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Marvell Technology, Inc. Reports Third Quarter of Fiscal Year 2025 Financial Results

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Q3 Net Revenue: $1.516 billion, grew by 7% year-on-yearQ3 Gross Margin: 23.0% GAAP gross margin; 60.5% non-GAAP gross marginQ3 Diluted income (loss) per share: $(0.78) GAAP diluted loss per share; $0.43 non-GAAP diluted income per share

SANTA CLARA, Calif., Dec. 3, 2024 /PRNewswire/ — Marvell Technology, Inc. (NASDAQ: MRVL), a leader in data infrastructure semiconductor solutions, today reported financial results for the third quarter of fiscal year 2025.

Net revenue for the third quarter of fiscal 2025 was $1.516 billion, $66.0 million above the mid-point of the Company’s guidance provided on August 29, 2024. GAAP net loss for the third quarter of fiscal 2025 was $(676.3) million, or $(0.78) per diluted share. Non-GAAP net income for the third quarter of fiscal 2025 was $373.0 million, or $0.43 per diluted share. Cash flow from operations for the third quarter was $536.3 million.

“Marvell’s fiscal third quarter 2025 revenue grew 19% sequentially, well above the mid-point of our guidance, driven by strong demand from AI. For the fourth quarter, we are forecasting another 19% sequential revenue growth at the midpoint of guidance, while year-over-year, we expect revenue growth to accelerate significantly to 26%, marking the beginning of a new era of growth for Marvell,” said Matt Murphy, Marvell’s Chairman and CEO. “The exceptional performance in the third quarter, and our strong forecast for the fourth quarter, are primarily driven by our custom AI silicon programs, which are now in volume production, further augmented by robust ongoing demand from cloud customers for our market-leading interconnect products. We look forward to a strong finish to this fiscal year and expect substantial momentum to continue in fiscal 2026.”

Fourth Quarter of Fiscal 2025 Financial Outlook

Net revenue is expected to be $1.800 billion +/- 5%.GAAP gross margin is expected to be approximately 50%.Non-GAAP gross margin is expected to be approximately 60%.GAAP operating expenses are expected to be approximately $710 million.Non-GAAP operating expenses are expected to be approximately $480 million.Basic weighted-average shares outstanding are expected to be 867 million.Diluted weighted-average shares outstanding are expected to be 877 million.GAAP diluted net income per share is expected to be $0.16 +/- $0.05 per share.Non-GAAP diluted net income per share is expected to be $0.59 +/- $0.05 per share.

GAAP diluted EPS is calculated using basic weighted-average shares outstanding when there is a GAAP net loss, and calculated using diluted weighted-average shares outstanding when there is a GAAP net income. Non-GAAP diluted EPS is calculated using diluted weighted-average shares outstanding.

Conference Call

Marvell will conduct a conference call on Tuesday, December 3, 2024 at 1:45 p.m. Pacific Time to discuss results for the third quarter of fiscal year 2025. Interested parties may join the conference call without operator assistance by registering and entering their phone number at https://emportal.ink/4fngg8m to receive an instant automated call back. To join the call with operator assistance, please dial 1-800-836-8184 or 1-646-357-8785. The call will be webcast and can be accessed at the Marvell Investor Relations website at http://investor.marvell.com/. A replay of the call can be accessed by dialing 1-888-660-6345 or 1-646-517-4150, passcode 47973# until Tuesday, December 10, 2024.

Discussion of Non-GAAP Financial Measures

Non-GAAP financial measures exclude the effect of stock-based compensation expense, amortization of acquired intangible assets, acquisition and divestiture-related costs, restructuring and other related charges (including, but not limited to, asset impairment charges, recognition of future contractual obligations, employee severance costs, and facilities related charges), resolution of legal matters, and certain expenses and benefits that are driven primarily by discrete events that management does not consider to be directly related to Marvell’s core business. Although Marvell excludes the amortization of all acquired intangible assets from these non-GAAP financial measures, management believes that it is important for investors to understand that such intangible assets were recorded as part of purchase price accounting arising from acquisitions, and that such amortization of intangible assets that relate to past acquisitions will recur in future periods until such intangible assets have been fully amortized. Investors should note that the use of intangible assets contributed to Marvell’s revenues earned during the periods presented and are expected to contribute to Marvell’s future period revenues as well.

Marvell uses a non-GAAP tax rate to compute the non-GAAP tax provision. This non-GAAP tax rate is based on Marvell’s estimated annual GAAP income tax forecast, adjusted to account for items excluded from Marvell’s non-GAAP income, as well as the effects of significant non-recurring and period specific tax items which vary in size and frequency, and excludes tax deductions and benefits from acquired tax loss and credit carryforwards and changes in valuation allowance on acquired deferred tax assets. Marvell’s non-GAAP tax rate is determined on an annual basis and may be adjusted during the year to take into account events that may materially affect the non-GAAP tax rate such as tax law changes; acquisitions; significant changes in Marvell’s geographic mix of revenue and expenses; or changes to Marvell’s corporate structure. For the third quarter of fiscal 2025, a non-GAAP tax rate of 7.0% has been applied to the non-GAAP financial results.

Marvell believes that the presentation of non-GAAP financial measures provides important supplemental information to management and investors regarding financial and business trends relating to Marvell’s financial condition and results of operations. While Marvell uses non-GAAP financial measures as a tool to enhance its understanding of certain aspects of its financial performance, Marvell does not consider these measures to be a substitute for, or superior to, financial measures calculated in accordance with GAAP. Consistent with this approach, Marvell believes that disclosing non-GAAP financial measures to the readers of its financial statements provides such readers with useful supplemental data that, while not a substitute for GAAP financial measures, allows for greater transparency in the review of its financial and operational performance.

Externally, management believes that investors may find Marvell’s non-GAAP financial measures useful in their assessment of Marvell’s operating performance and the valuation of Marvell. Internally, Marvell’s non-GAAP financial measures are used in the following areas:

Management’s evaluation of Marvell’s operating performance;Management’s establishment of internal operating budgets;Management’s performance comparisons with internal forecasts and targeted business models; andManagement’s determination of the achievement and measurement of certain types of compensation including Marvell’s annual incentive plan and certain performance-based equity awards (adjustments may vary from award to award).

Non-GAAP financial measures have limitations in that they do not reflect all of the costs associated with the operations of Marvell’s business as determined in accordance with GAAP. As a result, you should not consider these measures in isolation or as a substitute for analysis of Marvell’s results as reported under GAAP. The exclusion of the above items from our GAAP financial metrics does not necessarily mean that these costs are unusual or infrequent.

Forward-Looking Statements under the Private Securities Litigation Reform Act of 1995

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), which are subject to the “safe harbor” created by those sections. These statements involve known and unknown risks, uncertainties and other factors, which may cause our actual results to differ materially from those implied by the forward-looking statements. Words such as “anticipates,” “expects,” “intends,” “plans,” “projects,” “believes,” “seeks,” “estimates,” “forecasts,” “targets,” “may,” “can,” “will,” “would” and similar expressions identify such forward-looking statements. Forward-looking statements contained in this press release include, but are not limited to, the statements describing our financial outlook and future period revenues. These statements are not guarantees of results and should not be considered as an indication of future activity or future performance. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Actual events or results may differ materially from those described in this press release due to a number of risks and uncertainties, including, but not limited to: risks related to changes in general macroeconomic conditions, or expectations of such conditions, such as high or rising interest rates, macroeconomic slowdowns, recessions, inflation, and stagflation; risks related to our ability to estimate customer demand and future sales accurately; our ability to define, design, develop and market products for the Cloud, 5G markets, and Artificial Intelligence (AI) markets; risks related to our dependence on a few customers for a significant portion of our revenue, particularly as our major customers comprise an increasing percentage of our revenue, as well as risks related to a significant portion of our sales being concentrated in the data center end market; risks related to higher inventory levels; risks related to cancellations, rescheduling or deferrals of significant customer orders or shipments, as well as the ability of our customers to manage inventory; our ability to realize the expected benefits from restructuring activities; the risk of downturns in the semiconductor industry or our customer end markets; the impact of international conflict (such as the current armed conflicts in the Ukraine and in Israel and the Gaza Strip) and economic volatility in either domestic or foreign markets including risks related to trade conflicts or tensions, regulations, and tariffs, including but not limited to, trade restrictions imposed on our Chinese customers; our ability to retain and hire key personnel; our ability to limit costs related to defective products; risks related to our debt obligations; risks related to the rapid growth of the Company; delays or increased costs related to completing the design, development, production and introduction of our new products due to a variety of issues, including supply chain cross-dependencies, dependencies on EDA and similar tools, dependencies on the use of third-party, business partner or customer intellectual property, collaboration and synchronization requirements with business partners and customers, requirements to establish new manufacturing, testing, assembly and packing processes, and other issues; our reliance on our manufacturing partners for the manufacture, assembly, testing and packaging of our products; risks related to the ASIC business model which requires us to use third-party IP including the risk that we may lose business or experience reputational harm if third parties, including customers, lose confidence in our ability to protect their IP rights; the risks associated with manufacturing and selling products and customers’ products outside of the United States; our ability to secure design wins from our customers and prospective customers; our ability to complete and realize the anticipated benefits of any acquisitions, divestitures and investments; decreases in gross margin and results of operations in the future due to a number of factors, including high or increasing interest rates and volatility in foreign exchange rates; severe financial hardship or bankruptcy of one or more of our major customers; the effects of transitioning to smaller geometry process technologies; risks related to use of a hybrid work model; the impact of any change in the income tax laws in jurisdictions where we operate and the loss of any beneficial tax treatment that we currently enjoy; the outcome of pending or future litigation and legal and regulatory proceedings; risk related to our Sustainability program; the impact and costs associated with changes in international financial and regulatory conditions; our ability and the ability of our customers to successfully compete in the markets in which we serve; our ability and our customers’ ability to develop new and enhanced products and the adoption of those products in the market; supply chain disruptions or component shortages that may impact the production of our products including our kitting process or may impact the price of components which in turn may impact our margins on any impacted products and any constrained availability from other electronic suppliers impacting our customers’ ability to ship their products, which in turn may adversely impact our sales to those customers; our ability to scale our operations in response to changes in demand for existing or new products and services; risks associated with acquisition and consolidation activity in the semiconductor industry, including any consolidation of our manufacturing partners; our ability to protect our intellectual property; risks related to the impact of the COVID-19 pandemic (or future pandemics) which have impacted, and for which lingering effects may continue to impact our business, employees and operations, the transportation and manufacturing of our products, and the operations of our customers, distributors, vendors, suppliers, and partners; our maintenance of an effective system of internal controls; financial institution instability; and other risks detailed in our SEC filings from time to time. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties that affect our business described in the “Risk Factors” section of our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and other documents filed by us from time to time with the SEC. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and we assume no obligation and do not intend to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise.

