Marvell Technology Group (MRVL)

Research and development and other

Research and development and other costs consist of $249.7 million and $236.2 million of research and development costs for the three months ended August 2, 2008 and July 28, 2007, respectively, and includes $4.1 million and $4.1 million of costs related to patent investigation and filings for the three months ended August 2, 2008 and July 28, 2007, respectively.

Research and development and other costs consist of $488.2 million and $470.3 million of research and development costs for the six months ended August 2, 2008 and July 28, 2007, respectively, and includes $9.2 million and $7.1 million of costs related to patent investigation and filings for the six months ended August 2, 2008 and July 28, 2007, respectively.  Research and development costs are expensed as incurred.

Research and Development and Other

Research and development expense consists primarily of compensation and associated costs relating to development personnel, including stock-based compensation expenses, prototype costs, contracted development work costs, depreciation and amortization expense, patent investigation and filings fees and allocated occupancy costs for these operations.

The increase in research and development expense in absolute dollars in the first quarter of fiscal 2009 compared to the first quarter of fiscal 2008 was primarily due to net hiring of additional development personnel, which resulted in an increase in salary and related costs of $10.1 million.  Additionally, we incurred increased costs for depreciation and amortization expense of $3.7 million arising from purchases of property, equipment and technology licenses and an increase in allocated expenses of $2.1 million related to our expanding operations.  Partially offsetting the increases in research and development expense was decreased costs of $8.1 million for prototype and related product tape-out costs from the amounts incurred in the first quarter of fiscal 2008 related to our acquisition of the communications and applications processor business of Intel.  Additionally, stock based compensation expense decreased by $2.1 million.  Research and development related costs for the first quarter of fiscal 2009 was $233.4 million as compared to $231.0 million for the first quarter of fiscal 2008.

Research and Development and Other

        Research and development and other costs consist primarily of $970.8 million, $645.4 million and $360.0 million of research and development costs for fiscal years 2008, 2007 and 2006, respectively, as well as costs related to patent investigation and filings for fiscal years 2008, 2007 and 2006 which were $18.2 million, $12.8 million, and $6.7 million, respectively. Research and development and other costs are expensed as incurred.

Research and Development and Other

        Research and development and other costs consist primarily of $970.8 million, $645.4 million and $360.0 million of research and development
costs for fiscal years 2008, 2007 and 2006, respectively, as well as costs related to patent investigation and filings for fiscal years 2008, 2007 and 2006 which were $18.2 million,
$12.8 million, and $6.7 million, respectively. Research and development and other costs are expensed as incurred.

Research and development and other

Research and development and other costs consist primarily of $252.2 million and $152.9 million of research and development costs for the three-month periods ended October 27, 2007 and October 28, 2006, respectively, and included $5.6 million and $4.0 million of costs related to patent investigation and filings for the three month periods ended October 27, 2007 and October 28, 2006, respectively.

Research and development and other costs consist primarily of $722.5 million and $434.8 million of research and development costs for the nine-month periods ended October 27, 2007 and October 28, 2006, respectively, and included $12.8 million and $9.1 million of costs related to patent investigation and filings for the nine month periods ended October 27, 2007 and October 28, 2006, respectively.  Research and development and other costs are expensed as incurred.

Research and development and other

Research and development and other costs consist primarily of $236.2 million and $152.6 million of research and development costs for the three months periods ended July 28, 2007 and July 29, 2006, respectively, and included $4.1 million and $2.7 million of costs related to patent investigation and filings for the three month periods ended July 28, 2007 and July 29, 2006, respectively.

Research and development and other costs consist primarily of $470.3 million and $281.9 million of research and development costs for the six months periods ended July 28, 2007 and July 29, 2006, respectively, and included $7.1 million and $5.1 million of costs related to patent investigation and filings for the six month periods ended July 28, 2007 and July 29, 2006, respectively.  Research and development and other costs are expensed as incurred.

