Welcome!

Linux Containers Authors: Sujoy Sen, Scott Allen, Carmen Gonzalez, Elizabeth White, Pat Romanski

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
Designing IoT applications is complex, but deploying them in a scalable fashion is even more complex. A scalable, API first IaaS cloud is a good start, but in order to understand the various components specific to deploying IoT applications, one needs to understand the architecture of these applications and figure out how to scale these components independently. In his session at @ThingsExpo, Nara Rajagopalan is CEO of Accelerite, will discuss the fundamental architecture of IoT applications, ...
As cloud and storage projections continue to rise, the number of organizations moving to the cloud is escalating and it is clear cloud storage is here to stay. However, is it secure? Data is the lifeblood for government entities, countries, cloud service providers and enterprises alike and losing or exposing that data can have disastrous results. There are new concepts for data storage on the horizon that will deliver secure solutions for storing and moving sensitive data around the world. ...
In his session at 18th Cloud Expo, Bruce Swann, Senior Product Marketing Manager at Adobe, will discuss how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects). Bruce Swann has more than 15 years of experience working with digital marketing disciplines like web analytics, social med...
The essence of data analysis involves setting up data pipelines that consist of several operations that are chained together – starting from data collection, data quality checks, data integration, data analysis and data visualization (including the setting up of interaction paths in that visualization). In our opinion, the challenges stem from the technology diversity at each stage of the data pipeline as well as the lack of process around the analysis.
What a difference a year makes. Organizations aren’t just talking about IoT possibilities, it is now baked into their core business strategy. With IoT, billions of devices generating data from different companies on different networks around the globe need to interact. From efficiency to better customer insights to completely new business models, IoT will turn traditional business models upside down. In the new customer-centric age, the key to success is delivering critical services and apps wit...
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York and Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty ...
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit y...
There are several IoTs: the Industrial Internet, Consumer Wearables, Wearables and Healthcare, Supply Chains, and the movement toward Smart Grids, Cities, Regions, and Nations. There are competing communications standards every step of the way, a bewildering array of sensors and devices, and an entire world of competing data analytics platforms. To some this appears to be chaos. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists will discuss the vast to...
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo New York Call for Papers is now open.
SYS-CON Events announced today that Enzu, a leading provider of cloud hosting solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Enzu’s mission is to be the leading provider of enterprise cloud solutions worldwide. Enzu enables online businesses to use its IT infrastructure to their competitive advantage. By offering a suite of proven hosting and management services, Enzu wants companies to foc...
SYS-CON Events announced today the How to Create Angular 2 Clients for the Cloud Workshop, being held June 7, 2016, in conjunction with 18th Cloud Expo | @ThingsExpo, at the Javits Center in New York, NY. Angular 2 is a complete re-write of the popular framework AngularJS. Programming in Angular 2 is greatly simplified. Now it’s a component-based well-performing framework. The immersive one-day workshop led by Yakov Fain, a Java Champion and a co-founder of the IT consultancy Farata Systems and...
Customer experience has become a competitive differentiator for companies, and it’s imperative that brands seamlessly connect the customer journey across all platforms. With the continued explosion of IoT, join us for a look at how to build a winning digital foundation in the connected era – today and in the future. In his session at @ThingsExpo, Chris Nguyen, Group Product Marketing Manager at Adobe, will discuss how to successfully leverage mobile, rapidly deploy content, capture real-time d...
IoT generates lots of temporal data. But how do you unlock its value? How do you coordinate the diverse moving parts that must come together when developing your IoT product? What are the key challenges addressed by Data as a Service? How does cloud computing underlie and connect the notions of Digital and DevOps What is the impact of the API economy? What is the business imperative for Cognitive Computing? Get all these questions and hundreds more like them answered at the 18th Cloud Expo...
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, will provide an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life ...
SYS-CON Events announced today that ContentMX, the marketing technology and services company with a singular mission to increase engagement and drive more conversations for enterprise, channel and SMB technology marketers, has been named “Sponsor & Exhibitor Lounge Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York City, New York. “CloudExpo is a great opportunity to start a conversation with new prospects, but what happens after the...
SYS-CON Events announced today that 24Notion has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. 24Notion is full-service global creative digital marketing, technology and lifestyle agency that combines strategic ideas with customized tactical execution. With a broad understand of the art of traditional marketing, new media, communications and social influence, 24Notion uniquely understands how to con...
The demand for organizations to expand their infrastructure to multiple IT environments like the cloud, on-premise, mobile, bring your own device (BYOD) and the Internet of Things (IoT) continues to grow. As this hybrid infrastructure increases, the challenge to monitor the security of these systems increases in volume and complexity. In his session at 18th Cloud Expo, Stephen Coty, Chief Security Evangelist at Alert Logic, will show how properly configured and managed security architecture can...
When it comes to IoT in the enterprise, namely the commercial building and hospitality markets, a benefit not getting the attention it deserves is energy efficiency, and IoT's direct impact on a cleaner, greener environment when installed in smart buildings. Until now clean technology was offered piecemeal and led with point solutions that require significant systems integration to orchestrate and deploy. There didn't exist a 'top down' approach that can manage and monitor the way a Smart Buildi...
SYS-CON Events announced today BZ Media LLC has been named “Media Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. BZ Media LLC is a high-tech media company that produces technical conferences and expositions, and publishes a magazine, newsletters and websites in the software development, SharePoint, mobile development and Commercial Drone markets.
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, will discuss the importance of WebRTC and how it enables companies to fo...