Cavium Announces Financial Results for Q2 2014 

Cavium, Inc. has announced financial results for the second quarter ended June 30, 2014.

Revenue in the second quarter of 2014 was $90.7 million, an 8.9% sequential increase from the $83.2 million reported in the first quarter of 2014 and a 22.2% year-over-year increase from the $74.2 million reported in the second quarter of 2013.

Generally Accepted Accounting Principles (GAAP) Results

Net loss attributable to the Company in the second quarter of 2014 was $11.0 million, or $(0.21) per diluted share, compared to net income attributable to the Company of $2.3 million, or $0.04 per diluted share in the first quarter of 2014. Gross margins were 62.6% in the second quarter of 2014 compared to 63.5% in the first quarter of 2014. Total cash and cash equivalents were $140.6 million at June 30, 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 second quarter of 2014, Non-GAAP net income was $19.9 million, or $0.35 per diluted share, Non-GAAP gross margin was 64.5% and Non-GAAP operating margin (non-GAAP income from operations as a percentage of revenue) was 22.3%.

Recent News Highlights

• July 21, 2014 - Cavium and Quortus Enabled Unique LTE RAN and EPC on Single Chip for Portable Applications
• June 23, 2014 - Altera and Cavium Delivered Pre-Verified Packet Classification Solution for Networking Appliances
• June 3, 2014 - Cavium Introduced ThunderX: A 2.5 GHz, 48 Core Family of Workload Optimized Processors for Next Generation Data Center and Cloud Applications
• June 3, 2014 - Cavium Announced Collaboration with Oracle to Support the ThunderX Processor Family
• June 3, 2014 - Cavium Expanded Collaboration with Fedora Project to Accelerate ARMv8 Software Ecosystem
• June 3, 2014 - openSUSE Community Announced Partnership with Cavium to Support the ThunderX Workload Optimized Processor Family
• June 3, 2014 - Canonical Announced Expanded Ubuntu Support for the Cavium Workload Optimized ThunderX Processor Family
• June 3, 2014 - Cavium Delivered Next Generation Xen Virtualization with ThunderX Family of Workload Optimized Processors
• June 3, 2014 - American Megatrends Announced Partnership with Cavium to Support the ThunderX Processor Family
• June 3, 2014 - Gigabyte Technology Announced Expansion of Server Platforms based on Cavium's ThunderX Workload Optimized Processor Family
• June 3, 2014 - Cavium Contributed ARMv8 Based Platform Architecture to Open Compute Project, Based on ThunderX Family of Workload-Optimized Processors
• June 3, 2014 - MontaVista Announced MV Cloud Support for the Cavium ThunderX Workload Optimized Processor Family
• June 3, 2014 - Cavium Joined Xen Project Advisory Board
• June 2, 2014 - Cavium Introduced Project Thunder at Computex 2014
• June 2, 2014 - Cavium Demonstrated a Broad Range of New SoC Solutions for RAN Core and Cloud Infrastructure at Computex 2014