About Marvell

To deliver the data infrastructure technology that connects the world, we’re building solutions on the most powerful foundation: our partnerships with our customers. Trusted by the world’s leading technology companies for over 25 years, we move, store, process and secure the world’s data with semiconductor solutions designed for our customers’ current needs and future ambitions. Through a process of deep collaboration and transparency, we’re ultimately changing the way tomorrow’s enterprise, cloud, automotive, and carrier architectures transform—for the better.

Marvell® and the Marvell logo are registered trademarks of Marvell and/or its affiliates.

 

Marvell Technology, Inc.

Condensed Consolidated Statements of Operations (Unaudited)

(In millions, except per share amounts)

Three Months Ended

Nine Months Ended

November 2,
2024

August 3,
2024

October 28,
2023

November 2,
2024

October 28,
2023

Net revenue

$      1,516.1

$      1,272.9

$      1,418.6

$      3,949.9

$      4,081.2

Cost of goods sold

1,166.7

685.3

867.4

2,485.1

2,451.7

Gross profit

349.4

587.6

551.2

1,464.8

1,629.5

Operating expenses:

Research and development

488.6

486.7

481.1

1,451.4

1,436.6

Selling, general and administrative

205.3

197.3

213.0

602.5

622.0

Restructuring related charges

358.3

4.0

3.4

366.4

105.3

Total operating expenses

1,052.2

688.0

697.5

2,420.3

2,163.9

Operating loss

(702.8)

(100.4)

(146.3)

(955.5)

(534.4)

Interest expense

(47.2)

(48.4)

(52.6)

(144.4)

(159.1)

Interest income and other, net

(0.5)

2.6

11.4

5.4

22.1

Interest and other loss, net

(47.7)

(45.8)

(41.2)

(139.0)

(137.0)

Loss before income taxes

(750.5)

(146.2)

(187.5)

(1,094.5)

(671.4)

Provision (benefit) for income taxes

(74.2)

47.1

(23.2)

(9.3)

(130.7)

Net loss

$       (676.3)

$       (193.3)

$       (164.3)

$    (1,085.2)

$       (540.7)

Net loss per share — basic

$         (0.78)

$         (0.22)

$         (0.19)

$         (1.25)

$         (0.63)

Net loss per share — diluted

$         (0.78)

$         (0.22)

$         (0.19)

$         (1.25)

$         (0.63)

Weighted-average shares:

Basic

865.7

865.7

862.6

865.5

860.1

Diluted

865.7

865.7

862.6

865.5

860.1

 

Marvell Technology, Inc.

Condensed Consolidated Balance Sheets (Unaudited)

(In millions)

November 2,
2024

February 3,
2024

Assets

Current assets:

Cash and cash equivalents

$              868.1

$              950.8

Accounts receivable, net

997.9

1,121.6

Inventories

859.4

864.4

Prepaid expenses and other current assets

91.4

125.9

Total current assets

2,816.8

3,062.7

Property and equipment, net

781.9

756.0

Goodwill

11,586.9

11,586.9

Acquired intangible assets, net

2,957.7

4,004.1

Deferred tax assets

406.5

311.9

Other non-current assets

1,165.8

1,506.9

Total assets

$        19,715.6

$        21,228.5

Liabilities and Stockholders’ Equity

Current liabilities:

Accounts payable

$              538.1

$              411.3

Accrued liabilities

825.2

1,032.9

Accrued employee compensation

270.9

262.7

Short-term debt

129.4

107.3

Total current liabilities

1,763.6

1,814.2

Long-term debt

3,965.5

4,058.6

Other non-current liabilities

613.6

524.3

Total liabilities

6,342.7

6,397.1

Stockholders’ equity:

Common stock

1.7

1.7

Additional paid-in capital

14,629.0

14,845.3

Accumulated other comprehensive income (loss)

(0.3)

1.1

Accumulated deficit

(1,257.5)

(16.7)

Total stockholders’ equity

13,372.9

14,831.4

Total liabilities and stockholders’ equity

$        19,715.6

$        21,228.5

 

Marvell Technology, Inc.

Condensed Consolidated Statements of Cash Flows (Unaudited)

(In millions)

Three Months Ended

Nine Months Ended

November 2,
2024

October 28,
2023

November 2,
2024

October 28,
2023

Cash flows from operating activities:

Net loss

$            (676.3)

$            (164.3)

$        (1,085.2)

$            (540.7)

Adjustments to reconcile net loss to net cash provided by operating activities:

Depreciation and amortization

76.6

72.1

225.5

226.0

Stock-based compensation

158.4

158.5

449.8

454.5

Amortization of acquired intangible assets

264.9

269.8

805.5

811.6

Restructuring related impairment charges

521.8

0.8

524.1

32.2

Deferred income taxes

(47.9)

(57.0)

(106.2)

(283.7)

Other expense, net

9.0

18.2

42.1

39.9

Changes in assets and liabilities:

Accounts receivable

62.2

(5.5)

123.7

(22.4)

Prepaid expenses and other assets

(45.5)

53.7

176.2

14.4

Inventories

(108.2)

70.6

(60.2)

123.1

Accounts payable

75.0

(0.7)

109.8

(87.5)

Accrued employee compensation

71.1

59.7

11.9

0.7

Accrued liabilities and other non-current liabilities

175.2

27.1

(49.8)

55.8

Net cash provided by operating activities

536.3

503.0

1,167.2

823.9

Cash flows from investing activities:

Purchases of technology licenses

(0.5)

(0.3)

(6.2)

(3.3)

