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 Showcases Key Technology Components for Cloud Datacenters and NFV at Open Networking Summit 2016

DemonstratesThunderX®,OCTEON Fusion-M®, Liquid IO® and XPliant® Switch

SAN JOSE, Calif., March 15, 2016 /PRNewswire/ -- Cavium, Inc., (NASDAQ: CAVM), a leading provider of semiconductor products that enable intelligent processing for enterprise, data center, cloud, wired and wireless networking, will demonstrate several key enabling Cloud Datacenter and NFV technologies including XPliant switches, Workload Optimized® ThunderX Cloud RAN ARM v8 COTS server, Liquid IO® NFV Offload NIC cards and OCTEON Fusion-M® Smart Radio Head at Open Networking Summit (ONS) 2016.

The industry trend towards Network Virtualization and away from fixed function switching and compute functions is accelerating and enabling a new class of applications and services. Key components for the success of Cloud Datacenters and NFV include programmable SDN switches, seamless virtualization and disaggregation of certain functions to ensure scalability and flexibility.

Cavium will showcase multiple components and use cases at ONS.

CAVIUM ONS Booth (#24):	Xplaint® Switch running Open Source Software
	Cavium's XPliant Ethernet switch family is highly programmable using a XPliant Packet Architecture (XPA) enables very high level of table flexibility and extensible header support without any compromise in throughput and ideally for NFV and SDN.
	Liquid IO® for NFV Offload and Virtualization
	Liquid IO intelligent server NIC cards offloading multiple functions including IPSec, OVS, Service Function Chaining and DPI.
ON.Lab ONS Booth (#25o):	In conjunction with ON.Lab will demonstrate disaggregated vBBU and C-RAN Live Demo powered by ThunderX and OCTEON Fusion-M
	3GPP compliant, disaggregated, and virtualized mobile infrastructure using ThunderX Workload Optimized® servers and OCTEON Fusion-M Baseband Processor. Integrated with ONOS M-CORD will demonstrate the benefits of SDN and NFV in mobile infrastructure.

To schedule a meeting with Cavium, please contact your local sales account manager or Lilly Ly (lly@cavium.com). Please enter Meeting Request at ONS 2016.

About Cavium, Inc.
Cavium (NASDAQ: CAVM) 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.

SOURCE Cavium, Inc.

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