Cavium acquires wireless baseband IC, ARM-based device provider

Cavium Networks Inc. recently announced that it has purchased wireless baseband IC supplier Wavesat Inc. for an estimated $10 million in cash.

Cavium, a provider of semiconductor products that enable intelligent processing for networking, communications and the digital home, also recently completed its acquisition of China-based privately held Celestial Semiconductor. Celestial provides a family of ARM-based high-performance devices with HD quality video processing, multisource video input and multiformat video playback.

The company also announced financial results for the fourth quarter of 2010 ended December 31, 2010. Revenue in the fourth quarter of 2010 was $59.8 million, an 8 percent sequential increase from the $55.2 million reported for the third quarter of 2010, and an increase of 86 percent from the $32.1 million reported for the fourth quarter of 2009.

Revenue for fiscal year 2010 was $206.5 million, a 104 percent increase from the $101.2 million reported for fiscal year 2009.

Net income for the fourth quarter of 2010, on a GAAP basis, was $34.6 million, or $0.70 per diluted share, compared to net income of $5.0 million, or $0.10 per diluted share in the third quarter of 2010, and a net loss of $4.5 million, or minus $0.11 per diluted share in the fourth quarter of 2009. Fourth quarter net income included a net tax benefit of $27.8 million, due to a $28.9 million one-time release of the valuation allowance primarily from federal deferred tax assets as a result of its recent history of profitability and expectation of future profitability.

- Mark LaPedus
??EE Times