SUNNYVALE, Calif. & YOKNEAM, Israel, July 18 -- Mellanox Technologies, Ltd., a leading supplier of end-to-end interconnect solutions for servers and storage systems, today announced record financial results in its second quarter 2012, ended June 30, 2012.

Second Quarter 2012 Highlights

• Revenues were a record $133.5 million
• GAAP gross margins were 68.8 percent
• Non-GAAP gross margins were 70.5 percent
• GAAP operating income was a record $32.0 million
• Non-GAAP operating income was a record $42.7 million
• GAAP net income was a record $32.1 million
• Non-GAAP net income was a record $42.9 million
• GAAP net income per diluted share was a record $0.74
• Non-GAAP net income per diluted share was a record $0.99
• A record $59.2 million in cash was provided by operating activities
• $327.8 million in total cash and investments at June 30, 2012, an increase of $60.2 million from March 31, 2012

Financial Results

In accordance with U.S. generally accepted accounting principles (GAAP), the company reported record revenue of $133.5 million for the second quarter of 2012, up 50.4 percent from $88.7 million in the first quarter of 2012, and up 110.7 percent from $63.3 million in the second quarter of 2011.

GAAP gross margins in the second quarter of 2012 were 68.8 percent, compared with 67.4 percent in the first quarter of 2012, and 64.9 percent in the second quarter of 2011.

Non-GAAP gross margins in the second quarter of 2012 were 70.5 percent, compared with 70.0 percent in the first quarter of 2012, and 68.9 percent in the second quarter of 2011.

GAAP net income in the second quarter of 2012 was a record $32.1 million, or $0.74 per diluted share, compared with net income of $12.4 million, or $0.29 per diluted share in the first quarter of 2012, and $2.1 million, or $0.06 per diluted share in the second quarter of 2011.

Non-GAAP net income in the second quarter of 2012 was a record $42.9 million, or $0.99 per diluted share, compared with $22.0 million, or $0.51 per diluted share in the first quarter of 2012, and $10.3 million, or $0.27 per diluted share in the second quarter of 2011. The second quarter 2012 non-GAAP net income excludes $8.4 million of share-based compensation expenses compared to $7.2 million in the first quarter of 2012, and compared to $5.4 million in the second quarter of 2011. The second quarter 2012 non-GAAP net income also excludes amortization of acquired intangible assets of $2.3 million associated with the acquisition of Voltaire, Ltd. on February 7, 2011 compared to $2.4 million of such amortization expenses in the first quarter of 2012, and compared to $2.8 million in the second quarter of 2011.

Total cash and investments were $327.8 million at June 30, 2012. The company generated a record $59.2 million in cash from operating activities during the quarter.

“Mellanox surpassed the $100 million quarterly revenue milestone, generating over $133 million of revenue,” said Eyal Waldman, chairman, president and CEO of Mellanox Technologies. “We benefited from growth in the HPC, Web 2.0, storage, database, cloud, Big Data and financial services markets. We believe this growth demonstrates the broader market acceptance of both our FDR 56Gb/s InfiniBand and 10 and 40 Gigabit Ethernet solutions. More customers realize that ‘fast interconnect’ provides them with a higher return-on-investment and lower total cost of ownership.”

Recent Mellanox Press Release Highlights

• July 10 - Mellanox Announces Partnership with Quanta QCT
• June 19 - Mellanox and Bon Trade Benchmark over 598 Million Messages a Second over RDMA on Windows Server 2008 R2
• June 18 - Mellanox FDR 56Gb/s InfiniBand to Accelerate World-Class Supercomputer at TACC
• June 18 - Mellanox 40GbE Interconnect Solutions Optimize HPC Application Performance for Ethernet-Based Server and Storage Clusters
• June 18 - Mellanox Announces Connect-IB, World’s Leading Scalable Server and Storage Interconnect Adapter
• June 18 - InfiniBand Leads TOP500 as Most Used Interconnect
• June 12 - Mellanox FDR 56Gb/s InfiniBand Achieves Record Performance in Virtualization Running Windows Server 2012 Hyper-V
• June 11 - Mellanox FDR 56Gb/s InfiniBand Silicon Selected by Intel For New Server Platforms
• May 21 - Mellanox Announces Ethernet and InfiniBand End-to-End Interconnect Solutions Optimized for New HP ProLiant Generation 8 Servers
• May 14 - Mellanox Enhances Cloud Efficiency and Scalability with Release of InfiniBand Driver for VMware vSphere 5

Conference Calls

Mellanox will broadcast its second quarter 2012 financial results conference call today at 2 p.m. Pacific Time (5 p.m. Eastern). To listen to the call, dial 877-831-3840 approximately ten minutes prior to the start time.

Mellanox will also conduct a conference call on Thursday, July 19, 2012 at 9 a.m. Israel Time to discuss the company’s second quarter 2012 financial results in Hebrew. To listen to the call, dial +972-3-9180609 approximately 10 minutes prior to the start of the call.

The Mellanox financial results conference call will be available via a live webcast on the investor relations section of the Mellanox website at http://ir.mellanox.com. Access the website 15 minutes prior to the start of the call to download and install any necessary audio software. An archived webcast replay will also be available on the Mellanox website.

About Mellanox

Mellanox Technologies is a leading supplier of end-to-end InfiniBand and Ethernet interconnect solutions and services for servers and storage. Mellanox interconnect solutions increase data center efficiency by providing the highest throughput and lowest latency, delivering data faster to applications and unlocking system performance capability. Mellanox offers a choice of fast interconnect products: adapters, switches, 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, Big Data and financial services. More information is available at www.mellanox.com.

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Source: Mellanox