Cavium Announces Financial Results for Q1 2016

SAN JOSE, Calif., April 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 first quarter ended March 31, 2016.

Net revenue in the first quarter of 2016 was $101.9 million, a 1.0% sequential increase from the $100.9 million reported in the fourth quarter of 2015 and relatively flat from the $101.8 million reported in the first quarter of 2015.

Generally Accepted Accounting Principles (GAAP) ResultsNet loss in the first quarter of 2016 was $3.8 million, or $(0.07) per diluted share, compared to $1.0 million, or $(0.02) per diluted share in the fourth quarter of 2015. Gross margins were 66.8% in the first quarter of 2016 compared to 66.2% in the fourth quarter of 2015. Total cash and cash equivalents were $129.6 million at March 31, 2016.

Non-GAAP ResultsCavium 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 first quarter of 2016, Non-GAAP net income was $14.8 million, or $0.25 per diluted share. Non-GAAP gross margin was 67.1% and Non-GAAP operating margin (non-GAAP income from operations as a percentage of revenue) was 15.0%.

Recent News Highlights

• April 19, 2016 - Cavium Showcased the Innovative NFV/SDN Technology Solutions at NFV World Congress 2016
• March 15, 2016 - Cavium’s XPliant Switches Empower Open Networking at ONS 2016
• March 15, 2016 - Cavium Showcased Key Technology Components for Cloud Datacenters and NFV at Open Networking Summit 2016
• March 7, 2016 - Cavium Seamlessly Connected Open Switch Software on XPliant Switches
• March 7, 2016 - Cavium to Demonstrate Data Center Solutions for Next Generation Cloud Infrastructure at Open Compute Summit 2016
• March 1, 2016 - Cavium OCTEON III Multi–Core Processor Family Powering Next Generation Advanced Security Appliances
• February 29, 2016 - Cavium Showcased Products for Securing the Enterprise, Cloud & Service Provider Infrastructure at RSA Conference 2016
• February 29, 2016 - Cavium Announced FIPS 140-2 Certification of LiquidSecurityFamily
• February 29, 2016 - Lanner Announced MR-810 Secure Networking Appliance for Telecom and NFV Applications Based on Cavium ThunderX Workload Optimized Processors
• February 22, 2016 - Cavium collaborates with ONOS project to launch M–CORD Solution POC at Mobile World Congress 2016
• February 22, 2016 - Cavium Unveiled 4G and 5G Solutions for Next Generation Carrier Infrastructure at Mobile World Congress 2016
• February 22, 2016 - Cavium and Argela Delivers ProgRAN, a Fully Programmable, SDN–based RAN Solution for LTE and 5G

Cavium, Inc. will broadcast its first quarter of 2016 financial results conference call today, April 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. (Know More)

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Cavium to Showcase Products for Securing the Enterprise, Cloud & Service Provider Infrastructure at RSA Conference 2016

Live demonstrations of Industry leading security processing and key management solutions

SAN JOSE, CA, Feb 29, 2016 – 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 it will showcase market leading security products including LiquidSecurity™, NITROX®, ThunderX® and OCTEON® III for the Enterprise, Cloud & Service Provider infrastructure at the RSA Conference 2016 in South Hall in Booth S2321.

With the rapid growth of multi-tenant data centers and expansion of enterprise boundaries over the cloud, vulnerability of the network infrastructure has increased. This trend mandates implementation of security at multiple layers of the network. Enterprises, cloud and service provider infrastructure providers are driving to move and deploy comprehensive Layer 3 to Layer 7 security across every node as well as fully encrypted node to node traffic both within the LAN as well as the WAN. The proliferation of mobile devices is driving the demand for Elliptic Curve Cryptography (ECC) for establishing security tunnels. These trends are driving strong momentum in the security segment for Cavium products. Cavium continues to be a leading solution provider in this market with a comprehensive product portfolio.

Show Highlights and Demonstrations
Cavium executives will be available to discuss the broad range of solutions, including the company’s most recent announcements.  The following product demonstrations will be shown in Cavium’s booth:

• LiquidSecurity™: Single appliance or adapter providing highest asymmetric/symmetric key transactions per second and large key storage in non-FIPS and FIPS140–2 boundary for 32 different network domains. This solution is targeted towards public and private cloud data centers, IaaS, KMS, DbaaS, CaaS and PaaS providers and provides centralized key management and centralized key operation offload per second.
• Live demo of LiquidSecurity Appliance offloading key operations for multiple applications such as load balancers, DNSSEC, Oracle and others. 

