Advanced Computing in the Age of AI | Thursday, March 28, 2024

Mellanox Announces Third Quarter 2016 Financial Results 

SUNNYVALE, Calif. & YOKNEAM, Israel, Oct. 28 -- Mellanox Technologies, Ltd. (NASDAQ: MLNX) has announced financial results for its third quarter ended September 30, 2016.

"We are pleased to report the sixth consecutive quarter of record revenue. We see strong customer adoption of our 25/50/100 Gigabit Ethernet solutions. We believe the transition to 25/50/100 Gigabit Ethernet provides Mellanox significant growth opportunities due to our first mover advantage. We saw strong sequential growth in our InfiniBand business, driven by continued adoption of our 100 Gigabit EDR solutions," said Eyal Waldman, president and CEO of Mellanox Technologies. "Our third quarter results show continued leadership in both Ethernet and InfiniBand, and we expect growth to continue, driven by our interconnect and processor technologies."

Third Quarter 2016 Highlights

  • Revenues of $224.2 million increased 4.4 percent, compared to $214.8 million in the second quarter of 2016.
  • GAAP gross margins of 65.1 percent in the third quarter compared to 62.8 percent in the second quarter of 2016.
  • Non-GAAP gross margins of 71.8 percent, compared to 71.4 percent in the second quarter of 2016.
  • GAAP operating income was $14.5 million, compared to $6.6 million in the second quarter of 2016.
  • Non-GAAP operating income was $49.2 million, or 22.0 percent of revenue, compared to non-GAAP operating income of $45.5 million, or 21.2% percent of revenue in the second quarter of 2016.
  • GAAP net income was $12.0 million, compared to $4.7 million in the second quarter of 2016.
  • Non-GAAP net income was $46.2 million, compared to $42.7 million in the second quarter of 2016.
  • GAAP net income per diluted share was $0.24 in the third quarter compared to $0.09 in the second quarter of 2016.
  • Non-GAAP net income per diluted share was $0.93 in the third quarter compared to $0.87 in the second quarter of 2016.
  • $48.7 million in cash was provided by operating activities, compared to $44.8 million in the second quarter of 2016.
  • Cash and investments totaled $292.4 million at September 30, 2016, compared to $276.5 million at June 30, 2016.

Fourth Quarter 2016 Outlook

We currently project:

  • Quarterly revenues of $222 million to $228 million
  • Non-GAAP gross margins of 71 percent to 72 percent
  • An increase in non-GAAP operating expenses of 2 percent to 4 percent
  • Share-based compensation expense of $17.4 million to $17.9 million
  • Non-GAAP diluted share count of 49.8 million to 50.3 million shares

About Mellanox

Mellanox Technologies (NASDAQ: MLNX) is a leading supplier of end-to-end Ethernet and InfiniBand intelligent interconnect solutions and services for servers, storage, and hyper-converged infrastructure. Mellanox's intelligent interconnect solutions increase data center efficiency by providing the highest throughput and lowest latency, delivering data faster to applications and unlocking system performance. Mellanoxoffers a choice of high performance solutions: network and multicore processors, network adapters, switches, cables, software and silicon, that accelerate application runtime and maximize business results for a wide range of markets including high performance computing, enterprise data centers, Web 2.0, cloud, storage, network security, telecom and financial services. More information is available at www.mellanox.com.


Source: Mellanox Technologies

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