SAN JOSE, Calif., April 27, 2016 /PRNewswire/ -- Cavium, Inc.
(NASDAQ: CAVM), a leading provider of semiconductor products that
enable secure and intelligent processing for enterprise, data
center, cloud, wired and wireless networking, today announced
financial results for the first quarter ended March 31, 2016.
Net revenue in the first quarter of 2016 was $101.9 million, a 1.0% sequential increase from
the $100.9 million reported in the
fourth quarter of 2015 and relatively flat from the $101.8 million reported in the first quarter of
2015.
Generally Accepted Accounting Principles (GAAP)
Results
Net loss in the first quarter of 2016 was $3.8 million, or $(0.07) per diluted share, compared to
$1.0 million, or $(0.02) per diluted share in the fourth quarter
of 2015. Gross margins were 66.8% in the first quarter of 2016
compared to 66.2% in the fourth quarter of 2015. Total cash and
cash equivalents were $129.6 million
at March 31, 2016.
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 2016, Non-GAAP net income was
$14.8 million, or $0.25 per diluted share. Non-GAAP gross margin
was 67.1% and Non-GAAP operating margin (non-GAAP income from
operations as a percentage of revenue) was 15.0%.
Recent News Highlights
- April 19, 2016 - Cavium
Showcased the Innovative NFV/SDN Technology Solutions at NFV World
Congress 2016
- March 15, 2016 - Cavium's
XPliant Switches Empower Open Networking at ONS 2016
- March 15, 2016 - Cavium
Showcased Key Technology Components for Cloud Datacenters and NFV
at Open Networking Summit 2016
- March 7, 2016 - Cavium
Seamlessly Connected Open Switch Software on XPliant Switches
- March 7, 2016 - Cavium to
Demonstrate Data Center Solutions for Next Generation Cloud
Infrastructure at Open Compute Summit 2016
- March 1, 2016 - Cavium
OCTEON III Multi–Core Processor Family Powering Next Generation
Advanced Security Appliances
- February 29, 2016 - Cavium
Showcased Products for Securing the Enterprise, Cloud & Service
Provider Infrastructure at RSA Conference 2016
- February 29, 2016 - Cavium
Announced FIPS 140-2 Certification of LiquidSecurityFamily
- February 29, 2016 - Lanner
Announced MR-810 Secure Networking Appliance for Telecom and NFV
Applications Based on Cavium ThunderX Workload Optimized
Processors
- February 22, 2016 - Cavium
collaborates with ONOS project to launch M–CORD Solution POC at
Mobile World Congress 2016
- February 22, 2016 -
Cavium Unveiled 4G and 5G Solutions for Next Generation Carrier
Infrastructure at Mobile World Congress 2016
- February 22, 2016 - Cavium
and Argela Delivers ProgRAN, a Fully Programmable, SDN–based RAN
Solution for LTE and 5G
Cavium, Inc. will broadcast its first quarter of 2016 financial
results conference call today, April 27,
2016, 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,
2016
|
|
|
December 31,
2015
|
|
|
Net
revenue
|
$
|
101,882
|
|
|
$
|
100,942
|
|
|
Cost of
revenue
|
|
33,866
|
|
|
|
34,092
|
|
|
Gross
profit
|
|
68,016
|
|
|
|
66,850
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Research and
development
|
|
50,455
|
|
|
|
47,764
|
|
|
Sales, general and
administrative
|
|
20,925
|
|
|
|
19,397
|
|
|
Total
operating expenses
|
|
71,380
|
|
|
|
67,161
|
|
|
Loss from
operations
|
|
(3,364)
|
|
|
|
(311)
|
|
|
Other income
(expense), net:
|
|
|
|
|
|
|
|
|
Interest expense
|
|
(208)
|
|
|
|
(227)
|
|
|
Other, net
|
|
14
|
|
|
|
(138)
|
|
|
Total other expense,
net
|
|
(194)
|
|
|
|
(365)
|
|
|
Loss before income
taxes
|
|
(3,558)
|
|
|
|
(676)
|
|
|
Provision for income
taxes
|
|
275
|
|
|
|
354
|
|
|
Net loss
|
$
|
(3,833)
|
|
|
$
|
(1,030)
|
|
|
Net loss per common
share, basic and diluted
|
$
|
(0.07)
|
|
|
$
|
(0.02)
|
|
|
Shares used in
computing basic and diluted net loss per common share
|
|
56,932
|
|
|
|
56,131
|
|
|
CAVIUM,
INC.