Purchases of property and equipment

(75.0)

(54.4)

(214.7)

(265.3)

Acquisitions, net of cash acquired

—

—

(10.4)

(5.5)

Other, net

—

0.1

0.9

(0.2)

Net cash used in investing activities

(75.5)

(54.6)

(230.4)

(274.3)

Cash flows from financing activities:

Repurchases of common stock

(200.0)

(50.0)

(525.0)

(50.0)

Proceeds from employee stock plans

0.8

0.7

52.4

61.1

Tax withholding paid on behalf of employees for net share settlement

(58.6)

(44.9)

(190.3)

(168.7)

Dividend payments to stockholders

(51.9)

(51.8)

(155.6)

(154.9)

Payments on technology license obligations

(58.9)

(31.6)

(124.4)

(110.2)

Proceeds from borrowings

—

1,045.3

—

1,295.3

Principal payments of debt

(32.8)

(1,006.9)

(76.6)

(1,600.6)

Other, net

—

(7.0)

—

(7.0)

Net cash used in financing activities

(401.4)

(146.2)

(1,019.5)

(735.0)

Net increase (decrease) in cash and cash equivalents

59.4

302.2

(82.7)

(185.4)

Cash and cash equivalents at beginning of period

808.7

423.4

950.8

911.0

Cash and cash equivalents at end of period

$              868.1

$              725.6

$              868.1

$              725.6

 

Marvell Technology, Inc.

Reconciliations from GAAP to Non-GAAP (Unaudited)

(In millions, except per share amounts)

Three Months Ended

Nine Months Ended

November 2,
2024

August 3,
2024

October 28,
2023

November 2,
2024

October 28,
2023

GAAP gross profit

$     349.4

$     587.6

$     551.2

$  1,464.8

$  1,629.5

Special items:

Stock-based compensation

16.3

11.2

15.7

37.2

38.7

Amortization of acquired intangible assets

180.4

191.3

184.3

552.2

553.8

Restructuring related charges (a)

356.8

—

—

356.8

—

Other cost of goods sold (b)

14.2

(2.6)

108.0

17.6

237.8

Total special items

567.7

199.9

308.0

963.8

830.3

Non-GAAP gross profit

$     917.1

$     787.5

$     859.2

$  2,428.6

$  2,459.8

GAAP gross margin

23.0 %

46.2 %

38.9 %

37.1 %

39.9 %

Stock-based compensation

1.1 %

0.9 %

1.1 %

0.9 %

0.9 %

Amortization of acquired intangible assets

11.9 %

15.0 %

13.0 %

14.0 %

13.6 %

Restructuring related charges (a)

23.5 %

— %

— %

9.0 %

— %

Other cost of goods sold (b)

1.0 %

(0.2) %

7.6 %

0.5 %

5.9 %

Non-GAAP gross margin

60.5 %

61.9 %

60.6 %

61.5 %

60.3 %

Total GAAP operating expenses

$  1,052.2

$     688.0

$     697.5

$  2,420.3

$  2,163.9

Special items:

Stock-based compensation

(142.1)

(143.7)

(142.8)

(412.6)

(415.8)

Amortization of acquired intangible assets

(84.5)

(84.4)

(85.5)

(253.3)

(257.8)

Restructuring related charges (a)

(358.3)

(4.0)

(3.4)

(366.4)

(105.3)

Other (c)

(0.4)

(0.1)

(28.7)

(11.5)

(41.3)

Total special items

(585.3)

(232.2)

(260.4)

(1,043.8)

(820.2)

Total non-GAAP operating expenses

$     466.9

$     455.8

$     437.1

$  1,376.5

$  1,343.7

GAAP operating margin

(46.4) %

(7.9) %

(10.3) %

(24.2) %

(13.1) %

Stock-based compensation

10.5 %

12.2 %

11.2 %

11.4 %

11.1 %

Amortization of acquired intangible assets

17.5 %

21.7 %

19.0 %

20.4 %

19.9 %

Restructuring related charges (a)

47.2 %

0.3 %

0.2 %

18.3 %

2.6 %

Other cost of goods sold (b)

0.9 %

(0.2) %

7.6 %

0.4 %

5.8 %

Other (c)

— %

— %

2.1 %

0.3 %

1.0 %

Non-GAAP operating margin 

29.7 %

26.1 %

29.8 %

26.6 %

27.3 %

GAAP interest and other loss, net

$      (47.7)

$      (45.8)

$      (41.2)

$   (139.0)

$   (137.0)

Special items:

Other (c)

(1.4)

0.3

(4.2)

(3.5)

(12.6)

Total special items

(1.4)

0.3

(4.2)

(3.5)

(12.6)

Total non-GAAP interest and other loss, net

$      (49.1)

$      (45.5)

$      (45.4)

$   (142.5)

$   (149.6)

GAAP net loss

$   (676.3)

$   (193.3)

$   (164.3)

$  (1,085.2)

$   (540.7)

Special items:

Stock-based compensation

158.4

154.9

158.5

449.8

454.5

Amortization of acquired intangible assets

264.9

275.7

269.8

805.5

811.6

Restructuring related charges (a)

715.1

4.0

3.4

723.2

105.3

Other cost of goods sold (b)

14.2

(2.6)

108.0

17.6

237.8

Other (c)

(1.0)

0.4

24.5

8.0

28.7

Pre-tax total special items

1,151.6

432.4

564.2

2,004.1

1,637.9

Other income tax effects and adjustments (d)

(102.3)

27.1

(45.8)

(73.0)

(188.7)

Non-GAAP net income

$     373.0

$     266.2

$     354.1

$     845.9

$     908.5

GAAP weighted-average shares — basic

865.7

865.7

862.6

865.5

860.1

GAAP weighted-average shares — diluted

865.7

865.7

862.6

865.5

860.1

Non-GAAP weighted-average shares — diluted (e)

875.5

875.7

872.2

875.8

867.6

GAAP diluted net loss per share

$      (0.78)

$      (0.22)

$      (0.19)

$      (1.25)

$      (0.63)

Non-GAAP diluted net income per share

$        0.43

$        0.30

$        0.41

$        0.97

$        1.05

(a)

Restructuring and other related items include asset impairment charges, recognition of future contractual obligations, employee severance costs, facilities related charges, and other.

