Cavium Announces Financial Results for Q1 2012

(PRNewswire) — �Cavium, Inc. (NASDAQ: CAVM), a leading provider of highly integrated semiconductor products that enable intelligent processing for networking, communications, and the digital home, today announced financial results for the first quarter of 2012 ended March 31, 2012.

Revenue in the first quarter of 2012 was $52.7 million, a 6.3% sequential decrease from the $56.3 million reported in the fourth quarter of 2011.

Generally Accepted Accounting Principles (GAAP) Results

Net loss for the first quarter of 2012, on a GAAP basis, was $13.8 million, or $(0.28) per diluted share, compared to $9.4 million, or $(0.19) per diluted share in the fourth quarter of 2011. Gross margins were 46.9% in the first quarter of 2012 compared to 58.1% in the fourth quarter of 2011. Total cash and cash equivalents were $65.1 million at March 31, 2012.  

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 the company's financial condition and results of operations.  These measures should only be used to evaluate the Company's results of operations in conjunction with the corresponding GAAP measures.  Non-GAAP financial measures in the first quarter of 2012 exclude expenses totaling $14.7 million related to stock-based compensation and related payroll expense, amortization of acquired intangible assets and acquisition related expenses, net of income from settlement of an escrow claim. The reconciliation between GAAP and non-GAAP financial results is provided in the financial statements portion of this release.

Non-GAAP net income for the first quarter of 2012 was $0.9 million or $0.02 per diluted share, compared with non-GAAP net income of $8.7 million or $0.17 per diluted share in the fourth quarter of 2011.  Gross margins, on a non-GAAP basis, were 61.8% and operating margins (non-GAAP income from operations as a percentage of revenue), on a non-GAAP basis, were (0.1%) in the first quarter of 2012.

Recent News Highlights

  • April 2, 2012 - Cavium Announces Updated Financial Outlook for Q1 2012
  • February 27, 2012 - Cavium Unveils World's First Adapter with 1 Million SSL Transactions per Second for Virtualized Data Center and Cloud Computing
  • February 27, 2012 - Cavium and Partners to Demonstrate Innovative Market-Leading, Security Solutions for Data Center, Enterprise and Cloud Computing at RSA 2012
  • February 27, 2012 - Cavium's PureVu™ to Enable Best-in-Class Wireless Display Consumer Experience for HTC's New Smartphones and Tablets
  • February 27, 2012 - Cavium Showcases Industry-Leading Mobile Infrastructure and Device Solutions Ranging from Small Cell Base Stations to Evolved Packet Core and Wireless Display for Smartphones at Mobile World Congress 2012
  • February 27, 2012 - Cavium and Microsemi Launch Joint IEEE 1588 / SyncE Platform for Next-Generation Mobile Networks
  • February 27, 2012 - Cavium to Support Trillium LTE Base Station Software from Radisys on OCTEON® Fusion "Base Station-on-a-Chip" Platform   
  • February 14, 2012 - Kontron and Cavium to demonstrate live 40G carrier grade deep packet inspection during Mobile World Congress 2012
  • February 7, 2012 - Cavium Unveils 48-core, 2.5GHz OCTEON® III MIPS64® Processor Family: First SoC with Breakthrough Search Processing and Over 100Gbps Single-chip Application Performance for Enterprise, Data-Center and Service Provider Infrastructure
  • February 7, 2012 - Cavium PACE Ecosystem Partners Announce Broad Support for New 100Gbps OCTEON® III MIPS64® Processor Family
  • February 7, 2012 - 6WIND Announces Packet Processing Software Optimized for Cavium's OCTEON® III Processor Family
  • February 7, 2012 - Emerson Network Power to Support Cavium OCTEON® III Multicore MIPS® Processor Family on Innovative ATCA Packet Processing Solutions
  • February 7, 2012 – Kontron, Lautherback, TeamF1 and MontaVista announces support for Cavium OCTEON® III multicore MIPS64® processor family
  • February 7, 2012 - Macraigor Systems Announces Support for Cavium 100Gbps+ OCTEON® III Multicore MIPS64® Processor Family
  • February 7, 2012 - Ultra High-Performance MIPS64® Architecture Powers Cavium's New Multi-Core Processors
  • February 7, 2012  - Vineyard Networks Announces Support for OCTEON® III and TurboDPI™ from Cavium

