SAN JOSE, Calif., August 2, 2017 – 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 second quarter ended June 30, 2017.
Net revenue in the second quarter of 2017 was $242.1 million, a 5.5% sequential increase from the $229.6 million reported in the first quarter of 2017 and 125.9% from the $107.2 million reported in the second quarter of 2016.
Generally Accepted Accounting Principles (GAAP) Results
Net loss for the second quarter of 2017 was $11.1 million, or ($0.16) per diluted share, compared to $50.5 million, or ($0.75) per diluted share in the first quarter of 2017. Gross margins were 53.5% in the second quarter of 2017 compared to 40.1% in the first quarter of 2017. GAAP operating loss (GAAP loss from operations as a percentage of revenue) was 2.5% in the second quarter of 2017 compared to 17.0% in the first quarter of 2017. Total cash and cash equivalents were $127.1 million at June 30, 2017.
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. Cavium believes that these non-GAAP financial measures provide additional insight into Cavium’s ongoing performance and core operational activities and has chosen to provide these measures for more consistent and meaningful comparison between periods. 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 second quarter of 2017, Non-GAAP net income was $48.9 million, or $0.67 per diluted share, Non-GAAP gross margin was 65.9% and Non-GAAP operating margin (non-GAAP income from operations as a percentage of revenue) was 23.3%.
Recent News Highlights
July 25, 2017 - Cavium Expands XPliant® Product Portfolio with 10GbE and 25GbE Optimized Programmable Switch Devices
July 11, 2017 - Cavium FastLinQ® Ethernet Enables Universal RDMA for Dell EMC 14th Generation PowerEdge Servers
June 28, 2017 - CaviumandChina Unicom Announced Trials of M-CORD NFV/5G Platforms in China
June 27, 2017 - CaviumUnveiled Industry’s Most Advanced 10/25/40/50Gbps Ethernet NIC Family
June 19, 2017 - Cavium and Leading Partners Showcased ThunderX®-based Server Platforms & Software for High Performance Computing at ISC 2017
June 19, 2017 - Cavium Expands the ThunderX2 Server Ecosystem for Cloud and HPC Applications
May 29, 2017 - Cavium and Partners Demonstrated a Range of Efficient, Secure and Scalable Datacenter and Networking Infrastructure Solutions at COMPUTEX 2017
May 29, 2017 - Cavium FastLinQ® Ethernet Adopted by Major ODMs for Next-Generation Cloud and Telco Datacenters
May 29, 2017 - Inventec Launched New Baymax™ HyperScale Server Platforms Powered by Cavium ThunderX2™ Processors
May 29, 2017 - Ingrasys Enables High Performance Computing and Hyperscale Workloads with New Class of Server Platforms Powered by Cavium ThunderX2™ Processors
May 29, 2017 - GIGABYTE Technology Announced Expansion of their ARM Server Portfolio based on Cavium's ThunderX2™ Workload Optimized Processor Family
May 9, 2017 - Cavium QLogic Accelerates NVMe over Fabrics Adoption
May 8, 2017 - Cavium Demonstrated Newest Enterprise Connectivity and Datacenter Solutions at Dell EMC World 2017
May 8, 2017 - Cavium Showcased Innovative Solutions for Private and Public Cloud Infrastructure and Scale Out Applications at OpenStack 2017
May 3, 2017 - Cavium Named Winner of Omega Award for Trailblazing Innovation by ACG Research for 2016
May 3, 2017 - Cavium Demonstrated Next-generation NFV, SDN, 5G and Telco Cloud Infrastructure Solutions at NFV World Congress 2017
May 2, 2017 - China Mobile, ARM, Cavium and Enea Signed Agreement for Cooperation in China Mobile Open NFV Testlab
May 2, 2017 - Cavium Demonstrated Leading Datacenter, HPC and Next-generation Cloud Infrastructure Solutions at Red Hat Summit 2017
April 27, 2017 - Online Launched ARMv8-Based Scaleway Public Cloud Service Powered by Cavium’s ThunderX® Workload Optimized Processors
Cavium will broadcast its second quarter of 2017 financial results conference call today, August 2, 2017, 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.
Cavium, Inc. (NASDAQ: CAVM), offers a broad portfolio of infrastructure solutions for compute, security, storage, switching, connectivity and baseband processing. Cavium’s highly integrated multi-core SoC products deliver software compatible solutions across low to high performance points enabling secure and intelligent functionality in Enterprise, Data center and Service Provider Equipment. Cavium processors and solutions are supported by an extensive ecosystem of operating systems, tools, application stacks, hardware reference-designs and other products. Cavium is headquartered in San Jose, CA with design centers in California, Massachusetts, India, Israel, China and Taiwan. For more information, please visit: http://www.cavium.com.