Marvell Technology, Inc.

Q1 2022 Earnings Conference Call

6/7/2021

spk_2: Good afternoon and welcome to the marvell Technologies Physical first quarter 2022 earnings conference call. All participants will be in a listen only mode. Should you need assistance please? Signal conference specialist by pressing the Starkey followed by zero after today's presentation. There will be an opportunity to ask questions. Please note that this event is being recorded. I would now like to turn the conference over to Mr Ashish Sharon, vice president of investor relations. Please go ahead sir.
spk_1: Thank you. And good afternoon everyone. Welcome to Marvel's first quarter fiscal year 2022 earnings spoke joining me today. I'm matt Murphy, marvels president and Ceo and june who our CFO I would like to remind everyone that certain comments made to the main fruit forward looking statements which are subject to significant risks and uncertainties that could cause our actual results to differ materially from management's cont expectations. Please review the cautionary statements and this fact is contained in our earnings press release, which we filed with the SEc today and posting on our website as well as our most recent campaign Q filing. We do not intend to update are forward looking statements during a call today, we will refer to certain non gap financial measures. A reconciliation between a gap and on gap financial measures is available on our website in the investor relations section. We closed the acquisition of info on April 20, Therefore, The results were reported today for the first quarter of fiscal 2020 to include the results from the in five business for 10 days of the fiscal quarter. The revenue from the acquired inside businesses reported within our networking protocol to provide a direct comparison to the first fiscal quarter business outlook we provided in our earnings call on March 3rd. We have provided a table in our earnings press release which breaks out marvel standalone non gap results for the first quarter excluding partial quarter results From the acquired in five business. We are providing marvel standalone non gap results only on a one time basis. As a reminder, there are no gap results will stand alone more about matt and jeans. First quarter commentary will primarily focus on the non gap results From the stand alone marvel business as it relates to the guidance he provided on a March three call on the state level. Please note that the financial outlook for the second quarter of fiscal year 2020 to influence expected results from the acquired inside business for the full quarter. On the subject of revenue reporting. As you know, we currently report revenue in three broad product groups, networking storage and other. However, as you may recall during our investigative presentations, we also described are addressable opportunities by end market. This market focused, you provide more information and transparency about the key growth drivers of our business and was received positively by the investment community. We are now taking steps to align our external revenue reporting to R. N. Market. We believe this will provide investors that are better and more granular understanding of our business accordingly. We will discontinue reporting revenue by product group and instead we will report revenue from the following five end markets data center carrier, Enterprise, networking, Auto, Industrial and Consumer. Please know we will implement this change starting next quarter when we report results for a second quarter of fiscal 2022. In that earnings release, we will report, we have new by end market for the second quarter And provide historical and market revenue data for the preceding 7/4. Mass discussion of business results and expectations are also transition to this end market view. In our 2nd quarterly results. On a one time basis, it will provide revenue results under both the current protocol process and the new and martyr process. With that, I'll turn the collar to matt for his comments on our performance matt.
spk_0: Thanks association. Good afternoon everyone. We'll start with the summary of our first quarter gap results for the combined company Revenue for the combined company was 832 million gap gross margin was 50.2% and lost per diluted share was 13 cents. I'm now going to review stand alone marvel non gap results excluding those of in five. We began fiscal 2,022 on a strong note, delivering solid results in the first quarter, driven by the strength of our core businesses and continued operational excellence, Marvel standalone revenue for the first quarter was 810 million exceeding the midpoint of our guidance. Revenue grew 17% year on year, driven by robust growth in both our networking and storage businesses. Higher revenue, coupled with stronger gross margin and lower operating expenses, drove non gap earnings per share, two cents above the midpoint of guidance to 29 cents. Non gap mps grew 61% year on year, demonstrating the significant.
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