295,636 |
248,773 |
440,321 |
475,162 |
483,804 |
1,231,092 |
1,863,257 |
|||||||||||||
Operating expenses: |
|||||||||||||||||||||
Research and development |
239,703 |
284,308 |
297,321 |
285,497 |
288,435 |
294,764 |
1,101,446 |
1,164,059 |
|||||||||||||
Selling and marketing |
31,301 |
32,481 |
30,841 |
37,235 |
34,410 |
33,949 |
130,797 |
143,952 |
|||||||||||||
General and administrative |
37,812 |
34,771 |
36,563 |
34,651 |
33,473 |
31,333 |
150,173 |
130,030 |
|||||||||||||
Carnegie Mellon University litigation settlement |
- |
- |
654,667 |
- |
- |
- |
654,667 |
- |
|||||||||||||
Amortization and write-off of acquired intangible assets |
2,462 |
3,150 |
2,568 |
3,100 |
3,304 |
3,304 |
10,748 |
16,397 |
|||||||||||||
Total operating expenses |
311,278 |
354,710 |
1,021,960 |
360,483 |
359,622 |
363,350 |
2,047,831 |
1,454,438 |
|||||||||||||
Operating income (loss) |
2,270 |
(59,074) |
(773,187) |
79,838 |
115,540 |
120,454 |
(816,739) |
408,819 |
|||||||||||||
Interest and other income, net |
1,084 |
4,644 |
6,790 |
4,382 |
4,764 |
12,263 |
17,685 |
23,334 |
|||||||||||||
Income (loss) before income taxes |
3,354 |
(54,430) |
(766,397) |
84,220 |
120,304 |
132,717 |
(799,054) |
432,153 |
|||||||||||||
Provision (benefit) for income taxes |
(846) |
3,320 |
5,543 |
2,527 |
5,000 |
(6,153) |
12,346 |
(3,193) |
|||||||||||||
Net income (loss) |
\\$ 4,200 |
\\$ (57,750) |
\\$ (771,940) |
\\$ 81,693 |
\\$ 115,304 |
\\$ 138,870 |
\\$ (811,400) |
\\$ 435,346 |
|||||||||||||
Basic net income (loss) per share |
\\$ 0.01 |
\\$ (0.11) |
\\$ (1.49) |
\\$ 0.16 |
\\$ 0.22 |
\\$ 0.27 |
\\$ (1.59) |
\\$ 0.85 |
|||||||||||||
Diluted net income (loss) per share |
\\$ 0.01 |
\\$ (0.11) |
\\$ (1.49) |
\\$ 0.16 |
\\$ 0.22 |
\\$ 0.27 |
\\$ (1.59) |
\\$ 0.84 |
|||||||||||||
Shares used in computing basic earnings (loss) per share |
506,352 |
504,831 |
516,368 |
513,574 |
513,859 |
511,821 |
510,945 |
511,089 |
|||||||||||||
Shares used in computing diluted earnings (loss) per share |
508,590 |
504,831 |
516,368 |
522,112 |
519,907 |
520,269 |
510,945 |
520,760 |
(a) |
The condensed consolidated financial statements for each of the three months ended January 30, 2016, October 31, 2015 and August 1, 2015 are preliminary, as well as the twelve months ended January 30, 2016, and therefore, subject to adjustments in connection with subsequent events arising through the date of the Company's filing of its Quarterly Reports on Form 10-Q and Annual Report on Form 10-K for the corresponding periods. The filing of each respective Form 10-Q and 10-K will be completed as soon as practicable after the completion of the audit of the Company's fiscal 2016 financial statements by Deloitte & Touche LLP, its newly appointed independent registered public accounting firm. |
||||||||||||||||||||
(b) |
The condensed consolidated financial statements for the three months ended October 31, 2015, for which the Company previously reported preliminary financial results on December 7, 2015 have been adjusted due to the delayed filing of its Form 10-Q for the third quarter. These adjustments were made to account for subsequent activities associated with conditions that existed as of October 31, 2015 (Type I Subsequent Events) and are not related to the Audit Committee's investigation of certain accounting and internal control matters. Adjustments that have been recorded to the Company's preliminary financial