(RTTNews) - Tuesday, Cavium Networks Inc.(CAVM: News ) reported a loss in the third quarter, but sales increased from last year, reflecting strong growth in Enterprise and Data Center business.

Cavium's net loss for the quarter was $4.2 million or $0.10 per share, compared with a net profit of $1.8 million or $0.04 per share in the year-ago period.

Excluding items, net income declined to $0.8 million or $0.02 per share from $4.6 million or $0.11 per share in the same quarter last year.

On average, 17 analysts polled by Thomson Reuters expected breakeven per share for the quarter. Analysts' estimates typically exclude one-time items.

Total revenue for the quarter rose 6% to $25.9 million from $24.5 million in the comparable quarter last quarter, due to strong growth in Enterprise and Data Center business driven by several new product ramps and continuing recovery in the run rate business. Sequentially, revenue increased 14% from $22.8 million in the second quarter. Sixteen analysts estimated revenues of $25.14 million for the quarter.

Gross margins, on GAAP basis, declined to 51.5% from 58.8% in the same quarter last year, and sequentially, it increased from 46.8% in the second quarter.
Loss from operations dropped to $3.94 million from $6.13 million, while, on non-GAAP basis, Cavium reported income from operations of $975 million, compared with a loss from operations of $922 million in the last quarter.

CAVM closed Tuesday's regular trading at $19.50, down $0.31 or 1.56% on a volume of 1.45 million on the Nasdaq

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by RTT Staff Writer

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