Cavium Announces Updated Financial
Outlook for Q3 2011
San Jose, Calif., September 22, 2011— Cavium,
Inc. (NASDAQ: CAVM), a leading provider of highly integrated
semiconductor products that enable intelligent processing
for networking, communications, and the digital home,
today announced that financial results in the third quarter
of 2011 will be below the company’s previous outlook.
The company now expects revenue for the third quarter
of 2011 to be approximately 4% to 6% lower than second
quarter 2011 revenue of $71.6 million, based on information
currently available. The company expects that non-GAAP
gross margins and non-GAAP operating expenses in the third
quarter will be consistent with previous guidance.
“Customer revenues have been weaker than expected
this quarter, in the enterprise market as well as recognized
software services revenue. Sales into the enterprise market
were affected by a much larger than expected impact of
a hub transition at one of our major customers as well
as lower demand from other enterprise customers as they
adjust their supply chain inventory due to the softer
demand environment,” said Syed Ali, president and
CEO of Cavium. “However, we continue to experience
high levels of design win activity across multiple product
families and are confident that we are well positioned
for the future.”
Q3 2011 Results Conference Call
Cavium, Inc. will announce third quarter 2011 financial
results and hold a conference call on October 31st, 2011.The
company will provide more details on third quarter 2011
results and expectations for the fourth quarter of 2011
during that conference call. 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.
About Cavium
Cavium is a leading provider of highly integrated semiconductor
products that enable intelligent processing for networking,
communications and the digital home. Cavium offers a broad
portfolio of integrated, software-compatible processors
ranging in performance from 10 Mbps to 40 Gbps that enable
secure, intelligent functionality in enterprise, data-center,
broadband/consumer and access and service provider equipment.
Cavium processors are supported by ecosystem partners
that provide operating systems, tool support, reference
designs and other services. Cavium’s corporate office
is in San Jose, CA and Cavium has design team locations
in California, Massachusetts, China, India and Taiwan.
For more information, please visit: http://www.cavium.com.
For additional information, contact:
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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Note on Forward-Looking Statements
This press release contains forward-looking statements regarding
future events that involve risks and uncertainties. Readers
are cautioned that these forward-looking statements are only
predictions and may differ materially from actual future events
or results. These forward-looking statements involve risks
and uncertainties, as well as assumptions and current expectations.
Cavium’s actual results and the timing of events could
differ materially from those anticipated in such forward-looking
statements as a result of these risks, uncertainties and assumptions.
The risks and uncertainties that could cause Cavium’s
results to differ materially from those expressed or implied
by such forward-looking statements include but are not limited
to the timing and amount of Cavium’s customers’
orders for its products, the rate of new design wins, acceptance
by customers of Cavium’s new product introductions,
whether or not the company can continue to maintain or expand
gross margins and operating margins, the rate at which existing
design wins go into production, pricing pressures, general
economic conditions, manufacturing difficulties and other
risks and uncertainties described more fully in Cavium’s
documents filed with or furnished to the Securities and Exchange
Commission. More information about these and other risks that
may impact Cavium’s business are set forth in the “Risk
Factors” section of Cavium’s Form 10-Q filed with
the Securities and Exchange Commission on August 5, 2011.
All forward-looking statements in this press release are based
on information available to Cavium as of the date hereof and
qualified in their entirety by this cautionary statement,
and Cavium assumes no obligation to revise or update these
forward-looking statements.
