SAN JOSE, Calif., Oct. 28, 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 third quarter ended September 30, 2015.
Net revenue in the third quarter of 2015 was $105.1 million, a 0.1% sequential increase from
the $105.0 million reported in the
second quarter of 2015 and a 7.4% year-over-year increase from the
$97.8 million reported in the third
quarter of 2014.
Generally Accepted Accounting Principles (GAAP)
Results
Net income in the third quarter of 2015 was $4.2 million, or $0.07 per diluted share, compared to net loss of
$6.4 million, or $(0.11) per diluted share in the second quarter
of 2015. Gross margins were 65.5% in the third quarter of 2015
compared to 64.1% in the second quarter of 2015. Total cash and
cash equivalents were $131.0 million
at September 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 third quarter of 2015, Non-GAAP net income was
$22.5 million, or $0.38 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 21.8%.
Recent News Highlights
- October 26, 2015 - Cavium
to Demonstrate Solutions for Cloud Infrastructure and Scale-Out
Applications at OpenStack Summit Tokyo
- October 10, 2015 -
Accton Technology Contributes Design of 100 Gigabit Ethernet Switch
to Open Compute Project – the First OCP Design Based on Cavium
XPliant Switch ASIC
- September 24, 2015 -
Cavium Demonstrated Cloud Workload Instances at OVH Summit
2015
- September 9, 2015 - Cavium
and Quantenna to Delivers Industry-Leading 10G Wave 3 Wi-Fi
Solutions for Campus and Home WLAN Networks
- August 19, 2015 -
Cavium XPliant Switches and Microsoft Azure Networking Achieved SAI
Routing Interoperability
Cavium, Inc. will broadcast its third quarter of 2015 financial
results conference call today, October 28,
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
|
|
|
September 30,
2015
|
|
|
June 30,
2015
|
|
|
Net
revenue
|
$
|
105,063
|
|
|
$
|
104,961
|
|
|
Cost of
revenue
|
|
36,203
|
|
|
|
37,673
|
|
|
Gross
profit
|
|
68,860
|
|
|
|
67,288
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Research and
development
|
|
45,367
|
|
|
|
52,225
|
|
|
Sales, general and
administrative
|
|
18,522
|
|
|
|
20,336
|
|
|
Total
operating expenses
|
|
63,889
|
|
|
|
72,561
|
|
|
Income (loss) from
operations
|
|
4,971
|
|
|
|
(5,273)
|
|
|
Other expense,
net:
|
|
|
|
|
|
|
|
|
Interest expense
|
|
(216)
|
|
|
|
(388)
|
|
|
Other, net
|
|
(173)
|
|
|
|
(33)
|
|
|
Total other expense,
net
|
|
(389)
|
|
|
|
(421)
|
|
|
Income (loss) before income
taxes
|
|
4,582
|
|
|
|
(5,694)
|
|
|
Provision for income
taxes
|
|
366
|
|
|
|
661
|
|
|
Net income
(loss)
|
$
|
4,216
|
|
|
$
|
(6,355)
|
|
|
Net income (loss) per
common share, basic
|
$
|
0.08
|
|
|
$
|
(0.11)
|
|
|
Shares used in
computing basic net income (loss) per common share
|
|
55,819
|
|
|
|
55,507
|
|
|
Net income (loss) per
common share, diluted
|
$
|
0.07
|
|
|
$
|
(0.11)
|
|
|
Shares used in
computing diluted net income (loss) per common share
|
|
57,457
|
|
|
|
55,507
|
|
|
CAVIUM,
INC.
