Analysts were in for $59.1M in revenue and 27 cents EPS; Cavium had a slight beat on the top line at $59.8M and bested estimates by 2 cents on the bottom - not normally something I'd associate with a 12-13% surge the next day in a normal market. Gross profits were pretty flat at 65.2%. Full report here.
- Net income for the fourth quarter of 2010, on a non-GAAP basis, was $14.9 million, or $0.29 per diluted share, compared with non-GAAP net income of $12.5 million, or $0.25 per share in the third quarter of 2010.
- Revenue in the fourth quarter of 2010 was $59.8 million, an 8% sequential increase from the $55.2 million reported for the third quarter of 2010 and an increase of 86% from the $32.1 million reported for the fourth quarter of last year.
I have to assume the stock is surging due to this very small acquisition:
- Cavium Networks (NASDAQ: CAVM), a leading provider of semiconductor products that enable intelligent processing for networking, communications and the digital home, announced today that it is has signed a definitive agreement to acquire China-based privately held Celestial Semiconductor, a fabless semiconductor company headquartered in Beijing, China with centers in Shenzhen and Shanghai. Celestial is a fast growing provider of ARM-based system-on-a-chip (SoC) processor solutions for a range of digital media applications.
- The net purchase price of the acquisition will be approximately $55 million, to be paid in a combination of cash and stock. Cavium Networks expects this acquisition will be non-GAAP earnings neutral during the first half of 2011 and modestly accretive by the second half of 2011.
- "The new acquisition will grow their presence in television along with wireless high-definition multimedia interface (HDMI) products," Stifel Nicolaus analyst Kevin Cassidy told Reuters. "It could open up new markets for them. They don't have a lot of market share in TVs in general."
[Apr 27, 2010: Cavium Networks - Another Good Quarter, with Raised Guidance - Still Pricey]
[Jan 29, 2010: Cavium Networks Continues to Show Good Growth]
[Dec 18, 2009: Cavium Networks Raises Guidance; Breaks Out of 4 Month Range]