Marvell Technology Group (MRVL)

Net Revenue

Net revenue is gross revenue, net of accruals for estimated sales returns and rebates. The decrease in net revenue for the three months ended May 2, 2009 compared to the net revenue for the three months ended May 3, 2008 reflects the negative impacts of the global economic slowdown, which we experienced across each of our product families. Within our storage businesses, a reduction in consumer spending on PCs resulted in lower demand from our hard disk drive customers. Within cellular handheld, wireless and printer semiconductor solution offerings, our products such as mobile phones, gaming devices, and printers were adversely impacted by lower consumer spending as compared to the previous year. We currently expect that revenue in the second quarter of fiscal 2010 will increase moderately from the level of revenue that we reported in the first quarter of fiscal 2010 as we are beginning to see some early signs of recovery in the economic environment and the start of the ramp of some new design wins.

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Historically, a relatively small number of customers have accounted for a significant portion of our revenue. For the three months ended May 2, 2009, two customers each represented more than 10% of our net revenue, and totaled 39% of our net revenue. For the three months ended May 3, 2008, one customer represented more than 10% of our net revenue, for a total of 21% of our net revenue. No distributors accounted for more than 10% of our net revenue in the three months ended May 2, 2009 and May 3, 2008, respectively.

Because we sell our products to many OEM manufacturers who have manufacturing operations located in Asia, a significant percentage of our sales are made to customers located outside of the United States. Sales to customers located in Asia represented 88% and 84% of our net revenue for the three months ended May 2, 2009 and May 3, 2008, respectively. The rest of our sales are to customers located in the United States and other geographic regions. We expect that a significant portion of our revenue will continue to be represented by sales to our customers in Asia. Substantially all of our sales to date have been denominated in U.S. dollars.

Net Revenue

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Net revenue consists primarily of product revenue from sales of our semiconductor devices, and to a much lesser extent, development revenue derived from development contracts with our customers. Net revenue is gross revenue, net of accruals for estimated sales returns and allowances and rebates. The increase in net revenue of $55.9 million in fiscal 2009 compared to fiscal 2008 reflects a significant increase in volume shipments during the first half of fiscal 2009 of our storage SoCs as the overall hard disk drive demand for notebook PC two and a half inch drives and consumer products markets improved. In addition, we experienced increased demand for our wireless products for consumer applications. Offsetting the increases were lower demand for our cellular and handheld products and printer semiconductor solution products which were negatively impacted by the economic downturn. Net revenue derived from development contracts increased in fiscal 2009 in both absolute dollars and as a percentage of net revenue compared to fiscal 2008, and represented less than 10% of net revenue for each year. We currently expect that revenue in fiscal 2010 will decline from the level in fiscal 2009 due to the effects of the global economic slowdown.

Net Revenue

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Net revenue consists primarily of product revenue from sales of our semiconductor devices, and to a much lesser extent, development revenue derived from development contracts with our customers. Net revenue is gross revenue, net of accruals for estimated sales returns and allowances and rebates. The increase in net revenue of $55.9 million in fiscal 2009 compared to fiscal 2008 reflects a significant increase in volume shipments during the first half of fiscal 2009 of our storage SoCs as the overall hard disk drive demand for notebook PC two and a half inch drives and consumer products markets improved. In addition, we experienced increased demand for our wireless products for consumer applications. Offsetting the increases were lower demand for our cellular and handheld products and printer semiconductor solution products which were negatively impacted by the economic downturn. Net revenue derived from development contracts increased in fiscal 2009 in both absolute dollars and as a percentage of net revenue compared to fiscal 2008, and represented less than 10% of net revenue for each year. We currently expect that revenue in fiscal 2010 will decline from the level in fiscal 2009 due to the effects of the global economic slowdown.

Net Revenue

Net revenue consists primarily of product revenue from sales of our semiconductor devices, and to a much lesser extent, development revenue derived from development contracts with our customers. Net revenue is gross revenue, net of accruals for estimated sales returns and allowances and rebates. The increase in net revenue of $657.1 million in fiscal 2008 compared to fiscal 2007 reflects a significant increase in volume shipments of our cellular and handset products, storage SoCs, wireless products and printer semiconductor solution products. The increase in net revenue for cellular and handset products was due to a full year of revenue from the acquisition of the ICAP Business in November 2006. Additionally, the increases in net revenue were primarily due to increased acceptance of our storage SoC products by hard disk drive manufacturers and market share gains in the PC desktop and consumer product markets with our storage SoC products and volume shipments of our wireless products from new design wins in consumer applications. The net revenue increase in printer semiconductor solution products was also due to a full year of revenue from initial product shipments from our acquisition of the printer semiconductor business from Avago in May 2006. Net revenue derived from development contracts decreased in fiscal 2008 in both absolute dollars and as a percentage of net revenue compared to fiscal 2007, and represented less than 10% of net revenue for each year.