|
|
Unaudited
Reconciliation of Non-GAAP Adjustments
|
|
(in
thousands)
|
|
|
Three Months
Ended
|
|
|
September 30,
2015
|
|
|
June 30,
2015
|
|
|
Reconciliation of
GAAP operating expenses to non-GAAP:
|
|
|
|
|
|
|
|
|
GAAP research and
development expenses
|
$
|
45,367
|
|
|
$
|
52,225
|
|
|
Stock-based
compensation and related payroll taxes
|
|
(7,766)
|
|
|
|
(7,896)
|
|
|
Amortization of
acquisition related assets
|
|
(3,471)
|
|
|
|
(2,932)
|
|
|
Net restructuring
related expenses
|
|
(140)
|
|
|
|
-
|
|
|
Xpliant transition
related expenses
|
|
(971)
|
|
|
|
-
|
|
|
Research and
development expenses associated with Xpliant
|
|
-
|
|
|
|
(8,845)
|
|
|
Non-GAAP research and
development expenses
|
$
|
33,019
|
|
|
$
|
32,552
|
|
|
|
|
|
|
|
|
|
|
GAAP sales, general
and administrative expenses
|
$
|
18,522
|
|
|
$
|
20,336
|
|
|
Stock-based
compensation and related payroll taxes
|
|
(4,946)
|
|
|
|
(4,429)
|
|
|
Amortization of
acquisition related assets
|
|
(4)
|
|
|
|
(11)
|
|
|
Net restructuring
related expenses
|
|
(255)
|
|
|
|
-
|
|
|
Sales, general and
administrative expenses associated with Xpliant
|
|
-
|
|
|
|
(2,554)
|
|
|
Non-GAAP sales,
general and administrative expenses
|
$
|
13,317
|
|
|
$
|
13,342
|
|
|
Total Non-GAAP
operating expenses
|
$
|
46,336
|
|
|
$
|
45,894
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
GAAP non-operating expenses to non-GAAP non-operating income
(expense):
|
|
|
|
|
|
|
|
|
GAAP non-operating
expenses
|
$
|
(389)
|
|
|
$
|
(421)
|
|
|
Non-operating expenses
associated with Xpliant
|
|
354
|
|
|
|
1,144
|
|
|
Total Non-GAAP
non-operating income (expense)
|
$
|
(35)
|
|
|
$
|
723
|
|
|
CAVIUM,
INC.
|
|
Unaudited
Reconciliation of Non-GAAP Adjustments
|
|
(in thousands,
except per share data and percentages)
|
|
|
Three Months
Ended
|
|
|
September 30,
2015
|
|
|
June 30,
2015
|
|
|
Reconciliation of
GAAP gross profit & margin to non-GAAP:
|
|
|
|
|
|
|
|
|
Net
revenue
|
$
|
105,063
|
|
|
$
|
104,961
|
|
|
GAAP gross
profit
|
|
68,860
|
|
|
|
67,288
|
|
|
GAAP gross
margin
|
|
65.5
|
%
|
|
|
64.1
|
%
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation and related payroll taxes
|
|
211
|
|
|
|
212
|
|
|
Amortization of
acquisition related assets
|
|
157
|
|
|
|
157
|
|
|
Discontinued
mask
|
|
-
|
|
|
|
2,420
|
|
|
Non-GAAP gross
profit
|
$
|
69,228
|
|
|
$
|
70,077
|
|
|
Non-GAAP gross
margin
|
|
65.9
|
%
|
|
|
66.8
|
%
|
|
|
|
|
|
|
|
|
|
Reconciliation of
GAAP income (loss) from operations to non-GAAP income from
operations:
|
|
|
|
|
|
|
|
|
GAAP income (loss)
from operations
|
$
|
4,971
|
|
|
$
|
(5,273)
|
|
|
Stock-based
compensation and related payroll taxes
|
|
12,923
|
|
|
|
12,537
|
|
|
Amortization of
acquisition related assets
|
|
3,632
|
|
|
|
3,100
|
|
|
Discontinued
mask
|
|
-
|
|
|
|
2,420
|
|
|
Net restructuring
related expenses
|
|
395
|
|
|
|
-
|
|
|
Xpliant transition
related expenses
|
|
971
|
|
|
|
-
|
|
|
Operating expenses
associated with Xpliant
|
|
-
|
|
|
|
11,399
|
|
|
Non-GAAP income from
operations
|
$
|
22,892
|
|
|
$
|
24,183
|
|
|
Non-GAAP income from
