Welcome!

Linux Containers Authors: Liz McMillan, Elizabeth White, Yeshim Deniz, Pat Romanski, Amit Gupta

News Feed Item

Cavium Announces Financial Results for Q2 2014

SAN JOSE, Calif., July 30, 2014 /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 second quarter ended June 30, 2014.

Cavium, Inc. Logo.

Revenue in the second quarter of 2014 was $90.7 million, an 8.9% sequential increase from the $83.2 million reported in the first quarter of 2014 and a 22.2% year-over-year increase from the $74.2 million reported in the second quarter of 2013.

Generally Accepted Accounting Principles (GAAP) Results

Net loss attributable to the Company in the second quarter of 2014 was $11.0 million, or $(0.21) per diluted share, compared to net income attributable to the Company of $2.3 million, or $0.04 per diluted share in the first quarter of 2014. Gross margins were 62.6% in the second quarter of 2014 compared to 63.5% in the first quarter of 2014. Total cash and cash equivalents were $140.6 million at June 30, 2014.

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 2014, Non-GAAP net income was $19.9 million, or $0.35 per diluted share, Non-GAAP gross margin was 64.5% and Non-GAAP operating margin (non-GAAP income from operations as a percentage of revenue) was 22.3%.

Recent News Highlights

  • July 21, 2014 - Cavium and Quortus Enabled Unique LTE RAN and EPC on Single Chip for Portable Applications
  • June 23, 2014 - Altera and Cavium Delivered Pre-Verified Packet Classification Solution for Networking Appliances
  • June 3, 2014 - Cavium Introduced ThunderX™: A 2.5 GHz, 48 Core Family of Workload Optimized Processors for Next Generation Data Center and Cloud Applications
  • June 3, 2014 - Cavium Announced Collaboration with Oracle to Support the ThunderX™ Processor Family
  • June 3, 2014 - Cavium Expanded Collaboration with Fedora Project to Accelerate ARMv8 Software Ecosystem
  • June 3, 2014 - openSUSE Community Announced Partnership with Cavium to Support the ThunderX™ Workload Optimized Processor Family
  • June 3, 2014 - Canonical Announced Expanded Ubuntu Support for the Cavium Workload Optimized ThunderX™ Processor Family
  • June 3, 2014 - Cavium Delivered Next Generation Xen Virtualization with ThunderX™ Family of Workload Optimized Processors
  • June 3, 2014 - American Megatrends Announced Partnership with Cavium to Support the ThunderX™ Processor Family
  • June 3, 2014 - Gigabyte Technology Announced Expansion of Server Platforms based on Cavium's ThunderX™ Workload Optimized Processor Family
  • June 3, 2014 - Cavium Contributed ARMv8 Based Platform Architecture to Open Compute Project, Based on ThunderX™ Family of Workload-Optimized Processors
  • June 3, 2014 - MontaVista Announced MV Cloud Support for the Cavium ThunderX™ Workload Optimized Processor Family
  • June 3, 2014 - Cavium Joined Xen Project Advisory Board
  • June 2, 2014 - Cavium Introduced Project Thunder at Computex 2014
  • June 2, 2014 - Cavium Demonstrated a Broad Range of New SoC Solutions for RAN Core and Cloud Infrastructure at Computex 2014

Cavium, Inc. will broadcast its second quarter of 2014 financial results conference call today, July 30, 2014, 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 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, 2014


March 31, 2014

Net revenue

$       90,681


$          83,241

Cost of revenue 

33,897


30,350

Gross profit 

56,784


52,891

Operating expenses:




     Research and development 

38,834


37,289

     Sales, general and administrative 

17,017


15,932

        Total operating expenses 

55,851


53,221

Income (loss) from operations 

933


(330)

Other income (expense), net:




    Interest expense

(333)


(459)

    Change in estimated fair value of variable interest entity's (VIE) notes
          payable and other 

(13,927)


(858)

    Other, net

(53)


135

Total other expense, net

(14,313)


(1,182)

     Loss before income taxes 

(13,380)


(1,512)

     Provision for income taxes

311


243

Net loss

(13,691)


(1,755)

Net loss attributable to non-controlling interest

(2,647)


(4,102)

Net income (loss) attributable to the Company

$     (11,044)


$            2,347

Net income (loss) attributable to the Company per common share, basic

$         (0.21)


$              0.04

Shares used in computing basic net income (loss) per common share

53,197


52,550

Net income (loss) attributable to the Company per common share, diluted

$         (0.21)


$             0.04

Shares used in computing diluted net income (loss) per common share

53,197


54,221









CAVIUM, INC.