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Net Revenue

Net revenue consists primarily of product revenue from sales of our semiconductor devices, and to a much lesser extent, development revenue derived from development contracts with our customers. Net revenue is gross revenue, net of accruals for estimated sales returns and allowances and rebates. The increase in net revenue of $657.1 million in fiscal 2008 compared to fiscal 2007 reflects a significant increase in volume shipments of our cellular and handset products, storage SoCs, wireless products and printer semiconductor solution products. The increase in net revenue for cellular and handset products was due to a full year of revenue from the acquisition of the ICAP Business in November 2006. Additionally, the increases in net revenue were primarily due to increased acceptance of our storage SoC products by hard disk drive manufacturers and market share gains in the PC desktop and consumer product markets with our storage SoC products and volume shipments of our wireless products from new design wins in consumer applications. The net revenue increase in printer semiconductor solution products was also due to a full year of revenue from initial product shipments from our acquisition of the printer semiconductor business from Avago in May 2006. Net revenue derived from development contracts decreased in fiscal 2008 in both absolute dollars and as a percentage of net revenue compared to fiscal 2007, and represented less than 10% of net revenue for each year.

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Net Revenue

Net revenue consists primarily of product revenue from sales of our semiconductor devices, and to
a much lesser extent, development revenue derived from development contracts with our customers. Net revenue is gross revenue, net of accruals for estimated sales returns and allowances and rebates. The increase in net revenue of $657.1 million in
fiscal 2008 compared to fiscal 2007 reflects a significant increase in volume shipments of our cellular and handset products, storage SoCs, wireless products and printer semiconductor solution products. The increase in net revenue for cellular and
handset products was due to a full year of revenue from the acquisition of the ICAP Business in November 2006. Additionally, the increases in net revenue were primarily due to increased acceptance of our storage SoC products by hard disk drive
manufacturers and market share gains in the PC desktop and consumer product markets with our storage SoC products and volume shipments of our wireless products from new design wins in consumer applications. The net revenue increase in printer
semiconductor solution products was also due to a full year of revenue from initial product shipments from our acquisition of the printer semiconductor business from Avago in May 2006. Net revenue derived from development contracts decreased in
fiscal 2008 in both absolute dollars and as a percentage of net revenue compared to fiscal 2007, and represented less than 10% of net revenue for each year.

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Net revenue consists primarily of product revenue from sales of our semiconductor devices, and to a much lesser extent, development revenue derived from development contracts with our customers. Net revenue is gross revenue, net of accruals for estimated sales returns, allowances and rebates. The increase in net revenue for the three and six months ended August 2, 2008 compared to the net revenue for the three and six months ended July 28, 2007 reflects an increase in volume shipments of our storage SoCs and wireless products.  The increase in net revenue was due to increased demand from our primary hard disk drive customers and the overall hard disk drive industry demand for notebook PC two and a half inch drives and consumer products markets and increased demand for our wireless products in consumer applications.  Net revenue derived from development contracts increased in absolute dollars during the three and six months ended August 2, 2008 compared to the three and six months ended July 28, 2007, but represented less than 10% of net revenue for each period.

Historically, a relatively small number of customers have accounted for a significant portion of our revenue.  For the three and six months ended August 2, 2008, one customer represented more than 10% of our net revenue, with a total of 21% of our net revenue.  For the three months ended July 28, 2007, two customers each represented more than 10% of our net revenue, for a combined total of 27% of our net revenue.  For the six months ended July 28, 2007, one customer accounted for more than 10% of our net revenue with a total of 15% of our net revenue.  No distributors accounted for more than 10% of our net revenue in the three and six months ended August 2, 2008 and in the three and six months ended July 28, 2007.

Because we sell our products to many OEM manufacturers who have manufacturing operations located in Asia, a significant percentage of our sales are made to customers located outside of the United States.  Sales to customers located in Asia represented 87% and 81% of our net revenue for the three months ended August 2, 2008 and July 28, 2007, respectively, and  represented 86% and 83% of our net revenue for the six months ended August 2, 2008 and July 28, 2007, respectively.  The rest of our sales are to customers located in the United States and other geographic regions.  We expect that a significant portion of our revenue will continue to be represented by sales to our customers in Asia.  Substantially all of our sales to date have been denominated in U.S. dollars.

