This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Cavium Management Discusses Q2 2012 Results - Earnings Call Transcript

Stocks in this article: CAVM

Syed B. Ali

Thanks, Angel, and thanks to everyone for joining us today. In brief, Cavium's first quarter revenue was $55.3 million, up 5% from Q1. Non-GAAP gross margins came in at 60.6%. Non-GAAP net income was $3.5 million or $0.07 per share. Our GAAP net loss for the quarter was $11.8 million or $0.24 per share.

In Q2, we saw very positive trends emerge in our core enterprise and service provider markets. We saw strong growth in the service provider market, driven by ramps of designs to production especially in the wireless infrastructure market. New design ramps covered the entire spectrum from base stations, to radio network controllers, to the evolved packet core EPC across both 3G and 4G markets.

The enterprise market also delivered good growth across a broad range of markets. These trends drove double-digit growth in the enterprise and service provider markets in Q2, despite some reminiscence of inventory correction at a couple of our customers.

Sales into broadband and consumable is flat, and sales of software and services was down due to the realignment of resources in the service sector that I talked about in the last conference call.

Overall, booking trends were up significantly in Q2 when compared to Q1 and remained strong across the entire quarter, driven by product ramps at existing customers and several newer customers starting to go to production.

In Q2, our top customer was once again Cisco Systems, which came in at 29% of sales and was up 11% sequentially. There were no other 10% customers. Art will provide more details on the Q2 financial results and Q3 2012 guidance shortly.

I would -- like usual, I would now like to provide an update on actual Q2 design wins. Our overall design win momentum and pipeline remained very strong and similar to what we have seen over the recent quarters. Design wins in Q2 were once again spread across product families, target markets and low- to high-performance points.

3 of 4

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs