Cavium Networks now expects its Q3 financial results to be below the company’s previous outlook. The company now expects revenue for the third quarter of 2011 to be approximately 4% to 6% lower than second quarter 2011 revenue of $71.6 million, based on information currently available. on-GAAP gross margins and non-GAAP operating expenses are expected to be consistent with previous guidance.
“Customer revenues have been weaker than expected this quarter, in the enterprise market as well as recognized software services revenue. Sales into the enterprise market were affected by a much larger than expected impact of a hub transition at one of our major customers as well as lower demand from other enterprise customers as they adjust their supply chain inventory due to the softer demand environment,�? said Syed Ali, president and CEO of Cavium.
http://www.cavium.com