Cavium, Inc. will broadcast its first quarter 2012 financial results conference call today, May 1, 2012, 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 for networking, communications and the digital home. Cavium offers a broad portfolio of integrated, software-compatible processors ranging in performance from 10 Mbps to 100 Gbps that enable secure, intelligent functionality in enterprise, data-center, broadband/consumer and access and service provider equipment. Cavium 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 Taiwan. 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, 2012

December 31, 2011




Net revenue

$          52,743

$                56,291

Cost of revenue  

28,008

23,586

Gross profit  

24,735

32,705

Operating expenses:



     Research and development  

27,058

24,244

     Sales, general and administrative  

12,484

20,715

        Total operating expenses  

39,542

44,959

Loss from operations  

(14,807)

(12,254)

Other income (expense), net:



    Interest expense

(32)

(38)

    Other, net

(94)

(137)

Total other expense, net

(126)

(175)

     Loss before income taxes

(14,933)

(12,429)

     Benefit from income taxes

(1,104)

(3,017)

Net loss

$         (13,829)

$                (9,412)

Net loss   per common share, basic

$            (0.28)

$                  (0.19)

Shares used in computing basic net loss per common share

49,323

49,005

Net loss   per common share, diluted

$            (0.28)

$                  (0.19)

Shares used in computing diluted net loss per common share

49,323

49,005





CAVIUM, INC.

Unaudited Reconciliation of Non-GAAP Adjustments

(in thousands)


Three Months Ended  

Reconciliation of GAAP research and development expenses to  

March 31, 2012

December 31, 2011

     non-GAAP:



    GAAP research and development expenses

$          27,058

$                24,244

          Stock-based compensation and related payroll taxes

(4,374)

(3,842)

          Acquisition-related expenses  

(685)

(744)

          Acquisition-related compensation expenses

(1,140)

(1,398)

     Non-GAAP research and development expenses

$          20,859

$                18,260

Reconciliation of GAAP sales, general and administrative expenses to  



     non-GAAP  



    GAAP sales, general and administrative expenses

$          12,484

$                20,715

          Stock-based compensation and related payroll taxes

(4,658)

(4,562)

          Amortization of acquired intangibles

(292)

(347)

          Acquisition-related expenses

(48)

(686)

          Acquisition-related compensation expenses

(115)

(66)

          Write-down of intangible assets

-

(3,480)

          Income from settlement of an escrow claim

4,414

-

     Non-GAAP sales, general and administrative expenses

$          11,785

$                11,574





CAVIUM, INC.

Unaudited Reconciliation of Non-GAAP Adjustments

(In thousands, except per share data and percentages)





Three Months Ended  

Reconciliation of GAAP gross profit & margin to non-GAAP:

March 31, 2012

December 31, 2011

Net revenue

$            52,743

$                  56,291

GAAP gross profit

24,735

32,705

GAAP gross margin

46.9%

58.1%

          Acquisition-related expenses:



                Cost of revenue

5,111

240

          Amortization of acquired intangibles:



                Cost of revenue

2,197

2,291

          Stock-based compensation and related payroll taxes:



                Cost of revenue

543

502

Non-GAAP gross profit

$            32,586

$                  35,738

Non-GAAP gross margin

61.8%

63.5%





Three Months Ended  

Reconciliation of GAAP loss from operations to non-GAAP income (loss) from operations:

March 31, 2012

December 31, 2011

GAAP loss from operations

$          (14,807)

$                 (12,254)

          Amortization of acquired intangibles

2,489

2,638

          Stock-based compensation and related payroll taxes

9,575

8,906

          Acquisition-related expenses/adjustments

5,844

1,670

          Acquisition-related compensation expenses

1,255

1,464

          Write-down of intangible assets

-

3,480

          Income from settlement of an escrow claim

(4,414)

-

Non-GAAP income (loss)   from operations

$                 (58)

$                    5,904

Non-GAAP income (loss) from operations as a percentage of revenue

-0.1%

10.5%





Three Months Ended  

Reconciliation of GAAP net loss to non-GAAP net income:

