Bermuda | 0-30877 | 77-0481679 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
99.1 |
MARVELL TECHNOLOGY GROUP LTD. | ||
Date: December 4, 2018 | By: | /s/ JEAN HU |
Jean Hu | ||
Chief Financial Officer | ||
• | Q3 Revenue: $851 million |
• | Q3 Gross Margin: 45.1% GAAP gross margin; 64.6% non-GAAP gross margin |
• | Q3 Diluted income (loss) per share: $(0.08) GAAP diluted loss per share from continuing operations; $0.33 non-GAAP diluted income per share from continuing operations |
• | Cash and short-term investments: $610 million |
• | Revenue is expected to be $790 million to $830 million. |
• | GAAP gross margin is expected to be approximately 46%. |
• | Non-GAAP gross margin is expected to be approximately 65%. |
• | GAAP operating expenses are expected to be $375 million to $385 million. |
• | Non-GAAP operating expenses are expected to be $285 million to $290 million. |
• | GAAP diluted loss per share from continuing operations is expected to be $(0.05) to $(0.01) per share. |
• | Non-GAAP diluted income per share from continuing operations is expected to be $0.30 to $0.34 per share. |
• | 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; and |
• | Management’s determination of the achievement and measurement of certain performance-based equity awards (adjustments may vary from award to award). |
Three Months Ended | Nine Months Ended | |||||||||||||||||||
November 3, 2018 | August 4, 2018 | October 28, 2017 | November 3, 2018 | October 28, 2017 | ||||||||||||||||
Net revenue | $ | 851,051 | $ | 665,310 | $ | 616,302 | $ | 2,120,992 | $ | 1,793,761 | ||||||||||
Cost of goods sold | 467,464 | 288,200 | 238,533 | 984,602 | 705,303 | |||||||||||||||
Gross profit | 383,587 | 377,110 | 377,769 | 1,136,390 | 1,088,458 | |||||||||||||||
Operating expenses: | ||||||||||||||||||||
Research and development | 264,888 | 216,285 | 165,477 | 657,907 | 534,444 | |||||||||||||||
Selling, general and administrative | 112,178 | 133,701 | 59,112 | 318,192 | 169,875 | |||||||||||||||
Restructuring related charges | 27,031 | 35,415 | 3,284 | 64,013 | 8,455 | |||||||||||||||
Total operating expenses | 404,097 | 385,401 | 227,873 | 1,040,112 | 712,774 | |||||||||||||||
Operating income (loss) from continuing operations | (20,510 | ) | (8,291 | ) | 149,896 | 96,278 | 375,684 | |||||||||||||
Interest income | 1,046 | 3,575 | 4,301 | 10,690 | 11,643 | |||||||||||||||
Interest expense | (22,370 | ) | (15,795 | ) | (262 | ) | (38,409 | ) | (393 | ) | ||||||||||
Other income (loss), net | (2,628 | ) | (2,701 | ) | 2,161 | (3,858 | ) | 5,471 | ||||||||||||
Interest and other income (loss), net | (23,952 | ) | (14,921 | ) | 6,200 | (31,577 | ) | 16,721 | ||||||||||||
Income (loss) from continuing operations before income taxes | (44,462 | ) | (23,212 | ) | 156,096 | 64,701 | 392,405 | |||||||||||||
Provision (benefit) for income taxes | 9,305 | (29,971 | ) | 6,759 | (16,903 | ) | 8,026 | |||||||||||||
Income (loss) from continuing operations, net of tax | (53,767 | ) | 6,759 | 149,337 | 81,604 | 384,379 | ||||||||||||||
Income from discontinued operations, net of tax | — | — | 50,851 | — | 87,689 | |||||||||||||||
Net income (loss) | $ | (53,767 | ) | $ | 6,759 | $ | 200,188 | $ | 81,604 | $ | 472,068 | |||||||||
Net income (loss) per share — Basic: | ||||||||||||||||||||
Continuing operations | $ | (0.08 | ) | $ | 0.01 | $ | 0.30 | $ | 0.14 | $ | 0.77 | |||||||||
