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Cavium Announces Financial Results for Q1 2016

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April 27, 2016 4:05 PM EDT

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
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  • 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

 

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-q1-2016-300258543.html

SOURCE Cavium, Inc.


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