SAN JOSE, Calif., July 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 second quarter ended June
30, 2015.
Net revenue in the second quarter of 2015 was $105.0 million, a 3.1% sequential increase from
the $101.8 million reported in the
first quarter of 2015 and a 15.8% year-over-year increase from the
$90.7 million reported in the second
quarter of 2014.
Generally Accepted Accounting Principles (GAAP)
Results
Net loss in the second quarter of 2015 was $6.4 million, or $(0.11) per diluted share, compared to
$13.9 million, or $(0.25) per diluted share in the first quarter of
2015. Gross margins were 64.1% in the second quarter of 2015
compared to 64.8% in the first quarter of 2015. Total cash and cash
equivalents were $122.0 million at
June 30, 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 second quarter of 2015, Non-GAAP net income was
$24.2 million, or $0.41 per diluted share. Non-GAAP gross margin
was 66.8% and Non-GAAP operating margin (non-GAAP income from
operations as a percentage of revenue) was 23.0%.
Recent News Highlights
- July 22, 2015 -
Cavium Unveiled the 100 Gbps NITROX® V Security Processor
Family
- July 13, 2015 - Cavium and
Leading Partners Showcased Advanced ThunderX™ ARM-based Server
Platforms and Software for High Performance Computing at ISC
2015
- July 13, 2015 - Cavium
Announced Beta Support for PathScale EKOPath Compiler and Optimized
Math Libraries on ThunderX™ Processor Family
- July 13, 2015 - Cavium
Unveiled Flash Support for the Cavium ThunderX™ Processor
Family
- July 13, 2015 - Cavium
Added Support for Mellanox InfiniBand Adapters for ThunderX™
Processor Family
- July 13, 2015 - Mont-Blanc
HPC software stack tested on E4's HPC platform based on ARM64
Cavium ThunderX processor
- June 16, 2015 - Cavium
Crowned Winner of SDN Idol 2015 at Open Networking Summit 2015
- June 16, 2015 - Cavium
Unleashed the Power of SDN through OpenFlow at ONS 2015
- June 10, 2015 Cavium
Announced New Low Power 16-core OCTEON® III SoC Processors for Next
Generation Enterprise, Data Center and Service Provider
Infrastructure
- June 10, 2015 - 64-bit
MIPS architecture provides low-power, high-throughput processing
for Cavium's new OCTEON® III processors
- June 10, 2015 - Green
Hills Software Announced INTEGRITY® RTOS Multicore Support for
OCTEON® III Family of SoC from Cavium
- June 6, 2015 - Qulsar's
Processors Managed Timing Engine Enhances Timing Synchronization in
Cavium Small Cell Basestation Designs
- June 1, 2015 - Cavium and
Leading Partners Showcased Best-in-Class Product Solutions across
Cloud, Data Center and Enterprise at Computex 2015
- June 1, 2015 - Cavium
Announced Collaboration with Pegatron on Server Platforms based on
Cavium's ThunderX™ Workload Optimized Processor Family
- June 1, 2015 - Leading
Network Solution Providers and ODMs Partner with Cavium to Bring to
Market Multiple Hardware Ethernet Switch Platforms
- June 1, 2015 - Cavium
OCTEON® III Expands Footprint to Industrial, Military and Aerospace
Applications by Offering Standard Computer-On-Module Form
Factors
- May 18, 2015 - Cavium
Partners with Canonical to Demonstrate Optimized Cloud
Infrastructure with OpenStack at Scale on ThunderX™
- May 14, 2015 - QLogic and
Cavium Collaborates to Deliver Accelerated Performance for
Enterprise and Cloud Storage Applications
Cavium, Inc. will broadcast its second quarter of 2015 financial
results conference call today, July 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
|
|
June 30,
2015
|
|
|
March 31,
2015
|
|
Net
revenue
|
$
|
104,961
|
|
|
$
|
101,778
|
|
Cost of
revenue
|
|
37,673
|
|
|
|
35,799
|
|
Gross
profit
|
|
67,288
|
|
|
|
65,979
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development
|
|
52,225
|
|
|
|
58,422
|
|
Sales, general and
administrative
|
|
20,336
|
|
|
|
20,671
|
|
Total
operating expenses
|
|
72,561
|
|
|
|
79,093
|
|
Loss from
operations
|
|
(5,273)
|
|
|
|
(13,114)
|
|
Other expense,
net:
|
|
|
|
|
|
|
|
Interest expense
|
|
(388)
|
|
|
|
(410)
|
|
Other, net
|
|
(33)
|
|
|
|
(66)
|
|
Total other expense,
net
|
|
(421)
|
|
|
|
(476)
|
|
Loss before income
taxes
|
|
(5,694)
|
|
|
|
(13,590)
|
|
Provision for income
taxes
|
|
661
|
|
|
|
301
|
|
Net loss
|
|
(6,355)
|
|
|
|
(13,891)
|
|
Net loss per common
share, basic and diluted
|
$
|
(0.11)
|
|
|
$
|
(0.25)
|
|
Shares used in
computing basic and diluted net loss per common share
|
|
55,507
|
|
|
|
54,882
|
|
CAVIUM,
INC.
