[April 30, 2013] Cavium Announces Financial Results for Q1 2013 Tweet SAN JOSE, Calif., April 30, 2013 /PRNewswire via COMTEX/ -- 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. (Logo: http://photos.prnewswire.com/prnh/20120604/LA18845LOGO) 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(TM) II on New Packetarium(TM) Network Processor Platform and High-end ATCA Blade -- February 19, 2013 - Cavium Introduces TurboDPI(TM) 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 CAVIUM, INC. Unaudited Reconciliation of Non-GAAP Adjustments (in thousands, except per share data and percentages) Three Months Ended March 31, 2013 December 31, 2012 Reconciliation of GAAP gross profit & margin to non-GAAP: Net revenue $ 69,530 $ 66,369 GAAP gross profit 43,371 41,320 GAAP gross margin 62.4% 62.3% Stock-based compensation and related payroll taxes 296 432 Amortization of acquired intangible assets 1,607 1,625 Acquisition and restructuring related expenses 178 (571) Non-GAAP gross profit $ 45,452 $ 42,806 Non-GAAP gross margin 65.4% 64.5% Three Months Ended March 31, 2013 December 31, 2012 Reconciliation of GAAP loss from operations to non-GAAP income from operations: GAAP loss from operations $ (4,284) $ (37,286) Stock-based compensation and related payroll taxes 8,487 8,593 Amortization of acquired intangible assets 1,807 1,825 Acquisition and restructuring related expenses 1,328 (378) Acquisition and restructuring related compensation expenses 938 289 Write-down of acquired intangible assets - 5,570 Goodwill impairment - 27,680 Gain on sale of certain assets (747) - Loss from operations of a variable interest entity 3,585 2,880 Non-GAAP income from operations $ 11,114 $ 9,173 Non-GAAP income from operations as a percentage of revenue 16.0% 13.8% Three Months Ended March 31, 2013 December 31, 2012 Reconciliation of GAAP net loss to non-GAAP net income: GAAP net loss attributable to the Company $ (3,184) $ (78,839) Non-GAAP adjustments: Stock-based compensation and related payroll taxes: Cost of revenue 296 432 Research and development 4,042 4,070 Sales, general and administrative 4,149 4,091 Amortization of acquired intangible assets: Cost of revenue 1,607 1,625 Sales, general and administrative 200 200 Acquisition and restructuring related expenses 1,328 (378) Acquisition and restructuring related compensation expenses 938 289 Gain on sale of certain assets (747) - Net loss of a variable interest entity attributable to the Company 1,594 2,396 Write-down of acquired intangible assets - 5,570 Goodwill impairment - 27,680 Valuation allowance on deferred tax assets - 43,505 Total of non-GAAP adjustments 13,407 89,480 Non-GAAP net income $ 10,223 $ 10,641 GAAP net loss attributable to the Company per share, diluted $ (0.06) $ (1.56) Non-GAAP adjustments detailed above 0.25 1.76 Non-GAAP net income per share, diluted $ 0.19 $ 0.20 GAAP weighted average shares, diluted 51,001 50,490 Non-GAAP share adjustment 3,705 3,974 Non-GAAP weighted average shares, diluted 54,706 54,464 CAVIUM, INC. Unaudited GAAP Condensed Consolidated Balance Sheets (in thousands) As of March 31, 2013 December 31, 2012 Assets Current assets: Cash and cash equivalents $ 86,511 $ 76,784 Accounts receivable, net 36,127 33,567 Inventories 41,403 46,508 Prepaid expenses and other current assets 3,315 4,865 Assets held for sale - 2,609 Deferred tax assets 508 568 Total current assets 167,864 164,901 Property and equipment, net 28,805 30,692 Intangible assets, net 59,037 62,888 Goodwill 71,478 71,478 Deferred tax assets, net of current 512 449 Other assets 1,434 1,096 Total assets $ 329,130 $ 331,504 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 13,110 $ 16,083 Other accrued expenses and other current liabilities 6,698 8,680 Deferred revenue 10,657 12,944 Notes payable 1,012 1,012 Capital lease and technology license obligations, current 11,984 16,500 Total current liabilities 43,461 55,219 Notes payable, net of current portion 4,500 4,000 Capital lease and technology license obligations, net of current 23,843 24,832 Deferred tax liability 2,617 2,421 Other non-current liabilities 1,847 1,970 Total liabilities 76,268 88,442 Stockholders' equity Common stock 51 51 Additional paid-in capital 413,246 398,133 Accumulated deficit (157,276) (154,092) Total stockholders' equity attributable to the Company 256,021 244,092 Non-controlling interest (3,159) (1,030) Total stockholders' equity 252,862 243,062 Total liabilities and stockholders' equity $ 329,130 $ 331,504 SOURCE Cavium, Inc. http://rt.prnewswire.com/rt.gif NewsItemId=SF04633&Transmission_Id=201304301601PR_NEWS_USPR_____SF04633&DateId=20130430 [ Back To TMCnet.com's Homepage ]