Marvell Technology Group Ltd MRVL
Q4 2010 Earnings Call Transcript

Transcript Call Date 03/03/2011

Operator: Good day, ladies and gentlemen, and welcome to the Marvell Technology Group Earnings Conference Call for Fiscal Fourth Quarter 2011. I'll be your coordinator for today. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. (Operator Instructions). As a reminder, this conference is being recorded for replay purposes.

I would now like to turn the presentation over to Marvell's Vice President and Corporate Controller, Mr. (Brad Feller). Please proceed, sir.

Brad Feller - VP and Corporate Controller: Thank you, Derrick, and good afternoon. Welcome to the Marvell Technology Group fourth fiscal quarter and fiscal year end 2011 earnings call. I am (Brad Feller), Marvell's Vice President and Corporate Controller and with me on the call today is Dr. Sehat Sutardja, Marvell's, Chairman, President and CEO; and Clyde Hosein, Marvell's CFO. We will all be available during the Q&A portion of the call today.

If you have not obtained a copy of our current press release, it can found at our Company website under the Investor Relations section at Additionally, this call is being recorded and will be available for replay from Marvell's corporate website.

Please be reminded that this call will include forward-looking statements that involve risks and uncertainties that could cause Marvell's results to differ materially from management's current expectations. The risks and uncertainties include our expectations about the sales of new and existing products and general market trends, statements regarding our financial projections for the first fiscal quarter of 2012, and our expectations about long-term growth.

To fully understand the risks and uncertainties that may cause results to differ from our outlook, please refer to Marvell's latest quarterly report on Form 10-Q and subsequent SEC filings for a detailed description of our business and associated risks. Please be reminded that Marvell undertakes no obligation to revise or update publicly any forward-looking statements.

During our call today, we will make reference to certain non-GAAP financial measures, which exclude stock-based compensation expense as well as other charges related to acquisitions, restructuring, gains, and other charges that are driven primarily by discrete events that management does not consider to be directly related to Marvell's core operating performance. Pursuant to Regulation G, Marvell has provided reconciliations of the non-GAAP financial measures to most directly comparable GAAP measures in Marvell's fourth fiscal quarter and fiscal year-end 2011 earnings press release, which has been furnished to the SEC on Form 8-K and is available on Marvell's website in the Investor Relations section at

I would now like to turn the call over to Sehat.

Dr. Sehat Sutardja - Chairman, President and CEO: Thank you, Brad, and good afternoon, everyone. Today we reported fourth fiscal quarter 2011 revenues of approximately $901 million reflecting a 6% sequential decrease from the prior quarter and a 7% increase over the same period a year ago. We also reported GAAP EPS of $0.33 per share and non-GAAP EPS of $0.40 per share. For fiscal 2011, our revenues were approximately $3.6 billion, an increase of 29% as compared to fiscal 2010. Full-year GAAP EPS was $1.34, an increase of about 150% year-over-year. Non-GAAP EPS for the year increased 66% to $1.64 per share from the $0.99 per share in fiscal 2010. Full year free cash flow was $1.1 billion, up 43% versus the year ago period, representing a 30% free cash flow margin. Our profit levels and free cash flow levels in fiscal 2011 are the highest in the history of the Company. Our performance over the last two years clearly demonstrates our ability to generate solid profitability and cash flow.

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