Cavium Networks swings to profit in 2nd quarter

The Mountain View-based company said Wednesday that it earned $2.1 million, or 5 cents per share, for the three months ended in June. Cavium lost $100,000, which translated into break even on a per-share basis, in last year's comparable period.

If adjusted for costs incurred for employee stock rewards, Cavium said it would have earned 9 cents per share in the latest quarter, in line with the average analyst estimate, according to Thomson Financial.

Revenue for the period totaled $21.6 million, up 70 percent from $12.7 million a year ago.

Cavium's microprocessors help computer networks run more securely. Its major customers include networking leader Cisco Systems Inc.

As part of its expansion efforts, Cavium will pay $9 million in cash to acquire certain assets of Taiwan-based Star Semiconductor in deal also announced Wednesday.

Cavium shares rose 95 cents to finish Wednesday's regular session at $17.77, then shed 2 cents in extended trading. The stock price has fallen 27 percent so far this year.