Company profile

Ticker
MRVL
Exchange
Website
CEO
Matthew J. Murphy
Employees
Incorporated in
Location
Fiscal year end
SEC CIK
IRS number
770481679

MRVL stock data

(
)

Calendar

4 Dec 19
11 Dec 19
1 Feb 20

News

Company financial data Financial data

Quarter (USD) Nov 19 Aug 19 May 19 Feb 19
Revenue 662.47M 656.57M 662.45M 744.8M
Net income -82.5M -57.33M -48.45M -260.7M
Diluted EPS -0.12 -0.09 -0.07 -0.44
Net profit margin -12.45% -8.73% -7.31% -35.00%
Operating income -61.51M -46.23M -21.13M -53.01M
Net change in cash -135.13M 1.6M 80.25M -118.62M
Cash on hand 438.37M 573.5M 571.89M 491.65M
Cost of revenue 322.4M 305.87M 301.02M 422.8M
Annual (USD) Feb 19 Jan 17 Jan 16 Jan 15
Revenue 2.87B 2.3B 2.6B 3.64B
Net income -179.09M 21.15M -811.4M 435.35M
Diluted EPS -0.3 0.04 -1.59 0.84
Net profit margin -6.25% 0.92% -31.18% 11.97%
Operating income 43.27M 130.41M -745.41M 456.38M
Net change in cash -160.31M -17.36M -195.37M
Cash on hand 491.65M 651.95M 669.31M 864.68M
Cost of revenue 1.41B 1.02B 1.41B 1.8B