• NITROX® V: Recently launched NITROX V security processor, available as a PCIe Adapter as well as a processor to be added to the motherboard, provides industry’s highest SSL, ECC, RSA & IPsec performance while consuming very little power. This solution is targeted towards Cloud servers, Data Center Networking Appliances such as Application Delivery Controllers, Load Balancers, Enterprise/VPN Routers, Firewalls, Traffic Monitoring, IPS/IDS and Service Provider Infrastructure.
• Live demo of the NITROX V offloading SSL handshakes for web servers and providing huge sperformance and CPU saving benefits 

• OCTEON® Multicore Processors: Compatible SoC family delivering industry leading performance and power efficiency for intelligent networking and security applications. Optimized for enterprise and wireless infrastructure, with comprehensive built–in hardware acceleration for SSL, IPSec, 3G/LTE/LTE–A crypto algorithms, DPI (deep packet inspection), and packet processing QoS and traffic management.

• ThunderX®: 64–bit ARMv8 based SoC family of workload optimized processors with a range of SKUs and form factors optimized for high performance secure computing with integrated L3-L7 services. 

• NITROX XL FIPS Adapters: First FIPS/HSM adapter that provides 32 partitioned HSMs in a single HSM boundary. This adapter will enable OEMs to provide virtual solutions with FIPS level key security.

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

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.

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

Source : Cavium

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Cavium and Argela to Deliver ProgRAN, a Fully Programmable, SDN-based RAN Solution for LTE and 5G

SAN JOSE, CA, BARCELONA, SPAIN Feb 22, 2016 – Cavium, Inc., (NASDAQ: CAVM), a leading provider of semiconductor products that enable intelligent processing for enterprise, data center, wired and wireless networking, today announced that it has expanded its partnership with Argela, a member of Turk Telekom group, to include the availability of ProgRAN on Cavium’s OCTEON Fusion-M™ and ThunderX® network infrastructure processors.  ProgRAN is a fully programmable, SDN-based RAN solution for LTE and 5G developed by Argela.

The tremendous growth in wireless Internet use is showing no signs of slowing down. The explosion in this demand is not only due to the increase in the number of connections but also due to the multimedia-rich applications, which form the majority of these connections. Existing cellular networks will be insufficient, in part due to their inflexible and expensive equipment, as well as the complex and non-agile control plane of today’s wireless networks.

Argela’s newly announced ProgRAN solution paired with Cavium’s leading OCTEON Fusion-M baseband processors and Cavium’s ThunderX, a 64-bit ARMv8 SoC for next generation Data Center and Telco Cloud Applications, is applicable for both typical BTS and Cloud RAN deployments.

Using ProgRAN, MSPs may deploy, modify or introduce different scheduling, admission control and handover management algorithms to different flows in different parts of their network and conduct such controls via a simple programming interface.

Next Generation 5G technologies will include new, higher-frequency spectrum, including millimeter wave, Massive MIMO and optimized modulation, coding, and multiple access technologies for the new spectra to satisfy the growing demand in wireless connectivity as well as associated data rates using technologies like:

• ·Network Function Virtualization (NFV)                                                               The industry trend away from vertically integrated, inflexible and non-scalable equipment within the network towards software running on off-the-shelf ThunderX ARM servers in the cloud.
• Software-Defined Networking (SDN)                                                                   For both the Core and Radio Access Networks, so that MSPs may develop new revenue sources via programmable control of the network.

The key differentiator for 5G systems will be the orchestration of the overall system (CN+RAN) control to realize the benefits of Telco Cloud while taking full advantage of the transport capacity over a multitude of spectra and distributed over a large geographical area.

“We have worked closely with Argela to leverage our experience in NFV/CRAN operator trials both on ThunderX and OCTEON Fusion-M to bring this very exciting product to market. As an OCTEON Fusion-M licensee, Argela has access to Cavium’s leading silicon and software technologies for NFV/CRAN implementations,” said Raj Singh, General Manager, Wireless Broadband Group, Cavium, Inc.  “We are very excited by Argela’s innovative architecture and look forward to working closely with them to enable rapid adoption of this exciting new technology.”

“Cavium’s OCTEON Fusion-M baseband CNF75XX solution coupled with its world class ThunderX 64-bit ARMv8 SoC for next generation Data Center and Telco Cloud Applications is a perfect platform for our SDN/NFV implementation,” said Dr. Oguz Sunay Chief Technology Officer, Argela. “Together we provide an excellent integrated solution that addresses the needs of the rapidly developing 5G marketplace while providing scalability, reliability and

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.

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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