results after December 7, 2015 include a credit adjustment of \\$4.3 million to COGS due to the subsequent settlement in February 2016 for the Carnegie Mellon University litigation, a \\$1.5 million charge to write down equipment and intangible asset related to a development project the Company decided to discontinue, the recognition of an additional \\$0.8 million of revenue due to a subsequent rebate adjustment and corresponding reduction to the tax provision of \\$0.4 million. Due to the delayed filing and as a result of future subsequent events, there may be additional adjustments to these preliminary financial results through the date of the Company's filing of its Form 10-Q. |
||||||||||||||||||||
(c) |
The condensed consolidated financial statements for the three months ended August 1, 2015, for which the Company previously reported preliminary financial results on September 11, 2015, have been adjusted due to the delayed filing of its Form 10-Q for the second quarter. These adjustments were made to account for subsequent activities associated with conditions that existed as of August 1, 2015 (Type I Subsequent Events) and are not related to the Audit Committee's investigation of certain accounting and internal control matters. Adjustments that have been recorded to the Company's preliminary financial results after September 11, 2015 include an additional \\$350.5 million charge due to the subsequent settlement in February 2016 for the Carnegie Mellon University litigation (of which \\$78.9 million was recorded to COGS), a \\$13.9 million write down of inventory primarily associated with certain products for the mobile platform business, \\$3.7 million related to other litigation charges, a \\$1.5 million charge related to a pension plan and an additional \\$3.0 million representing other net subsequent charges, as well as corresponding changes to the income tax benefit from \\$11.4 million to an income tax provision of \\$ 5.5 million. Due to the delayed filing and as a result of future subsequent events, there may be additional adjustments to these preliminary financial results through the date of the Company's filing of its Form 10-Q. |
Marvell Technology Group Ltd. |
||||||||||
Condensed Consolidated Balance Sheets |
||||||||||
(Unaudited) |
||||||||||
(In thousands) |
||||||||||
January 30, |
January 31, |
|||||||||
Assets |
2016 (a) |
2015 |
||||||||
(Preliminary) |
||||||||||
Current assets: |
||||||||||
Cash, cash equivalents and short-term investments |
\\$ 2,282,749 |
\\$ 2,529,555 |
||||||||
Accounts receivable, net |
323,300 |
420,955 |
||||||||
Inventories |
210,017 |
308,162 |
||||||||
Prepaid expenses and other current assets |
102,560 |
85,368 |
||||||||
Total current assets |
2,918,626 |
3,344,040 |
||||||||
Property and equipment, net |
299,540 |
340,639 |
||||||||
Long-term investments |
11,296 |
10,226 |
||||||||
Goodwill and acquired intangible assets, net |
2,047,955 |
2,060,643 |
||||||||
Other non-current assets |
164,710 |
128,839 |
||||||||
Total assets |
\\$ 5,442,127 |
\\$ 5,884,387 |
||||||||
Liabilities and Shareholders' Equity |
||||||||||
Current liabilities: |
||||||||||
Accounts payable |
\\$ 180,372 |
\\$ 282,899 |
||||||||
Accrued liabilities |
253,691 |
286,357 |
||||||||
Carnegie Mellon University accrued litigation settlement |
736,000 |
- |
||||||||
Deferred income |
55,722 |
68,120 |
||||||||
Total current liabilities |
