Thursday, May 03, 2007

Cavium Networks Powers Up

"Investors clamored for allocations of yesterday's Cavium Networks (Nasdaq: CAVM) IPO. Even after the company boosted its price range from $10-$12 to $12-$13, shares rose another 22% to $16.45 on the first day of trading. It's a clear signal that investors see more growth ahead for the company.

Cavium develops chips that help improve how computer networks process voice, video and data traffic. With the surge of e-commerce, social networking, and online video, computer networks certainly need lots of help.

Cavium's more than 100 customers, including Cisco (Nasdaq: CSCO), Nokia (NYSE: NOK), and Juniper Networks (Nasdaq: JNPR), can't seem to get enough of its products. Sales spiked 72% to $34.2 million in 2006."

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