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 Named Winner of Omega Award for Trailblazing Innovation by ACG Research for 2016

Omega Award recognizes excellence in product innovation and Cavium's leadership in open network technologies and its initiatives in OCP, CORD and 5G Cloud RAN

SAN JOSE, CA – May 3, 2017 – Cavium, Inc. (NASDAQ: CAVM) a leading provider of semiconductor products that enable secure and intelligent processing for enterprise, datacenter, cloud, wired and wireless networking, received the Omega Trailblazing Innovation Award from ACG Research to recognize Cavium for addressing the issues of conventional networking platforms and opening up new opportunities for customers with its XPliant® packet switching technology, ThunderX® ARM SoCs, and the OCTEON® processor designs for HetNet RANs.

The Omega Award recognizes excellence in product innovation and differentiated marketing in HotSeat, Whiteboard and Spotlight Innovation videos.

ACG Research recognized Cavium for innovation in general-purpose computing platforms in its ThunderX ARM processing family, leading edge developments in system on a chip (SoC) designs for mobile networking in its OCTEON and OCTEON Fusion-M® products as well as its uniquely programmable XPliant NFV/SDN Ethernet switch.

"We thank ACG Research for the recognition of our efforts on multiple fronts, including switching and baseband processing, to develop the open networking technologies necessary for the deployment of large-scale telco clouds and 5G wireless networks," said Raj Singh, VP & GM, Networking Communication Group, Cavium, Inc.  "The new open core networks will enable advanced concepts, such as flexible end-to-end network slicing to address individual service requirements, and will require advanced network processing capabilities, such as those embodied in our XPliant, ThunderX, OCTEON and OCTEON Fusion-M processor families." 

“In each area of innovation Cavium is pushing the industry forward to ‘more for less’ and to do it with great flexibility. By doing this it is helping the industry move forward more rapidly toward goals its customers and stakeholders clearly value. In a changing marketplace, Cavium has demonstrated an ability to develop new solutions and technologies to address current as well as future needs and capacity,” said Paul Parker-Johnson, Principal Analyst at ACG Research. “The breadth of exciting products emanating from Cavium is a testament to their vision of NFV, the importance of the cloud, and the future of networking in many domains.”

About Cavium

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, Datacenter 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.

Media Contact:

Angel Atondo
Sr. Marketing Communications Manager
Telephone: +1 408-943-7417
Email: angel.atondo@cavium.com 

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