Cavium Announces Financial Results for Q3 2017

SAN JOSE, Calif., November 1, 2017 – Cavium, Inc. (NASDAQ: CAVM), a leading provider of semiconductor products that enable intelligent processing for enterprise, data center, cloud, wired and wireless networking, today announced financial results for the third quarter ended September 30, 2017.

Net revenue in the third quarter of 2017 was $252.0 million, a 4.1% sequential increase from the $242.1 million reported in the second quarter of 2017 and 49.9% from the $168.1 million reported in the third quarter of 2016.

Generally Accepted Accounting Principles (GAAP) Results
Net loss for the third quarter of 2017 was $6.2 million, or ($0.09) per diluted share, compared to $11.1 million, or ($0.16) per diluted share in the second quarter of 2017. Gross margins were 54.6% in the third quarter of 2017 compared to 53.5% in the second quarter of 2017. As a percentage of revenue, GAAP income from operations was 0.19% in the third quarter of 2017 compared to GAAP operating loss of 2.5% in the second quarter of 2017. Total cash and cash equivalents were $152.7 million at September 30, 2017.

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. 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 third quarter of 2017, Non-GAAP net income was $55.8 million, or $0.76 per diluted share, Non-GAAP gross margin was 66.0% and Non-GAAP income from operations as a percentage of revenue was 24.8%.

Recent News Highlights

• October 24, 2017 - Cadence and Arm Delivers First SoC Verification Solution for Low-Power, High-Performance Arm-Based Servers
  
  
• October 9, 2017 - China Unicom Awarded "Best 5G Initiative" RANNYs Award in Partnership with Cavium
  
  
• September 11, 2017 - Cavium Showcased M-CORD NFV/5G on ARM with Leaf and Spine SDN Fabric at Mobile World Congress Americas 2017
  
  
• September 11, 2017 - Cavium and Enea Delivers Optimized Software and Hardware Platform for uCPE
  
  
• August 28, 2017 - Cavium Demonstrated NVMe Scale-out Technologies at VMworld US 2017
  
  
• August 10, 2017 - Cavium Announced Support for FC-NVMe Standard
  
  
• August 8, 2017 - Cavium Demonstrated Breakthrough NVMe over Fabrics Performance at Flash Memory Summit 2017

Cavium will broadcast its third quarter of 2017 financial results conference call today, November 1, 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.

About Cavium
Cavium 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 about the Company, please visit: http://cavium.com/newsevents_Cavium-Announces-Financial-Results-for-Q3-2017.html.

Cavium Contact
Angel Atondo
Senior Marketing Communications Manager
Tel: (408) 943-7417
Email:angel.atondo@cavium.com

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Cavium Unveils OCTEON TX™: Industry’s widest range of 64-bit ARM®-based SOCs for a broad spectrum of open, services-centric applications in enterprise and service provider infrastructure

SOCs with 1 to 24 enhanced ARMv8.1 cores, rich ecosystem for control plane applications and hardware acceleration for data plane

San Jose, Calif. , May 2, 2016 – Cavium, Inc. (NASDAQ: CAVM), a leading provider of products that enable secure and intelligent processing for enterprise, data center, cloud, wired and wireless networking, today unveiled OCTEON TX, a complete line of 64-bit ARM based SOCs for control plane and data plane applications in networking, security, and storage. This new product line is composed of 4 product families - CN80XX, CN81XX, CN82XX and CN83XX with 1 to 24 full custom, enhanced 64-bit ARM v8.1 cores, providing the industry’s broadest range of highly integrated 64-bit ARM SOC products for a wide variety of embedded processing applications. The OCTEON TX expands the addressability of Cavium’s embedded products into control plane application areas within enterprise, service provider, data center networking and storage that need support of extensive software ecosystem and virtualization features. This product line is also optimized to run multiple concurrent data and control planes simultaneously for security and router appliances, NFV and SDN infrastructure, service provider CPE, wireless transport, NAS, storage controllers, IOT gateways, printer and industrial applications.

