MOUNTAIN VIEW, Calif., January 23, 2008 –
Cavium Networks (NASDAQ: CAVM), a leading provider of highly
integrated semiconductor products that enable intelligent
processing for networking, communications, storage and security
applications, today announced financial results for the fourth
quarter of 2007 ended December 31, 2007.
Revenue in the fourth quarter of 2007 was $16.2 million, a
14% sequential increase from the $14.2 million reported for
the third quarter of 2007 and an increase of 64% from the
$9.9 million reported for the fourth quarter of last year.
Generally Accepted Accounting Principles (GAAP) Results
Net income for the fourth quarter of 2007, on a GAAP basis,
was $2.0 million, or $0.05 per share (diluted), compared to
net income of $1.3 million, or $0.03 per diluted share in
the third quarter of 2007, and a net loss of $1.2 million,
or $0.15 per share (diluted) in the fourth quarter of last
year. Gross margins were 64.2% in the fourth quarter of 2007
compared to 63.2% in the third quarter of 2007. Total cash
and cash equivalents were $98.5 million at December 31, 2007.
Non-GAAP Results
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. Non-GAAP financial measures in the fourth quarter
of 2007 exclude $0.8 million in stock-based compensation and
related payroll tax expense and $0.1 million in amortization
of acquired intangible assets. The reconciliation between
GAAP and non-GAAP financial results are provided in the financial
statements portion of this release.
Net income for the fourth quarter of 2007, on a non-GAAP
basis, was $2.9 million, or $0.07 per share (diluted), compared
with $2.1 million, or $0.05 per share (diluted) in the third
quarter of 2007, and a net loss of $0.5 million, or $0.06
per share (diluted) in the fourth quarter of last year.
Gross margins, on a non-GAAP basis, were 64.9% in the fourth
quarter of 2007 compared to 64.9% in the third quarter of
2007.
Company Highlights
“We were very pleased with the robust sequential
growth this quarter as well as the acceleration in our growth
on a year-over-year basis,” said Syed Ali, president
and CEO of Cavium Networks. “Accelerating sales of
our flagship OCTEON™ processors and strong gross margins
drove healthy expansion in operating margin and net income
. Several new designs entered initial production phase this
quarter. Design win rates this quarter were extremely strong
and continued at the elevated levels we have seen through
the second half of 2007.”
Fourth Quarter Highlights:
- October 23, 2007 - Lanbird Delivers WiMAX Wireless
Infrastructure applications for Cavium Networks’
OCTEON™ Multi-core MIPS64 Processor Family.
- October 30, 2007 - Wind River announces standard out
of the box support of OCTEON processors in their latest
VxWorks version with SMP support.
- November 1, 2007 - Certicom and Cavium announced that
ECC Suite B and related Certicom APIs will be supported
by Cavium Networks processors. Certicom is the leading
provider of Elliptic Curve Cryptography (ECC) technology
approved by the NSA for government and commercial use.
- November 5, 2007 - H3C, a leading broad based networking
vendor in China, has chosen Cavium’s OCTEON processors
for a broad range of products targeting the SMB, Café
Router and Service Provider markets.
- November 19 , 2007 - Cavium Networks announced that
Aruba Networks, a provider of WLAN equipment, has selected
OCTEON™ Processors for use in their Enterprise Networking
Solutions.
- November 28, 2007 - Emerson Network Power announced
they are using Cavium Networks OCTEON Processors to develop
high-performance ATCA, AdvancedMC, and MicroTCA Packet
processing blades.
- December 3, 2007 - Cavium Networks announced a collaboration
with Broadcom to offer a comprehensive set of reference
designs targeted at intelligent switching and broadband
applications. These reference designs will utilize Cavium’s
market-leading OCTEON Multi-core MIPS64® processor
family along with Broadcom’s widely adopted enterprise
class StrataXGS® and home/SMB ROBOSwitch™ Gigabit
Ethernet switches, and FASTPATH® networking software.
The reference designs aim to reduce engineering development
cost and time-to-market for intelligent enterprise switches,
Layer 4+ switches, and SOHO/SMB routers.
- December 10, 2007 - GSA (formerly known as FSA, the
Fabless Semiconductor Association) announced that Cavium
Networks won the Favorite Fabless Pick Award.
- January 7, 2008 - Cavium Networks announced the demonstration
of Broadband & SOHO Reference Designs at CES 2008,
including designs of high-performance Triple-Play Gateway
with 802.11n WLAN and MoCA for LAN and WAN connectivity
and NAS functionality, a Broadband Gateway with high performance
Ultra Wide Band (UWB) WAN and a Broadband Gateway with
Jungo OpenRG™ software.
- January 7, 2008 - Pulse~Link, a provider of UWB chipsets,
announced they have selected OCTEON for their UWB over
Coax demo for WAN and LAN connectivity.
- January 14, 2008 – Packeteer, a leading provider
of WAN optimization solutions, announced they have chosen
OCTEON for their newest series of high-throughput, high
performance traffic processing solutions that will enable
fast intelligent application processing for distributed
applications in environments requiring multi-gigabit traffic
monitoring and real time policy enforcement response.
Conference Call
Cavium Networks will broadcast its fourth quarter 2007 financial
results conference call today, January 23, 2008 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, and storage and security applications.
Cavium Networks offers a broad portfolio of integrated, software
compatible processors ranging in performance from 10 Mbps
to 10 Gbps that enable secure, intelligent functionality in
enterprise, data-center, broadband/consumer and access &
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:
Angel Atondo
Marketing Manager
Cavium Networks
805 East Middlefield Road,
Mountain View, CA 94043
Telephone: 650-623-7033
Email:
angel.atondo@caviumnetworks.com