Unaudited Reconciliation of Non-GAAP Adjustments

(in thousands)


Three Months Ended 

Reconciliation of GAAP research and development expenses to non-GAAP:

June 30, 2014


March 31, 2014

    GAAP research and development expenses

$       38,834


$          37,289

          Stock-based compensation and related payroll taxes

(6,104)


(6,026)

          Net restructuring related expenses 

(894)


(509)

          Research and development expenses associated from a VIE

(5,400)


(4,767)

     Non-GAAP research and development expenses

$       26,436


$          25,987





Reconciliation of GAAP sales, general and administrative expenses to non-GAAP:




    GAAP sales, general and administrative expenses

$       17,017


$          15,932

          Stock-based compensation and related payroll taxes

(4,525)


(4,177)

          Amortization of acquired intangible assets

(35)


(35)

          Net restructuring related expenses

(218)


(243)

          Sales, general and administrative expenses associated from a VIE

(404)


(286)

     Non-GAAP sales, general and administrative expenses

$       11,835


$          11,191

Total Non-GAAP operating expenses

$       38,271


$          37,178





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




    GAAP non-operating expenses

$     (14,313)


$          (1,182)

          Change in estimated fair value of VIE's notes payable and other 

13,927


858

          Non-operating expenses associated from a VIE

337


369

Total Non-GAAP non-operating income (expense)

$           (49)


$                45





 

CAVIUM, INC.

Unaudited Reconciliation of Non-GAAP Adjustments

(in thousands, except per share data and percentages)






Three Months Ended 


June 30, 2014


March 31, 2014

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




Net revenue

$         90,681


$            83,241

GAAP gross profit

56,784


52,891

GAAP gross margin

62.6%


63.5%





          Stock-based compensation and related payroll taxes

258


259

          Amortization of acquired intangible assets

1,267


1,267

          Net restructuring related expenses

172


-

Non-GAAP gross profit

$         58,481


$            54,417

Non-GAAP gross margin

64.5%


65.4%






Three Months Ended 


June 30, 2014


March 31, 2014

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




GAAP income (loss) from operations

$              933


$               (330)

          Stock-based compensation and related payroll taxes

10,887


10,462

          Amortization of acquired intangible assets

1,302


1,302

          Net restructuring related expenses

1,284


752

          Loss from operations of a variable interest entity

5,804


5,053

Non-GAAP income from operations

$         20,210


$            17,239

Non-GAAP income from operations as a percentage of revenue

22.3%


20.7%






Three Months Ended 


June 30, 2014


March 31, 2014

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




GAAP net income (loss) attributable to the Company

$       (11,044)


$              2,347

Non-GAAP adjustments:




      Stock-based compensation and related payroll taxes

10,887


10,462

      Amortization of acquired intangible assets

1,302


1,302

      Net restructuring related expenses

1,284


752

      Net loss of a variable interest entity attributable to the Company

17,421


2,178

     Total of non-GAAP adjustments

30,894


14,694

Non-GAAP net income 

$         19,850


$            17,041





GAAP net income (loss) attributable to the Company per share, diluted

$           (0.21)


$                0.04

   Non-GAAP adjustments detailed above

0.56


0.26

Non-GAAP net income attributable to the Company per share, diluted

$             0.35


$                0.30





GAAP weighted average shares, diluted

53,197


54,221

   Non-GAAP share adjustment

4,123


2,338

Non-GAAP weighted average shares, diluted

57,320


56,559

 

CAVIUM, INC.

Unaudited GAAP Condensed Consolidated Balance Sheets

(in thousands)










As of
June 30, 2014


As of
March 31, 2014

Assets





Current assets:





Cash and cash equivalents

$     140,580


$        124,106


Accounts receivable, net 

52,141


56,819


Inventories

56,750


49,048


Prepaid expenses and other current assets

7,903


5,834



Total current assets

257,374


235,807

Property and equipment, net

30,319


28,562

Intangible assets, net

39,161


41,453

Goodwill


71,478


71,478

Other assets

1,600


1,096



Total assets

$     399,932


$        378,396







Liabilities and Equity 




Current liabilities:





Accounts payable

$       28,466


$          24,060


Other accrued expenses and other current liabilities

10,196


9,519


Deferred revenue

8,151


8,475


Notes payable and other

29,697


15,770


Capital lease and technology license obligations

16,375


14,227



Total current liabilities

92,885


72,051

Capital lease and technology license obligations, net of current 

11,557


15,297

Deferred tax liability

2,461


2,365

Other non-current liabilities

2,521


2,437



Total liabilities

109,424


92,150







Equity 






Common stock

54


53


Additional paid-in capital

474,710


456,758


Accumulated deficit

(165,754)


(154,710)



Total stockholders' equity attributable to the Company

309,010


302,101


Non-controlling interest

(18,502)


(15,855)