operations as a percentage of revenue
|
|
21.8
|
%
|
|
|
23.0
|
%
|
|
|
|
|
|
|
|
|
|
Reconciliation of
GAAP income (loss) to non-GAAP net income:
|
|
|
|
|
|
|
|
|
GAAP net income
(loss)
|
$
|
4,216
|
|
|
$
|
(6,355)
|
|
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
|
Stock-based
compensation and related payroll taxes
|
|
12,923
|
|
|
|
12,537
|
|
|
Amortization of
acquisition related assets
|
|
3,632
|
|
|
|
3,100
|
|
|
Discontinued
mask
|
|
-
|
|
|
|
2,420
|
|
|
Net restructuring
related expenses
|
|
395
|
|
|
|
-
|
|
|
Xpliant transition
related expenses
|
|
971
|
|
|
|
-
|
|
|
Operating expenses
associated with Xpliant
|
|
-
|
|
|
|
11,399
|
|
|
Non-operating expenses
associated with Xpliant
|
|
354
|
|
|
|
1,144
|
|
|
Total of non-GAAP
adjustments
|
|
18,275
|
|
|
|
30,600
|
|
|
Non-GAAP net
income
|
$
|
22,491
|
|
|
$
|
24,245
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
(loss) per share, diluted
|
$
|
0.07
|
|
|
$
|
(0.11)
|
|
|
Non-GAAP adjustments
detailed above
|
|
0.31
|
|
|
|
0.52
|
|
|
Non-GAAP net income
per share, diluted
|
$
|
0.38
|
|
|
$
|
0.41
|
|
|
|
|
|
|
|
|
|
|
GAAP weighted average
shares, diluted
|
|
57,457
|
|
|
|
55,507
|
|
|
Non-GAAP share
adjustment
|
|
2,201
|
|
|
|
4,114
|
|
|
Non-GAAP weighted
average shares, diluted
|
|
59,658
|
|
|
|
59,621
|
|
|
CAVIUM,
INC.
|
|
Unaudited GAAP
Condensed Consolidated Balance Sheets
|
|
(in
thousands)
|
|
|
As
of
September 30,
2015
|
|
|
As
of
June 30,
2015
|
|
|
Assets
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
130,985
|
|
|
$
|
121,984
|
|
|
Accounts receivable,
net
|
|
61,696
|
|
|
|
67,165
|
|
|
Inventories
|
|
47,645
|
|
|
|
50,403
|
|
|
Prepaid expenses and
other current assets
|
|
9,512
|
|
|
|
9,312
|
|
|
Total current
assets
|
|
249,838
|
|
|
|
248,864
|
|
|
Property and
equipment, net
|
|
64,414
|
|
|
|
60,235
|
|
|
Intangible assets,
net
|
|
36,954
|
|
|
|
37,023
|
|
|
Goodwill
|
|
71,478
|
|
|
|
71,478
|
|
|
Other
assets
|
|
2,019
|
|
|
|
1,952
|
|
|
Total
assets
|
$
|
424,703
|
|
|
$
|
419,552
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
Accounts
payable
|
$
|
25,338
|
|
|
$
|
32,702
|
|
|
Other accrued expenses
and other current liabilities
|
|
12,095
|
|
|
|
14,950
|
|
|
Deferred
revenue
|
|
6,519
|
|
|
|
7,273
|
|
|
Capital lease and
technology license obligations
|
|
17,004
|
|
|
|
18,383
|
|
|
Total current
liabilities
|
|
60,956
|
|
|
|
73,308
|
|
|
Capital lease and
technology license obligations, net of current
|
|
16,092
|
|
|
|
15,981
|
|
|
Deferred tax
liability
|
|
3,320
|
|
|
|
3,159
|
|
|
Other non-current
liabilities
|
|
2,849
|
|
|
|
2,970
|
|
|
Total
liabilities
|
|
83,217
|
|
|
|
95,418
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity
|
|
|
|
|
|
|
|
|
Common
stock
|
|
56
|
|
|
|
56
|
|
|
Additional paid-in
capital
|
|
529,812
|
|
|
|
516,676
|
|
|
Accumulated
deficit
|
|
(188,382)
|
|
|
|
(192,598)
|
|
|
Total stockholders'
equity
|
|
341,486
|
|
|
|
324,134
|
|
|
Total liabilities and
stockholders' equity
|
$
|
424,703
|
|
|
$
|
419,552
|
|
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-q3-2015-300168058.html
SOURCE Cavium, Inc.