1,225,785 |
637,376 |
||||||||
Other non-current liabilities |
76,219 |
100,922 |
||||||||
Total liabilities |
1,302,004 |
738,298 |
||||||||
Shareholders' equity: |
||||||||||
Common stock |
1,015 |
1,030 |
||||||||
Additional paid-in capital |
3,028,921 |
3,099,548 |
||||||||
Accumulated other comprehensive income (loss) |
(795) |
308 |
||||||||
Retained earnings |
1,110,982 |
2,045,203 |
||||||||
Total shareholders' equity |
4,140,123 |
5,146,089 |
||||||||
Total liabilities and shareholders' equity |
\\$ 5,442,127 |
\\$ 5,884,387 |
||||||||
(a) |
The condensed consolidated balance sheet at January 30, 2016 is preliminary and therefore, subject to adjustments in connection with subsequent events arising through the date of the Company's filing of its Annual Report on Form 10-K for the corresponding period. The filing of the Form 10-K will be completed as soon as practicable after the completion of the audit of the Company's fiscal 2016 financial statements by Deloitte & Touche LLP, its newly appointed independent registered public accounting firm. |
Marvell Technology Group Ltd. |
|||||||||||||||||||
Condensed Consolidated Statements of Cash Flows |
|||||||||||||||||||
(Unaudited) |
|||||||||||||||||||
(in thousands) |
|||||||||||||||||||
Fiscal 2016 |
Fiscal 2015 |
||||||||||||||||||
Three Months Ended |
Three Months Ended |
Year Ended |
|||||||||||||||||
January 30, |
October 31, |
August 1, |
January 31, |
November 1, |
August 2, |
January 30, |
January 31, |
||||||||||||
2016 (a) |
2015 (a) |
2015 (a) |
2015 |
2014 |
2014 |
2016 (a) |
2015 |
||||||||||||
(Preliminary) |
(Preliminary) |
||||||||||||||||||
Cash flows from operating activities: |
|||||||||||||||||||
Net income (loss) |
\\$ 4,200 |
\\$ (57,750) |
\\$ (771,940) |
\\$ 81,693 |
\\$ 115,304 |
\\$ 138,870 |
\\$ (811,400) |
\\$ 435,346 |
|||||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
|||||||||||||||||||
Depreciation and amortization |
22,800 |
25,565 |
25,191 |
26,464 |
26,515 |
26,263 |
100,176 |
106,248 |
|||||||||||
Share-based compensation |
32,419 |
31,465 |
36,674 |
37,963 |
34,294 |
35,020 |
133,779 |
137,246 |
|||||||||||
Amortization and write-off of acquired intangible assets |
2,947 |
3,635 |
3,053 |
3,585 |
3,789 |
3,789 |
12,688 |
18,337 |
|||||||||||
Non-cash restructuring and other related charges |
289 |
14,270 |
900 |
3,230 |
- |
- |
16,032 |
17 |
|||||||||||
Other non-cash expense (income), net |
7,885 |
4,205 |
2,283 |
(1,699) |
(6,034) |
(7,596) |
13,811 |
(10,646) |
|||||||||||
Excess tax benefits from share-based compensation |
1 |
(2) |
(7) |
(67) |
(2) |
(32) |
(26) |
(145) |
|||||||||||
Changes in assets and liabilities: |
|||||||||||||||||||
Accounts receivable |
57,628 |
36,793 |
(23,907) |
25,719 |
40,214 |
33,419 |
97,655 |
34,165 |
|||||||||||
Inventories |
69,544 |
39,457 |
12,903 |
48,247 |
37,506 |
(43,194) |
90,586 |
39,454 |
|||||||||||
Prepaid expenses and other assets |
(35,245) |
6,804 |
9,358 |
4,087 |
18,536 |
(24,996) |
(17,113) |
(7,125) |
|||||||||||
Accounts payable |
(62,163) |
(55,693) |
(5,167) |
(60,808) |
(70,749) |
2,558 |
(105,898) |
(43,871) |
|||||||||||
Accrued liabilities and other non-current liabilities |
(27,218) |
3,958 |
19,634 |
(12,189) |
(24,997) |
10,096 |
(15,202) |
(30,024) |
|||||||||||
Carnegie Mellon University accrued litigation settlement |
1,285 |
1,158 |
733,557 |
- |
- |
- |
736,000 |
- |
|||||||||||
Accrued employee compensation |