Net Revenue

        Net revenue consists primarily of product revenue from sales of our semiconductor devices, and to a much lesser extent, development revenue derived from development contracts with our customers. Net revenue is gross revenue, net of accruals for estimated sales returns and allowances. The increase in net revenue in fiscal 2007 compared to fiscal 2006 reflects a significant increase in volume shipments of our storage SOCs, which increased by $197.4 million, printer semiconductor solutions and wireless products, which increased by $153.5 million, cellular and handheld products, which increased by $95.8 million, and hard disk drive controller products, which increased by $61.4 million. The increases in net revenue were primarily due to increased acceptance of our storage SOC products by hard disk drive manufacturers, and increased market share gained in the PC desktop and consumer product markets with our storage SOC products, volume shipments of our wireless products from new design wins. The net revenue increase of printer semiconductor solutions was from initial shipments commencing in May 2006 with our acquisition of the printer semiconductor business from Avago. The increase in cellular and handheld products was from initial shipment of products in November 2006 from the acquisition of the communications and applications processor business from Intel Corporation. The increase in hard disk drive controller products was a result of our initial product shipments in November 2005 after the acquisition of the hard disk drive controller business from QLogic. Net revenue derived from development contracts decreased in fiscal 2007 in both absolute dollars and as a percentage of net revenue compared to fiscal 2006, and represented less than 10% of net revenue for each year.

Net Revenue

        Net
revenue consists primarily of product revenue from sales of our semiconductor devices, and to a much lesser extent, development revenue derived from development contracts with our
customers. Net revenue is gross revenue, net of accruals for estimated sales returns and allowances. The increase in net revenue in fiscal 2007 compared to fiscal 2006 reflects a significant increase
in volume shipments of our storage SOCs, which increased by $197.4 million, printer semiconductor solutions and wireless products, which increased by $153.5 million, cellular and
handheld products, which increased by $95.8 million, and hard disk drive controller products, which increased by $61.4 million. The increases in net revenue were primarily due to
increased acceptance of our storage SOC products by hard disk drive manufacturers, and increased market share gained in the PC desktop and consumer product markets with our storage SOC products,
volume shipments of our wireless products from new design wins. The net revenue increase of printer semiconductor solutions was from initial shipments commencing in May 2006 with our acquisition of
the printer semiconductor business from Avago. The increase in cellular and handheld products was from initial shipment of products in November 2006 from the acquisition of the communications and
applications processor business from Intel Corporation. The increase in hard disk
drive controller products was a result of our initial product shipments in November 2005 after the acquisition of the hard disk drive controller business from QLogic. Net revenue derived from
development contracts decreased in fiscal 2007 in both absolute dollars and as a percentage of net revenue compared to fiscal 2006, and represented less than 10% of net revenue for each year.

Net Revenue

Net revenue consists primarily of product revenue from sales of our semiconductor devices, and to a much lesser extent, development revenue derived from development contracts with our customers. Net revenue is gross revenue, net of accruals for estimated sales returns and allowances and rebates. The increase in net revenue in the first quarter of fiscal 2008 compared to the first quarter of fiscal 2007 reflects an increase in volume shipments of our cellular and handset products, which increased $113.9 million.  The net revenue increase in cellular and handheld products was from our initial shipments commencing in November 2006 from the acquisition of the applications and communications processor business from Intel Corporation (Intel).  Net revenue derived from development contracts increased in absolute dollars during the first quarter of fiscal 2008 as compared to the first quarter of fiscal 2007, but represented less than 10% of net revenue for each period.

Historically, a relatively small number of customers have accounted for a significant portion of our revenue.  For the quarter ended April 28, 2007, two customers each represented more than 10% of our net revenue, for a combined total of 27% of our net revenue.  For the quarter ended April 29, 2006, four customers each represented more than 10% of our net revenue, for a combined total of 53% of our net revenue.  In addition, no distributor accounted for more than 10% of our net revenue in the quarters ended April 28, 2007 and April 29, 2006.

Because we sell our products to many OEM manufacturers who have manufacturing operations located in Asia, a significant percentage of our sales are made to customers located outside of the United States. Sales to customers located in Asia represented 84% and 94% of our net revenue for the three months ended April 28, 2007 and April 29, 2006, respectively.  The rest of our sales are to customers located in the United States and other geographic regions.  We expect that a significant portion of our revenue will continue to be represented by sales to our customers in Asia. Substantially all of our sales to date have been denominated in United States dollars.

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Net Revenue

Net revenue consists primarily of product revenue from sales of our semiconductor devices, and to a much lesser extent, development revenue derived from development contracts with our customers. Net revenue is gross revenue, net of accruals for estimated sales returns and allowances. The increase in net revenue in the first quarter of fiscal 2007 compared to the first quarter of fiscal 2006 reflected a significant increase in volume shipments of our storage System-on-Chips, or SOCs, which increased $85.8 million, local area network (LAN) on motherboard and wireless products, which increased $28.7 million, and hard disk drive controller products, which increased $22.6 million.  The increases in net revenue were primarily due to increased acceptance of our storage SOC and LAN on motherboard products, increased market share gains in the PC desktop segment with our storage SOC products and volume shipments of our wireless products and from new design wins.  Revenue derived from development contracts decreased in absolute dollars during the first quarter of fiscal 2007 as compared to the first quarter of fiscal 2006, but represented less than 10% of net revenue for each period.

