Cavium issued updated financial guidance, saying it now expects results for the first quarter of 2012 to be below the company’s previous outlook. Cavium now expects that revenue in the first quarter of 2012 will be approximately 6% to 7% lower than revenue in the fourth quarter of 2011. The company noted that revenues during the first quarter increased sequentially in the enterprise and data center markets, but declined in the service provider and broadband and consumer market. Sales in the service provider market were affected by continued inventory de-stocking, while sales into the broadband and consumer business were affected by delays in deployment of certain programs.
Cavium expects that total sales in the second quarter of 2012 will increase sequentially. The company expects that earnings per share in the first quarter of 2012 will be lower than previously expected by between $0.06 and $0.07 per share.
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