(18,702) |
14,295 |
(14,507) |
1,910 |
19,101 |
(7,451) |
(33,338) |
43,561 |
|||||||||||
Deferred income |
(2,364) |
(1,566) |
(1,441) |
(2,714) |
(12,053) |
(9,792) |
(12,398) |
6,373 |
|||||||||||
Net cash provided by operating activities |
53,306 |
66,594 |
26,584 |
155,421 |
181,424 |
156,954 |
205,352 |
728,936 |
|||||||||||
Cash flows from investing activities: |
|||||||||||||||||||
Purchases of available-for-sale securities |
(133,215) |
(356,465) |
(173,465) |
(344,023) |
(448,526) |
(153,881) |
(1,056,045) |
(1,128,319) |
|||||||||||
Sales and maturities of available-for-sale securities |
477,301 |
356,409 |
222,295 |
248,215 |
205,685 |
190,099 |
1,303,500 |
826,310 |
|||||||||||
Distribution from (investments in) privately-held companies |
(119) |
(130) |
208 |
- |
(260) |
- |
(41) |
(701) |
|||||||||||
Proceeds from sale of an investment in a privately-held company |
- |
- |
- |
- |
13,220 |
- |
- |
13,220 |
|||||||||||
Purchases of technology licenses |
(1,579) |
(980) |
(2,071) |
(1,910) |
(5,105) |
(1,298) |
(8,236) |
(16,424) |
|||||||||||
Purchases of property and equipment |
(3,894) |
(9,041) |
(16,986) |
(14,415) |
(16,661) |
(15,823) |
(37,255) |
(63,030) |
|||||||||||
Purchase of equipment previously leased |
- |
- |
- |
- |
- |
- |
(10,240) |
- |
|||||||||||
Net proceeds from sale of equipment held for sale |
- |
10,007 |
- |
- |
- |
- |
10,007 |
- |
|||||||||||
Net cash provided by (used in) investing activities |
338,494 |
(200) |
29,981 |
(112,133) |
(251,647) |
19,097 |
201,690 |
(368,944) |
|||||||||||
Cash flows from financing activities: |
|||||||||||||||||||
Repurchase of common stock (b) |
- |
(65,291) |
(175,311) |
(21,188) |
(43,774) |
- |
(260,875) |
(64,962) |
|||||||||||
Proceeds from employee stock plans |
21,369 |
2,174 |
44,161 |
41,049 |
2,934 |
49,282 |
80,717 |
112,357 |
|||||||||||
Minimum tax withholding paid on behalf of employees for net share settlement |
|||||||||||||||||||
(482) |
(869) |
(697) |
(908) |
(663) |
(637) |
(24,358) |
(26,494) |
||||||||||||
Dividend payments to shareholders |
(30,447) |
(30,270) |
(31,194) |
(30,942) |
(30,867) |
(30,820) |
(122,821) |
(122,801) |
|||||||||||
Payments on technology license obligations |
(1,112) |
(2,617) |
(4,732) |
(4,382) |
(5,951) |
(2,677) |
(12,528) |
(13,010) |
|||||||||||
Excess tax benefits from share-based compensation |
(1) |
2 |
7 |
67 |
2 |
32 |
26 |
145 |
|||||||||||
Net cash provided by (used in) financing activities |
(10,673) |
(96,871) |
(167,766) |
(16,304) |
(78,319) |
15,180 |
(339,839) |
(114,765) |
|||||||||||
Net increase (decrease) in cash and cash equivalents |
381,127 |
(30,477) |
(111,201) |
26,984 |
(148,542) |
191,231 |
67,203 |
245,227 |
|||||||||||
Cash and cash equivalents at beginning of period |
897,053 |
927,530 |
1,038,731 |
1,183,993 |
1,332,535 |
1,141,304 |
1,210,977 |
965,750 |
|||||||||||
Cash and cash equivalents at end of period |
\\$ 1,278,180 |
\\$ 897,053 |
\\$ 927,530 |
\\$ 1,210,977 |
\\$ 1,183,993 |
\\$ 1,332,535 |
\\$ 1,278,180 |
\\$ 1,210,977 |
(a) |
The condensed consolidated statement of cash flows for each of the three months ended January 30, 2016, October 31, 2015 and August 1, 2015 are preliminary, as well as the twelve months ended January 30, 2016, and therefore, subject to adjustments in connection with subsequent events arising through the date of the Company's filing of its Annual Report on Form 10-K for the corresponding period. The filing of the Form 10-K will be completed as soon as practicable after the completion of the audit of the Company's fiscal 2016 financial statements by Deloitte & Touche LLP, its newly appointed independent registered public accounting firm. |