March 31, 2012

December 31, 2011

GAAP net loss  

$          (13,829)

$                   (9,412)

Non-GAAP adjustments:



      Stock-based compensation and related payroll taxes:



          Cost of revenue

543

502

          Research and development  

4,374

3,842

          Sales, general and administrative  

4,658

4,562

      Amortization of acquired intangibles:



          Cost of revenue

2,197

2,291

          Sales, general and administrative  

292

347

      Acquisition-related expenses  

5,844

1,670

      Acquisition-related compensation expenses

1,255

1,464

      Write-down of intangible assets

-

3,480

      Income from settlement of an escrow claim

(4,414)

-

     Total of non-GAAP adjustments

14,749

18,158

Non-GAAP net income  

$                 920

$                    8,746




GAAP net loss per share, diluted

$              (0.28)

$                     (0.19)

   Non-GAAP adjustments detailed above

0.30

0.36

Non-GAAP net income per share, diluted

$                0.02

$                      0.17




GAAP weighted average shares, diluted

49,323

49,005

   Non-GAAP share adjustment

3,620

3,622

Non-GAAP weighted average shares, diluted

52,943

52,627



CAVIUM, INC.

Unaudited GAAP Condensed Consolidated Balance Sheets

(in thousands)





As of

As of


March 31, 2012

December 31, 2011

Assets



Current assets:




Cash and cash equivalents

$          65,086

$                63,225


Accounts receivable, net  

37,948

37,839


Inventories

40,438

41,719


Prepaid expenses and other current assets

3,839

3,177


Deferred income taxes

5,605

5,604



Total current assets

152,916

151,564

Property and equipment, net

17,263

17,027

Intangible assets, net

52,485

54,215

Goodwill

101,402

101,402

Deferred income taxes

35,976

34,490

Other non-current assets

1,436

1,559



Total assets

$        361,478

$              360,257






Liabilities and Stockholders' Equity  



Current liabilities:




Accounts payable

$          19,895

$                13,528


Accrued expenses and other current liabilities

8,489

9,022


Deferred revenue

13,144

11,202


Capital lease and technology license obligations, current  

3,263

6,385



Total current liabilities

44,791

40,137

Capital lease and technology license obligations, net of current  

560

719

Deferred tax liability

5,946

5,946

Other non-current liabilities

2,795

2,762



Total liabilities

54,092

49,564




Stockholders' equity  




Common stock

49

49


Additional paid-in capital

362,626

352,104


Accumulated deficit

(55,289)

(41,460)



Total stockholders' equity  

307,386

310,693



Total liabilities and stockholders' equity  

$        361,478

$              360,257


1 | 2  Next Page »



Review Article Be the first to review this article

EMA:

Featured Video
Editorial
Peggy AycinenaWhat Would Joe Do?
by Peggy Aycinena
Retail Therapy: Jump starting Black Friday
Peggy AycinenaIP Showcase
by Peggy Aycinena
REUSE 2016: Addressing the Four Freedoms
More Editorial  
Jobs
ACCOUNT MANAGER MUNICH GERMANY EU for EDA Careers at MUNICH, Germany
FAE FIELD APPLICATIONS SAN DIEGO for EDA Careers at San Diego, CA
Principal Circuit Design Engineer for Rambus at Sunnyvale, CA
Manager, Field Applications Engineering for Real Intent at Sunnyvale, CA
AE-APPS SUPPORT/TMM for EDA Careers at San Jose-SOCAL-AZ, CA
Development Engineer-WEB SKILLS +++ for EDA Careers at North Valley, CA
Upcoming Events
Zuken Innovation World 2017, April 24 - 26, 2017, Hilton Head Marriott Resort & Spa in Hilton Head Island, SC at Hilton Head Marriott Resort & Spa Hilton Head Island NC - Apr 24 - 26, 2017
CST Webinar Series



Internet Business Systems © 2016 Internet Business Systems, Inc.
595 Millich Dr., Suite 216, Campbell, CA 95008
+1 (408)-337-6870 — Contact Us, or visit our other sites:
AECCafe - Architectural Design and Engineering TechJobsCafe - Technical Jobs and Resumes GISCafe - Geographical Information Services  MCADCafe - Mechanical Design and Engineering ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy Policy