|
|
Unaudited
Reconciliation of Non-GAAP Adjustments
|
|
(in
thousands)
|
|
|
Three Months
Ended
|
|
June 30,
2015
|
|
|
March 31,
2015
|
|
Reconciliation of
GAAP operating expenses to non-GAAP:
|
|
|
|
|
|
|
|
GAAP research and
development expenses
|
$
|
52,225
|
|
|
$
|
58,422
|
|
Stock-based
compensation and related payroll taxes
|
|
(7,896)
|
|
|
|
(7,823)
|
|
Amortization of
acquisition related assets
|
|
(2,932)
|
|
|
|
-
|
|
Net restructuring
related expenses
|
|
-
|
|
|
|
(254)
|
|
Research and
development expenses associated with Xpliant
|
|
(8,845)
|
|
|
|
(20,142)
|
|
Non-GAAP research and
development expenses
|
$
|
32,552
|
|
|
$
|
30,203
|
|
|
|
|
|
|
|
|
GAAP sales, general
and administrative expenses
|
$
|
20,336
|
|
|
$
|
20,671
|
|
Stock-based
compensation and related payroll taxes
|
|
(4,429)
|
|
|
|
(5,138)
|
|
Amortization of
acquisition related assets
|
|
(11)
|
|
|
|
(11)
|
|
Net restructuring
related expenses
|
|
-
|
|
|
|
(68)
|
|
Sales, general and
administrative expenses associated with Xpliant
|
|
(2,554)
|
|
|
|
(1,979)
|
|
Non-GAAP sales,
general and administrative expenses
|
$
|
13,342
|
|
|
$
|
13,475
|
|
Total Non-GAAP
operating expenses
|
$
|
45,894
|
|
|
$
|
43,678
|
|
|
|
|
|
|
|
|
Reconciliation of
GAAP non-operating expenses to non-GAAP non-operating
income:
|
|
|
|
|
|
|
|
GAAP non-operating
expenses
|
$
|
(421)
|
|
|
$
|
(476)
|
|
Non-operating expenses
associated with Xpliant
|
|
1,144
|
|
|
|
1,124
|
|
Total Non-GAAP
non-operating income
|
$
|
723
|
|
|
$
|
648
|
|
CAVIUM,
INC.
|
|
Unaudited
Reconciliation of Non-GAAP Adjustments
|
|
(in thousands,
except per share data and percentages)
|
|
|
Three Months
Ended
|
|
|
June 30,
2015
|
|
|
March 31,
2015
|
|
|
Reconciliation of
GAAP gross profit & margin to non-GAAP:
|
|
|
|
|
|
|
|
|
Net
revenue
|
$
|
104,961
|
|
|
$
|
101,778
|
|
|
GAAP gross
profit
|
|
67,288
|
|
|
|
65,979
|
|
|
GAAP gross
margin
|
|
64.1
|
%
|
|
|
64.8
|
%
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation and related payroll taxes
|
|
212
|
|
|
|
213
|
|
|
Amortization of
acquisition related assets
|
|
157
|
|
|
|
795
|
|
|
Discontinued
mask
|
|
2,420
|
|
|
|
-
|
|
|
Net restructuring
related expenses
|
|
-
|
|
|
|
42
|
|
|
Non-GAAP gross
profit
|
$
|
70,077
|
|
|
$
|
67,029
|
|
|
Non-GAAP gross
margin
|
|
66.8
|
%
|
|
|
65.9
|
%
|
|
|
|
|
|
|
|
|
|
Reconciliation of
GAAP loss from operations to non-GAAP income from
operations:
|
|
|
|
|
|
|
|
|
GAAP loss from
operations
|
$
|
(5,273)
|
|
|
$
|
(13,114)
|
|
|
Stock-based
compensation and related payroll taxes
|
|
12,537
|
|
|
|
13,174
|
|
|
Amortization of
acquisition related assets
|
|
3,100
|
|
|
|
806
|
|
|
Discontinued
mask
|
|
2,420
|
|
|
|
-
|
|
|
Net restructuring
related expenses
|
|
-
|
|
|
|
364
|
|
|
Loss from operations
of Xpliant
|
|
11,399
|
|
|
|
22,121
|
|
|
Non-GAAP income from
operations
|
$
|
24,183
|
|
|
$
|
23,351
|
|
|