(b)

Other cost of goods sold includes charges for an intellectual property licensing claim, product claim related matters that were fully resolved in the fourth quarter of fiscal 2024, and acquisition integration related inventory costs.

(c)

Other costs in operating expenses and interest and other loss, net include gain or loss on investments and asset acquisition related costs.

(d)

Other income tax effects and adjustments relate to tax provision based on a non-GAAP income tax rate of 7.0% for the three and nine months ended November 2, 2024 and three months ended August 3, 2024. Other income tax effects and adjustments relate to tax provision based on a non-GAAP income tax rate of 6% for the three and nine months ended October 28, 2023.

(e)

Non-GAAP diluted weighted-average shares differs from GAAP diluted weighted-average shares due to the non-GAAP net income reported.

 

Marvell Technology, Inc.

 Outlook for the Fourth Quarter of Fiscal Year 2025

Reconciliations from GAAP to Non-GAAP (Unaudited)

 (In millions, except per share amounts)

Outlook for Three Months Ended

February 1, 2025

GAAP net revenue

$1,800 +/- 5%

Special items:

—

Non-GAAP net revenue

$1,800 +/- 5%

GAAP gross margin

~ 50%

Special items:

Stock-based compensation

0.7 %

Amortization of acquired intangible assets

9.3 %

Non-GAAP gross margin

~ 60%

Total GAAP operating expenses

~ $710

Special items:

Stock-based compensation

142

Amortization of acquired intangible assets

78

Restructuring related charges and other

10

Total non-GAAP operating expenses

~ $480

GAAP diluted net income per share

 $0.16 +/- $0.05

Special items:

Stock-based compensation

0.18

Amortization of acquired intangible assets

0.28

Restructuring related charges and other

0.01

Other income tax effects and adjustments

(0.04)

Non-GAAP diluted net income per share

$0.59 +/- $0.05

Quarterly Revenue Trend (Unaudited)

Our product solutions serve five large end markets where our technology is essential: (i) data center, (ii) enterprise networking, (iii) carrier infrastructure, (iv) consumer, and (v) automotive/industrial. These markets and their corresponding customer products and applications are noted in the table below:

End market

Customer products and applications

Data center

•          Cloud and on-premise Artificial intelligence (AI) systems

•          Cloud and on-premise ethernet switching

•          Cloud and on-premise network-attached storage (NAS)

•          Cloud and on-premise AI servers

•          Cloud and on-premise general-purpose servers

•          Cloud and on-premise storage area networks

•          Cloud and on-premise storage systems

•          Data center interconnect (DCI)

Enterprise networking

•          Campus and small medium enterprise routers

•          Campus and small medium enterprise ethernet switches

•          Campus and small medium enterprise wireless access points (WAPs)

•          Network appliances (firewalls, and load balancers)

•          Workstations

Carrier infrastructure

•          Broadband access systems

•          Ethernet switches

•          Optical transport systems

•          Routers

•          Wireless radio access network (RAN) systems

Consumer

•          Broadband gateways and routers

•          Gaming consoles

•          Home data storage

•          Home wireless access points (WAPs)

•          Personal Computers (PCs)

•          Printers

•          Set-top boxes

Automotive/industrial

•          Advanced driver-assistance systems (ADAS)

•          Autonomous vehicles (AV)

•          In-vehicle networking

•          Industrial ethernet switches

•          United States military and government solutions

•          Video surveillance

 

Quarterly Revenue Trend (Unaudited) (Continued)

Three Months Ended

% Change

Revenue by End Market

(In millions)

November 2,
2024

August 3,
2024

October 28,
2023

YoY

QoQ

Data center

$                          1,101.1

$                             880.9

$                             555.8

98 %

25 %

Enterprise networking

150.9

151.0

271.1

(44) %

— %

Carrier infrastructure

84.7

75.9

316.5

(73) %

12 %

Consumer

96.5

88.9

168.7

(43) %

9 %

Automotive/industrial

82.9

76.2

106.5

(22) %

9 %

Total Net Revenue

$                          1,516.1

$                          1,272.9

$                          1,418.6

7 %

19 %

Three Months Ended

Revenue by End Market

% of Total

November 2,
2024

August 3,
2024

October 28,
2023

Data center

73 %

69 %

39 %

Enterprise networking

10 %

12 %

19 %

Carrier infrastructure

6 %

6 %

22 %

Consumer

6 %

7 %

12 %

Automotive/industrial

5 %

6 %

8 %

Total Net Revenue

100 %

100 %

100 %

 

For further information, contact:
Ashish Saran
Senior Vice President, Investor Relations
408-222-0777
ir@marvell.com

 

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SOURCE Marvell

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Unity: The Convergence of the Three Main Red Army Forces

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BEIJING, Oct. 21, 2026 /PRNewswire/ — An interview from China.org.cn with Wang Xiaohui and David Ferguson on the Long March:

Wang Xiaohui:

We have all been through something similar — a group of people disagreeing with one another, with each side holding sound reasons to believe their own judgment is correct.

