Cavium lowers fiscal 4Q forecast

Cavium, Inc. announced that financial results for the fourth quarter of 2011 will be below the company's previous outlook. The company currently expects that revenue in the fourth quarter of 2011 will be between $56 million and $57 million. The company noted that revenues have been weaker than expected across both the enterprise and service provider as well as the broadband and consumer market segments, and further exasperated by a larger than expected impact of a hub transition at one of its major customers. The company believes that it under shipped to customer end demand in the fourth quarter. Gross margins for the fourth quarter of 2011 are expected to be approximately one percentage point lower than the company's previous guidance, due to the lower sales volume.