|
|
Unaudited
Reconciliation of Non-GAAP Adjustments
|
|
(in
thousands)
|
|
|
Three Months
Ended
|
|
|
March 31,
2016
|
|
|
December 31,
2015
|
|
|
Reconciliation of
GAAP operating expenses to non-GAAP:
|
|
|
|
|
|
|
|
|
GAAP research and
development expenses
|
$
|
50,455
|
|
|
$
|
47,764
|
|
|
Stock-based
compensation and related payroll taxes
|
|
(8,773)
|
|
|
|
(7,833)
|
|
|
Amortization of
acquisition related assets
|
|
(3,532)
|
|
|
|
(3,667)
|
|
|
Xpliant transition
related expenses
|
|
-
|
|
|
|
(970)
|
|
|
Non-GAAP research and
development expenses
|
$
|
38,150
|
|
|
$
|
35,294
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
GAAP sales, general and administrative expenses to
non-GAAP:
|
|
|
|
|
|
|
|
|
GAAP sales, general
and administrative expenses
|
$
|
20,925
|
|
|
$
|
19,397
|
|
|
Stock-based
compensation and related payroll taxes
|
|
(5,984)
|
|
|
|
(4,764)
|
|
|
Non-GAAP sales,
general and administrative expenses
|
$
|
14,941
|
|
|
$
|
14,633
|
|
|
Total Non-GAAP
operating expenses
|
$
|
53,091
|
|
|
$
|
49,927
|
|
|
CAVIUM,
INC.
|
|
Unaudited
Reconciliation of Non-GAAP Adjustments
|
|
(in thousands,
except per share data and percentages)
|
|
|
Three Months
Ended
|
|
|
March 31,
2016
|
|
|
December 31,
2015
|
|
|
Reconciliation of
GAAP gross profit and margin to non-GAAP:
|
|
|
|
|
|
|
|
|
Net
revenue
|
$
|
101,882
|
|
|
$
|
100,942
|
|
|
GAAP gross
profit
|
|
68,016
|
|
|
|
66,850
|
|
|
GAAP gross
margin
|
|
66.8
|
%
|
|
|
66.2
|
%
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation and related payroll taxes
|
|
191
|
|
|
|
198
|
|
|
Amortization of
acquisition related assets
|
|
157
|
|
|
|
157
|
|
|
Non-GAAP gross
profit
|
$
|
68,364
|
|
|
$
|
67,205
|
|
|
Non-GAAP gross
margin
|
|
67.1
|
%
|
|
|
66.6
|
%
|
|
|
|
|
|
|
|
|
|
Reconciliation of
GAAP loss from operations to non-GAAP income from
operations:
|
|
|
|
|
|
|
|
|
GAAP loss from
operations
|
$
|
(3,364)
|
|
|
$
|
(311)
|
|
|
Stock-based
compensation and related payroll taxes
|
|
14,948
|
|
|
|
12,795
|
|
|
Amortization of
acquisition related assets
|
|
3,689
|
|
|
|
3,824
|
|
|
Xpliant transition
related expenses
|
|
-
|
|
|
|
970
|
|
|
Non-GAAP income from
operations
|
$
|
15,273
|
|
|
$
|
17,278
|
|
|
Non-GAAP income from
operations as a percentage of revenue
|
|
15.0
|
%
|
|
|
17.1
|
%
|
|
|
|
|
|
|
|
|
|
Reconciliation of
GAAP net loss to non-GAAP net income:
|
|
|
|
|
|
|
|
|
GAAP net
loss
|
$
|
(3,833)
|
|
|
$
|
(1,030)
|
|
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
|
Stock-based
