SAN JOSE, Calif., April 29, 2015 /PRNewswire/ -- Cavium, Inc.
(NASDAQ: CAVM), a leading provider of semiconductor products that
enable secure and intelligent processing for enterprise, data
center, wired and wireless networking, today announced financial
results for the first quarter ended March
31, 2015.
Net revenue in the first quarter of 2015 was $101.8 million, a 1% sequential increase from the
$101.2 million reported in the fourth
quarter of 2014 and a 22% year-over-year increase from the
$83.2 million reported in the first
quarter of 2014.
Generally Accepted Accounting Principles (GAAP)
Results
Net loss attributable to the Company in the first quarter of
2015 was $13.9 million, or
$(0.25) per diluted share, compared
to $12.0 million, or $(0.22) per diluted share in the fourth quarter
of 2014. Gross margins were 64.8% in the first quarter of 2015
compared to 62.1% in the fourth quarter of 2014. Total cash and
cash equivalents were $121.0 million
at March 31, 2015.
Non-GAAP Results
Cavium believes that the presentation of non-GAAP financial
measures provides important supplemental information to management
and investors regarding financial and business trends relating to
Cavium's financial condition and results of operations. These
measures should only be used to evaluate Cavium's results of
operations in conjunction with the corresponding GAAP measures. The
reconciliation between GAAP and non-GAAP financial results is
provided in the financial statements portion of this release.
In the first quarter of 2015, Non-GAAP net income was
$23.7 million, or $0.40 per diluted share. Non-GAAP gross margin
was 65.9% and Non-GAAP operating margin (non-GAAP income from
operations as a percentage of revenue) was 22.9%.
Recent News Highlights
- April 27, 2015 - Cavium's
48 Core Workload-Optimized ThunderX_NT™ Processors Enables New
Generation of Accelerated NFV, Edge and Core Networking
Applications
- April 27, 2015 - Cavium
Partners with Quantenna and Aquantia to Deliver Fully Secure High
Performance 802.11AC MU-MIMO WLAN Access Point Reference
Design
- April 27, 2015 - Cavium
Delivers Optimized OpenWRT on OCTEON® III to Accelerate Retail/SMB
Router Time to Market
- April 20, 2015 - Cavium
Introduced LiquidSecurity™
- April 20, 2015 - Cavium
Partners with F5 Networks for LiquidSecurity™ Hardware Security
Module Family Integration
- April 20, 2015 - Cavium
Announced Collaboration with A10 Networks, KEMP Technologies and
ExtraHop for LiquidSecurity™ Hardware Security Module Family
- April 20, 2015 - Cavium's
48 Core Workload Optimized ThunderX™ SC Processors Enables Next
Generation Fully Secure Data Centers
- March 16, 2015 - E4
Computer Engineering Announced ThunderX™ Based ARKA™ Platform for
Specific Workloads in HPC, Cloud and Big Data Applications
- March 16, 2015 - Cavium
Added Support for NVIDIA GPU Accelerators in 64-bit ARMv8-A
ThunderX™ Processor Family
- March 10, 2015 -
StackVelocity and Cavium Partnered to Bring Advanced ARM Processor
Efficiency to Open Compute Project
- March 10, 2015 - Hyve
Solutions and Cavium Collaborates to Deliver 64-bit ARM-based
Server Solutions
- March 10, 2015 - Cavium's
XPliant™ Ethernet Switch Supports the Emerging Open Ecosystems
- March 2, 2015 - Cavium
Introduced OCTEON Fusion-M™
- March 2, 2015 - Cavium
Broke 100Gbps IPsec Throughput Barrier using
OpenDataPlane™ at Mobile World Congress 2015
- February 26, 2015 - Cavium
and ARM Demonstrated Comprehensive Cloud RAN Application on 48 Core
64-bit ARMv8-A ThunderX™ SoC Processor at Mobile World Congress
2015
- February 24, 2015 - Qosmos
Showcased Intelligent Service Chaining in a Virtualized Environment
Running on Cavium's LiquidIO® Adapter
Cavium, Inc. will broadcast its first quarter of 2015 financial
results conference call today, April 29,
2015, at 2 p.m. Pacific time
(5 p.m. Eastern time). The
conference call will be available via a live web cast on the
investor relations section of the Cavium website at
http://www.cavium.com. Please access the website at least a
few minutes prior to the start of the call in order to download and
install any necessary audio software. An archived web cast replay
of the call will be available on the web site for a limited period
of time.