Research and Development and other

Research and development and other expense consists primarily of compensation and associated costs relating to development personnel, including stock-based compensation expenses, prototype costs, contracted development work costs, depreciation and amortization expense, patent investigation and filing fees and allocated occupancy costs for these operations. The increase in research and development expense in absolute dollars in the first quarter of fiscal 2008 compared to the first quarter of fiscal 2007 was primarily due to net hiring of additional development personnel including personnel related to our acquisitions of the printer ASIC division of Avago Technologies Limited (Avago) in May 2006 and the communications and applications processor business of Intel in November 2006 which together resulted in an increase in salary and related costs of $59.1 million.  Additionally, we incurred increased costs for depreciation and amortization expense of $14.0 million arising from purchases of property, equipment and technology licenses, increased costs of $9.0 million for prototype and related product tape-out costs for new product initiatives, increased costs of $3.4 million for tooling and engineering equipment expenses, increased stock compensation costs of $3.0 million and an increase in other allocated expenses of $8.9 million related to our expanding operations.

We expect that research and development expense will increase in absolute dollars in future periods as we continue to devote resources to develop new products, migrate to lower process geometries, meet the changing requirements of our customers, expand into new markets and technologies and hire additional personnel, including those from our acquisitions.

Research and Development and Other

Research and development and other costs consist primarily of $645.4 million, $360.0 million and $299.9 million of research and development costs for fiscal years 2007, 2006 and 2005, respectively, excluding costs related to patent investigation and filings for fiscal years 2007, 2006 and 2005 which were $12.8 million, $6.7 million, and $4.4 million, respectively. Research and development and other costs are expensed as incurred.

Research and Development and other

Research and development expense consists primarily of compensation and associated costs relating to development personnel, including stock-based compensation expenses, prototype costs, depreciation and amortization expense, and allocated occupancy costs for these operations. The increase in research and development expense in absolute dollars in the first quarter of fiscal 2007 compared to the first quarter of fiscal 2006 was primarily due to stock-based compensation expenses of $30.4 million as a result of our adoption of SFAS 123R.  In addition, research and development expenses increased due to the net hiring of additional development personnel including personnel related to our acquisitions of the hard disk and tape drive controller business of QLogic Corporation in November 2005 and the semiconductor division of UTStarcom, Inc. in February 2006, which resulted in an increase in salary and related costs of $17.8 million. Additionally, we incurred increased costs for depreciation and amortization expense of $1.3 million arising from purchases of property, equipment and technology licenses, increased costs of $1.2 million for prototype and related product tape-out costs for new product initiatives, increased costs of $1.2 million for patent filing fees to protect newly developed intellectual property and other allocated expenses of $2.6 million related to our expanding operations. Research and development related costs for the first quarter of fiscal 2007 were $126.9 million, as compared to $76.8 million for the first quarter of fiscal 2006, an increase of $50.1 million or 65.2%.

We expect that research and development expense will increase in absolute dollars in future periods as we continue to devote resources to develop new products, migrate to lower process geometries, meet the changing requirements of our customers, expand into new markets and technologies and hire additional personnel, including those from our acquisitions.

Research and development and other

Research and development and other costs consist primarily of $148.9 million and $81.1 million of research and development costs for the three months ended October 28, 2006 and October 29, 2005, respectively, excluding costs related to patent investigation and filings for the three months ended October 28, 2006 and October 29, 2005 which were $4.0 million and $1.9 million, respectively.

Research and development and other costs consist primarily of $425.7 million and $244.0 million of research and development costs for the nine months ended October 28, 2006 and October 29, 2005, respectively, excluding costs related to patent investigation and filings for the nine months ended October 28, 2006 and October 29, 2005 which were $9.1 million and $5.1 million, respectively. Research and development and other costs are expensed as incurred.

Research and development and other

Research and development and other costs consist primarily of $149.9 million and $85.9 million of research and development costs for the three month periods ended July 29, 2006 and July 30, 2005, respectively, excluding costs related to patent investigation and filings for the three month periods ended July 29, 2006 and July 30, 2005 which were $2.7 million and $2.2 million, respectively.

Research and development and other costs consist primarily of $276.8 million and $162.8 million of research and development costs for the six month periods ended July 29, 2006 and July 30, 2005, respectively, excluding costs related to patent investigation and filings for the six month periods ended July 29, 2006 and July 30, 2005 which were $5.1 million and $3.3 million, respectively.