compensation and related payroll taxes
|
|
14,948
|
|
|
|
12,795
|
|
|
Amortization of
acquisition related assets
|
|
3,689
|
|
|
|
3,824
|
|
|
Xpliant transition
related expenses
|
|
-
|
|
|
|
970
|
|
|
Total of non-GAAP
adjustments
|
|
18,637
|
|
|
|
17,589
|
|
|
Non-GAAP net
income
|
$
|
14,804
|
|
|
$
|
16,559
|
|
|
|
|
|
|
|
|
|
|
GAAP net loss per
share, diluted
|
$
|
(0.07)
|
|
|
$
|
(0.02)
|
|
|
Non-GAAP adjustments
detailed above
|
|
0.32
|
|
|
|
0.30
|
|
|
Non-GAAP net income
per share, diluted
|
$
|
0.25
|
|
|
$
|
0.28
|
|
|
|
|
|
|
|
|
|
|
GAAP weighted average
shares, diluted
|
|
56,932
|
|
|
|
56,131
|
|
|
Non-GAAP share
adjustment
|
|
3,233
|
|
|
|
3,519
|
|
|
Non-GAAP weighted
average shares, diluted
|
|
60,165
|
|
|
|
59,650
|
|
|
CAVIUM,
INC.
|
|
Unaudited GAAP
Condensed Consolidated Balance Sheets
|
|
(in
thousands)
|
|
|
As
of
|
|
|
March 31,
2016
|
|
|
December 31,
2015
|
|
|
Assets
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
129,629
|
|
|
$
|
134,646
|
|
|
Accounts receivable,
net
|
|
79,594
|
|
|
|
68,742
|
|
|
Inventories
|
|
48,092
|
|
|
|
47,009
|
|
|
Prepaid expenses and
other current assets
|
|
8,233
|
|
|
|
10,231
|
|
|
Total current
assets
|
|
265,548
|
|
|
|
260,628
|
|
|
Property and
equipment, net
|
|
63,303
|
|
|
|
64,677
|
|
|
Intangible assets,
net
|
|
37,907
|
|
|
|
35,492
|
|
|
Goodwill
|
|
71,478
|
|
|
|
71,478
|
|
|
Other
assets
|
|
1,738
|
|
|
|
1,718
|
|
|
Total
assets
|
$
|
439,974
|
|
|
$
|
433,993
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
Accounts
payable
|
$
|
25,668
|
|
|
$
|
27,489
|
|
|
Other accrued expenses
and other current liabilities
|
|
8,326
|
|
|
|
9,443
|
|
|
Deferred
revenue
|
|
6,425
|
|
|
|
6,316
|
|
|
Capital lease and
technology license obligations
|
|
17,286
|
|
|
|
20,608
|
|
|
Total current
liabilities
|
|
57,705
|
|
|
|
63,856
|
|
|
Capital lease and
technology license obligations, net of current
|
|
6,932
|
|
|
|
9,858
|
|
|
Deferred tax
liability
|
|
3,785
|
|
|
|
3,417
|
|
|
Other non-current
liabilities
|
|
2,907
|
|
|
|
2,962
|
|
|
Total
liabilities
|
|
71,329
|
|
|
|
80,093
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity
|
|
|
|
|
|
|
|
|
Common
stock
|
|
57
|
|
|
|
56
|
|
|
Additional paid-in
capital
|
|
561,833
|
|
|
|
543,256
|
|
|
Accumulated
deficit
|
|
(193,245)
|
|
|
|
(189,412)
|
|
|
Total stockholders'
equity
|
|
368,645
|
|
|
|
353,900
|
|
|
Total liabilities and
stockholders' equity
|
$
|
439,974
|
|
|
$
|
433,993
|
|
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SOURCE Cavium, Inc.