Non-GAAP income from
operations as a percentage of revenue
|
|
23.0
|
%
|
|
|
22.9
|
%
|
|
|
|
|
|
|
|
|
|
Reconciliation of
GAAP loss to non-GAAP net income:
|
|
|
|
|
|
|
|
|
GAAP net
loss
|
$
|
(6,355)
|
|
|
$
|
(13,891)
|
|
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
|
Stock-based
compensation and related payroll taxes
|
|
12,537
|
|
|
|
13,174
|
|
|
Amortization of
acquisition related assets
|
|
3,100
|
|
|
|
806
|
|
|
Discontinued
mask
|
|
2,420
|
|
|
|
-
|
|
|
Net restructuring
related expenses and other charges
|
|
-
|
|
|
|
364
|
|
|
Loss from operations
and non-operating expenses of Xpliant
|
|
12,543
|
|
|
|
23,245
|
|
|
Total of non-GAAP
adjustments
|
|
30,600
|
|
|
|
37,589
|
|
|
Non-GAAP net
income
|
$
|
24,245
|
|
|
$
|
23,698
|
|
|
|
|
|
|
|
|
|
|
GAAP net loss per
share, diluted
|
$
|
(0.11)
|
|
|
$
|
(0.25)
|
|
|
Non-GAAP adjustments
detailed above
|
|
0.52
|
|
|
|
0.65
|
|
|
Non-GAAP net income
per share, diluted
|
$
|
0.41
|
|
|
$
|
0.40
|
|
|
|
|
|
|
|
|
|
|
GAAP weighted average
shares, diluted
|
|
55,507
|
|
|
|
54,882
|
|
|
Non-GAAP share
adjustment
|
|
4,114
|
|
|
|
4,286
|
|
|
Non-GAAP weighted
average shares, diluted
|
|
59,621
|
|
|
|
59,168
|
|
|
CAVIUM,
INC.
|
|
Unaudited GAAP
Condensed Consolidated Balance Sheets
|
|
(in
thousands)
|
|
|
As of
June 30, 2015
|
|
|
As of
March 31, 2015
|
|
Assets
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
121,984
|
|
|
$
|
121,025
|
|
Accounts receivable,
net
|
|
67,165
|
|
|
|
56,817
|
|
Inventories
|
|
50,403
|
|
|
|
52,312
|
|
Prepaid expenses and
other current assets
|
|
9,312
|
|
|
|
8,944
|
|
Total current
assets
|
|
248,864
|
|
|
|
239,098
|
|
Property and
equipment, net
|
|
60,235
|
|
|
|
58,828
|
|
Intangible assets,
net
|
|
37,023
|
|
|
|
37,532
|
|
Goodwill
|
|
71,478
|
|
|
|
71,478
|
|
Other
assets
|
|
1,952
|
|
|
|
1,935
|
|
Total
assets
|
$
|
419,552
|
|
|
$
|
408,871
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
Accounts
payable
|
$
|
32,702
|
|
|
$
|
25,100
|
|
Other accrued expenses
and other current liabilities
|
|
14,950
|
|
|
|
15,945
|
|
Deferred
revenue
|
|
7,273
|
|
|
|
6,047
|
|
Capital lease and
technology license obligations
|
|
18,383
|
|
|
|
16,324
|
|
Total current
liabilities
|
|
73,308
|
|
|
|
63,416
|
|
Capital lease and
technology license obligations, net of current
|
|
15,981
|
|
|
|
20,788
|
|
Deferred tax
liability
|
|
3,159
|
|
|
|
2,997
|
|
Other non-current
liabilities
|
|
2,970
|
|
|
|
2,819
|
|
Total
liabilities
|
|
95,418
|
|
|
|
90,020
|
|
|
|
|
|
|
|
|
Stockholders'
equity
|
|
|
|
|
|
|
|
Common
stock
|
|
56
|
|
|
|
55
|
|
Additional paid-in
capital
|
|
516,676
|
|
|
|
505,039
|
|
Accumulated
deficit
|
|
(192,598)
|
|
|
|
(186,243)
|
|
Total stockholders'
equity
|
|
324,134
|
|
|
|
318,851
|
|
Total liabilities and
stockholders' equity
|
$
|
419,552
|
|
|
$
|
408,871
|
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SOURCE Cavium, Inc.