Networks Announces Financial Results for Q3 2009
MOUNTAIN VIEW, Calif., October 27, 2009 –
Cavium Networks, Inc. (NASDAQ: CAVM), a leading provider
of highly integrated semiconductor products that enable
intelligent processing for networking, communications,
storage, wireless and security applications, today announced
financial results for the third quarter of 2009 ended
September 30, 2009.
Revenue in the third quarter of 2009 was $25.9 million,
a 14% sequential increase from the $22.8 million reported
for the second quarter of 2009 and an increase of 6%
from the $24.5 million reported for the third quarter
of last year.
Generally Accepted Accounting Principles (GAAP)
Net loss for the third quarter of 2009, on a GAAP basis,
was $4.2 million, or $0.10 per share, compared to a
net loss of $6.2 million, or $0.15 per share in the
second quarter of 2009, and net income of $1.8 million,
or $0.04 per diluted share in the third quarter of last
year. Gross margins were 51.5% in the third quarter
of 2009 compared to 46.8% in the second quarter of 2009
and 58.8% in the third quarter of 2008. Total cash and
cash equivalents were $70.7 million at September 30,
Cavium Networks believes that the presentation of non-GAAP
financial measures provides important supplemental information
to management and investors regarding financial and
business trends relating to the company's financial
condition and results of operations. These measures
should only be used to evaluate the Company’s
results of operations in conjunction with the corresponding
GAAP measures. Non-GAAP financial measures in the third
quarter of 2009 exclude expenses totaling $4.9 million
related to stock-based compensation and related payroll
expense, amortization of acquired intangible assets
and acquisition related compensation expense and related
payroll taxes. The reconciliation between GAAP and non-GAAP
financial results is provided in the financial statements
portion of this release.
Net income for the third quarter of 2009, on a non-GAAP
basis, was $0.8 million, or $0.02 per diluted share,
compared with non-GAAP net loss of $1.0 million, or
$0.02 per share in the second quarter of 2009 and net
income of $4.6 million, or $0.11 per diluted share in
the third quarter of last year. Gross margins, on a
non-GAAP basis, were 55.7% in the third quarter of 2009
compared to 52.0% in the second quarter of 2009.
“We had record sales this quarter, due to primarily
strong growth in our Enterprise and Data Center business
driven by several new product ramps and a continuing
recovery in the run rate business. In addition, non-GAAP
gross margins expanded 370 basis points sequentially,
due to improved product mix, reduced product costs as
well as improved manufacturing overhead absorption.
The increased sales along with expanding gross margins
significantly improved sequential operating performance
this quarter” said Syed Ali, president and CEO
of Cavium Networks. “We have recently introduced
a number of new products, including our Next Generation
OCTEON™ II family of multi-core processors (from
one to 32 cores), our NITROX DPI Family of Layer 7 Content
Processors, as well as our new ECONA ARM-Based processors
for the connected home and office applications and the
PureVu family of products for highly interactive video
applications and display which helped drive extremely
robust design win rates during the quarter”.
Recent News Highlights:
- July 20, 2009 - Cavium Networks
Introduces NITROX DPI Family of Layer 7 Content Processors.
This family incorporates 3rd generation Cavium Networks
Deep Packet Inspection technology that targets a wide
range of applications including firewalls, intrusion
prevention (IPS), gateway anti-virus, unified threat
management and content-based QoS in routers, switches,
and services blades for the Enterprise, Datacenter
and Service Provider markets.
- July 24, 2009 - Sanjay Mehrotra,
president and chief operating officer of SanDisk Corp.
(NASDAQ: SNDK) joined Cavium Networks’ Board
- September 8, 2009 – Cavium
Networks’ ecosystem partners, D2 Technologies,
Entropic, TeamF1, SoftAtHome, Tuxera, and Wind River
announce support for ECONA™ Family of Super
Energy Efficient ARM®-Based System-on-Chip processors.
- September 8, 2009 - Cavium Networks
Introduces ECONA Family of Super Energy Efficient
ARM®-Based System-on-Chip (SoC) Processors for
the Digital Home.
- September 8, 2009 - Sumitomo Electric
Networks Inc. selects the new Super Energy Efficient
ECONA™ processors to power their next generation
Fiber to the Home (FTTH) Gateways.
- September 16, 2009 - Aricent and
Cavium Networks collaborate to provide LTE Evolved
Packet Core Solutions. The companies offer pre-optimized,
performance-enhanced and highly-scalable EPC Serving
Gateway (SGW), PDN Gateway (PGW) and Mobility Management
Entity (MME) ready-to-use software frameworks for
Cavium's OCTEON™ Multi-core MIPS64® processor
- September 22, 2009 - GE Fanuc
Intelligent Platforms and Cavium Networks collaborate
to bring low power multicore solutions to military
and aerospace customers.
- October 7, 2009 – Hitachi,
Ltd. integrated the Cavium Networks’ NITROX
PX Security Adapters in the recently introduced BladeSymphony®
320 Server family to deliver record crypto performance.
- Oct. 12, 2009 – Cavium Networks
announced the demonstration of OCTEON™ multi-core
MIPS64 storage processors at the Storage Networking
World Conference in Phoenix, Arizona. OCTEON’s
Intelligent Storage Service Processors (SSP) are being
designed into and targeted for an array of storage
applications in the cloud infrastructure.
- October 19th, 2009 – MontaVista®
Software, Inc., the leader in embedded Linux®
commercialization, announced the next release of their
market leading Carrier Grade Edition (CGE) Linux,
which supports the OCTEON® Multi-core MIPS64®
- Oct. 22, 2009 – Cavium Networks
announced that it had been ranked among the fastest
growing companies in North America on Deloitte’s
Technology Fast 500™ list. Rankings are based
on percentage of fiscal year revenue growth during
the five year period from 2004–2008, during
which time Cavium Networks grew revenue 1,069 percent.
Cavium Networks, Inc. will broadcast its third quarter
2009 financial results conference call today, October
27th, 2009, 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
Networks website at http://www.caviumnetworks.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 Networks
Cavium Networks is a leading provider of highly
integrated semiconductor products that enable intelligent
processing in networking, communications, wireless,
storage, video and security applications. Cavium Networks
offers a broad portfolio of integrated, software-compatible
processors ranging in performance from 10 Mbps to 20
Gbps that enable secure, intelligent functionality in
enterprise, data-center, broadband/consumer and access
and service provider equipment. Cavium Networks processors
are supported by ecosystem partners that provide operating
systems, tool support, reference designs and other services.
Cavium Networks principal offices are in Mountain View,
CA with design team locations in California, Massachusetts
and India. For more information, please visit: http://www.caviumnetworks.com.
Cavium Networks Contact:
Marketing Communications Manager
805 East Middlefield Road,
Mountain View, CA 94043