Market DynamicsThe networks of the future are striving to become more open and application centric to enable service expansion and increase monetization. In this open network, the control plane needs to run commercial software distributions and operating systems (e.g., RHEL, Canonical and Java SE), support open source applications (e.g., OpenStack, OpenFlow and Quagga), launch services dynamically and run customer specific services. The data plane is also challenged to support concurrent coexistence of multiple types of high performance data plane applications for firewall, content delivery, routing, and traffic management. The bandwidth demanded for these data planes in networks is also exploding driven by multimedia 4K content and applications, exabytes of storage mirrored across Cloud and Enterprise, real time data acquisition, and rapid growth of connected devices in the IOT world. The threats inside these open networks of cloud and enterprise are becoming increasingly sophisticated and vulnerabilities are becoming more exposed with the connectivity of millions of unsecured IOT devices.

The OCTEON SOC architecture already has established market leadership in data plane application performance and efficiency. While current OCTEON SOCs are used in applications for data plane as well as control plane with embedded software, control plane applications requiring wider software ecosystem and support traditionally have been addressed by the x86 architecture. The open, service centric networks need lower-cost alternatives for control plane, and superior ecosystem and networking performance for data plane. The ARM architecture is able to service these critical needs.

The OCTEON TX ARM 64-bit SOC family of processors combine the best in class data plane performance of the OCTEON® SOC family, and the rich software ecosystem and virtualization features, extended support of open source applications and highly optimized custom ARMv8.1 CPU cores of the ThunderX® family. It also integrates Cavium’s flagship security architecture from the NITROX® V security processor family. With this unique combination of performance, features and interfaces, the OCTEON TX provides an excellent solution for service centric networks and addresses additional application areas in the embedded processor market. The OCTEON TX offers a software compatible, scalable product family to meet the wide range of price, power and performance requirements of various end markets such as virtual CPE, wireless transport, NAS, storage appliances and controllers, IOT gateways, industrial control, SMB routers, security appliances, data center accelerators, data center appliances and various control plane applications.

Feature Highlights

• Enhanced ThunderX (TX) ARM64 bit cores based on the latest ARM v8.1 ISA, with up to 2.2 GHz core frequency and 78K of I-Cache and 32K of D-Cache
• CN80XX, CN81XX: From 1 to 4 cores, up to 2MB of Last Level Cache, 1x32b/64b DDR4 with ECC.
• CN82XX, CN83XX: From 8 to 24 cores, up to 8MB of Last Level Cache, up to 2x64b DDR4 with ECC
• Simultaneous support of bulk and RSA crypto, from 400Mbps to 40Gbps of IPSEC performance and 600 to 20K RSA Ops/sec for 2048 bit keys.
• Latest security features – Supports a wide variety of protocols including IPsec, SSL, TLS 1.x, DTLS and ECC Suite B. Also supports a wide variety of algorithms including several variants of AES, 3DES, SHA-2, SHA-3, RSA 2048, RSA 4096, RSA 8192, ECC p256/p384/p521, Kasumi, ZUC and SNOW 3G.
• From 500Mbps to 50Gbps of Layer 3 forwarding
• Up to 2x 32/64-bit DDR3/DDR4 controllers with ECC, with up to 2400MTS
• Integrated Compression Engines with up to 40Gbps
• High bandwidth IO: Integrates up to - 12 10Gb/1GbE, 3 40GbE, 4 PCI-Express Gen3, 6 SATA 3.0
• Latest ARMv8.1 and SMMU v2 for data center class full-SOC virtualization support
• Low Power to meet the strict thermal profiles of fanless designs, off-load cards and outdoor industrial grade form factors

Supporting Industry Quotes
“Cavium’s OCTEON product line has achieved broad success across a wide range of multicore networking applications due to its highly scalable and accelerated SOC architecture.  With OCTEON TX, Cavium is combining its data plane architecture with its optimized ARMv8.1 cores to target a new range of open and virtualized applications for services-centric networks”, said Linley Gwennap, principal analyst at the Linley Group.

