SAN JOSE, Calif., July 26, 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 second quarter ended June 30, 2016.
Net revenue in the second quarter was $107.2 million, a 5.2% sequential increase from
the $101.9 million reported in the
first quarter of 2016 and 2.1% from the $105.0 million reported in the second quarter of
2015.
Generally Accepted Accounting Principles (GAAP)
Results
Net loss for the second quarter of 2016 was $7.4 million, or $(0.13) per diluted share, compared to
$3.8 million, or $(0.07) per diluted share in the first quarter of
2016. Gross margins were 66.9% in the second quarter of 2016
compared to 66.8% in the first quarter of 2016. GAAP operating loss
(GAAP loss from operations as a percentage of revenue) was 6.3% in
the second quarter of 2016 compared to 3.3% in the first quarter of
2016. Total cash and cash equivalents were $140.4 million at June 30,
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 second quarter of 2016, Non-GAAP net income was
$17.2 million, or $0.29 per diluted share. Non-GAAP gross margin
was 67.3% and Non-GAAP operating margin (non-GAAP income from
operations as a percentage of revenue) was 16.6%.
Recent News Highlights
- July 13, 2016 -
Cavium Commences Exchange Offer to Acquire QLogic
- June 21, 2016 - Cavium
Adds Microsemi's Storage Solutions to ThunderX® Processor
Family
- June 20, 2016 - IDT
Collaborates with Cavium to Support Hyperscale Data Centers
- June 20, 2016 - Cavium and
Partners Demonstrated ThunderX Servers at ISC 2016
- June 15, 2016 - Cavium
Announced to Acquire QLogic
- May 20, 2016 - Cavium
Announced ThunderX2™
- May 30, 2016 - Cavium
Showcased The CloudScale Rack™
- May 23, 2016 - Cavium
Unveiled OCTEON TX™: Industry's widest range of 64-bit ARM®-based
SOCs for a broad spectrum of open, services-centric applications in
enterprise and service provider infrastructure
Cavium, Inc. will broadcast its second quarter of 2016 financial
results conference call today, July 26,
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
|
|
|
June 30,
2016
|
|
|
March 31,
2016
|
|
Net
revenue
|
$
|
107,158
|
|
|
$
|
101,882
|
|
Cost of
revenue
|
|
35,499
|
|
|
|
33,866
|
|
Gross
profit
|
|
71,659
|
|
|
|
68,016
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development
|
|
52,578
|
|
|
|
50,455
|
|
Sales, general and
administrative
|
|
25,882
|
|
|
|
20,925
|
|
Total
operating expenses
|
|
78,460
|
|
|
|
71,380
|
|
Loss from
operations
|
|
(6,801)
|
|
|
|
(3,364)
|
|
Other income
(expense), net:
|
|
|
|
|
|
|
|
Interest expense
|
|
(185)
|
|
|
|
(208)
|
|
Other, net
|
|
(151)
|
|
|
|
14
|
|
Total other expense,
net
|
|
(336)
|
|
|
|
(194)
|
|
Loss before income
taxes
|
|
(7,137)
|
|
|
|
(3,558)
|
|
Provision for income
taxes
|
|
273
|
|
|
|
275
|
|
Net loss
|
$
|
(7,410)
|
|
|
$
|
(3,833)
|
|
Net loss per common
share, basic and diluted
|
$
|
(0.13)
|
|
|
$
|
(0.07)
|
|
Shares used in
computing basic and diluted net loss per common share
|
|
57,527
|
|
|
|
56,932
|
|
CAVIUM, INC.
Unaudited Reconciliation of Non-GAAP Adjustments
(in thousands)
|
|
|
|
|
Three Months
Ended
|
|
|
June 30,
2016
|
|
|
March 31,
2016
|
|
Reconciliation of
GAAP operating expenses to non-GAAP:
|
|
|
|
|
|
|
|
GAAP research and
development expenses
|
$
|
52,578
|
|
|
$
|
50,455
|
|
Stock-based
compensation and related payroll taxes
|
|
(9,017)
|
|
|
|
(8,773)
|
|
Amortization of
acquisition related assets and other
|
|
(3,523)
|
|
|
|
(3,532)
|
|
Non-GAAP research and
development expenses
|
$
|
40,038
|
|
|
$
|
38,150
|
|
|
|
|
|
|
|
|
|
GAAP sales, general
and administrative expenses
|
$
|
25,882
|
|
|
$
|
20,925
|
|
Stock-based
compensation and related payroll taxes
|
|
(5,263)
|
|
|
|
(5,984)
|
|
Acquisition related
expenses
|
|
(6,339)
|
|
|
|
-
|
|
Non-GAAP sales,
general and administrative expenses
|
$
|
14,280
|
|
|
$
|
14,941
|
|
Total Non-GAAP
operating expenses
|
$
|
54,318
|
|
|
$
|
53,091
|
|
|
|
|
|
|
|
|
|
CAVIUM, INC.
