CAVIUM INC SAN JOSE, Calif., Jan. 27, 2016 /PRNewswire/ -- Cavium, Inc. (NASDAQ: CAVM), a leading provider of semiconductor products that enable secure and intelligent processing for enterprise, data center, cloud, wired and wireless networking, today announced financial results for the fourth quarter ended December 31, 2015.
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Net revenue in the fourth quarter of 2015 was $100.9 million, a 3.9% sequential decrease from the $105.1 million reported in the third quarter of 2015 and relatively flat from the $101.2 million reported in the fourth quarter of 2014.
Generally Accepted Accounting Principles (GAAP) Results
Net loss in the fourth quarter of 2015 was $1.0 million, or $(0.02) per diluted share, compared to net income of $4.2 million, or $0.07 per diluted share in the third quarter of 2015. Gross margins were 66.2% in the fourth quarter of 2015 compared to 65.5% in the third quarter of 2015. Total cash and cash equivalents were $134.6 million at December 31, 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 fourth quarter of 2015, Non-GAAP net income was $16.6 million, or $0.28 per diluted share. Non-GAAP gross margin was 66.6% and Non-GAAP operating margin (non-GAAP income from operations as a percentage of revenue) was 17.1%.
Recent News Highlights
-- November 16, 2015 - Cavium and Leading Partners Showcased ThunderX(TM)
ARMv8-based Server Platforms for Next Generation Cloud Data Center at
ARM TechCon 2015
-- November 16, 2015 - Cavium's ThunderX Workload Optimized Processors
received Readers' and Editors' Choice Award for Top 5 New Products or
Technologies to Watch from HPCwire
-- November 16, 2015 - E4 Computer Engineering announced production
availability and customer shipment of ARKA Server Platforms with Cavium
ThunderX(TM) ARMv8 Workload-Optimized Processors
-- November 16, 2015 - Cavium Announced Collaboration with Bright Computing
to Support the ThunderX(TM) Processor Family
-- November 16, 2015 - Penguin Computing Announced Availability and
Customer Shipments of Tundra Extreme Scale Valkre Servers Based on
Cavium ThunderX(TM) Workload Optimized Processors
-- November 16, 2015 - Wistron Announced New Server Platforms based on
Cavium's ThunderX(TM) Workload-Optimized Processor Family
-- November 16, 2015 - Inventec Enables Hadoop, Cloud Computing and
Hyperscale Workloads with new K850G3 Server Platforms with Cavium
ThunderX(TM) Workload Optimized Processors
-- November 16, 2015 - GIGABYTE Announced Availability and Production
Shipments of Extensive Cavium ThunderX-based Server Portfolio
-- November 9, 2015 - Cavium and Pica8 Partners to Deliver Leading Edge
Open Networking Solutions
Cavium, Inc. will broadcast its fourth quarter of 2015 financial results conference call today, January 27, 2016, 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
------------------
December 31, September 30,
2015 2015
------------- --------------
Net revenue $100,942 $105,063
Cost of revenue 34,092 36,203
------ ------
Gross profit 66,850 68,860
------ ------
Operating expenses:
Research and
development 47,764 45,367
Sales, general and
administrative 19,397 18,522
------ ------
Total operating
expenses 67,161 63,889
------ ------
Income (loss) from
operations (311) 4,971
---- -----
Other expense, net:
Interest expense (227) (216)
Other, net (138) (173)
---- ----
Total other expense,
net (365) (389)
---- ----
Income (loss) before
income taxes (676) 4,582
Provision for income
taxes 354 366
--- ---
Net income
(loss) $(1,030) $4,216
======= ======
Net income
(loss) per
common
share,
basic $(0.02) $0.08
Shares used in
computing basic net
income (loss) per
common share 56,131 55,819
Net income
(loss) per
common
share,
diluted $(0.02) $0.07
Shares used in
computing diluted net
income (loss) per
common share 56,131 57,457
CAVIUM, INC.