In such moments, should they part ways, or find another path forward together?

David Ferguson:

The word “unity” is often understood as a strategy. People unite when they face a common enemy, and when that enemy disappears, the cooperation ends with it. But I’ve always wondered if there is a different kind of unity — one not forged by a common enemy, but by a common destination. A unity that isn’t temporary, that doesn’t fall apart the moment circumstances change. I wanted to find out.

Wang Xiaohui:

An arduous expedition like the Long March posed unparalleled trials for any military unit.

Bitter cold on snow-capped mountains, hidden mire across marshlands, and dangers lurking every step of the way; food and warm clothes were constantly scarce, while enemies and artillery fire were relentless. Even so, through the Long March, these poorly equipped and raggedly dressed Red Army troops remained tightly bonded as one.

This bond was not coerced by harsh military discipline, but arose spontaneously from every soldier’s heart. Before they even set off, shared ideals and conviction had already taken deep root within every soldier, steeling their resolve to follow the Communist Party of China without hesitation. Along the trail, officers and soldiers of the Red Army ate from the same pots and wore uniforms made from the same coarse cloth. High-ranking commanders like Zhu De and Peng Dehuai covered most of the journey on foot alongside their troops, leaving their horses to the ill and wounded, while splitting their last rations with soldiers. Amid food shortages, even when columns in the front discovered edible greens, they would never dig them all up; instead, they sent words to rear units so that all troops could share.

The Red Army’s unity took root in shared ideals, flourished under equal treatment for all, and was forged through countless moments of entrusting each other with their lives. It also became the unshakable foundation that carried them through every ordeal.

In the late autumn of 1936, the Loess Plateau in northwestern China witnessed two hopeful rendezvous, marking the Long March’s triumphant close. First in Huining, soldiers of the First and Fourth Front Armies embraced in a long-awaited reunion. Just over 10 days later, at Jiangtaibu, the waiting First Front Army finally greeted the travel-worn soldiers of the Second Front Army.

Many of these soldiers had never met before, yet they greeted one another like long-lost brothers, eyes brimming with tears as they clasped hands. Officers and soldiers of the First Front Army sent whatever supplies they had saved up to their brother troops. Three battle-hardened columns merged into a mighty iron stream across the plateau. Just one month later, they fought in coordinated formation to secure triumph in the battle of Shanchengbao, putting a glorious full stop to the Long March.

When scattered sparks merge, inherent unity surges into a mighty force, powerful enough to rewrite an army’s fate and shift the course of a nation’s history.

At the time, Japanese invaders advanced deeper into China, occupying more and more territory, yet the civil war persisted. The CPC clearly understood that brutal conflict among the Chinese would only play to the invaders’ hands, and only national unity could safeguard the motherland. The CPC publicly called for an end to the civil war and joint resistance against Japanese invaders, officially proposed to build the national united front against Japanese aggression, and even took the initiative to halt military operations and withdraw troops as a gesture of goodwill — when the survival of a nation hung by a thread, they chose to unite all Chinese people.

The two KMT officers, Zhang Xueliang and Yang Hucheng, who were stationed in the northwest, witnessed the nation’s peril and were touched by the CPC’s advocacy of a united resistance. Resolved to collaborate with the CPC to fend off Japanese aggression, Zhang and Yang repeatedly pleaded with Chiang Kai-shek to shift focus to national defense, but to no avail. Ultimately, they detained Chiang by force, which later became known as the Xi’an Incident.

When word spread of Chiang’s detention, many assumed the CPC would demand a public trial, given years of bitter partisan strife. Instead, Zhou Enlai personally traveled to Xi’an with the CPC delegation to mediate, laying out the stakes for all parties concerned: executing Chiang would only result in a much larger-scale civil war, handing the Japanese aggressors golden opportunities to advance further into China. The only path to a promising future for the Chinese nation lay in a peaceful settlement that would compel Chiang to join the resistance against Japanese aggression.

Setting aside partisan divisions and prioritizing the supreme interests of the nation — this was the answer delivered by the CPC. At last, the Xi’an Incident was settled in peace, bringing an end to a decade of war. Since then, the Chinese nation finally stood united in fighting back against foreign invasion.

Nearly a century has passed, yet the spirit of unity forged on the Long March has never faded.

In September 1949, the First Plenary Session of the Chinese People’s Political Consultative Conference (CPPCC) was convened, officially instituting the system of multiparty cooperation and political consultation under the leadership of the Communist Party of China. The spirit of solidarity tempered amid the Long March was thereafter embedded in the very fabric of China’s governance system, with unity becoming one of its enduring tenets.

From the early reconstruction years since the founding of the People’s Republic of China in 1949, through the era of reform and opening up since 1978, to today’s march toward China’s modernization, each successive trial has burnished this core spirit of unity. In the fight against absolute poverty, the whole nation pulled together as a single force: the more developed eastern regions lent robust support to underdeveloped western regions, officials devoted themselves to working at grassroots communities, and local residents worked hard and strove for self-improvement. Together, hundreds of millions of Chinese worked to eradicate absolute poverty nationwide. When earthquakes and floods struck, rescue teams rushed to disaster zones from every corner of the country, while relief supplies and charitable donations poured in ceaselessly.