About Cavium
Cavium is a leading provider of highly integrated semiconductor
products that enable intelligent processing in enterprise, data
center, cloud and wired and wireless service provider applications.
Cavium offers a broad portfolio of integrated, software-compatible
processors ranging in performance from 100 Mbps to 100 Gbps that
enable secure, intelligent functionality in enterprise,
data-center, broadband/consumer and access and service provider
equipment. Cavium's processors are supported by ecosystem partners
that provide operating systems, tool support, reference designs and
other services. Cavium's principal office is in San Jose, CA with design team locations in
California, Massachusetts, India and China. For more information, please visit:
http://www.cavium.com.
|
CAVIUM,
INC.
|
|
|
Unaudited GAAP
Condensed Consolidated Statements of Operations
|
|
|
(in thousands,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March 31,
2015
|
|
|
December 31,
2014
|
|
|
Net
revenue
|
$
|
101,778
|
|
|
$
|
101,223
|
|
|
Cost of
revenue
|
|
35,799
|
|
|
|
38,402
|
|
|
Gross
profit
|
|
65,979
|
|
|
|
62,821
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Research and
development
|
|
58,422
|
|
|
|
55,108
|
|
|
Sales, general and
administrative
|
|
20,671
|
|
|
|
19,314
|
|
|
Total
operating expenses
|
|
79,093
|
|
|
|
74,422
|
|
|
Loss from
operations
|
|
(13,114)
|
|
|
|
(11,601)
|
|
|
Other expense,
net:
|
|
|
|
|
|
|
|
|
Interest expense
|
|
(410)
|
|
|
|
(293)
|
|
|
Other, net
|
|
(66)
|
|
|
|
(313)
|
|
|
Total other expense,
net
|
|
(476)
|
|
|
|
(606)
|
|
|
Loss before income
taxes
|
|
(13,590)
|
|
|
|
(12,207)
|
|
|
Provision for income
taxes
|
|
301
|
|
|
|
268
|
|
|
Net loss
|
|
(13,891)
|
|
|
|
(12,475)
|
|
|
Net loss attributable
to non-controlling interest
|
|
-
|
|
|
|
(444)
|
|
|
Net loss attributable
to the Company
|
$
|
(13,891)
|
|
|
$
|
(12,031)
|
|
|
Net loss attributable
to the Company per common share, basic and diluted
|
$
|
(0.25)
|
|
|
$
|
(0.22)
|
|
|
Shares used in
computing basic and diluted net loss per common share
|
|
54,882
|
|
|
|
54,249
|
|
|
CAVIUM,
INC.
