Cavium Announces Financial Results for Q1 2013

(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 first quarter of 2013 ended March 31, 2013.

Revenue in the first quarter of 2013 was $69.5 million, a 4.8% sequential increase from the $66.4 million reported in the fourth quarter of 2012.

Generally Accepted Accounting Principles (GAAP) Results

Net loss attributable to the Company for the first quarter of 2013, on GAAP basis was $3.2 million, or $(0.06) per diluted share compared to $78.8 million, or $(1.56) per diluted share in the fourth quarter of 2012. Net loss for the fourth quarter of 2012 included a non-cash charge of $43.5 million to provide for a valuation allowance for net deferred tax assets and non-cash charges for goodwill and other intangible asset impairment of $33.3 million. Gross margins were 62.4% in the first quarter of 2013 compared to 62.3% in the fourth quarter of 2012. Total cash and cash equivalents were $86.5 million at March 31, 2013.

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.

Non-GAAP net income for the first quarter of 2013 was $10.2 million or $0.19 per diluted share, compared with non-GAAP net income of $10.6 million or $0.20 per diluted share in the fourth quarter of 2012. Gross margins, on a non-GAAP basis, were 65.4% and operating margins (non-GAAP income from operations as a percentage of revenue), on a non-GAAP basis were 16.0% in the first quarter of 2013.

Recent News Highlights

  • February 26, 2013 - Cavium's PureVu® Powers ZTE's NEW Wireless Display Adapter for the Latest Grand Memo Smartphones
  • February 25, 2013  - Cavium Demonstrated Innovative Mobile Infrastructure Solutions for Next Generation Radio Access, Core Network, and Wireless Display Manufacturers at Mobile World Congress
  • February 25, 2013 - Cavium's PureVu® Enables Superior Wireless Display Consumer Experience for Huawei's Line of Ascend Smartphones
  • February 25, 2013 - LG U+ Selects Cavium's OCTEON Fusion® to Light up its LTE Small Cell Rollouts
  • February 21, 2013 - AirHop Communications and Cavium Sign Commercial Agreement to Integrate AirHop's eSONTM Software with Cavium's LTE Small Cell "BaseStation-on-a-Chip" Family
  • February 19, 2013 - Advantech Unveils Support For Cavium's TurboDPI™ II on New Packetarium™ Network Processor Platform and High-end ATCA Blade
  • February 19, 2013 - Cavium Introduces TurboDPI™ II for OCTEON® Processors – Takes Deep Packet Inspection (DPI) To the Next Level
  • January 31, 2013 - Cavium Announces Carrier Grade, Enterprise Quality,Commercial Software Development Environment for All OCTEON® Processors
  • January 31, 2013 - Cavium Announces Project Thunder Software Development Platform for Cloud and Data Centers
  • January 31, 2013 - Cavium Collaborates with the Fedora Project to Support Project Thunder 64-bit ARMv8 Processors

Cavium, Inc. will broadcast its first quarter 2013 financial results conference call today, April 30, 2013, 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 


March 31, 2013


December 31, 2012

Net revenue

$          69,530


$                66,369

Cost of revenue 

26,159


25,049

Gross profit 

43,371


41,320

Operating expenses:




     Research and development 

32,415


29,318

     Sales, general and administrative 

15,240


21,608

     Goodwill impairment

-


27,680

        Total operating expenses 

47,655


78,606

Loss from operations before other expense net, income taxes and non-controlling interest

(4,284)


(37,286)

Other expense, net:




    Interest expense

(342)


(581)

    Other, net

(261)


(164)

Total other expense, net

(603)


(745)

     Loss before income taxes and non-controlling interest

(4,887)


(38,031)

     Provision for (benefit from) income taxes

426


41,415

Net loss 

(5,313)


(79,446)

Net loss attributable to non-controlling interest

(2,129)


(607)

Net loss attributable to the Company

$          (3,184)


$               (78,839)

Net loss attributable to the Company per common share, basic

$            (0.06)


$                   (1.56)

Shares used in computing basic net loss per common share

51,001


50,490

Net loss attributable to the Company per common share, diluted

$            (0.06)


$                  (1.56)

Shares used in computing diluted net loss per common share

51,001


50,490









CAVIUM, INC.

Unaudited Reconciliation of Non-GAAP Adjustments

(in thousands)


Three Months Ended 

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

March 31, 2013


December 31, 2012




    GAAP research and development expenses

$          32,415


$                29,318

          Stock-based compensation and related payroll taxes

(4,042)


(4,070)

          Acquisition and restructuring related expenses 

(919)


(98)

          Acquisition and restructuring related compensation expenses

(255)


(249)

          Expenses associated from a variable interest entity

(3,585)


(2,880)

     Non-GAAP research and development expenses

$          23,614


$                22,021

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




    GAAP sales, general and administrative expenses

$          15,240


$                21,608

          Stock-based compensation and related payroll taxes

(4,149)


(4,091)

          Amortization of acquired intangible assets

(200)


(200)

          Acquisition and restructuring related expenses

(231)


(95)

          Acquisition and restructuring related compensation expenses

(683)


(40)

          Write-down of acquired intangible assets

-


(5,570)

          Gain on sale of certain assets

747


-

     Non-GAAP sales, general and administrative expenses

$          10,724


$                11,612






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