CAVIUM INC SAN JOSE, Calif., Jan. 28, 2015 /PRNewswire/ -- Cavium, Inc. (NASDAQ: CAVM), a leading provider of semiconductor products that enable intelligent processing for enterprise, data center, wired and wireless networking, today announced financial results for the fourth quarter ended December 31, 2014.
http://photos.prnewswire.com/prnvar/20120604/LA18845LOGO
Revenue in the fourth quarter of 2014 was $101.2 million, a 3.5% sequential increase from the $97.8 million reported in the third quarter of 2014 and a 24.8% year-over-year increase from the $81.1 million reported in the fourth quarter of 2013.
Generally Accepted Accounting Principles (GAAP) Results
Net loss attributable to the Company in the fourth quarter of 2014 was $12.0 million, or $(0.22) per diluted share, compared to net income attributable to the Company of $5.4 million, or $0.10 per diluted share in the third quarter of 2014. Gross margins were 62.1% in the fourth quarter of 2014 compared to 63.5% in the third quarter of 2014. Total cash and cash equivalents were $131.7 million at December 31, 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 fourth quarter of 2014, Non-GAAP net income was $24.5 million, or $0.42 per diluted share. Non-GAAP gross margin was 65.5% and Non-GAAP operating margin (non-GAAP income from operations as a percentage of revenue) was 24.2%.
Recent News Highlights
-- December 15, 2014 - Momentum Builds for NBASE-T Alliance with Twelve New
Participants
-- December 1, 2014 - Cavium Accelerates Customers Time to Market with
ThunderX(TM) Reference Platforms in Industry Standard 1U and 2U Form
Factors
-- December 1, 2014 - Cavium Announces Availability of ThunderX(TM):
Industry's First 48 Core Family of ARMv8 Workload Optimized Processors
for Next Generation Data Center & Cloud Infrastructure
-- November 17, 2014 - Cavium was at Supercomputing 2014
-- November 17, 2014 - ARM HPC Ecosystem Continues to Build Momentum with
Introduction of PathScale EKOPath Compiler
-- November 17, 2014 - Cray Explored Alternative Processor Technologies for
Supercomputing
-- November 14, 2014 - Cavium Ranked One of the Fastest Growing Companies
in North America on Deloitte's 2014 Technology Fast 500(TM)
Cavium, Inc. will broadcast its fourth quarter of 2014 financial results conference call today, January 28, 2015, 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,
2014 2014
------------- -------------
Net revenue $101,223 $97,833
Cost of revenue 38,402 35,710
------ ------
Gross profit 62,821 62,123
------ ------
Operating expenses:
Research and development 55,108 40,459
Sales, general and
administrative 19,314 18,141
------ ------
Total operating expenses 74,422 58,600
------ ------
Income (loss) from operations (11,601) 3,523
------- -----
Other expense, net:
Interest expense (293) (387)
Change in estimated fair
value of variable interest
entity's (VIE) notes payable
and other - (103)
Other, net (313) (116)
---- ----
Total other expense, net (606) (606)
---- ----
Income (loss) before income
taxes (12,207) 2,917
Provision for income taxes 268 811
--- ---
Net income (loss) (12,475) 2,106
Net loss attributable to non-
controlling interest (444) (3,327)
---- ------
Net income (loss)
attributable to
the Company $(12,031) $5,433
======== ======
Net income (loss)
attributable to
the Company per
common share,
basic $(0.22) $0.10
Shares used in computing
basic net income (loss) per
common share 54,249 53,786
Net income (loss)
attributable to
the Company per
common share,
diluted $(0.22) $0.10
Shares used in computing
diluted net income (loss)
per common share 54,249 55,540
CAVIUM, INC.
Unaudited Reconciliation of Non-GAAP Adjustments
(in thousands)
Three Months Ended
------------------
December 31, September 30,
2014 2014
------------- -------------
Reconciliation of GAAP research and
development expenses to non-GAAP:
GAAP research and
development expenses $55,108 $40,459
Stock-based compensation and related
payroll taxes (16,128) (5,932)
Net restructuring related expenses (617) (307)
Research and development expenses
associated with a VIE (8,769) (5,870)
------ ------
Non-GAAP research and
development expenses $29,594 $28,350
------- -------
Reconciliation of GAAP sales, general
and administrative expenses to non-
GAAP:
GAAP sales, general and
administrative expenses $19,314 $18,141
Stock-based compensation and related
payroll taxes (5,969) (5,071)
Amortization of acquired intangible
assets (33) (35)
Net restructuring related expenses (27) (188)
Sales, general and administrative
expenses associated with a VIE (1,017) (1,169)
------ ------
Non-GAAP sales, general
and administrative
expenses $12,268 $11,678
------- -------
Total Non-GAAP operating
expenses $41,862 $40,028
======= =======
Reconciliation of GAAP non-operating
expenses to non-GAAP non-operating
income:
GAAP non-operating expenses $(606) $(606)
Change in estimated fair value of
VIE's notes payable and other - 103
Non-operating expenses associated
with a VIE 905 509
--- ---
Total Non-GAAP non-
operating income $299 $6
==== ===
CAVIUM, INC.