|
|
|
Unaudited
Reconciliation of Non-GAAP Adjustments
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March 31,
2015
|
|
|
December 31,
2014
|
|
|
Reconciliation of
GAAP research and development expenses to non-GAAP:
|
|
|
|
|
|
|
|
|
GAAP research and
development expenses
|
$
|
58,422
|
|
|
$
|
55,108
|
|
|
Stock-based
compensation and related payroll taxes
|
|
(7,823)
|
|
|
|
(16,128)
|
|
|
Net restructuring
related expenses
|
|
(254)
|
|
|
|
(617)
|
|
|
Research and
development expenses associated with Xpliant
|
|
(20,142)
|
|
|
|
(8,769)
|
|
|
Non-GAAP research and
development expenses
|
$
|
30,203
|
|
|
$
|
29,594
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
GAAP sales, general and administrative expenses to
non-GAAP:
|
|
|
|
|
|
|
|
|
GAAP sales, general
and administrative expenses
|
$
|
20,671
|
|
|
$
|
19,314
|
|
|
Stock-based
compensation and related payroll taxes
|
|
(5,138)
|
|
|
|
(5,969)
|
|
|
Amortization of
acquired intangible assets
|
|
(11)
|
|
|
|
(33)
|
|
|
Net restructuring
related expenses
|
|
(68)
|
|
|
|
(27)
|
|
|
Sales, general and
administrative expenses associated with Xpliant
|
|
(1,979)
|
|
|
|
(1,017)
|
|
|
Non-GAAP sales,
general and administrative expenses
|
$
|
13,475
|
|
|
$
|
12,268
|
|
|
Total Non-GAAP
operating expenses
|
$
|
43,678
|
|
|
$
|
41,862
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
GAAP non-operating expenses to non-GAAP non-operating
income:
|
|
|
|
|
|
|
|
|
GAAP non-operating
expenses
|
$
|
(476)
|
|
|
$
|
(606)
|
|
|
Non-operating expenses
associated with Xpliant
|
|
1,124
|
|
|
|
905
|
|
|
Total Non-GAAP
non-operating income
|
$
|
648
|
|
|
$
|
299
|
|
|
CAVIUM,
INC.
|
|
|
Unaudited
Reconciliation of Non-GAAP Adjustments
|
|
|
(in thousands,
except per share data and percentages)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March 31,
2015
|
|
|
December 31,
2014
|
|
|
Reconciliation of
GAAP gross profit & margin to non-GAAP:
|
|
|
|
|
|
|
|
|
Net
revenue
|
$
|
101,778
|
|
|
$
|
101,223
|
|
|
GAAP gross
profit
|
|
65,979
|
|
|
|
62,821
|
|
|
GAAP gross
margin
|
|
64.8
|
%
|
|
|
62.1
|
%
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation and related payroll taxes
|
|
213
|
|
|
|
237
|
|
|
Amortization of
acquired intangible assets
|
|
795
|
|
|
|
1,252
|
|
|
Net restructuring
related expenses
|
|
42
|
|
|
|
2,002
|
|
|
Non-GAAP gross
profit
|
$
|
67,029
|
|
|
$
|
66,312
|
|
|
Non-GAAP gross
margin
|
|
65.9
|
%
|
|
|
65.5
|
%
|
|
|
|
|
|
|
|
|
|
Reconciliation of
GAAP loss from operations to non-GAAP income from
operations:
|
|
|
|
|
|
|
|
|
GAAP loss from
operations
|
$
|
(13,114)
|
|
|
$
|
(11,601)
|
|
|
Stock-based
compensation and related payroll taxes
|
|
13,174
|
|
|
|
22,334
|
|
|
Amortization of
acquired intangible assets
|
|
806
|
|
|
|
1,285
|
|
|
Net restructuring
related expenses
|
|
364
|
|
|
|
2,646
|
|
|
Loss from operations
of Xpliant
|
|
22,121
|
|
|
|
9,786
|
|
|
Non-GAAP income from
operations
|
$
|
23,351
|
|
|
$
|
24,450
|
|
|
Non-GAAP income from
operations as a percentage of revenue
|
|
22.9
|
%
|
|
|
24.2
|
%
|
|
|
|