Discontinued operations | $ | — | $ | — | $ | 0.11 | $ | — | $ | 0.17 | ||||||||||
Net income (loss) per share - Basic | $ | (0.08 | ) | $ | 0.01 | $ | 0.41 | $ | 0.14 | $ | 0.94 | |||||||||
Net income (loss) per share — Diluted: | ||||||||||||||||||||
Continuing operations | $ | (0.08 | ) | $ | 0.01 | $ | 0.30 | $ | 0.14 | $ | 0.75 | |||||||||
Discontinued operations | $ | — | $ | — | $ | 0.10 | $ | — | $ | 0.17 | ||||||||||
Net income (loss) per share - Diluted | $ | (0.08 | ) | $ | 0.01 | $ | 0.40 | $ | 0.14 | $ | 0.92 | |||||||||
Weighted average shares: | ||||||||||||||||||||
Basic | 657,519 | 552,238 | 494,096 | 569,031 | 499,568 | |||||||||||||||
Diluted | 657,519 | 562,149 | 504,903 | 578,872 | 510,935 |
November 3, 2018 | February 3, 2018 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 610,261 | $ | 888,482 | ||||
Short-term investments | — | 952,790 | ||||||
Accounts receivable, net | 453,775 | 280,395 | ||||||
Inventories | 376,210 | 170,039 | ||||||
Prepaid expenses and other current assets | 49,230 | 41,482 | ||||||
Assets held for sale | 30,745 | 30,767 | ||||||
Total current assets | 1,520,221 | 2,363,955 | ||||||
Property and equipment, net | 313,113 | 202,222 | ||||||
Goodwill | 5,499,145 | 1,993,310 | ||||||
Acquired intangible assets, net | 2,639,370 | — | ||||||
Other non-current assets | 260,176 | 148,800 | ||||||
Total assets | $ | 10,232,025 | $ | 4,708,287 | ||||
Liabilities and Shareholders’ Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 209,562 | $ | 145,236 | ||||
Accrued liabilities | 302,095 | 86,958 | ||||||
Accrued employee compensation | 141,602 | 127,711 | ||||||
Deferred income | 2,947 | 61,237 | ||||||
Total current liabilities | 656,206 | 421,142 | ||||||
Long-term debt | 1,805,734 | — | ||||||
Non-current income taxes payable | 53,862 | 56,976 | ||||||
Deferred tax liabilities | 108,016 | 52,204 | ||||||
Other non-current liabilities | 32,928 | 36,552 | ||||||
Total liabilities | 2,656,746 | 566,874 | ||||||
Shareholders’ equity: | ||||||||
Common stock | 1,314 | 991 | ||||||
Additional paid-in capital | 6,157,283 | 2,733,292 | ||||||
Accumulated other comprehensive loss | — | (2,322 | ) | |||||
Retained earnings | 1,416,682 | 1,409,452 | ||||||
Total shareholders’ equity | 7,575,279 | 4,141,413 | ||||||
Total liabilities and shareholders’ equity | $ | 10,232,025 | $ | 4,708,287 |
Marvell Technology Group Ltd. Condensed Consolidated Statements of Cash Flows (Unaudited) (In thousands) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
November 3, 2018 | October 28, 2017 | November 3, 2018 | October 28, 2017 | |||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Net income (loss) | $ | (53,767 | ) | $ | 200,188 | $ | 81,604 | $ | 472,068 | |||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||||||||||
Depreciation and amortization | 39,259 | 21,383 | 86,356 | 62,569 | ||||||||||||
Share-based compensation | 50,240 | 18,873 | 133,484 | 65,312 | ||||||||||||
Amortization of acquired intangible assets | 78,691 | 1,076 | 104,630 | 3,212 | ||||||||||||
Amortization of inventory fair value adjustment associated with acquisition of Cavium | 102,842 | — | 125,775 | — | ||||||||||||
Amortization of deferred debt issuance costs and debt discounts | 2,217 | — | 9,290 | — | ||||||||||||
