Cavium Reports Financial Results for Q4 2012
Feb 06, 2013 (Close-Up Media via COMTEX) --
Cavium, Inc., a provider of highly integrated semiconductor products that enable intelligent processing for networking, communications, and the digital home, announced financial results for the fourth quarter of 2012 ended December 31.
In a release on Jan. 31, the Company noted that revenue in the fourth quarter of 2012 was $66.4 million, an 8.7 percent sequential increase from the $61.1 million reported in the third quarter of 2012.
Generally Accepted Accounting Principles (GAAP) Results Net loss for the fourth quarter of 2012, on GAAP basis was $78.8 million, or $(1.56) per diluted share compared to $8.1 million, or $(0.16) per diluted share in the third quarter of 2012. Net loss for the fourth quarter of 2012 included a non-cash charge of $43.5 million to provide for a valuation allowance for US net deferred tax assets, and a $33.3 million non-cash charge related to goodwill and other intangible asset impairment. Gross margins were 62.3 percent in the fourth quarter of 2012 compared to 59.4 percent in the third quarter of 2012. Total cash and cash equivalents were $76.8 million at December 31.
Cavium established a full valuation allowance against its US net deferred tax assets, which resulted in a one-time, non-cash charge of $43.5 million in the fourth quarter of 2012. Had Cavium not established the valuation allowance, it would have recognized a tax benefit of $2.1 million. This tax benefit along with the $43.5 million valuation allowance, produced a net tax expense of $41.4 million in the fourth quarter of 2012. The decision to establish the valuation allowance was based on an assessment made at year-end that considered factors such as 2012 actual results as well as projected US income, and does not preclude Cavium from using its loss carry-forwards or other deferred tax assets in the future.
Cavium recently restructured its Software and Services group. As a result of performing an annual goodwill impairment test in the fourth quarter of 2012, and the impact of the Software and Services group restructuring, Cavium determined that Software and Services goodwill and certain intangible assets were impaired and recorded a $33.3 million, non-cash, goodwill and intangible asset charge in the fourth quarter of 2012.
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. Non-GAAP financial measures in the fourth quarter of 2012 exclude expenses totaling $89.5 million related to: valuation allowance on deferred tax assets of $43.5 million; goodwill and intangible impairment of $33.3 million; $8.6 million related to stock-based compensation and related payroll taxes; and $4.1 million related to amortization of acquired intangible assets, acquisition and other expenses as detailed in the reconciliation between GAAP and non-GAAP financial results provided in the financial statements portion of this release.
Non-GAAP net income for the fourth quarter of 2012 was $10.6 million or $0.20 per diluted share, compared with non-GAAP net income of $7.8 million or $0.15 per diluted share in the third quarter of 2012. Gross margins, on a non-GAAP basis, were 64.5 percent and operating margins (non-GAAP income from operations as a percentage of revenue), on a non-GAAP basis, were 13.8 percent in the fourth quarter of 2012.
Recent News Highlights
- January 7, 2013 - Cavium's PureVu Powers Samsung's Wireless Streaming Adapter for the Latest Galaxy Smartphones
- January 7, 2013 - Cavium to Showcase Complete Cloud-to-Home Solutions with its State-of- the Art Media Streaming and Wi-Fi CERTIFIED Miracast Products at International CES 2013
- January 2, 2013 - Cavium PureVu-based Miracast Solutions to Be Included in Wi-Fi Alliance Demo at CES 2013
- December 6, - Latest Release of MIPS Architecture Includes Virtualization and SIMD
- December 3, - Cavium to Demonstrate Industry-Leading LTE Small Cell Technology at Small Cells Americas 2012
- November 14, - Cavium Ranked Among Fastest Growing Companies in North America on Deloitte's 2012 Technology Fast 500
- November 14, - Cavium and Symmetricom Partner to Enable IEEE 1588 Precision Timing for Small Cell Base Stations
- November 1, - Industry Leaders Collaborate to Accelerate Software Ecosystem for ARM Servers, and Join Linaro
- October 29, - Cavium Ships Game Changing NEURON Search Processor Family
- October 29, - Cavium to Demonstrate Industry-Leading LTE Small Cell And TurboDPI Deep Packet Inspection Technology at 4G World
- October 29, - Cavium's Wireless Display Adapters Deliver Enhanced and Optimized Functionality for the Latest Android 4.2 Release for Smartphones and Tablets
- October 29, - Cavium's PureVu to Power LG's New Wireless Display Adapter for the Latest Optimus G and Nexus 4 Smartphones
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