|
|
|
|
|
|
Reconciliation of
GAAP loss to non-GAAP net income:
|
|
|
|
|
|
|
|
|
GAAP net loss
attributable to the Company
|
$
|
(13,891)
|
|
|
$
|
(12,031)
|
|
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
|
Stock-based
compensation and related payroll taxes
|
|
13,174
|
|
|
|
22,334
|
|
|
Amortization of
acquired intangible assets
|
|
806
|
|
|
|
1,285
|
|
|
Net restructuring
related expenses
|
|
364
|
|
|
|
2,646
|
|
|
Loss from operations
and non-operating expenses of Xpliant
|
|
23,245
|
|
|
|
10,247
|
|
|
Total of non-GAAP
adjustments
|
|
37,589
|
|
|
|
36,512
|
|
|
Non-GAAP net
income
|
$
|
23,698
|
|
|
$
|
24,481
|
|
|
|
|
|
|
|
|
|
|
GAAP net loss
attributable to the Company per share, diluted
|
$
|
(0.25)
|
|
|
$
|
(0.22)
|
|
|
Non-GAAP adjustments
detailed above
|
|
0.65
|
|
|
|
0.64
|
|
|
Non-GAAP net income
attributable to the Company per share, diluted
|
$
|
0.40
|
|
|
$
|
0.42
|
|
|
|
|
|
|
|
|
|
|
GAAP weighted average
shares, diluted
|
|
54,882
|
|
|
|
54,249
|
|
|
Non-GAAP share
adjustment
|
|
4,286
|
|
|
|
4,089
|
|
|
Non-GAAP weighted
average shares, diluted
|
|
59,168
|
|
|
|
58,338
|
|
|
|
|
CAVIUM,
INC.
|
|
|
Unaudited GAAP
Condensed Consolidated Balance Sheets
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
As
of
March 31,
2015
|
|
|
As
of
December 31,
2014
|
|
|
Assets
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
121,025
|
|
|
$
|
131,718
|
|
|
Accounts receivable,
net
|
|
56,817
|
|
|
|
48,199
|
|
|
Inventories
|
|
52,312
|
|
|
|
51,922
|
|
|
Prepaid expenses and
other current assets
|
|
8,944
|
|
|
|
9,130
|
|
|
Total current
assets
|
|
239,098
|
|
|
|
240,969
|
|
|
Property and
equipment, net
|
|
58,828
|
|
|
|
56,963
|
|
|
Intangible assets,
net
|
|
37,532
|
|
|
|
37,644
|
|
|
Goodwill
|
|
71,478
|
|
|
|
71,478
|
|
|
Other
assets
|
|
1,935
|
|
|
|
1,806
|
|
|
Total
assets
|
$
|
408,871
|
|
|
$
|
408,860
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
Accounts
payable
|
$
|
25,100
|
|
|
$
|
26,447
|
|
|
Other accrued expenses
and other current liabilities
|
|
15,945
|
|
|
|
7,782
|
|
|
Deferred
revenue
|
|
6,047
|
|
|
|
6,285
|
|
|
Capital lease and
technology license obligations
|
|
16,324
|
|
|
|
23,002
|
|
|
Total current
liabilities
|
|
63,416
|
|
|
|
63,516
|
|
|
Capital lease and
technology license obligations, net of current
|
|
20,788
|
|
|
|
22,894
|
|
|
Deferred tax
liability
|
|
2,997
|
|
|
|
2,836
|
|
|
Other non-current
liabilities
|
|
2,819
|
|
|
|
2,931
|
|
|
Total
liabilities
|
|
90,020
|
|
|
|
92,177
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity
|
|
|
|
|
|
|
|
|
Common
stock
|
|
55
|
|
|
|
54
|
|
|
Additional paid-in
capital
|
|
505,039
|
|
|
|
488,981
|
|
|
Accumulated
deficit
|
|
(186,243)
|
|
|
|
(172,352)
|
|
|
Total stockholders'
equity
|
|
318,851
|
|
|
|
316,683
|
|
|
Total liabilities and
stockholders' equity
|
$
|
408,871
|
|
|
$
|
408,860
|
|
Logo -
http://photos.prnewswire.com/prnh/20120604/LA18845LOGO
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/cavium-announces-financial-results-for-q1-2015-300074449.html
SOURCE Cavium, Inc.