||||||||||||||||||||
(b) |
Marvell records all repurchases as well as investment purchases and sales, based on trade date in accordance with U.S. GAAP. |
Marvell Technology Group Ltd. |
|||||||||||||||||
Reconciliations from GAAP to Non-GAAP |
|||||||||||||||||
(Unaudited) |
|||||||||||||||||
(In thousands, except per share amounts) |
|||||||||||||||||
Fiscal 2016 |
Fiscal 2015 |
||||||||||||||||
Three Months Ended |
Three Months Ended |
Year Ended |
|||||||||||||||
January 30, |
October 31, |
August 1, |
January 31, |
November 1, |
August 2, |
January 30, |
January 31, |
||||||||||
2016 (e) |
2015 (e) (f) |
2015 (e) (g) |
2015 |
2014 |
2014 |
2016 (e) |
2015 |
||||||||||
(Preliminary) |
(Preliminary) |
||||||||||||||||
GAAP net income (loss) |
\\$ 4,200 |
\\$ (57,750) |
\\$ (771,940) |
\\$ 81,693 |
\\$ 115,304 |
\\$ 138,870 |
\\$ (811,400) |
\\$ 435,346 |
|||||||||
Share-based compensation |
32,419 |
31,465 |
36,674 |
37,963 |
34,294 |
35,020 |
133,779 |
137,246 |
|||||||||
Restructuring and other related charges (a) |
4,396 |
45,555 |
13,000 |
3,412 |
1,203 |
735 |
63,543 |
10,438 |
|||||||||
Amortization and write-off of acquired intangible assets |
2,947 |
3,635 |
3,346 |
4,025 |
4,229 |
4,229 |
13,421 |
20,097 |
|||||||||
Litigation matters (b) |
3,791 |
1,158 |
748,117 |
- |
(2,398) |
475 |
751,366 |
77 |
|||||||||
Other (c) |
6,754 |
4,942 |
10,205 |
3,764 |
2,318 |
2,155 |
43,283 |
8,237 |
|||||||||
Non-GAAP net income |
\\$ 54,507 |
\\$ 29,005 |
\\$ 39,402 |
\\$ 130,857 |
\\$ 154,950 |
\\$ 181,484 |
\\$ 193,992 |
\\$ 611,441 |
|||||||||
GAAP weighted average shares - diluted |
508,590 |
504,831 |
516,368 |
522,112 |
519,907 |
520,269 |
510,945 |
520,760 |
|||||||||
Non-GAAP adjustment |
9,978 |
13,674 |
16,574 |
10,688 |
12,905 |
13,201 |
15,349 |
11,604 |
|||||||||
Non-GAAP weighted average shares diluted (d) |
518,568 |
518,505 |
532,942 |
532,800 |
532,812 |
533,470 |
526,294 |
532,364 |
|||||||||
GAAP diluted net income (loss) per share |
\\$ 0.01 |
\\$ (0.11) |
\\$ (1.49) |
\\$ 0.16 |
\\$ 0.22 |
\\$ 0.27 |
\\$ (1.59) |
\\$ 0.84 |
|||||||||
Non-GAAP diluted net income per share |
\\$ 0.11 |
\\$ 0.06 |
\\$ 0.07 |
\\$ 0.25 |
\\$ 0.29 |
\\$ 0.34 |
\\$ 0.37 |
\\$ 1.15 |
|||||||||
GAAP gross profit: |
\\$ 313,548 |
\\$ 295,636 |
\\$ 248,773 |
\\$ 440,321 |
\\$ 475,162 |
\\$ 483,804 |
\\$ 1,231,092 |
\\$ 1,863,257 |
|||||||||
Share-based compensation |
1,861 |
2,495 |
2,012 |
2,006 |
1,934 |
1,733 |
7,915 |
7,972 |
|||||||||
Restructuring and other related charges (a) |
7 |
10,285 |
- |
- |
- |
- |
10,292 |
- |
|||||||||
Amortization of acquired intangible assets |
485 |
485 |
778 |
925 |
925 |
925 |
2,673 |
3,700 |
|||||||||
Litigation matters (b) |
3,711 |
1,158 |
81,390 |
- |
(3,998) |
- |
84,559 |
(3,998) |
|||||||||
Other (c) |
- |
- |
- |
1,000 |
- |
- |
- |
1,000 |
|||||||||
Non-GAAP gross profit |
\\$ 319,612 |
\\$ 310,059 |
\\$ 332,953 |
\\$ 444,252 |
\\$ 474,023 |
\\$ 486,462 |
\\$ 1,336,531 |
\\$ 1,871,931 |
|||||||||
GAAP gross margin |
50.9% |
43.8% |
35.0% |
51.4% |
51.1% |
50.3% |
45.2% |
50.3% |
|||||||||
Share-based compensation |
0.3% |
0.4% |
0.3% |
0.2% |
0.2% |
0.2% |
