Cavium Inc. (CAVM), a developer of semiconductor processors, on Tuesday reported a wider sequential loss for the first quarter, hurt by lower revenues and higher costs. The stock fell nearly 8 percent in the extended trade.
Loss for the quarter widened to $13.83 million or $0.28 per share from $9.41 million or $0.19 per share in the preceding quarter.
The latest results included expenses of $14.7 million related to stock-based compensation and related payroll expense, amortization of acquired intangible assets and acquisition related expenses, net of income from settlement of an escrow claim.
Adjusted earnings dropped to $0.92 million or $0.02 per share from $8.75 million or $0.17 per share in the fourth quarter of last year.
On average, 22 analysts polled by Thomson Reuters expected the company to earn $0.01 per share for the first quarter. Analysts' estimates typically exclude one-time items.
Revenue slid to $52.74 million from last quarter's $56.29 million. Analysts expected revenues of $52.63 million for the period.
The San Jose, California-based company's cost of revenue climbed to $28 million from $23.59 million in the previous quarter. Gross margin fell to 46.9 percent from 58.1 percent.
CAVM closed on Tuesday at $29.75, down $0.49 or 1.67 percent, on a volume of 2.06 million shares. The stock fell 7.56 percent in the extended trade and was at $27.50.
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