Attached files
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| 8-K - 8-K - CAVIUM, INC. | cavm-8k_20160427.htm |
Exhibit 99.1
Cavium
Announces Financial Results for Q1 2016
SAN JOSE, Calif., April 27, 2016 – 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 first quarter ended March 31, 2016.
Net revenue in the first quarter of 2016 was $101.9 million, a 1.0% sequential increase from the $100.9 million reported in the fourth quarter of 2015 and relatively flat from the $101.8 million reported in the first quarter of 2015.
Generally Accepted Accounting Principles (GAAP) Results
Net loss in the first quarter of 2016 was $3.8 million, or $(0.07) per diluted share, compared to $1.0 million, or $(0.02) per diluted share in the fourth quarter of 2015. Gross margins were 66.8% in the first quarter of 2016 compared to 66.2% in the fourth quarter of 2015. Total cash and cash equivalents were $129.6 million at March 31, 2016.
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 first quarter of 2016, Non-GAAP net income was $14.8 million, or $0.25 per diluted share. Non-GAAP gross margin was 67.1% and Non-GAAP operating margin (non-GAAP income from operations as a percentage of revenue) was 15.0%.
Recent News Highlights
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April 19, 2016 - Cavium Showcased the Innovative NFV/SDN Technology Solutions at NFV World Congress 2016 |
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March 15, 2016 - Cavium’s XPliant Switches Empower Open Networking at ONS 2016 |
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March 15, 2016 - Cavium Showcased Key Technology Components for Cloud Datacenters and NFV at Open Networking Summit 2016 |
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March 7, 2016 - Cavium Seamlessly Connected Open Switch Software on XPliant Switches |
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March 7, 2016 - Cavium to Demonstrate Data Center Solutions for Next Generation Cloud Infrastructure at Open Compute Summit 2016 |
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March 1, 2016 - Cavium OCTEON III Multi–Core Processor Family Powering Next Generation |
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February 29, 2016 - Cavium Showcased Products for Securing the Enterprise, Cloud & Service Provider Infrastructure at RSA Conference 2016 |
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February 29, 2016 - Cavium Announced FIPS 140-2 Certification of LiquidSecurityFamily |
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February 29, 2016 - Lanner Announced MR-810 Secure Networking Appliance for Telecom and NFV Applications Based on Cavium ThunderX Workload Optimized Processors |
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February 22, 2016 - Cavium collaborates with ONOS project to launch M–CORD Solution POC at Mobile World Congress 2016 |
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February 22, 2016 - Cavium Unveiled 4G and 5G Solutions for Next Generation Carrier Infrastructure at Mobile World Congress 2016 |
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February 22, 2016 - Cavium and Argela Delivers ProgRAN, a Fully Programmable, SDN–based RAN Solution for LTE and 5G |
Cavium, Inc. will broadcast its first quarter of 2016 financial results conference call today, April 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)
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Three Months Ended |
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March 31, 2016 |
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December 31, 2015 |
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Net revenue |
$ |
101,882 |
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$ |
100,942 |
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Cost of revenue |
|
33,866 |
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|
|
34,092 |
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Gross profit |
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68,016 |
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66,850 |
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Operating expenses: |
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Research and development |
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50,455 |
|
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47,764 |
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Sales, general and administrative |
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20,925 |
|
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19,397 |
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Total operating expenses |
|
71,380 |
|
|
|
67,161 |
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Loss from operations |
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(3,364 |
) |
|
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(311 |
) |
|
Other income (expense), net: |
|
|
|
|
|
|
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Interest expense |
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(208 |
) |
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(227 |
) |
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Other, net |
|
14 |
|
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(138 |
) |
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Total other expense, net |
|
(194 |
) |
|
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(365 |
) |
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Loss before income taxes |
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(3,558 |
) |
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|
(676 |
) |
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Provision for income taxes |
|
275 |
|
|
|
354 |
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Net loss |
$ |
(3,833 |
) |
|
$ |
(1,030 |
) |
|
Net loss per common share, basic and diluted |
$ |
(0.07 |
) |
|
$ |
(0.02 |
) |
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Shares used in computing basic and diluted net loss per common share |
|
56,932 |
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56,131 |
|
Unaudited Reconciliation of Non-GAAP Adjustments
(in thousands)
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Three Months Ended |
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|||||
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March 31, 2016 |
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December 31, 2015 |
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Reconciliation of GAAP operating expenses to non-GAAP: |
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GAAP research and development expenses |
$ |
50,455 |
|
|
$ |
47,764 |
|
|
Stock-based compensation and related payroll taxes |
|
(8,773 |
) |
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|
(7,833 |
) |
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Amortization of acquisition related assets |
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(3,532 |
) |
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(3,667 |
) |
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Xpliant transition related expenses |
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- |
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(970 |
) |
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Non-GAAP research and development expenses |
$ |
38,150 |
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$ |
35,294 |
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Reconciliation of GAAP sales, general and administrative expenses to non-GAAP: |
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GAAP sales, general and administrative expenses |
$ |
20,925 |
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$ |
19,397 |
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Stock-based compensation and related payroll taxes |
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(5,984 |
) |
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(4,764 |
) |
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Non-GAAP sales, general and administrative expenses |
$ |
14,941 |
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$ |
14,633 |
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Total Non-GAAP operating expenses |
$ |
53,091 |
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$ |
49,927 |
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Unaudited Reconciliation of Non-GAAP Adjustments
(in thousands, except per share data and percentages)
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Three Months Ended |
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March 31, 2016 |
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December 31, 2015 |
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Reconciliation of GAAP gross profit and margin to non-GAAP: |
