SUNNYVALE, Calif. & YOKNEAM, Israel, April 27, 2017 — Mellanox Technologies, Ltd. (NASDAQ: MLNX) has announced financial results for its first quarter ended March 31, 2017.

“Our first quarter InfiniBand revenues were down year-over-year, impacted by delays in the general availability of next generation x86 CPUs, seasonal trends in high-performance computing, and technology transitions occurring across several end users and OEM customers. We believe InfiniBand has maintained share in HPC, and expect revenues will see sequential growth in the coming quarters driven by current backlog and additional pipeline opportunities,” said Eyal Waldman, president and CEO of Mellanox Technologies. “Our first quarter Ethernet revenues grew across all product families sequentially, driven by the adoption of our 25/50/100 gigabit solutions. We expect 2017 to be a growth year for Mellanox.”

First Quarter 2017 -Highlights

• Revenues of $188.7 million decreased 4.1 percent, compared to $196.8 million in the first quarter of 2016.
• GAAP gross margins of 65.8 percent in the first quarter, compared to 64.2 percent in the first quarter of 2016.
• Non-GAAP gross margins of 71.7 percent in the first quarter, compared to 71.4 percent in the first quarter of 2016.
• GAAP operating loss was $12.6 million, compared to $3.9 million in the first quarter of 2016.
• Non-GAAP operating income was $15.7 million, or 8.3 percent of revenue, compared to $41.3 million, or 21.0 percent of revenue in the first quarter of 2016.
• GAAP net loss was $12.2 million, compared to $7.2 million in the first quarter of 2016.
• Non-GAAP net income was $14.7 million, compared to $39.3 million in the first quarter of 2016.
• GAAP net loss per diluted share was $0.25 in the first quarter, compared to $0.15 in the first quarter of 2016.
• Non-GAAP net income per diluted share was $0.29 in the first quarter, compared to $0.81 in the first quarter of 2016.
• $35.0 million in cash was provided by operating activities, compared to $48.6 million in the first quarter of 2016.
• Cash and investments totaled $325.2 million at March 31, 2017, compared to $328.4 million at December 31, 2016.

Second Quarter 2017 Outlook

We currently project:

• Quarterly revenues of $205 million to $215 million
• Non-GAAP gross margins of 70.5 percent to 71.5 percent
• An increase in non-GAAP operating expenses of 3 percent to 5 percent
• Share-based compensation expense of $17.3 million to $17.8 million
• Non-GAAP diluted share count of 50.8 million to 51.3 million shares

Recent Mellanox Press Release Highlights

 

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, cables 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 and financial services. More information is available at www.mellanox.com.

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Source: Mellanox