From the helping hands extended between soldiers along the Long March to the nationwide solidarity repeatedly demonstrated today, the essence of unity has never changed. It was the key that carried the Red Army through seemingly impossible odds, and it endures as China’s bedrock strength that propels China forward to this day.

David Ferguson:

After hearing the stories of the reunion of the three main forces of the Red Army and the Xi’an Incident, I found my answer.

The Long March showed me that unity is a condition for survival — not in the sense of “I need you for now, so let’s work together.” Rather, it was “We believe in a common cause, so we must stand together.” That kind of unity does not dissolve when the danger is gone, because it is rooted not in fear, but in conviction.

Whether I look at stories of the Long March or at China’s development today, what strikes me is not simply unity itself. What gives unity its power is the shared ideal that enables people to stand together, and the common mission that at critical moments, enables them to rise above the interests of the individual, of groups, and even of political parties.

Wang Xiaohui:

From the arduous trails of the Long March to the contemporary journey of national rejuvenation, when a group of people or a whole nation stand united around common ideals, they will always arrive at the future they hoped for, no matter how lengthy and winding the road ahead is.

China Mosaic 
http://www.china.org.cn/video/node_7230027.htm 

Unity: The Convergence of the Three Main Red Army Forces
http://www.china.org.cn/2026-10/20/content_118741729.shtml 

 

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SOURCE China.org.cn

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KingClean Debuts at the 140th Canton Fair with One-Stop ODM Solutions for Global Brands

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GUANGZHOU, China, Oct. 21, 2026 /PRNewswire/ — KingClean, a global leader in home appliances and cleaning solutions, showcased its latest smart home product line at the 140th Canton Fair, which includes cleaning appliances, kitchen and coffee equipment, drinking equipment, personal care and air comfort products. During the exhibition, KingClean held in-depth discussions with global channel partners at Booths E30–36 and F13–19, Hall 2.2, Zone A.

KingClean showcased over 40 innovative products. The cleaning appliances exhibition area covers cordless stick vacuum cleaners with docking stations, upright 3-in-1 wet-and-dry vacuum cleaner with steam, spot cleaner with steam, cordless mattress cleaners and canister. The kitchen appliance exhibition area showcases products such as cooking robot, commercial blenders, and fully automatic coffee machines. The water & beverage solutions area presents desktop intelligent water purifiers with functions of water purification, sparkling water, ice making, and tea brewing. In addition, KingClean balances personal care with environmental comfort, showcasing water-ion turbofan hair dryers, desktop air purifiers, and smart air circulation fans.

The collaboration between high-performance cleaning equipment and intelligent base stations is the key direction of this exhibition. The exhibits include cordless vacuum cleaners equipped with high-power motors, dust‑cup or dust‑bag docking stations, charging and automatic cleaning functions, as well as floor cleaning vacuum cleaners that integrate functions of steam cleaning, automatic water refilling, and hot air drying. Multiple reference models intuitively demonstrate how the same technology platform can flexibly adapt to different power levels, structural schemes, and accessory configurations.

KingClean also showcased a series of home fully automatic coffee machines, smoothies and ice-making equipment, as well as desktop intelligent beverage purifiers that supported flexible combinations of sparkling water, ice water, tea brewing, and coffee related modules in the beverage area. These exhibits could be further customized based on the customer’s beverage menus, usage frequency, and after-sales mode.

“We connect globally through innovative products, focusing on smart solutions that improve life and strengthen our leadership in the smart home industry” said Nate Yang, Senior Marketing Director at KingClean Electric Co., Ltd.

About KingClean

KingClean was founded in 1994 and is headquartered in Suzhou, China. The company specializes in high-end smart home appliances and mechatronic products, with motor as our core technology.

For more information, visit http://www.kingclean.com.

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Husqvarna Group: INTERIM REPORT JANUARY – SEPTEMBER 2026

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STOCKHOLM, Oct. 21, 2026 /PRNewswire/ — 

Consistent strategy execution in a continued challenging market 

Third quarter 2026

Net sales decreased organically by 5%.Net sales decreased by 2% to SEK 9,012m (9,204), and included a positive impact of 3% from changes in exchange rates.Operating income amounted to SEK -334m (141) and the operating margin was -3.7% (1.5).Items affecting comparability (IAC) amounted to SEK -88m. These were primarily related to the execution of cost-saving initiatives.Excluding IAC, operating income amounted to SEK -246m (140), and the operating margin was -2.7% (1.5).Earnings per share (EPS) after dilution amounted to SEK -0.70 (-0.02) and EPS excluding IAC and after dilution amounted to SEK -0.58 (-0.02).Free operating cash flow was SEK 2,422m (2,423).Net debt was SEK 9.4bn (9.9).

January – September 2026

Net sales decreased organically by 2%.Net sales decreased by 5% to SEK 37,356m (39,184), and included an impact of -3% from changes in exchange rates.Operating income amounted to SEK 2,977m (3,735) and the operating margin was 8.0% (9.5).Items affecting comparability (IAC) amounted to SEK -445m. These were primarily related to the execution of cost-saving initiatives.Excluding IAC, operating income amounted to SEK 3,421m (3,742), and the operating margin was 9.2% (9.5).IEEPA-related tariff refunds of SEK 240m were recognized in COGS during the second quarter.Earnings per share (EPS) after dilution amounted to SEK 3.14 (4.43) and EPS excluding IAC and after dilution amounted to SEK 3.74 (4.44).Free operating cash flow was SEK 4,891m (4,743).

