Marvell Technology Group Ltd., a leader in storage, networking, and connectivity semiconductor solutions, today reported financial results for the third quarter of fiscal 2017, ended October 29, 2016.  Revenues for the third quarter of fiscal 2017 were $654 million which exceeded the Company's guidance provided on September 6, 2016.

GAAP net income for the third quarter of fiscal 2017 was $73 million, or $0.14 per share (diluted). Non-GAAP net income for the third quarter of fiscal 2017 was $105 million, or $0.20 per share (diluted). Cash flow from operations for the quarter was $121 million.

"Marvell delivered strong financial performance in Q3," said Matt Murphy, President and Chief Executive Officer. "Our core businesses performed very well, with data storage and network infrastructure growing double digits year-over-year. I'm very pleased with the performance of our team."

Fourth Quarter of Fiscal 2017 Financial Outlook

On November 2, 2016, Marvell announced restructuring actions to drive growth and improve profitability.  These actions are expected to be fully implemented by the end of October 2017 and are expected to lower annual operating expenses from a current annualized run rate of $1.08 billion to the $820-840 million range.  As a result of these actions, the Company expects to incur charges of $90 million to $110 million over the next four quarters, including cash charges of $35 million to $50 million. Restructuring and restructuring-related charges include an estimate of severance, asset impairment, lease termination fees, and other costs.  We expect to incur a portion of these charges in the fourth quarter of fiscal 2017.

Marvell's fourth quarter of fiscal 2017 financial outlook also excludes the estimated results of certain non-strategic businesses that have a first half of fiscal 2017 annualized run rate of approximately $100 million in revenue and $60 million in operating expenses.  These businesses will be classified as discontinued operations beginning in the fourth quarter of fiscal 2017. In addition, Marvell's financial outlook does not include the potential impact of certain items such as share repurchases, acquisitions or divestitures, or further restructuring activities that may be completed after November 16, 2016.

● Revenue is expected to be $565 million plus or minus 2%, excluding discontinued operations and reflecting normal seasonality.

● GAAP and Non-GAAP Gross Margins are expected to be in the range of 57% to 58%.

● GAAP Operating Expenses are expected to be $322 million to $332 million, which includes part of the restructuring charges announced on November 2, 2016.

● Non-GAAP Operating Expenses are expected to be $225 million to $235 million.

● GAAP Diluted EPS from continuing operations are expected to be in the range of ($0.01) to $0.03.

● Non-GAAP Diluted EPS from continuing operations are expected to be in the range of $0.17 to $0.21.