Cavium Announces Financial Results for Q2 2015

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July 29, 2015 4:01 PM EDT

SAN JOSE, Calif., July 29, 2015 /PRNewswire/ -- Cavium, Inc. (NASDAQ: CAVM), a leading provider of semiconductor products that enable secure and intelligent processing for enterprise, data center, wired and wireless networking, today announced financial results for the second quarter ended June 30, 2015.

Net revenue in the second quarter of 2015 was $105.0 million, a 3.1% sequential increase from the $101.8 million reported in the first quarter of 2015 and a 15.8% year-over-year increase from the $90.7 million reported in the second quarter of 2014.

Generally Accepted Accounting Principles (GAAP) Results

Net loss in the second quarter of 2015 was $6.4 million, or $(0.11) per diluted share, compared to $13.9 million, or $(0.25) per diluted share in the first quarter of 2015. Gross margins were 64.1% in the second quarter of 2015 compared to 64.8% in the first quarter of 2015. Total cash and cash equivalents were $122.0 million at June 30, 2015.

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 2015, Non-GAAP net income was $24.2 million, or $0.41 per diluted share. Non-GAAP gross margin was 66.8% and Non-GAAP operating margin (non-GAAP income from operations as a percentage of revenue) was 23.0%.

Recent News Highlights

  • July 22, 2015 - Cavium Unveiled the 100 Gbps NITROX® V Security Processor Family
  • July 13, 2015 - Cavium and Leading Partners Showcased Advanced ThunderX™ ARM-based Server Platforms and Software for High Performance Computing at ISC 2015
  • July 13, 2015 - Cavium Announced Beta Support for PathScale EKOPath Compiler and Optimized Math Libraries on ThunderX™ Processor Family
  • July 13, 2015 - Cavium Unveiled Flash Support for the Cavium ThunderX™ Processor Family
  • July 13, 2015 - Cavium Added Support for Mellanox InfiniBand Adapters for ThunderX™ Processor Family
  • July 13, 2015 - Mont-Blanc HPC software stack tested on E4's HPC platform based on ARM64 Cavium ThunderX processor
  • June 16, 2015 - Cavium Crowned Winner of SDN Idol 2015 at Open Networking Summit 2015
  • June 16, 2015 - Cavium Unleashed the Power of SDN through OpenFlow at ONS 2015
  • June 10, 2015 Cavium Announced New Low Power 16-core OCTEON® III SoC Processors for Next Generation Enterprise, Data Center and Service Provider Infrastructure
  • June 10, 2015 - 64-bit MIPS architecture provides low-power, high-throughput processing for Cavium's new OCTEON® III processors
  • June 10, 2015 - Green Hills Software Announced INTEGRITY® RTOS Multicore Support for OCTEON® III Family of SoC from Cavium
  • June 6, 2015 - Qulsar's Processors Managed Timing Engine Enhances Timing Synchronization in Cavium Small Cell Basestation Designs
  • June 1, 2015 - Cavium and Leading Partners Showcased Best-in-Class Product Solutions across Cloud, Data Center and Enterprise at Computex 2015
  • June 1, 2015 - Cavium Announced Collaboration with Pegatron on Server Platforms based on Cavium's ThunderX™ Workload Optimized Processor Family
  • June 1, 2015 - Leading Network Solution Providers and ODMs Partner with Cavium to Bring to Market Multiple Hardware Ethernet Switch Platforms
  • June 1, 2015 - Cavium OCTEON® III Expands Footprint to Industrial, Military and Aerospace Applications by Offering Standard Computer-On-Module Form Factors
  • May 18, 2015 - Cavium Partners with Canonical to Demonstrate Optimized Cloud Infrastructure with OpenStack at Scale on ThunderX™
  • May 14, 2015 - QLogic and Cavium Collaborates to Deliver Accelerated Performance for Enterprise and Cloud Storage Applications

Cavium, Inc. will broadcast its second quarter of 2015 financial results conference call today, July 29, 2015, 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, 2015

March 31, 2015

Net revenue

$

104,961

$

101,778

Cost of revenue

37,673

35,799

Gross profit

67,288

65,979

Operating expenses:

     Research and development

52,225

58,422

     Sales, general and administrative

20,336

20,671

        Total operating expenses

72,561

79,093

Loss from operations

(5,273)

(13,114)

Other expense, net:

    Interest expense

(388)

(410)

    Other, net

(33)

(66)

Total other expense, net

(421)

(476)

     Loss before income taxes

(5,694)

(13,590)

     Provision for income taxes

661

301

Net loss

(6,355)

(13,891)

Net loss per common share, basic and diluted

$

(0.11)

$

(0.25)

Shares used in computing basic and diluted net loss per common share

55,507

54,882

 

 

CAVIUM, INC.