CEO Comment

We are making solid progress on our strategic priorities. Our cost savings program remains on track, recent product launches are receiving encouraging customer feedback, and we are broadening our presence across sales channels. Although these measures have not yet fully offset current market headwinds, they reinforce our confidence in the Group’s long-term competitiveness and prospects.

Financial performance summary

Net sales were SEK 9,012m (9,204), representing an organic decline of 5% in the quarter, primarily driven by continued weakness in Europe. Organic sales in the Husqvarna Forest & Garden Division declined by 10%, sales in the Husqvarna Construction Division were unchanged, while the Gardena Division delivered solid organic growth of 8%. Performance in the Husqvarna Forest & Garden Division was significantly affected by the widespread drought across large parts of Europe and continued weak consumer demand in key markets, including Germany and France. In contrast, strong growth in the Gardena Division’s Watering business highlighted the resilience of our diversified portfolio, gaining market shares in key markets, and the Husqvarna Construction Division has continued good momentum in its aftermarket business. I am also encouraged by continued growth across all three divisions in North America.

Operating income excluding IAC was SEK -246m (140), corresponding to a margin of -2.7% (1.5). The result reflected lower volumes in the Husqvarna Forest & Garden Division, an unfavorable product mix, inventory reductions and cost increases on raw materials and logistics costs. Free operating cash flow was stable at SEK 2,422m (2,423), as lower operating income was offset by changes in working capital, primarily driven by reduced inventories. We further strengthened the balance sheet, reducing net debt to SEK 9.4bn (9.9).

Executing on cost savings while navigating cost headwinds

Our transformative cost savings program remains on track to deliver SEK 3bn in gross savings by the end of 2028. Year-to-date savings reached approximately SEK 935m, including around SEK 305m in the third quarter, driven mainly by sourcing activities and personnel reductions. However, lower volumes, inventory reductions and cost headwinds continue to weigh on profitability. We are responding with targeted price increases, supply chain actions and product cost optimization, which will partly offset these pressures, although near-term headwinds are expected to remain.

We are advancing our asset-light strategy through further outsourcing initiatives. We will transfer production of selected Husqvarna-branded battery handheld products from Europe to Asia, using both our own facilities and external partners to enhance efficiency and competitiveness.

In addition, the ongoing discontinuation of the stone diamond tool business in the Construction Division, the phase-out of our Brastad component factory in the Husqvarna Forest & Garden Division and relocation of selected activities within Gardena’s European manufacturing network are progressing according to plan.

Unlocking the next phase of robotics growth

Our robotic lawn mowing business faced a difficult quarter, with adverse weather, competitive headwinds, and elevated channel partner inventories in Europe constraining demand for Husqvarna- and Gardena-branded products. Although recent performance has fallen short of expectations, we remain the clear market leader and we are confident in our strategy and longer-term development.

The strategic review of the Powered Garden BPU in the Gardena Division is ongoing and we aim to provide an update in the beginning of next year. Our priorities in the Husqvarna Forest & Garden Residential Robotics BPU include expanding our retail footprint and product range across price points and channels, strengthening the robotics organization and development model.

During the quarter, the US became the largest market in terms of sales for our Professional Robotics BPU, driven mainly by continued growth in the golf segment. Upcoming product launches and broader US distribution are expected to further strengthen our competitive position next season. We are also encouraged to be the first robotics company to receive conditional approval from the Federal Communications Commission (FCC) for foreign-produced advanced robotic devices in the US market.

Building a stronger, more competitive Husqvarna Group

We are accelerating change across the Group to create a leaner, more agile and asset-light organization. By challenging established ways of working, simplifying operations and acting decisively, we are strengthening competitiveness and profitability in the longer-term. Significant work remains, but I am confident we are moving in the right direction.

When consumer sentiment recovers, particularly in Europe, we will be well positioned to capture growth and improve earnings.

Glen Instone, CEO

Webcast presentation and telephone conference

A webcast presentation of the Q3 report hosted by Glen Instone, CEO and Patrik Johnson, CFO will be held at 9:00 CEST on Oct 21, 2026.
To view the presentation, please use this link.
The dial-in to the telephone conference (to ask questions):
+46 (0) 8 505 100 31 (Sweden) or +44 203 059 58 63 (UK)

Contact
Emelie Alm, Vice President, Investor Relations
+46 70 514 64 14

Husqvarna AB (publ), P.O. Box 7454, SE-103 92 Stockholm
Hälsingegatan 49, +46 8 738 90 00, www.husqvarnagroup.com

Reg. Nr: 556000-5331

(NASDAQ STOCKHOLM: HUSQ-A) (NASDAQ STOCKHOLM: HUSQ-B)

This report contains insider information that Husqvarna AB is required to disclose under the EU Market Abuse Regulation. The information was submitted for publication, through the contact person set out above, at 07:00 CEST on Oct 21, 2026.

Factors affecting forward-looking statements

This report contains some forward-looking statements. These statements are subject to risks and uncertainties that may give rise to major deviations in the result due to several aspects. These aspects include, among other things: consumer demand and market conditions in the geographical areas and lines of business in which Husqvarna operates, the effects of currency fluctuations, downward pressure on prices due to competition, success in developing new products, outcome of product responsibility litigation and progress in terms of reaching the goals set for productivity and efficient use of capital.

This information was brought to you by Cision http://news.cision.com

https://news.cision.com/husqvarna-group/r/interim-report-january—september-2026,c4412543

The following files are available for download:

https://mb.cision.com/Main/996/4412543/4328797.pdf

Interim report Q3 2026 Husqvarna Group

 

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SOURCE Husqvarna Group

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