0.3% |
0.2% |
|||||||||
Restructuring and other related charges (a) |
0.0% |
1.5% |
0.0% |
0.0% |
0.0% |
0.0% |
0.4% |
0.0% |
|||||||||
Amortization of acquired intangible assets |
0.1% |
0.1% |
0.1% |
0.1% |
0.1% |
0.1% |
0.1% |
0.1% |
|||||||||
Litigation matters (b) |
0.6% |
0.1% |
11.5% |
0.0% |
-0.4% |
0.0% |
3.0% |
-0.1% |
|||||||||
Other (c) |
0.0% |
0.0% |
0.0% |
0.1% |
0.0% |
0.0% |
0.0% |
0.0% |
|||||||||
Non-GAAP gross margin |
51.9% |
45.9% |
46.9% |
51.8% |
51.0% |
50.6% |
49.0% |
50.5% |
|||||||||
GAAP research and development: |
\\$ 239,703 |
\\$ 284,308 |
\\$ 297,321 |
\\$ 285,497 |
\\$ 288,435 |
\\$ 294,764 |
\\$ 1,101,446 |
\\$ 1,164,059 |
|||||||||
Share-based compensation |
(23,631) |
(22,573) |
(27,807) |
(25,590) |
(24,198) |
(24,276) |
(98,792) |
(94,432) |
|||||||||
Restructuring and other related charges (a) |
(3,703) |
(31,806) |
(11,680) |
(67) |
(88) |
(412) |
(47,189) |
(5,249) |
|||||||||
Litigation matters (b) |
- |
- |
(5,000) |
- |
- |
- |
(5,000) |
- |
|||||||||
Other (c) |
(3,485) |
(894) |
(134) |
- |
- |
- |
(4,513) |
- |
|||||||||
Non-GAAP research and development |
\\$ 208,884 |
\\$ 229,035 |
\\$ 252,700 |
\\$ 259,840 |
\\$ 264,149 |
\\$ 270,076 |
\\$ 945,952 |
\\$ 1,064,378 |
|||||||||
GAAP selling and marketing: |
\\$ 31,301 |
\\$ 32,481 |
\\$ 30,841 |
\\$ 37,235 |
\\$ 34,410 |
\\$ 33,949 |
\\$ 130,797 |
\\$ 143,952 |
|||||||||
Share-based compensation |
(3,214) |
(2,608) |
(2,707) |
(3,069) |
(2,855) |
(2,617) |
(11,106) |
(11,469) |
|||||||||
Restructuring and other related charges (a) |
(118) |
(1,899) |
- |
- |
- |
48 |
(2,017) |
- |
|||||||||
Litigation matters (b) |
- |
- |
- |
- |
(1,600) |
- |
- |
(1,600) |
|||||||||
Other (c) |
(393) |
(39) |
- |
- |
- |
- |
(432) |
- |
|||||||||
Non-GAAP selling and marketing |
\\$ 27,576 |
\\$ 27,935 |
\\$ 28,134 |
\\$ 34,166 |
\\$ 29,955 |
\\$ 31,380 |
\\$ 117,242 |
\\$ 130,883 |
|||||||||
GAAP general and administrative: |
\\$ 37,812 |
\\$ 34,771 |
\\$ 36,563 |
\\$ 34,651 |
\\$ 33,473 |
\\$ 31,333 |
\\$ 150,173 |
\\$ 130,030 |
|||||||||
Share-based compensation |
(3,713) |
(3,789) |
(4,148) |
(7,298) |
(5,307) |
(6,394) |
(15,966) |
(23,373) |
|||||||||
Restructuring and other related charges (a) |
(568) |
(1,565) |
(1,320) |
(3,345) |
(1,115) |
(371) |
(4,045) |
(5,189) |
|||||||||
Litigation matters (b) |
(80) |
- |
(7,060) |
- |
- |
(475) |
(7,140) |
(2,475) |
|||||||||
Other (c) |
(2,876) |
(2,901) |
(2,748) |
(2,764) |
(2,318) |
(2,155) |
(26,827) |
(7,237) |
|||||||||
Non-GAAP general and administrative |
\\$ 30,575 |
\\$ 26,516 |
\\$ 21,287 |
\\$ 21,244 |
\\$ 24,733 |
\\$ 21,938 |
\\$ 96,195 |
\\$ 91,756 |
|||||||||
GAAP Carnegie Mellon University litigation settlement |
\\$ - |
\\$ - |
\\$ 654,667 |
\\$ - |
\\$ - |
\\$ - |
\\$ 654,667 |
\\$ - |
|||||||||
Litigation matters (b) |
- |
- |
(654,667) |
- |
- |
- |
(654,667) |
- |
|||||||||
Non-GAAP Carnegie Mellon University litigation settlement |
\\$ - |
\\$ - |
\\$ - |
\\$ - |
\\$ - |
\\$ - |
\\$ - |
\\$ - |
|||||||||
GAAP provision (benefit) for income taxes |
\\$ (846) |
\\$ 3,320 |
\\$ 5,543 |
\\$ 2,527 |
\\$ 5,000 |
\\$ (6,153) |
\\$ 12,346 |
\\$ (3,193) |
|||||||||
Other (c) |
- |
(1,108) |
(7,323) |
- |
- |
- |
(11,511) |
- |
|||||||||
Non-GAAP provision (benefit) for income taxes |
\\$ (846) |
\\$ 2,212 |
\\$ (1,780) |
\\$ 2,527 |
\\$ 5,000 |
\\$ (6,153) |
\\$ 835 |
\\$ (3,193) |
(a) |
