http://www.morningstar.com/earnings/32567011-marvell-technology-group-ltd-mrvl-q3-2012.aspx

Marvell Technology Group, Ltd. MRVL
Q3 2012 Earnings Call Transcript

Transcript Call Date 11/17/2011

Operator: Good day, ladies and gentlemen, and welcome to the Third Quarter 2012 Marvell Technology Group Limited Earnings Conference Call. My name is Regina, and I will be your conference operator for today. At this time, all participants are in a listen-only mode. Later, we will be conducting a question-and-answer session. Today's event is being recorded for replay purposes.

I would now like to turn the conference over to your host for today, Mr. Sukhi Nagesh, Vice President of Investor Relations. Please go ahead, Mr. Nagesh.

Sukhi Nagesh - VP, IR: Thanks you, Regina, and good afternoon, everyone. Welcome to Marvell Technology Group's third quarter fiscal 2012 earnings call. I am Sukhi Nagesh, Vice President of Investor Relations. With me on the call today are Sehat Sutardja, Marvell's CEO; and Clyde Hosein, our CFO. We will all be available during our Q&A portion of the call today.

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

Please be reminded that today's discussion will include forward-looking statements that involve risks and uncertainties that could cause our results to differ materially from management's current expectations. The risks and uncertainties include our expectations about sales of new and existing products, including statements about our TD, WCDMA, PON, SCD and SSD products, statements about general trends and the end markets we serve, impacts of the flooding in Thailand, statements regarding our financial projections for the fourth quarter of fiscal 2012, and our expectations about long-term growth.

To fully understand the risks and uncertainties that may cause results to differ from our expectations and outlook, please refer to today’s earnings release, our 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 all of our statements are made as of today and 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 include stock-based compensation expense, as well as 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 our core operating performance.

Pursuant to Regulation G, we have provided reconciliations of the non-GAAP financial measures to the most directly comparable GAAP measures in our fiscal third quarter earnings press release, which has been furnished to the SEC on Form 8-K, and is available on our website in the Investor Relations section.

With that, I would now like to turn the call over to Sehat.

Dr. Sehat Sutardja - Chairman, President and CEO: Thanks, Sukhi, and good afternoon, everyone. Today we reported third quarter revenues of approximately $950 million, reflecting a 6% sequential increase from the prior quarter driven by our Mobile and Wireless end market. We delivered the following non-GAAP results – gross margin of 56.8%, operating margin of 25% and earnings per share of $0.40. We generated free cash flow of approximately $239 million, equivalent to a 25% free cash flow margin. In addition and consistent with our plan to return value to our shareholders, we continued to repurchase our shares. In Q3, we repurchased about 15 million shares for a total of approximately $215 million.

Read our Earnings Call Transcript disclaimer.
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