Cavium (CAVM) Cuts Q4 Sales Guidance
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Cavium (Nasdaq: CAVM) now sees Q4 sales $56-$57 million, which compares to the Street estimate of $61.6 million.
The company noted that revenues have been weaker than expected across both the enterprise and service provider as well as the broadband and consumer market segments, and further exasperated by a larger than expected impact of a hub transition at one of its major customers. The company believes that it under shipped to customer end demand in the fourth quarter. Gross margins for the fourth quarter of 2011 are expected to be approximately one percentage point lower than the company's previous guidance, due to the lower sales volume.
The company noted that revenues have been weaker than expected across both the enterprise and service provider as well as the broadband and consumer market segments, and further exasperated by a larger than expected impact of a hub transition at one of its major customers. The company believes that it under shipped to customer end demand in the fourth quarter. Gross margins for the fourth quarter of 2011 are expected to be approximately one percentage point lower than the company's previous guidance, due to the lower sales volume.
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