Restructuring and other related charges include costs that qualify under U.S. GAAP as restructuring costs and other incremental charges that are a direct result of restructuring. For the three months ended January 30, 2016, such other related charges include \\$0.3 million for the impairment of certain leasehold improvements due to the restructuring of the mobile platform business, in addition to \\$4.1 million of restructuring charges, primarily for severance and facility-related costs. For the three months ended October 31, 2015, such other related charges include \\$6.2 million for the impairment of certain equipment (of which \\$2.2 million is in cost of goods sold) and an \\$8.1 million write down of inventory (in cost of goods sold) due to the restructuring of the mobile platform business, in addition to \\$31.3 million of restructuring charges, primarily for severance and other-exit related costs. For the three months ended August 1, 2015, such other related charges included a \\$0.9 million impairment of equipment held for sale (in general and administrative), in addition to \\$12.1 million of restructuring charges, primarily for severance. In addition, other related charges for all periods reported include operating expenses incurred for the maintenance of equipment held for sale. |
||||||||||||||||||||
(b) |
Litigation matters represent accruals recognized by the Company under ASC Topic 450, "Contingencies," in connection with the Carnegie Mellon University and certain other pending litigation. |
||||||||||||||||||||
(c) |
Other costs included in general and administrative expenses for the year ended January 30, 2016 include a cash payment authorized by the Board of Directors of \\$15.4 million to Dr. Sehat Sutardja, the Company's former Chief Executive Officer ("CEO") (see "Note 15 - Subsequent Events" in the Notes to the Consolidated Financial Statements set forth in Part II, Item 8 of the Company's Annual Report on Form 10-K for fiscal 2015). Other costs for all periods presented includes costs primarily associated with the surety bond to appeal the Carnegie Mellon University judgment. Other costs included in the provision for income taxes also reflects the tax effect of restructuring costs in each of the three months ended August 1, 2015 and October 31, 2015, as well as the year ended January 30, 2015. Other costs included in the provision for income taxes for the year ended January 30, 2016 include the corporate income tax effect of the \\$15.4 million cash payment to the Company's CEO. |
||||||||||||||||||||
(d) |
For purposes of calculating non-GAAP diluted net income per share in all periods presented, the GAAP diluted weighted average shares outstanding is adjusted to exclude the potential benefits of share-based compensation costs expected to be incurred in future periods but not yet recognized in the financial statements. The non-GAAP diluted weighted average shares outstanding for the three months ended August 1, 2015 and October 31, 2015, and for the twelve months ended January 30, 2016 also include the effects from dilutive securities which were excluded from the GAAP diluted weighted average shares outstanding since their effect was antidilutive due to the GAAP net loss reported in each of the corresponding periods. |
||||||||||||||||||||
(e) |