Restructuring related impairment charges (gain) | 9,888 | 44 | 11,881 | (402 | ) | |||||||||||
Gain from investments in privately-held companies | — | (1,751 | ) | (1,100 | ) | (2,501 | ) | |||||||||
Amortization (accretion) of premium/discount on available-for-sale securities | — | (200 | ) | 624 | 603 | |||||||||||
Other non-cash expense (income), net | — | 2,755 | 4,227 | 1,331 | ||||||||||||
Deferred income taxes | (6,261 | ) | 7 | (27,675 | ) | 2,797 | ||||||||||
Loss (gain) on sale of property and equipment | 179 | (190 | ) | 59 | (473 | ) | ||||||||||
Gain on sale of discontinued operations | — | (46,219 | ) | — | (88,406 | ) | ||||||||||
Loss (gain) on sale of business | 1,592 | — | 1,592 | (5,254 | ) | |||||||||||
Changes in assets and liabilities: | ||||||||||||||||
Accounts receivable | (10,948 | ) | 5,583 | (59,697 | ) | (30,730 | ) | |||||||||
Inventories | (5,007 | ) | (1,327 | ) | 1,859 | (16,039 | ) | |||||||||
Prepaid expenses and other assets | 7,630 | 5,268 | (11,874 | ) | 13,122 | |||||||||||
Accounts payable | 22,531 | 16,119 | 22,260 | 20,087 | ||||||||||||
Accrued liabilities and other non-current liabilities | 40,255 | (7,046 | ) | 29,023 | (40,462 | ) | ||||||||||
Accrued employee compensation | 20,617 | (2,237 | ) | (20,922 | ) | (10,612 | ) | |||||||||
Deferred income | (564 | ) | 3,865 | (1,293 | ) | 5,149 | ||||||||||
Net cash provided by operating activities | 299,394 | 216,191 | 490,103 | 451,371 | ||||||||||||
Cash flows from investing activities: | ||||||||||||||||
Purchases of available-for-sale securities | — | (296,659 | ) | (14,956 | ) | (672,887 | ) | |||||||||
Sales of available-for-sale securities | — | 167,451 | 623,896 | 284,151 | ||||||||||||
Maturities of available-for-sale securities | — | 136,090 | 187,985 | 305,702 | ||||||||||||
Return of investment from privately-held companies | — | 3,701 | — | 6,089 | ||||||||||||
Purchases of time deposits | — | (75,000 | ) | (25,000 | ) | (225,000 | ) | |||||||||
Maturities of time deposits | 25,000 | 75,000 | 175,000 | 225,000 | ||||||||||||
Purchases of technology licenses | (9,918 | ) | (3,555 | ) | (11,181 | ) | (5,256 | ) | ||||||||
Purchases of property and equipment | (12,646 | ) | (10,613 | ) | (47,035 | ) | (25,156 | ) | ||||||||
Proceeds from sales of property and equipment | 595 | 249 | 818 | 1,988 | ||||||||||||
Cash payment for acquisition of Cavium, net of cash and cash equivalents acquired | — | — | (2,649,465 | ) | — | |||||||||||
Net proceeds from sale of discontinued operations | — | 93,735 | — | 165,940 | ||||||||||||
Net proceeds (payments) from sale of business | (4,602 | ) | 2,402 | (3,352 | ) | 2,402 | ||||||||||
Other | — | — | (5,000 | ) | — | |||||||||||
Net cash provided by (used in) investing activities | (1,571 | ) | 92,801 | (1,768,290 | ) | 62,973 | ||||||||||
Cash flows from financing activities: | ||||||||||||||||
Repurchases of common stock | (53,969 | ) | (140,017 | ) | (53,969 | ) | (527,574 | ) | ||||||||
Proceeds from employee stock plans | 16,192 | 39,614 | 60,772 | 137,424 | ||||||||||||
Tax withholding paid on behalf of employees for net share settlement | (8,915 | ) | (1,120 | ) | (45,691 | ) | (25,934 | ) | ||||||||
Dividend payments to shareholders | (39,411 | ) | (29,470 | ) | (108,592 | ) | (89,556 | ) | ||||||||
Payments on technology license obligations | (23,003 | ) | (8,401 | ) | (52,481 | ) | (22,697 | ) | ||||||||