Unaudited Reconciliation of Non-GAAP Adjustments

(in thousands)

Three Months Ended

June 30, 2015

March 31, 2015

Reconciliation of GAAP operating expenses to non-GAAP:

GAAP research and development expenses

$

52,225

$

58,422

Stock-based compensation and related payroll taxes

(7,896)

(7,823)

Amortization of acquisition related assets

(2,932)

-

Net restructuring related expenses

-

(254)

Research and development expenses associated with Xpliant

(8,845)

(20,142)

Non-GAAP research and development expenses

$

32,552

$

30,203

GAAP sales, general and administrative expenses

$

20,336

$

20,671

Stock-based compensation and related payroll taxes

(4,429)

(5,138)

Amortization of acquisition related assets

(11)

(11)

Net restructuring related expenses

-

(68)

Sales, general and administrative expenses associated with Xpliant

(2,554)

(1,979)

Non-GAAP sales, general and administrative expenses

$

13,342

$

13,475

Total Non-GAAP operating expenses

$

45,894

$

43,678

Reconciliation of GAAP non-operating expenses to non-GAAP non-operating income:

GAAP non-operating expenses

$

(421)

$

(476)

Non-operating expenses associated with Xpliant

1,144

1,124

Total Non-GAAP non-operating income

$

723

$

648

 

 

CAVIUM, INC.

Unaudited Reconciliation of Non-GAAP Adjustments

(in thousands, except per share data and percentages)

Three Months Ended

June 30, 2015

March 31, 2015

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

Net revenue

$

104,961

$

101,778

GAAP gross profit

67,288

65,979

GAAP gross margin

64.1

%

64.8

%

Stock-based compensation and related payroll taxes

212

213

Amortization of acquisition related assets

157

795

Discontinued mask

2,420

-

Net restructuring related expenses

-

42

Non-GAAP gross profit

$

70,077

$

67,029

Non-GAAP gross margin

66.8

%

65.9

%

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

GAAP loss from operations

$

(5,273)

$

(13,114)

Stock-based compensation and related payroll taxes

12,537

13,174

Amortization of acquisition related assets

3,100

806

Discontinued mask

2,420

-

Net restructuring related expenses

-

364

Loss from operations of Xpliant

11,399

22,121

Non-GAAP income from operations

$

24,183

$

23,351

Non-GAAP income from operations as a percentage of revenue

23.0

%

22.9

%

Reconciliation of GAAP loss to non-GAAP net income:

GAAP net loss

$

(6,355)

$

(13,891)

Non-GAAP adjustments:

Stock-based compensation and related payroll taxes

12,537

13,174

Amortization of acquisition related assets

3,100

806

Discontinued mask

2,420

-

Net restructuring related expenses and other charges

-

364

Loss from operations and non-operating expenses of Xpliant

12,543

23,245

Total of non-GAAP adjustments

30,600

37,589

Non-GAAP net income

$

24,245

$

23,698

GAAP net loss per share, diluted

$

(0.11)

$

(0.25)

Non-GAAP adjustments detailed above

0.52

0.65

Non-GAAP net income per share, diluted

$

0.41

$

0.40

GAAP weighted average shares, diluted

55,507

54,882

Non-GAAP share adjustment

4,114

4,286

Non-GAAP weighted average shares, diluted

59,621

59,168

 

 

CAVIUM, INC.

Unaudited GAAP Condensed Consolidated Balance Sheets

(in thousands)

As of June 30, 2015

As of March 31, 2015

Assets

Current assets

Cash and cash equivalents

$

121,984

$

121,025

Accounts receivable, net

67,165

56,817

Inventories

50,403

52,312

Prepaid expenses and other current assets

9,312

8,944

Total current assets

248,864

239,098

Property and equipment, net

60,235

58,828

Intangible assets, net

37,023

37,532

Goodwill

71,478

71,478

Other assets

1,952

1,935

Total assets

$

419,552

$

408,871

Liabilities and Stockholders' Equity

Current liabilities

Accounts payable

$

32,702

$

25,100

Other accrued expenses and other current liabilities

14,950

15,945

Deferred revenue

7,273

6,047

Capital lease and technology license obligations

18,383

16,324

Total current liabilities

73,308

63,416

Capital lease and technology license obligations, net of current

15,981

20,788

Deferred tax liability

3,159

2,997

Other non-current liabilities

2,970

2,819

Total liabilities

95,418

90,020

Stockholders' equity

Common stock

56

55

Additional paid-in capital

516,676

505,039

Accumulated deficit

(192,598)

(186,243)

Total stockholders' equity

324,134

318,851

Total liabilities and stockholders' equity

$

419,552

$

408,871

 

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To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/cavium-announces-financial-results-for-q2-2015-300120621.html

SOURCE Cavium, Inc.


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