Marvell Technology Group Ltd. (NASDAQ:MRVL) Q1 2018 Earnings Conference Call - Preliminary Transcript

May 25, 2017 • 04:45 pm ET


Marvell Technology Group Ltd. (NASDAQ:MRVL) Q1 2018 Earnings Conference Call - Preliminary Transcript


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Good day, ladies and gentlemen. And welcome to the First Quarter 2018 Marvell Technology Group Ltd, Earnings Conference Call. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session and instructions will be given at that time [Operator Instruction]. As a reminder, today's program is being recorded.

And now, I'd like to introduce your host for today's program, Peter Andrew, Vice President of Investor Relations. Please go ahead.

Peter Andrew

Thank you very much, Jonathan, and good afternoon to everyone. Welcome to Marvell's first quarter of fiscal year 2018 earnings call. Joining me on the call today is Marvell's President and CEO Matt Murphy; and CFO, Jean Hu. Before I turn the call over to Matt, I want to remind everyone that comments today will include forward-looking statements, which are subject to significant risks and uncertainties which could cause our actual results to differ materially from management's current expectations. Please review the cautionary statements and risk factors contained in our earnings release which we filed with the SEC today and posted on our Web site, as well as our most recent 10-K and 10-Q filings. We do not intend to update forward-looking statements.

During our call today, we will make references to certain non-GAAP financial measures. A reconciliation between our GAAP and non-GAAP financial measures is available on our Web site in the Investor Relations section.

With that, let me turn the call over to Marvell's President and CEO, Matt Murphy.

Matt Murphy

Thank you, Peter, and good afternoon to, everyone on the call. As I have stated before, Marvell's goal is to deliver semi-conductor solution that move data faster and more reliably than anyone else. Last month, we took another big step towards achieving this goal with the hiring of Neil Kim as our new Chief Technology Officer.

And before I review our Q1 results, I want to share some of his background. Neil spent 16 years at Broadcom where he lead IT development, process node roadmaps and engineering execution. He was instrumental to their success. He built their central engineering organization from the ground up. This was considered to be one of the key assets of Broadcom giving them tremendous leverage in R&D as they scale.

Here at Marvell, we have an opportunity to improve our engineering efficiency and output and we are fortunate to have Neil on Board. Neil also brings extensive product development experience from his time at Western Digital where he led the engineering organization, hit the ground running and established himself for the catalytic force in our global engineering community. And we expect this team will both improve execution and accelerate development of new technology.

Our new business model also generated impressive gross margins. In the first quarter, our non-GAAP gross margin rose about 60%, exceeding our 59% forecast and moving us out into the long term range we outlined at our Investor Day. This is an important milestone for the Company, a gross margin level Marvell has not achieved since fiscal