Unaudited Reconciliation of Non-GAAP Adjustments
(in thousands)
Three Months Ended
------------------
December 31, September 30,
2015 2015
------------- -------------
Reconciliation of GAAP operating
expenses to non-GAAP:
GAAP research and development
expenses $47,764 $45,367
Stock-based compensation and related
payroll taxes (7,833) (7,766)
Amortization of acquisition related
assets (3,667) (3,471)
Net restructuring related expenses - (140)
Xpliant transition related expenses (970) (971)
Non-GAAP research and
development expenses $35,294 $33,019
------- -------
GAAP sales, general and
administrative expenses $19,397 $18,522
Stock-based compensation and related
payroll taxes (4,764) (4,946)
Amortization of acquisition related
assets - (4)
Net restructuring related expenses - (255)
Non-GAAP sales, general and
administrative expenses $14,633 $13,317
------- -------
Total Non-GAAP operating
expenses $49,927 $46,336
======= =======
Reconciliation of GAAP non-operating
expenses to non-GAAP:
GAAP non-operating expenses $(365) $(389)
Non-operating expenses associated with
Xpliant - 354
--- ---
Total Non-GAAP non-
operating expense $(365) $(35)
===== ====
CAVIUM, INC.
Unaudited Reconciliation of Non-GAAP Adjustments
(in thousands, except per share data and percentages)
Three Months Ended
------------------
December 31, September 30,
2015 2015
------------- --------------
Reconciliation of GAAP gross profit &
margin to non-GAAP:
Net revenue $100,942 $105,063
GAAP gross profit 66,850 68,860
GAAP gross margin 66.2% 65.5%
Stock-based compensation and related
payroll taxes 198 211
Amortization of acquisition related assets 157 157
Non-GAAP gross profit $67,205 $69,228
======= =======
Non-GAAP gross margin 66.6% 65.9%
==== ====
Reconciliation of GAAP income (loss) from
operations to non-GAAP income from
operations:
GAAP income (loss) from
operations $(311) $4,971
Stock-based compensation and related
payroll taxes 12,795 12,923
Amortization of acquisition related assets 3,824 3,632
Net restructuring related expenses - 395
Xpliant transition related expenses 970 971
Non-GAAP income from operations $17,278 $22,892
======= =======
Non-GAAP income from operations as a
percentage of revenue 17.1% 21.8%
==== ====
Reconciliation of GAAP income (loss) to
non-GAAP net income:
GAAP net income (loss) $(1,030) $4,216
Non-GAAP adjustments:
Stock-based compensation and related
payroll taxes 12,795 12,923
Amortization of acquisition related assets 3,824 3,632
Net restructuring related expenses - 395
Xpliant transition related expenses 970 971
Non-operating expenses associated with
Xpliant - 354
--- ---
Total of non-GAAP adjustments 17,589 18,275
------ ------
Non-GAAP net income $16,559 $22,491
======= =======
GAAP net income (loss) per
share, diluted $(0.02) $0.07
====== =====
Non-GAAP adjustments detailed above 0.30 0.31
Non-GAAP net income per share,
diluted $0.28 $0.38
===== =====
GAAP weighted average shares, diluted 56,131 57,457
Non-GAAP share adjustment 3,519 2,201
----- -----
Non-GAAP weighted average shares, diluted 59,650 59,658
CAVIUM, INC.
Unaudited GAAP Condensed Consolidated Balance Sheets
(in thousands)
As of
-----
December 31, September 30,
2015 2015
------------- --------------
Assets
Current assets
Cash and cash equivalents $134,646 $130,985
Accounts receivable, net 68,742 61,696
Inventories 47,009 47,645
Prepaid expenses and other current assets 10,231 9,512
------ -----
Total current assets 260,628 249,838
Property and equipment, net 64,677 64,414
Intangible assets, net 35,492 36,954
Goodwill 71,478 71,478
Other assets 1,718 2,019
----- -----
Total assets $433,993 $424,703
======== ========
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable $27,489 $25,338
Other accrued expenses and other current
liabilities 9,443 12,095
Deferred revenue 6,316 6,519
Capital lease and technology license
obligations 20,608 17,004
------ ------
Total current liabilities 63,856 60,956
Capital lease and technology license
obligations, net of current 9,858 16,092
Deferred tax liability 3,417 3,320
Other non-current liabilities 2,962 2,849
----- -----
Total liabilities 80,093 83,217
------ ------
Stockholders' equity
Common stock 56 56
Additional paid-in capital 543,256 529,812
Accumulated deficit (189,412) (188,382)
-------- --------
Total stockholders' equity 353,900 341,486
------- -------
Total liabilities and
stockholders' equity $433,993 $424,703
======== ========
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SOURCE Cavium, Inc.