Proceeds from issuance of debt | — | — | 1,892,605 | — | ||||||||||||
Principal payments of debt | (75,000 | ) | — | (681,128 | ) | — | ||||||||||
Payment of equity and debt financing costs | (2,115 | ) | — | (11,550 | ) | — | ||||||||||
Net cash provided by (used in) financing activities | (186,221 | ) | (139,394 | ) | 999,966 | (528,337 | ) | |||||||||
Net increase (decrease) in cash and cash equivalents | 111,602 | 169,598 | (278,221 | ) | (13,993 | ) | ||||||||||
Cash and cash equivalents at beginning of period | 498,659 | 630,501 | 888,482 | 814,092 | ||||||||||||
Cash and cash equivalents at end of period | $ | 610,261 | $ | 800,099 | $ | 610,261 | $ | 800,099 |
Marvell Technology Group Ltd. Reconciliations from GAAP to Non-GAAP (Unaudited) (In thousands, except per share amounts) | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
November 3, 2018 | August 4, 2018 | October 28, 2017 | November 3, 2018 | October 28, 2017 | ||||||||||||||||
GAAP gross profit: | $ | 383,587 | $ | 377,110 | $ | 377,769 | $ | 1,136,390 | $ | 1,088,458 | ||||||||||
Special items: | ||||||||||||||||||||
Share-based compensation | 2,429 | 4,748 | 1,747 | 9,082 | 4,983 | |||||||||||||||
Amortization of acquired intangible assets | 57,594 | 18,984 | — | 76,577 | — | |||||||||||||||
Other cost of goods sold (a) | 105,841 | 22,933 | — | 128,774 | 3,000 | |||||||||||||||
Total special items | 165,864 | 46,665 | 1,747 | 214,433 | 7,983 | |||||||||||||||
Non-GAAP gross profit | $ | 549,451 | $ | 423,775 | $ | 379,516 | $ | 1,350,823 | $ | 1,096,441 | ||||||||||
GAAP gross margin | 45.1 | % | 56.7 | % | 61.3 | % | 53.6 | % | 60.7 | % | ||||||||||
Non-GAAP gross margin | 64.6 | % | 63.7 | % | 61.6 | % | 63.7 | % | 61.1 | % | ||||||||||
Total GAAP operating expenses | $ | 404,097 | $ | 385,401 | $ | 227,873 | $ | 1,040,112 | $ | 712,774 | ||||||||||
Special items: | ||||||||||||||||||||
Share-based compensation | (47,811 | ) | (68,675 | ) | (18,892 | ) | (138,433 | ) | (58,762 | ) | ||||||||||
Restructuring related charges (b) | (27,031 | ) | (35,415 | ) | (3,284 | ) | (64,013 | ) | (8,455 | ) | ||||||||||
Amortization of acquired intangible assets | (21,098 | ) | (6,955 | ) | (1,076 | ) | (28,053 | ) | (3,212 | ) | ||||||||||
Other operating expenses (c) | (11,222 | ) | (28,229 | ) | (120 | ) | (54,703 | ) | (4,110 | ) | ||||||||||
Total special items | (107,162 | ) | (139,274 | ) | (23,372 | ) | (285,202 | ) | (74,539 | ) | ||||||||||
Total non-GAAP operating expenses | $ | 296,935 | $ | 246,127 | $ | 204,501 | $ | 754,910 | $ | 638,235 | ||||||||||
GAAP operating margin | (2.4 | )% | (1.2 | )% | 24.3 | % | 4.5 | % | 20.9 | % | ||||||||||
Other cost of goods sold (a) | 12.4 | % | 3.5 | % | — | % | 6.1 | % | 0.2 | % | ||||||||||
Share-based compensation | 5.9 | % | 11.0 | % | 3.3 | % | 7.0 | % | 3.6 | % | ||||||||||
Restructuring related charges (b) | 3.2 | % | 5.3 | % | 0.5 | % | 3.0 | % | 0.5 | % | ||||||||||
Amortization and write-off of acquired intangible assets | 9.2 | % | 3.9 | % | 0.2 | % | 4.9 | % | 0.2 | % | ||||||||||
Other operating expenses (c) | 1.4 | % | 4.2 | % | 0.1 | % | 2.6 | % | 0.1 | % | ||||||||||
Non-GAAP operating margin | 29.7 | % | 26.7 | % | 28.4 | % | 28.1 | % | 25.5 | % |
Marvell Technology Group Ltd. Reconciliations from GAAP to Non-GAAP (Unaudited) (In thousands, except per share amounts) | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