“Cavium has delivered breakthrough performance for data plane and security applications with its multi-core OCTEON SOCs,” said Steve Klinger, General Manager, Infrastructure Processor Group at Cavium.   “The wide range of products in the OCTEON TX ARM 64-bit product line builds upon this success and expands the use of these products into control and embedded processing applications that leverage the fast growing ARM ecosystem and breadth of open source initiatives”.

Availability
The 1 to 4 core CN80XX and CN81XX product families will be sampling in Q2 of 2016, and the 8 to 24 core CN82XX and CN83XX will be sampling in Q3 of 2016.

About Cavium, Inc.
Cavium is a leading provider of highly integrated semiconductor products that enable intelligent processing in enterprise, data center, cloud and wired and wireless service provider applications. Cavium offers a broad portfolio of integrated, software compatible processors ranging in performance from 100 Mbps to 100 Gbps that enable secure, intelligent functionality in enterprise, data-center, broadband/consumer and access & service provider equipment. Cavium’s processors are supported by ecosystem partners that provide operating systems, tool support, reference designs and other services. Cavium’s principal offices are in San Jose, California with design team locations in California, Massachusetts, India, and China. For more information, please visit: http://www.cavium.com

Cavium Contact:
Angel Atondo
Sr. Marketing Communications Manager,
Cavium, 2315 N. First Street,
San Jose CA 95131,
Telephone: +1 408-943-7417
Email: angel.atondo@cavium.com

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Cavium Announces Financial Results for Q4 2015

SAN JOSE, Calif., Jan. 27, 2016 -- 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 fourth quarter endedDecember 31, 2015.

Net revenue in the fourth quarter of 2015 was $100.9 million, a 3.9% sequential decrease from the $105.1 million reported in the third quarter of 2015 and relatively flat from the $101.2 million reported in the fourth quarter of 2014.

Generally Accepted Accounting Principles (GAAP) Results

Net loss in the fourth quarter of 2015 was $1.0 million, or $(0.02) per diluted share, compared to net income of $4.2 million, or $0.07 per diluted share in the third quarter of 2015. Gross margins were 66.2% in the fourth quarter of 2015 compared to 65.5% in the third quarter of 2015. Total cash and cash equivalents were $134.6 million at December 31, 2015.

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 fourth quarter of 2015, Non-GAAP net income was $16.6 million, or $0.28 per diluted share. Non-GAAP gross margin was 66.6% and Non-GAAP operating margin (non-GAAP income from operations as a percentage of revenue) was 17.1%.

Recent News Highlights

·         November 16, 2015 - Cavium and Leading Partners Showcased ThunderX™ ARMv8-based Server Platforms for Next Generation Cloud Data Center at ARM TechCon 2015

·         November 16, 2015 - Cavium's ThunderX Workload Optimized Processors received Readers' and Editors' Choice Award for Top 5 New Products or Technologies to Watch from HPCwire

·         November 16, 2015 - E4 Computer Engineering announced production availability and customer shipment of ARKA Server Platforms with Cavium ThunderX™ ARMv8 Workload-Optimized Processors

·         November 16, 2015 - Cavium Announced Collaboration with Bright Computing to Support the ThunderX™ Processor Family

·         November 16, 2015 - Penguin Computing Announced Availability and Customer Shipments of Tundra Extreme Scale Valkre Servers Based on Cavium ThunderX™ Workload Optimized Processors

·         November 16, 2015 - Wistron Announced New Server Platforms based on Cavium's ThunderX™ Workload-Optimized Processor Family

·         November 16, 2015 - Inventec Enables Hadoop, Cloud Computing and Hyperscale Workloads with new K850G3 Server Platforms with Cavium ThunderX™ Workload Optimized Processors

·         November 16, 2015 - GIGABYTE Announced Availability and Production Shipments of Extensive Cavium ThunderX-based Server Portfolio

·         November 9, 2015 - Cavium and Pica8 Partners to Deliver Leading Edge Open Networking Solutions

Cavium, Inc. will broadcast its fourth quarter of 2015 financial results conference call today, January 27, 2016, 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 in enterprise, data center, cloud and wired and wireless service provider applications. Cavium offers a broad portfolio of integrated, software-compatible processors ranging in performance from 100 Mbps to 100 Gbps that enable secure, intelligent functionality in enterprise, data-center, broadband/consumer and access and service provider equipment. Cavium's 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.