Financial data from company earnings reports

Financial report summary

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Risks
  • Our acquisition of Cavium involves a number of risks, including, among others, those associated with our use of a significant portion of our cash and our taking on substantial indebtedness, other financial risks, integration risks, and risk associated with the reactions of customers, suppliers and employees.
  • Our financial condition and results of operations may vary from quarter to quarter, which may cause the price of our common shares to decline.
  • Our sales are concentrated in a few large customers. If we are unable to increase the number of large customers in key markets, or if we lose or experience a significant reduction in sales to these key customers, if these key customers experience a significant decline in market share, or if these customers experience significant financial difficulties, our revenue may decrease substantially and our results of operations and financial condition may be harmed.
  • Any potential future acquisitions, strategic investments, divestitures, mergers or joint ventures may subject us to significant risks, any of which could harm our business.
  • We rely on our customers to design our products into their systems, and the nature of the design process requires us to incur expenses prior to customer commitments to use our products or recognizing revenues associated with those expenses which may adversely affect our financial results.
  • A significant portion of our revenue comes from the storage industry, which is highly cyclical, experiences rapid technological change, is subject to industry consolidation and is facing increased competition from alternative technologies.
  • If we are unable to develop and introduce new and enhanced products that achieve market acceptance in a timely and cost-effective manner, our results of operations and competitive position will be harmed.
  • Unfavorable or uncertain conditions in the 5G infrastructure market may cause fluctuations in our rate of revenue growth or financial results.
  • Adverse changes to our debt ratings could negatively affect our ability to raise additional capital.
  • The Credit Agreement and the indenture under which the Senior Notes were issued impose restrictions on our business.
  • We may be unable to generate the cash flow to service our debt obligations.
  • We may, under certain circumstances, be required to repurchase the Senior Notes at the option of the holder.
  • Our gross margin and results of operations may be adversely affected in the future by a number of factors, including decreases in average selling prices of products over time and shifts in our product mix.
  • We rely on independent foundries and subcontractors for the manufacture, assembly and testing of our integrated circuit products, and the failure of any of these third-party vendors to deliver products or otherwise perform as requested could damage our relationships with our customers, decrease our sales and limit our ability to grow our business.
  • We may experience difficulties in transitioning to smaller geometry process technologies or in achieving higher levels of design integration, which may result in reduced manufacturing yields, delays in product deliveries and increased expenses.
  • Our indemnification obligations and limitations of our director and officer liability insurance may have a material adverse effect on our financial condition, results of operations and cash flows.
  • Costs related to defective products could have a material adverse effect on us.
  • We depend on highly skilled executive, managerial, engineering and sales and marketing personnel to support our business operations. If we are unable to retain and motivate our current personnel or attract additional qualified personnel, our ability to develop and successfully market our products could be harmed.
  • Cybersecurity risks could adversely affect our business and disrupt our operations.
  • We may be unable to protect our intellectual property, which would negatively affect our ability to compete.
  • We are subject to order and shipment uncertainties. If we are unable to accurately predict customer demand, we may hold excess or obsolete inventory, which would reduce our gross margin. Conversely, we may have insufficient inventory, which would result in lost revenue opportunities and potential loss of market share as well as damaged customer relationships.
  • We rely on third-party distributors and manufacturers’ representatives and the failure of these distributors and manufacturers’ representatives to perform as expected could reduce our future sales.
  • We face additional risks due to the extent of our global operations since a majority of our products, and those of our customers, are manufactured and sold outside of the United States. The occurrence of any or a combination of the additional risks described below would significantly and negatively impact our business and results of operations.
  • We must comply with a variety of existing and future laws and regulations that could impose substantial costs on us and may adversely affect our business.
  • Changes in existing taxation benefits, rules or practices may adversely affect our financial results.
  • Matters relating to or arising from our Audit Committee investigation, including regulatory proceedings, litigation matters and potential additional expenses, may adversely affect our business and results of operations.
  • We have been named as a party to several legal proceedings and may be named in additional ones in the future, including litigation involving our patents and other intellectual property, which could subject us to liability, require us to indemnify our customers, require us to obtain or renew licenses, require us to stop selling our products or force us to redesign our products.
  • We are exposed to potential impairment charges on certain assets.
  • If we were classified as a passive foreign investment company, there would be adverse tax consequences to U.S. holders of our ordinary shares.
  • As we carry only limited insurance coverage, any incurred liability resulting from uncovered claims could adversely affect our financial condition and results of operations.
  • We are subject to the risks of owning real property.
  • There can be no assurance that we will continue to declare cash dividends or effect share repurchases in any particular amount or at all, and statutory requirements under Bermuda Law may require us to defer payment of declared dividends or suspend share repurchases.
  • We are incorporated in Bermuda and, as a result, it may not be possible for our shareholders to enforce civil liability provisions of the securities laws of the United States. In addition, our Bye-Laws contain a waiver of claims or rights of action by our shareholders against our officers and directors, which will severely limit our shareholders’ right to assert a claim against our officers and directors under Bermuda law.
  • Our Bye-Laws contain provisions that could delay or prevent a change in corporate control, even if the change in corporate control would benefit our shareholders.
Management Discussion
  • At the beginning of fiscal 2019, we adopted the new revenue recognition standard using the modified retrospective method. Refer to “Note 3 - Revenue” in the Notes to the Consolidated Financial Statements set forth in Part II, Item 8 of this Annual Report on Form 10-K for further information.
  • Our net revenue for fiscal 2019 increased by $456.6 million compared to net revenue for fiscal 2018. This increase was primarily due to increased sales of our networking products by 37% and higher sales of our storage products by 10%, with sales benefiting from our acquisition of Cavium, which occurred in the second quarter of fiscal 2019. This increase was partially offset by decreased sales of our other products, which were down 9% compared to fiscal 2018. Average selling prices increased 23% compared to fiscal 2018, and unit shipments were 5% lower compared to fiscal 2018, for an overall increase in net revenue of 19%.
  • The cost of goods sold as a percentage of net revenue was higher for fiscal 2019 due primarily to increase in inventory acquisition costs and amortization expenses related to acquired intangible assets. The increase was partially offset by lower costs due to improved product mix. As a result, gross margin for fiscal 2019 decreased 9.8 percentage points compared to fiscal 2018.
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