November 3, 2018 | August 4, 2018 | October 28, 2017 | November 3, 2018 | October 28, 2017 | ||||||||||||||||
GAAP interest and other income (loss), net | $ | (23,952 | ) | $ | (14,921 | ) | $ | 6,200 | $ | (31,577 | ) | $ | 16,721 | |||||||
Special items: | ||||||||||||||||||||
Restructuring related items (d) | 1,491 | (121 | ) | (2,286 | ) | (142 | ) | (5,371 | ) | |||||||||||
Write-off of debt issuance costs (e) | 850 | 6,104 | — | 6,954 | — | |||||||||||||||
Total special items | 2,341 | 5,983 | (2,286 | ) | 6,812 | (5,371 | ) | |||||||||||||
Total non-GAAP interest and other income (loss), net | $ | (21,611 | ) | $ | (8,938 | ) | $ | 3,914 | $ | (24,765 | ) | $ | 11,350 | |||||||
GAAP net income (loss) | $ | (53,767 | ) | $ | 6,759 | $ | 200,188 | $ | 81,604 | $ | 472,068 | |||||||||
Less: Income from discontinued operations, net of tax | — | — | 50,851 | — | 87,689 | |||||||||||||||
GAAP net income (loss) from continuing operations | (53,767 | ) | 6,759 | 149,337 | 81,604 | 384,379 | ||||||||||||||
Special items: | ||||||||||||||||||||
Other cost of goods sold (a) | 105,841 | 22,933 | — | 128,774 | 3,000 | |||||||||||||||
Share-based compensation | 50,240 | 73,423 | 20,639 | 147,515 | 63,745 | |||||||||||||||
Restructuring related charges in operating expenses (b) | 27,031 | 35,415 | 3,284 | 64,013 | 8,455 | |||||||||||||||
Restructuring related items in interest and other income, net (d) | 1,491 | (121 | ) | (2,286 | ) | (142 | ) | (5,371 | ) | |||||||||||
Amortization of acquired intangible assets | 78,692 | 25,939 | 1,076 | 104,630 | 3,212 | |||||||||||||||
Write-off of debt issuance costs (e) | 850 | 6,104 | — | 6,954 | — | |||||||||||||||
Other operating expenses (c) | 11,222 | 28,229 | 120 | 54,703 | 4,110 | |||||||||||||||
Pre-tax total special items | 275,367 | 191,922 | 22,833 | 506,447 | 77,151 | |||||||||||||||
Other income tax effects and adjustments (f) | 55 | (36,720 | ) | (398 | ) | (39,763 | ) | (10,760 | ) | |||||||||||
Non-GAAP net income from continuing operations | $ | 221,655 | $ | 161,961 | $ | 171,772 | $ | 548,288 | $ | 450,770 | ||||||||||
Weighted average shares — basic | 657,519 | 552,238 | 494,096 | 569,031 | 499,568 | |||||||||||||||
Weighted average shares — diluted | 657,519 | 562,149 | 504,903 | 578,872 | 510,935 | |||||||||||||||
GAAP diluted net income (loss) per share from continuing operations | $ | (0.08 | ) | $ | 0.01 | $ | 0.30 | $ | 0.14 | $ | 0.75 | |||||||||
Non-GAAP diluted net income per share from continuing operations (g) | $ | 0.33 | $ | 0.28 | $ | 0.34 | $ | 0.95 | $ | 0.87 |
(a) | Other costs of goods sold includes amortization of the Cavium inventory fair value step up and charges for past intellectual property licensing matters. |
(b) | Restructuring related charges include employee severance, facilities related costs, and impairment of equipment and other assets. |
(c) | Other operating expenses primarily include Cavium merger costs and costs of retention bonuses offered to employees who remained through the ramp down of certain operations due to restructuring actions. |
(d) | Interest and other income, net, includes restructuring related items such as foreign currency remeasurement associated with restructuring related accruals. |
(e) | Write-off of debt issuance costs is associated with the partial term loan repayment during the three months ended November 3, 2018 and the terminated bridge loan commitment during the three months ended August 4, 2018. |
(f) | Other income tax effects and adjustments relate to tax provision based on a non-GAAP income tax rate of 4%. |
(g) | Non-GAAP diluted net income per share from continuing operations for the three months ended November 3, 2018 was calculated by dividing non-GAAP net income from continuing operations by weighted average shares outstanding (diluted) of 665,752 shares due to the non-GAAP net income reported in that period. |
Marvell Technology Group Ltd. | |
Outlook for the Fourth Quarter of Fiscal Year 2019 | |
Reconciliations from GAAP to Non-GAAP (Unaudited) | |
(In millions, except per share amounts) | |
Outlook for Three Months Ended February 2, 2019 | |
GAAP revenue | $790 - $830 |
Special items: | — |
Non-GAAP revenue | $790 - $830 |
GAAP gross margin | 46% |
Special items: | |
Share-based compensation | 0.2% |
Amortization of acquired intangible assets | 7% |
Other costs of goods sold | 12% |
Non-GAAP gross margin | 65% |
Total GAAP operating expenses | $375 - $385 |
Special items: | |
Share-based compensation | 55 |
Restructuring related charges | 15 |
Amortization of acquired intangible assets | 21 |
Other operating expenses | 2 |
Total non-GAAP operating expenses | $285 - $290 |
GAAP diluted net income per share from continuing operations | $(0.05) - $(0.01) |
Special items: | |
Other costs of goods sold | 0.15 |
Share-based compensation | 0.09 |
Restructuring related charges in operating expenses | 0.02 |
Amortization of acquired intangible assets | 0.12 |
Other (gains) and losses in interest and other income, net | (0.01) |
Other income tax effects and adjustments | (0.02) |
Non-GAAP diluted net income per share from continuing operations | $0.30 - $0.34 |
Three Months Ended | % Change | ||||||||||||||||
November 3, 2018 | August 4, 2018* | October 28, 2017 | YoY | QoQ | |||||||||||||
Storage (1) | $ | 406,822 | $ | 335,764 | $ | 315,338 | 29 | % | 21 | % | |||||||
Networking (2) | 398,424 | 283,330 | 253,159 | 57 | % | 41 | % | ||||||||||
Total Core | 805,246 | 619,094 | 568,497 | 42 | % | 30 | % | ||||||||||
Other (3) | 45,805 | 46,216 | 47,805 | (4 | )% | (1 | )% | ||||||||||
Total Revenue | $ | 851,051 | $ | 665,310 | $ | 616,302 | 38 | % | 28 | % |
Three Months Ended | ||||||||
% of Total | November 3, 2018 | August 4, 2018 | October 28, 2017 | |||||
Storage (1) | 48 | % | 50 | % | 51 | % | ||
Networking (2) | 47 | % | 43 | % | 41 | % | ||
Total Core | 95 | % | 93 | % | 92 | % | ||
Other (3) | 5 | % | 7 | % | 8 | % | ||
Total Revenue | 100 | % | 100 | % | 100 | % |
(1) Storage products are comprised primarily of HDD and SSD Controllers, Fibre Channel Adapters and Data Center Storage Solutions. |
(2) Networking products are comprised primarily of Ethernet Switches, Ethernet Transceivers, Ethernet NICs, Embedded Communication Processors, Automotive Ethernet, Security Adapters and Processors as well as WiFi solutions including WiFi only, WiFi/Bluetooth combos and WiFi Microcontroller combos. In addition, this grouping includes a few legacy product lines in which we no longer invest, but will generate revenue for several years. |
(3) Other products are comprised primarily of Printer Solutions, Application Processors and others. |