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Net revenue |
$ |
101,882 |
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$ |
100,942 |
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GAAP gross profit |
|
68,016 |
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|
66,850 |
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GAAP gross margin |
|
66.8 |
% |
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|
66.2 |
% |
|
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|
|
|
|
|
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|
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Stock-based compensation and related payroll taxes |
|
191 |
|
|
|
198 |
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Amortization of acquisition related assets |
|
157 |
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|
157 |
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Non-GAAP gross profit |
$ |
68,364 |
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$ |
67,205 |
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Non-GAAP gross margin |
|
67.1 |
% |
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66.6 |
% |
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Reconciliation of GAAP loss from operations to non-GAAP income from operations: |
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GAAP loss from operations |
$ |
(3,364 |
) |
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$ |
(311 |
) |
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Stock-based compensation and related payroll taxes |
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14,948 |
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|
12,795 |
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Amortization of acquisition related assets |
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3,689 |
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|
3,824 |
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Xpliant transition related expenses |
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- |
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|
970 |
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Non-GAAP income from operations |
$ |
15,273 |
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$ |
17,278 |
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Non-GAAP income from operations as a percentage of revenue |
|
15.0 |
% |
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17.1 |
% |
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Reconciliation of GAAP net loss to non-GAAP net income: |
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GAAP net loss |
$ |
(3,833 |
) |
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$ |
(1,030 |
) |
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Non-GAAP adjustments: |
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Stock-based compensation and related payroll taxes |
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14,948 |
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12,795 |
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Amortization of acquisition related assets |
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3,689 |
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3,824 |
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Xpliant transition related expenses |
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- |
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|
970 |
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Total of non-GAAP adjustments |
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18,637 |
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17,589 |
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Non-GAAP net income |
$ |
14,804 |
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$ |
16,559 |
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|
|
|
|
|
|
|
|
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GAAP net loss per share, diluted |
$ |
(0.07 |
) |
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$ |
(0.02 |
) |
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Non-GAAP adjustments detailed above |
|
0.32 |
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|
0.30 |
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Non-GAAP net income per share, diluted |
$ |
0.25 |
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$ |
0.28 |
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|
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GAAP weighted average shares, diluted |
|
56,932 |
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|
56,131 |
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Non-GAAP share adjustment |
|
3,233 |
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|
|
3,519 |
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Non-GAAP weighted average shares, diluted |
|
60,165 |
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|
59,650 |
|
Unaudited GAAP Condensed Consolidated Balance Sheets
(in thousands)
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As of |
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March 31, 2016 |
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December 31, 2015 |
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Assets |
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Current assets |
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Cash and cash equivalents |
$ |
129,629 |
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$ |
134,646 |
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Accounts receivable, net |
|
79,594 |
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|
68,742 |
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Inventories |
|
48,092 |
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|
47,009 |
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Prepaid expenses and other current assets |
|
8,233 |
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|
10,231 |
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Total current assets |
|
265,548 |
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|
260,628 |
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Property and equipment, net |
|
63,303 |
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|
64,677 |
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Intangible assets, net |
|
37,907 |
|
|
|
35,492 |
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Goodwill |
|
71,478 |
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|
|
71,478 |
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Other assets |
|
1,738 |
|
|
|
1,718 |
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Total assets |
$ |
439,974 |
|
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$ |
433,993 |
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Liabilities and Stockholders' Equity |
|
|
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Current liabilities |
|
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Accounts payable |
$ |
25,668 |
|
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$ |
27,489 |
|
|
Other accrued expenses and other current liabilities |
|
8,326 |
|
|
|
9,443 |
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Deferred revenue |
|
6,425 |
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|
|
6,316 |
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Capital lease and technology license obligations |
|
17,286 |
|
|
|
20,608 |
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Total current liabilities |
|
57,705 |
|
|
|
63,856 |
|
|
Capital lease and technology license obligations, net of current |
|
6,932 |
|
|
|
9,858 |
|
|
Deferred tax liability |
|
3,785 |
|
|
|
3,417 |
|
|
Other non-current liabilities |
|
2,907 |
|
|
|
2,962 |
|
|
Total liabilities |
|
71,329 |
|
|
|
80,093 |
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity |
|
|
|
|
|
|
|
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Common stock |
|
57 |
|
|
|
56 |
|
|
Additional paid-in capital |
|
561,833 |
|
|
|
543,256 |
|
|
Accumulated deficit |
|
(193,245 |
) |
|
|
(189,412 |
) |
|
Total stockholders' equity |
|
368,645 |
|
|
|
353,900 |
|
|
Total liabilities and stockholders' equity |
$ |
439,974 |
|
|
$ |
433,993 |
|
Cavium Contact:
|
Art Chadwick |
|
Angel Atondo |
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Vice President of Finance and Administration and Chief Financial Officer |
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Senior Marketing Communications Manager |
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Tel: (408) 943-7104 |
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Tel: (408) 943-7417 |
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Email: art.chadwick@cavium.com |
|
Email: angel.atondo@cavium.com |