Cavium Q2 Results Beat View, To Buy Xpliant - Quick Facts

(RTTNews) - Cavium, Inc. (CAVM), a developer of semiconductor processors, reported second-quarter net loss attributable to the company of $11.04 million or $0.21 per share, wider than net loss of $4.3 million or $0.08 per share in the year-ago period.

Adjusted earnings for the quarter were $19.85 million or $0.35 per share, compared to $12.58 million or $0.23 per share last year. On average, twenty analysts polled by Thomson Reuters expected earnings of $0.33 per share for the quarter.

Revenue for the quarter grew 22 percent to $90.68 million from $74.20 million in the same period last year. Analysts estimated revenues of $90.15 million for the quarter.

Cavium said it has agreed to acquire Xpliant, Inc., a privately-held company based in San Jose, California, for about $90 million. Xpliant is a provider of high performance, high density switch silicon targeting a broad range of switching applications for the data center, cloud, service provider and enterprise markets.

Cavium was an investor in Xpliant having provided $15 million of funding to Xpliant through June 2014, which is included in that total cost estimate. The remaining $75 million will be comprised of approximately $40 million in cash and $35 million in stock.

Further, Cavium said it has joined the Red Hat ARM Partner Early Access Program or PEAP. The company noted that the collaboration will directly benefit Cavium partners and customers by enabling access to Red Hat software, documentation and tools for ThunderX.