Marvell Technology 8-K Results of Operations and Financial Condition

Exhibit 99.1

For further information, contact:
Jeff Palmer	Tom Hayes
Investor Relations	Corporate Communications
408-222-8373	408-222-2815
jpalmer@marvell.com	tom@marvell.com

Marvell Technology Reaches Settlement

in Shareholder Class Action Lawsuit

Santa Clara, California (June 9, 2009)— Marvell Technology Group Ltd. (NASDAQ: MRVL), a world leader in storage, communications and consumer silicon solutions, today announced that it had entered into an agreement to resolve a shareholder class action lawsuit filed on August 16, 2007 against Marvell and certain of its former and current officers and directors relating to Marvell’s historic stock option granting practices. The settlement provides for a payment by Marvell to the class of $72 million.

The agreement was entered into after the end of the first quarter of fiscal 2010, ended May 2, 2009. However, since the litigation existed during the first quarter of fiscal 2010, results for the first quarter have been updated from what was previously reported on May 28, 2009 to adjust for this settlement. The impact of the settlement, recorded as general and administrative expense changes the GAAP net loss to $111.5 million, or $0.18 per share (diluted), which is a decrease of $0.12 per share (diluted) compared to what was previously reported. Marvell does not typically include one-time litigation settlements when it reports its non-GAAP results, and as a result this expense will not impact Marvell’s non-GAAP results of operations previously reported. Included with this release are updated financial tables.

This class action settlement is subject to preliminary and then, following notice to class members, final approval by the United States District Court for the Northern District of California. Final approval of this settlement and the settlement of the shareholder derivative lawsuit announced previously would mark the end of all shareholder litigation involving Marvell related to its historic stock option granting practices.

About Marvell

Marvell Technology (NASDAQ: MRVL) is a global leader in the development of storage, communications and consumer silicon solutions. Marvell’s diverse product portfolio includes switching, transceiver, communications controller, wireless, and storage solutions that power the entire communications infrastructure, including enterprise, metro, home, and storage networking. As used in this release, the term “Marvell” refers to Marvell Technology Group Ltd. and its subsidiaries. For more information visitwww.marvell.com

Marvell Technology Group Ltd.

Condensed Consolidated Statements of Operations

(Unaudited)

(In thousands, except per share amounts)

	Three Months Ended
	May 2, 2009			January 31, 2009			May 3, 2008
Net revenue	$	521,434		$	512,867		$	804,075
Cost of goods sold		257,630			252,732			388,842
Gross profit		263,804			260,135			415,233
Operating expenses:
Research and development		200,249			207,579			238,475
Selling and marketing		32,646			31,893			46,088
General and administrative		101,496			31,979			12,951
Amortization and write-off of acquired intangible assets		30,356			48,274			35,247
Restructuring		8,336			9,689			—
Total operating expenses		373,083			329,414			332,761
Operating income (loss)		(109,279	)		(69,279	)		82,472
Interest and other income (expense), net		(160	)		(440	)		(4,692	)
Income (loss) before income taxes		(109,439	)		(69,719	)		77,780
Provision (benefit) for income taxes		2,018			(4,709	)		7,841
Net income (loss)	$	(111,457	)	$	(65,010	)	$	69,939
Basic net income (loss) per share	$	(0.18	)	$	(0.11	)	$	0.12
Diluted net income (loss) per share	$	(0.18	)	$	(0.11	)	$	0.11
Shares used in computing basic earnings per share		618,677			614,960			601,222
Shares used in computing diluted earnings per share		618,677			614,960			624,351

2

Marvell Technology Group Ltd.

Condensed Consolidated Balance Sheets

(Unaudited)

(In thousands)

	May 2, 2009			January 31, 2009
Assets
Current assets:
Cash, cash equivalents, and short-term investments	$	1,083,705		$	951,909
Accounts receivable, net		285,367			222,101
Inventories		203,590			310,654
Prepaid expenses, deferred income taxes and other current assets		67,038			75,651
Total current assets		1,639,700			1,560,315
Property and equipment, net		371,229			390,853
Long-term investments		39,655			40,541
Goodwill and acquired intangible assets, net		2,253,854			2,284,164
Other non-current assets		136,773			138,327
Total assets	$	4,441,211		$	4,414,200
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable	$	166,988		$	139,028
Accrued liabilities		268,326			175,135
Income taxes payable		47,257			35,803
Deferred income		47,800			57,895
Current portion of capital lease obligations		1,824			1,787
Total current liabilities		532,195			409,648
Capital lease obligations, net of current portion		1,981			2,451
Other long-term liabilities		161,480			173,034
Total liabilities		695,656			585,133
Shareholders’ equity:
Common stock		1,238			1,233
Additional paid-in capital		4,402,167			4,372,265
Accumulated other comprehensive income (loss)		(2,680	)		(718	)
Accumulated deficit		(655,170	)		(543,713	)
Total shareholders’ equity		3,745,555			3,829,067
Total liabilities and shareholders’ equity	$	4,441,211		$	4,414,200

3

Marvell Technology Group Ltd.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(in thousands)

	Three Months Ended
	May 2, 2009			January 31, 2009			May 3, 2008
Cash flows from operating activities:
Net income (loss)	$	(111,457	)	$	(65,010	)	$	69,939
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization		25,375			27,038			28,618
Stock-based compensation		31,648			44,701			45,226
Amortization and write-off of acquired intangible assets		30,356			48,274			35,247
Fair market value adjustment to Intel inventory sold		(1,343	)		(1,196	)		(6,383	)
Unrealized loss on derivative contract		475			—			—
Deferred tax (provision) benefit		—			(17,467	)		—
Excess tax benefits from stock-based compensation		(29	)		(9	)		(169	)
Changes in assets and liabilities, net of assets acquired and liabilities assumed in acquisitions:
Restricted cash		—			—			(24,500	)
Accounts receivable		(63,266	)		175,735			(38,152	)
Inventories		106,281			31,088			55,918
Prepaid expenses and other assets		14,330			1,629			32,466
Accounts payable		30,738			(82,791	)		(63,076	)
Accrued liabilities and other		62,980			(13,016	)		(18,807	)
Accrued employee compensation		13,033			(44,615	)		16,963
Income taxes payable		1,343			11,607			6,656
Deferred income		4,065			(6,825	)		(9,753	)
Net cash provided by operating activities		144,529			109,143			130,193
Cash flows from investing activities:
Cash paid in acquisitions, net		—			(5,287	)		—
Purchases of investments		—			—			(10,126	)
Sales and maturities of short-term and long-term investments		—			—			23,793
Purchases of technology licenses		(9,300	)		(2,550	)		—
Purchases of property and equipment		(3,414	)		(13,931	)		(30,522	)
Net cash used in investing activities		(12,714	)		(21,768	)		(16,855	)
Cash flows from financing activities:
Proceeds from the issuance of common shares		385			12,192			17,054
Principal payments on capital lease and debt obligations		(433	)		(192,174	)		(2,125	)
Excess tax benefits from stock-based compensation		29			9			169
Net cash provided by (used in) financing activities		(19	)		(179,973	)		15,098
Net increase (decrease) in cash and cash equivalents		131,796			(92,598	)		128,436
Cash and cash equivalents at beginning of period		927,409			1,020,007			615,648
Cash and cash equivalents at end of period	$	1,059,205		$	927,409		$	744,084

4