Welcome!

Microsoft Cloud Authors: David H Deans, Yeshim Deniz, Janakiram MSV, Andreas Grabner, Stackify Blog

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 App2Cloud 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. App2Cloud is an online Platform, specializing in migrating legacy applications to any Cloud Providers (AWS, Azure, Google Cloud).
IoT is at the core or many Digital Transformation initiatives with the goal of re-inventing a company's business model. We all agree that collecting relevant IoT data will result in massive amounts of data needing to be stored. However, with the rapid development of IoT devices and ongoing business model transformation, we are not able to predict the volume and growth of IoT data. And with the lack of IoT history, traditional methods of IT and infrastructure planning based on the past do not app...
Internet-of-Things discussions can end up either going down the consumer gadget rabbit hole or focused on the sort of data logging that industrial manufacturers have been doing forever. However, in fact, companies today are already using IoT data both to optimize their operational technology and to improve the experience of customer interactions in novel ways. In his session at @ThingsExpo, Gordon Haff, Red Hat Technology Evangelist, shared examples from a wide range of industries – including en...
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. Jack Norris reviews best practices to show how companies develop, deploy, and dynamically update these applications and how this data-first...
Intelligent Automation is now one of the key business imperatives for CIOs and CISOs impacting all areas of business today. In his session at 21st Cloud Expo, Brian Boeggeman, VP Alliances & Partnerships at Ayehu, will talk about how business value is created and delivered through intelligent automation to today’s enterprises. The open ecosystem platform approach toward Intelligent Automation that Ayehu delivers to the market is core to enabling the creation of the self-driving enterprise.
"We're a cybersecurity firm that specializes in engineering security solutions both at the software and hardware level. Security cannot be an after-the-fact afterthought, which is what it's become," stated Richard Blech, Chief Executive Officer at Secure Channels, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Consumers increasingly expect their electronic "things" to be connected to smart phones, tablets and the Internet. When that thing happens to be a medical device, the risks and benefits of connectivity must be carefully weighed. Once the decision is made that connecting the device is beneficial, medical device manufacturers must design their products to maintain patient safety and prevent compromised personal health information in the face of cybersecurity threats. In his session at @ThingsExpo...
Detecting internal user threats in the Big Data eco-system is challenging and cumbersome. Many organizations monitor internal usage of the Big Data eco-system using a set of alerts. This is not a scalable process given the increase in the number of alerts with the accelerating growth in data volume and user base. Organizations are increasingly leveraging machine learning to monitor only those data elements that are sensitive and critical, autonomously establish monitoring policies, and to detect...
SYS-CON Events announced today that Grape Up 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. Grape Up is a software company specializing in cloud native application development and professional services related to Cloud Foundry PaaS. With five expert teams that operate in various sectors of the market across the U.S. and Europe, Grape Up works with a variety of customers from emergi...
SYS-CON Events announced today that Massive Networks 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. Massive Networks mission is simple. To help your business operate seamlessly with fast, reliable, and secure internet and network solutions. Improve your customer's experience with outstanding connections to your cloud.
Everything run by electricity will eventually be connected to the Internet. Get ahead of the Internet of Things revolution and join Akvelon expert and IoT industry leader, Sergey Grebnov, in his session at @ThingsExpo, for an educational dive into the world of managing your home, workplace and all the devices they contain with the power of machine-based AI and intelligent Bot services for a completely streamlined experience.
Because IoT devices are deployed in mission-critical environments more than ever before, it’s increasingly imperative they be truly smart. IoT sensors simply stockpiling data isn’t useful. IoT must be artificially and naturally intelligent in order to provide more value In his session at @ThingsExpo, John Crupi, Vice President and Engineering System Architect at Greenwave Systems, will discuss how IoT artificial intelligence (AI) can be carried out via edge analytics and machine learning techn...
SYS-CON Events announced today that Datera, that offers a radically new data management architecture, 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. Datera is transforming the traditional datacenter model through modern cloud simplicity. The technology industry is at another major inflection point. The rise of mobile, the Internet of Things, data storage and Big...
In the enterprise today, connected IoT devices are everywhere – both inside and outside corporate environments. The need to identify, manage, control and secure a quickly growing web of connections and outside devices is making the already challenging task of security even more important, and onerous. In his session at @ThingsExpo, Rich Boyer, CISO and Chief Architect for Security at NTT i3, discussed new ways of thinking and the approaches needed to address the emerging challenges of security i...
SYS-CON Events announced today that GrapeUp, the leading provider of rapid product development at the speed of business, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Grape Up is a software company, specialized in cloud native application development and professional services related to Cloud Foundry PaaS. With five expert teams that operate in various sectors of the market acr...
From 2013, NTT Communications has been providing cPaaS service, SkyWay. Its customer’s expectations for leveraging WebRTC technology are not only typical real-time communication use cases such as Web conference, remote education, but also IoT use cases such as remote camera monitoring, smart-glass, and robotic. Because of this, NTT Communications has numerous IoT business use-cases that its customers are developing on top of PaaS. WebRTC will lead IoT businesses to be more innovative and address...
SYS-CON Events announced today that CA Technologies has been named "Platinum Sponsor" of SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business - from apparel to energy - is being rewritten by software. From planning to development to management to security, CA creates software that fuels transformation for companies in the applic...
In his opening keynote at 20th Cloud Expo, Michael Maximilien, Research Scientist, Architect, and Engineer at IBM, discussed the full potential of the cloud and social data requires artificial intelligence. By mixing Cloud Foundry and the rich set of Watson services, IBM's Bluemix is the best cloud operating system for enterprises today, providing rapid development and deployment of applications that can take advantage of the rich catalog of Watson services to help drive insights from the vast t...
Internet of @ThingsExpo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devic...
Recently, IoT seems emerging as a solution vehicle for data analytics on real-world scenarios from setting a room temperature setting to predicting a component failure of an aircraft. Compared with developing an application or deploying a cloud service, is an IoT solution unique? If so, how? How does a typical IoT solution architecture consist? And what are the essential components and how are they relevant to each other? How does the security play out? What are the best practices in formulating...