We expect that revenue for fiscal 2007 will increase from the level of revenue we reported in fiscal 2006 due to increases in shipments and volume production of our storage SOCs into the PC desktop segment and consumer storage electronics. Also, we expect additional growth in fiscal 2007 compared to fiscal 2006 due to increases in shipments of our WLAN products from new design wins, our Gigabit Ethernet products as well as incremental revenue from the products acquired from QLogic, UTStarcom and Avago Technologies.

Historically, a relatively small number of customers have accounted for a significant portion of our revenue.  For the quarter ended April 29, 2006, four customers each represented more than 10% of our net revenues, for a combined total of 53% of our net revenue.  For the quarter ended April 30, 2005, four customers each represented more than 10% of our net revenue, for a combined total of 54% of our net revenue.  In addition, no distributor accounted for more than 10% of our net revenue in the quarter ended April 29, 2006 but one distributor accounted for approximately 11% of our net revenue in the quarter ended April 30, 2005.

Because we sell our products to many OEM manufacturers who have manufacturing operations located in Asia, a significant percentage of our sales are made to customers located outside of the United States. Sales to customers located in Asia represented 94% of our net revenue for each of the three months ended April 29, 2006 and April 30, 2005.  The rest of our sales are to customers located in the United States and other geographic regions.  We expect that a significant portion of our revenue will continue to be represented by sales to our customers in Asia. Substantially all of our sales to date have been denominated in United States dollars.

  Net Revenue

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Net revenue consists primarily of product revenue from sales of our semiconductor devices, and to a much lesser extent, development revenue derived from development contracts with our customers. Net revenue is gross revenue, net of accruals for estimated sales returns and allowances. The increase in net revenue in the second quarter of fiscal 2007 compared to the second quarter of fiscal 2006 reflected a significant increase in volume shipments of our storage System-on-Chips, or SOCs, which increased $79.2 million, printer semiconductor solutions and wireless products, which increased $63.2 million and hard disk drive controller products, which increased $25.0 million.  The increase in net revenue in the first six months of fiscal 2007 compared to the first six months of fiscal 2006 reflected a significant increase in volume shipments of our storage SOCs, which increased $165.0 million, printer semiconductor solutions and wireless products, which increased $77.1 million, hard disk drive controller products, which increased $47.6 million, and system controllers, which increased $17.7 million.  The increases in net revenue were primarily due to increased acceptance of our storage SOC products, increased market share gains in the PC desktop segment with our storage SOC products and volume shipments of our wireless products from new design wins.  The increase in net revenue for the printer semiconductor solutions was due to the incremental revenue from the acquisition of the printer semiconductor business of Avago Technologies Limited.  Revenue derived from development contracts increased in absolute dollars during the second quarter and first six months of fiscal 2007 as compared to the second quarter and first six months of fiscal 2006, but represented less than 10% of net revenue for each period.

We expect that revenue for fiscal 2007 will increase from the level of revenue we reported in fiscal 2006 due to increases in shipments and volume production of our storage SOCs into the PC desktop segment and consumer storage electronics. Also, we expect additional growth in fiscal 2007 compared to fiscal 2006 due to increases in shipments of our WLAN products from new design wins, our Gigabit Ethernet products as well as incremental revenue from the products acquired from QLogic, UTStarcom and Avago Technologies.

Historically, a relatively small number of customers have accounted for a significant portion of our revenue.  For the three months ended July 29, 2006, three customers each represented more than 10% of our net revenue, for a combined total of 40% of our net revenue.  For the six months ended July 29, 2006, four customers each represented more than 10% of our net revenue, for a combined total of 51% of our net revenue.  For the three months ended July 30, 2005, three customers combined for a total of 46% of our net revenue while for the six months ended July 30, 2005, three customers accounted for a total of 45% of our net revenue.  In addition, no distributor accounted for more than 10% of our net revenue in the three and six months ended July 29, 2006 but one distributor accounted for approximately 11% of our net revenue in the three and six months ended July 30, 2005.

Because we sell our products to many OEM manufacturers who have manufacturing operations located in Asia, a significant percentage of our sales are made to customers located outside of the United States.  Sales to customers located in Asia represented 92% and 94% of our net revenue for the three months ended July 29, 2006 and July 30, 2005, respectively.  Sales to customers located in Asia represented 93% and 94% of our net revenue for the six months ended July 29, 2006 and July 30, 2005, respectively.  The rest of our sales are to customers located in the United States and other geographic regions.  We expect that a significant portion of our revenue will continue to be represented by sales to our customers in Asia. Substantially all of our sales to date have been denominated in United States dollars.