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Cavium's ThunderX Workload Optimized Processors receive Readers' and Editors' Choice Award for Top 5 New Products or Technologies to Watch from HPCwire

AUSTIN, Texas, Nov 17, 2015 /PRNewswire/ -- Cavium, Inc. (NASDAQ: CAVM), a leading provider of semiconductor products that enable intelligent processing for enterprise, data center, cloud wired and wireless networking, today announced that its flagship 48 core ARMv8-A based ThunderX workload optimized processor has won the coveted Readers' and Editors' Choice Award for Top 5 New Products or Technologies to Watch to be presented at the 2015 International Conference for High Performance Computing, Networking, Storage and Analysis (SC15), in Austin, Texas.  The list of winners were revealed at the HPCwire booth at the event, and on the HPCwire website, located at www.HPCwire.com.

The coveted annual HPCwire Readers' and Editors' Choice Awards are determined through a nomination and voting process with the global HPCwire community, as well as selections from the HPCwire editors. The awards are an annual feature of the publication and constitute prestigious recognition from the HPC community. These awards are revealed each year to kick off the annual supercomputing conference, which showcases high performance computing, networking, storage, and data analysis.

ThunderX is Cavium's 64-bit ARMv8 server processor family for next generation Cloud and high performance computing - workloads. With up to 48 high-performance custom cores, single and dual socket capability, high memory bandwidth and capacity, and integrated hardware accelerators. ThunderX enables best-in-class ARMv8 performance per dollar and performance per watt. The ThunderX family includes multiple SKUs that enable servers optimized for compute, storage, network and security workloads in the cloud, and is widely supported by industry-leading OS, hypervisor, software tool and application vendors. ThunderX is also optimized for networking specific workloads suc as Network Functions Virtualization (NFV).

Cavium is also exhibiting at the SC15 Conference this week enabling the entire HPC community to experience directly the opportunities with ThunderX that include OEM system partners, software tools and software solutions.  Cavium is exhibiting in booth 481.
Supporting Quotes

"We are honored that ThunderX has been recognized by the Global HPC Community in this prestigious category," said Gopal Hegde, Vice President and General Manager, Data Center Processor Group at Cavium. "This award is yet another indicator of the tremendous momentum and recognition that Cavium has created in the server market with ThunderX.  We continue to expand our system and software partners to accelerate end user delivery and deployment in some of the leading HPC customer environments worldwide."

"HPCwire readers are among the most informed in the HPC community and these awards are ultimately given to the organizations that are making the greatest impact in advancing technology and humanity itself through high performance computing," said Tom Tabor, CEO of Tabor Communications, publisher of HPCwire.  "The HPCwire Readers' and Editors' Choice Awards send a strong message of support and appreciation from those in the global HPC community. We are proud to be able to recognize these efforts each your and our congratulations go out to all the winners."


About Cavium, Inc.
Cavium is a leading provider of highly integrated semiconductor products that enable intelligent processing in enterprise, data center, cloud, wired and wireless service provider applications. Cavium offers a broad portfolio of integrated, software compatible processors ranging in performance from 100 Mbps to 100 Gbps that enable secure, intelligent functionality in enterprise, data-center, broadband/consumer and access & service provider equipment. Cavium's processors are supported by ecosystem partners that provide operating systems, tool support, reference designs and other services. Cavium's principal offices are in San Jose, California with design team locations in California, Massachusetts, India, and China. For more information, please visit: http://www.cavium.com

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