Unaudited Reconciliation of Non-GAAP Adjustments
(in thousands, except per share data and
percentages)
|
|
|
|
|
Three Months
Ended
|
|
|
June 30,
2016
|
|
|
March 31,
2016
|
|
Reconciliation of
GAAP gross profit and margin to non-GAAP:
|
|
|
|
|
|
|
|
Net
revenue
|
$
|
107,158
|
|
|
$
|
101,882
|
|
GAAP gross
profit
|
|
71,659
|
|
|
|
68,016
|
|
GAAP gross
margin
|
|
66.9
|
%
|
|
|
66.8
|
%
|
|
|
|
|
|
|
|
|
Stock-based
compensation and related payroll taxes
|
|
261
|
|
|
|
191
|
|
Amortization of
acquisition related assets
|
|
157
|
|
|
|
157
|
|
Non-GAAP gross
profit
|
$
|
72,077
|
|
|
$
|
68,364
|
|
Non-GAAP gross
margin
|
|
67.3
|
%
|
|
|
67.1
|
%
|
|
|
|
|
|
|
|
|
Reconciliation of
GAAP loss from operations to non-GAAP income from
operations:
|
|
|
|
|
|
|
|
GAAP loss from
operations
|
$
|
(6,801)
|
|
|
$
|
(3,364)
|
|
Stock-based
compensation and related payroll taxes
|
|
14,541
|
|
|
|
14,948
|
|
Amortization of
acquisition related assets and other
|
|
3,680
|
|
|
|
3,689
|
|
Acquisition related
expenses
|
|
6,339
|
|
|
|
-
|
|
Non-GAAP income from
operations
|
$
|
17,759
|
|
|
$
|
15,273
|
|
Non-GAAP income from
operations as a percentage of revenue
|
|
16.6
|
%
|
|
|
15.0
|
%
|
|
|
|
|
|
|
|
|
Reconciliation of
GAAP net loss to non-GAAP net income:
|
|
|
|
|
|
|
|
GAAP net
loss
|
$
|
(7,410)
|
|
|
$
|
(3,833)
|
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
Stock-based
compensation and related payroll taxes
|
|
14,541
|
|
|
|
14,948
|
|
Amortization of
acquisition related assets and other
|
|
3,680
|
|
|
|
3,689
|
|
Acquisition related
expenses
|
|
6,339
|
|
|
|
-
|
|
Total of non-GAAP
adjustments
|
|
24,560
|
|
|
|
18,637
|
|
Non-GAAP net
income
|
$
|
17,150
|
|
|
$
|
14,804
|
|
|
|
|
|
|
|
|
|
GAAP net loss per
share, diluted
|
$
|
(0.13)
|
|
|
$
|
(0.07)
|
|
Non-GAAP adjustments
detailed above
|
|
0.42
|
|
|
|
0.32
|
|
Non-GAAP net income
per share, diluted
|
$
|
0.29
|
|
|
$
|
0.25
|
|
|
|
|
|
|
|
|
|
GAAP weighted average
shares, diluted
|
|
57,527
|
|
|
|
56,932
|
|
Non-GAAP share
adjustment
|
|
2,471
|
|
|
|
3,233
|
|
Non-GAAP weighted
average shares, diluted
|
|
59,998
|
|
|
|
60,165
|
|
CAVIUM, INC.
Unaudited GAAP Condensed Consolidated Balance Sheets
(in thousands)
|
|
|
|
|
As
of
|
|
|
June 30,
2016
|
|
|
March 31,
2016
|
|
Assets
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
140,419
|
|
|
$
|
129,629
|
|
Accounts receivable,
net
|
|
82,137
|
|
|
|
79,594
|
|
Inventories
|
|
52,702
|
|
|
|
48,092
|
|
Prepaid expenses and
other current assets
|
|
10,109
|
|
|
|
8,233
|
|
Total current
assets
|
|
285,367
|
|
|
|
265,548
|
|
Property and
equipment, net
|
|
64,917
|
|
|
|
63,303
|
|
Intangible assets,
net
|
|
36,698
|
|
|
|
37,907
|
|
Goodwill
|
|
71,478
|
|
|
|
71,478
|
|
Other
assets
|
|
1,822
|
|
|
|
1,738
|
|
Total
assets
|
$
|
460,282
|
|
|
$
|
439,974
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
Accounts
payable
|
$
|
30,024
|
|
|
$
|
25,668
|
|
Other accrued expenses
and other current liabilities
|
|
16,447
|
|
|
|
8,326
|
|
Deferred
revenue
|
|
7,856
|
|
|
|
6,425
|
|
Capital lease and
technology license obligations
|
|
17,380
|
|
|
|
17,286
|
|
Total current
liabilities
|
|
71,707
|
|
|
|
57,705
|
|
Capital lease and
technology license obligations, net of current
|
|
4,182
|
|
|
|
6,932
|
|
Deferred tax
liability
|
|
3,923
|
|
|
|
3,785
|
|
Other non-current
liabilities
|
|
4,140
|
|
|
|
2,907
|
|
Total
liabilities
|
|
83,952
|
|
|
|
71,329
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity
|
|
|
|
|
|
|
|
Common
stock
|
|
58
|
|
|
|
57
|
|
Additional paid-in
capital
|
|
576,927
|
|
|
|
561,833
|
|
Accumulated
deficit
|
|
(200,655)
|
|
|
|
(193,245)
|
|
Total stockholders'
equity
|
|
376,330
|
|
|
|
368,645
|
|
Total liabilities and
stockholders' equity
|
$
|
460,282
|
|
|
$
|
439,974
|
|
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SOURCE Cavium, Inc.