The condensed consolidated financial statements for each of the three months ended August 1, 2015, October 31, 2015 and January 30, 2016, as well as the twelve months ended January 30, 2016 are preliminary and therefore, subject to adjustments in connection with subsequent events arising through the date of the Company's filing of its Quarterly Reports on Form 10-Q and Annual Report on Form 10-K for the corresponding periods. The filing of each respective Form 10-Q and Form 10-K will be completed as soon as practicable after the completion of the audit of the Company's fiscal 2016 financial statements by Deloitte & Touche LLP, its newly appointed independent registered public accounting firm. |
||||||||||||||||||||
(f) |
The condensed consolidated financial statements for the three months ended October 31, 2015, for which the Company previously reported preliminary financial results on December 7, 2015 have been adjusted due to the delayed filing of its Form 10-Q for the third quarter. These adjustments were made to account for subsequent activities associated with conditions that existed as of October 31, 2015 (Type I Subsequent Events) and are not related to the Audit Committee's investigation of certain accounting and internal control matters. Adjustments that have been recorded to the Company's preliminary financial results after December 7, 2015 include a credit adjustment of \\$4.3 million to COGS due to the subsequent settlement in February 2016 for the Carnegie Mellon University litigation, a \\$1.5 million charge to write down equipment and intangible asset related to a development project the Company decided to discontinue, the recognition of an additional \\$0.8 million of revenue due to a subsequent rebate adjustment and corresponding reduction to the tax provision of \\$0.4 million. Due to the delayed filing and as a result of future subsequent events, there may be additional adjustments to these preliminary financial results through the date of the Company's filing of its Form 10-Q. |
||||||||||||||||||||
(g) |
The condensed consolidated financial statements for the three months ended August 1, 2015, for which the Company previously reported preliminary financial results on September 11, 2015, have been adjusted due to the delayed filing of its Form 10-Q for the second quarter. These adjustments were made to account for subsequent activities associated with conditions that existed as of August 1, 2015 (Type I Subsequent Events) and are not related to the Audit Committee's investigation of certain accounting and internal control matters. Adjustments that have been recorded to the Company's preliminary financial results after September 11, 2015 include an additional \\$350.5 million charge due to the subsequent settlement in February 2016 for the Carnegie Mellon University litigation (of which \\$78.9 million was recorded to COGS), a \\$13.9 million write down of inventory primarily associated with certain products for the mobile platform business, \\$3.7 million related to other litigation charges, a \\$1.5 million charge related to a pension plan and an additional \\$3.0 million representing other net subsequent charges, as well as corresponding changes to the income tax benefit from \\$11.4 million to an income tax provision of \\$ 5.5 million. Due to the delayed filing and as a result of future subsequent events, there may be additional adjustments to these preliminary financial results through the date of the Company's filing of its Form 10-Q. |
||||||||||||||||||||
Комментарии