Total equity

290,508


286,246



Total liabilities and equity 

$     399,932


$        378,396

Logo - http://photos.prnewswire.com/prnh/20120604/LA18845LOGO

SOURCE CAVIUM, INC.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
SYS-CON Events announced today that Daiya Industry will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Daiya Industry specializes in orthotic support systems and assistive devices with pneumatic artificial muscles in order to contribute to an extended healthy life expectancy. For more information, please visit https://www.daiyak...
SYS-CON Events announced today that Nihon Micron will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Nihon Micron Co., Ltd. strives for technological innovation to establish high-density, high-precision processing technology for providing printed circuit board and metal mount RFID tags used for communication devices. For more inf...
SYS-CON Events announced today that Massive Networks, that helps your business operate seamlessly with fast, reliable, and secure internet and network solutions, has been named "Exhibitor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. As a premier telecommunications provider, Massive Networks is headquartered out of Louisville, Colorado. With years of experience under their belt, their team of...
SYS-CON Events announced today that Suzuki Inc. will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Suzuki Inc. is a semiconductor-related business, including sales of consuming parts, parts repair, and maintenance for semiconductor manufacturing machines, etc. It is also a health care business providing experimental research for...
SYS-CON Events announced today that mruby Forum will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. mruby is the lightweight implementation of the Ruby language. We introduce mruby and the mruby IoT framework that enhances development productivity. For more information, visit http://forum.mruby.org/.
Elon Musk is among the notable industry figures who worries about the power of AI to destroy rather than help society. Mark Zuckerberg, on the other hand, embraces all that is going on. AI is most powerful when deployed across the vast networks being built for Internets of Things in the manufacturing, transportation and logistics, retail, healthcare, government and other sectors. Is AI transforming IoT for the good or the bad? Do we need to worry about its potential destructive power? Or will we...
SYS-CON Events announced today that B2Cloud will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. B2Cloud specializes in IoT devices for preventive and predictive maintenance in any kind of equipment retrieving data like Energy consumption, working time, temperature, humidity, pressure, etc.
In his session at @ThingsExpo, Greg Gorman is the Director, IoT Developer Ecosystem, Watson IoT, will provide a short tutorial on Node-RED, a Node.js-based programming tool for wiring together hardware devices, APIs and online services in new and interesting ways. It provides a browser-based editor that makes it easy to wire together flows using a wide range of nodes in the palette that can be deployed to its runtime in a single-click. There is a large library of contributed nodes that help so...
What is the best strategy for selecting the right offshore company for your business? In his session at 21st Cloud Expo, Alan Winters, U.S. Head of Business Development at MobiDev, will discuss the things to look for - positive and negative - in evaluating your options. He will also discuss how to maximize productivity with your offshore developers. Before you start your search, clearly understand your business needs and how that impacts software choices.
SYS-CON Events announced today that SIGMA Corporation will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. uLaser flow inspection device from the Japanese top share to Global Standard! Then, make the best use of data to flip to next page. For more information, visit http://www.sigma-k.co.jp/en/.
SYS-CON Events announced today that NetApp has been named “Bronze Sponsor” of SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. NetApp is the data authority for hybrid cloud. NetApp provides a full range of hybrid cloud data services that simplify management of applications and data across cloud and on-premises environments to accelerate digital transformation. Together with their partners, NetApp em...
Agile has finally jumped the technology shark, expanding outside the software world. Enterprises are now increasingly adopting Agile practices across their organizations in order to successfully navigate the disruptive waters that threaten to drown them. In our quest for establishing change as a core competency in our organizations, this business-centric notion of Agile is an essential component of Agile Digital Transformation. In the years since the publication of the Agile Manifesto, the conn...
SYS-CON Events announced today that MIRAI Inc. will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MIRAI Inc. are IT consultants from the public sector whose mission is to solve social issues by technology and innovation and to create a meaningful future for people.
There is huge complexity in implementing a successful digital business that requires efficient on-premise and cloud back-end infrastructure, IT and Internet of Things (IoT) data, analytics, Machine Learning, Artificial Intelligence (AI) and Digital Applications. In the data center alone, there are physical and virtual infrastructures, multiple operating systems, multiple applications and new and emerging business and technological paradigms such as cloud computing and XaaS. And then there are pe...
Real IoT production deployments running at scale are collecting sensor data from hundreds / thousands / millions of devices. The goal is to take business-critical actions on the real-time data and find insights from stored datasets. In his session at @ThingsExpo, John Walicki, Watson IoT Developer Advocate at IBM Cloud, will provide a fast-paced developer journey that follows the IoT sensor data from generation, to edge gateway, to edge analytics, to encryption, to the IBM Bluemix cloud, to Wa...
SYS-CON Events announced today that Keisoku Research Consultant Co. will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Keisoku Research Consultant, Co. offers research and consulting in a wide range of civil engineering-related fields from information construction to preservation of cultural properties. For more information, vi...
While some developers care passionately about how data centers and clouds are architected, for most, it is only the end result that matters. To the majority of companies, technology exists to solve a business problem, and only delivers value when it is solving that problem. 2017 brings the mainstream adoption of containers for production workloads. In his session at 21st Cloud Expo, Ben McCormack, VP of Operations at Evernote, will discuss how data centers of the future will be managed, how th...
SYS-CON Events announced today that Fusic will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Fusic Co. provides mocks as virtual IoT devices. You can customize mocks, and get any amount of data at any time in your test. For more information, visit https://fusic.co.jp/english/.
SYS-CON Events announced today that Enroute Lab will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Enroute Lab is an industrial design, research and development company of unmanned robotic vehicle system. For more information, please visit http://elab.co.jp/.
SYS-CON Events announced today that Mobile Create USA will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Mobile Create USA Inc. is an MVNO-based business model that uses portable communication devices and cellular-based infrastructure in the development, sales, operation and mobile communications systems incorporating GPS capabi...