Marvell Technology (MRVL) Will Delay 10-K Filing; Sees FY16 Net Revenue 'Significantly' Lower Y/Y

Marvell Technology (NASDAQ: MRVL) has determined that it is unable to file its Annual Report on Form 10-K for the fiscal year ended January 30, 2016 (the “Annual Report”) within the prescribed time period without unreasonable effort or expense for the reasons described below.

In October of 2015, PricewaterhouseCoopers LLP resigned as the Company’s independent public accounting firm. On February 22, 2016, the Audit Committee approved the engagement of Deloitte &Touche LLP as the Company’s new independent public accounting firm. For further information on these matters, see the Company’s Current Reports on Form 8-K dated October 20, 2015, December 7, 2015, February 22, 2016 and March 1, 2016 (the “Forms 8-K”). As a result of these matters, including the review of the results of the Audit Committee’s independent investigation of certain accounting and internal control matters as disclosed in the Current Report on Form 8-K filed on March 1, 2016, the Company has experienced a delay in the completion of its financial statements, Management’s Discussion and Analysis of Financial Condition and Results of Operations and other related components of the Annual Report. The Company is working to complete the preparation and facilitate the audit of its financial statements for the year ended January 30, 2016 and the other portions of the Annual Report as soon as practicable.

The Company expects net revenue to be significantly lower for fiscal 2016 than fiscal 2015 primarily as a result of decreased demand for its storage products and restructuring of its mobile platform business. In addition, the Company expects to incur a net loss for fiscal 2016 as a result of charges associated with the Company’s settlement of its litigation with Carnegie Mellon University for an aggregate of $750 million as well as restructuring and severance related charges for its mobile platform business of approximately $75 million. These items were disclosed in the Company’s Current Reports on Forms 8-K Filed on February 17, 2016 and September 24, 2015, respectively. The Company cannot make a quantitative estimate of the expected change in its results of operations for the period indicated because the Company needs to complete the steps necessary to complete the Company’s annual financial statements.

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