Unaudited Reconciliation of Non-GAAP Adjustments
(in thousands, except per share data and percentages)
Three Months Ended
------------------
December 31, September 30,
2014 2014
------------- -------------
Reconciliation of GAAP gross profit &
margin to non-GAAP:
Net revenue $101,223 $97,833
GAAP gross profit 62,821 62,123
GAAP gross margin 62.1% 63.5%
Stock-based compensation and related
payroll taxes 237 254
Amortization of acquired intangible
assets 1,252 1,267
Net restructuring related expenses 2,002 158
----- ---
Non-GAAP gross profit $66,312 $63,802
======= =======
Non-GAAP gross margin 65.5% 65.2%
==== ====
Reconciliation of GAAP income (loss) from
operations to non-GAAP income from
operations:
GAAP income (loss) from
operations $(11,601) $3,523
Stock-based compensation and related
payroll taxes 22,334 11,257
Amortization of acquired intangible
assets 1,285 1,302
Net restructuring related expenses 2,646 653
Loss from operations of a variable
interest entity 9,786 7,039
----- -----
Non-GAAP income from
operations $24,450 $23,774
======= =======
Non-GAAP income from operations as a
percentage of revenue 24.2% 24.3%
==== ====
Reconciliation of GAAP net income (loss)
to non-GAAP net income:
GAAP net income (loss)
attributable to the Company $(12,031) $5,433
Non-GAAP adjustments:
Stock-based compensation and related
payroll taxes 22,334 11,257
Amortization of acquired intangible
assets 1,285 1,302
Net restructuring related expenses 2,646 653
Net loss of a variable interest entity
(excluding stock based compensation and
related taxes) attributable to the
Company 10,247 4,324
------ -----
Total of non-GAAP adjustments 36,512 17,536
------ ------
Non-GAAP net income $24,481 $22,969
======= =======
GAAP net income (loss)
attributable to the Company
per share, diluted $(0.22) $0.10
====== =====
Non-GAAP adjustments detailed above 0.64 0.30
Non-GAAP net income
attributable to the Company
per share, diluted $0.42 $0.40
===== =====
GAAP weighted average shares, diluted 54,249 55,540
Non-GAAP share adjustment 4,089 2,236
----- -----
Non-GAAP weighted average shares, diluted 58,338 57,776
CAVIUM, INC.
Unaudited GAAP Condensed Consolidated Balance Sheets
(in thousands)
As of As of
December 31, September 30,
2014 2014
------------- --------------
Assets
Current assets
Cash and cash equivalents $131,718 $156,330
Accounts receivable, net 48,199 45,278
Inventories 51,922 54,083
Prepaid expenses and other current assets 9,130 7,240
----- -----
Total current assets 240,969 262,931
Property and equipment, net 56,963 33,298
Intangible assets, net 37,644 39,082
Goodwill 71,478 71,478
Other assets 1,806 1,863
----- -----
Total assets $408,860 $408,652
======== ========
Liabilities and Equity
Current liabilities
Accounts payable $26,447 $23,039
Other accrued expenses and other current
liabilities 8,326 9,640
Deferred revenue 6,285 7,786
Notes payable and other - 29,800
Capital lease and technology license
obligations 23,002 17,066
------ ------
Total current liabilities 64,060 87,331
Capital lease and technology license
obligations, net of current 22,894 10,198
Deferred tax liability 2,292 2,675
Other non-current liabilities 2,931 2,532
----- -----
Total liabilities 92,177 102,736
------ -------
Equity
Common stock 54 54
Additional paid-in capital 488,981 488,012
Accumulated deficit (172,352) (160,321)
-------- --------
Total stockholders' equity attributable to
the Company 316,683 327,745
Non-controlling interest - (21,829)
--- -------
Total equity 316,683 305,916
------- -------
Total liabilities and equity $408,860 $408,652
======== ========
Logo - http://photos.prnewswire.com/prnh/20120604/LA18845LOGO
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/cavium-announces-financial-results-for-q4-2014-300027208.html
SOURCE Cavium, Inc.
