Mellanox Technologies Ltd. (Nasdaq:MLNX) reported 2008 full year revenue of $107.7 million, an increase of 28% from revenue of $84.1 million reported in the full year of 2007.
Its quarterly results, as usual, slightly surpassed market expectations, which were about $107.46 million, and reached the upper edge of the company's guidance. The company's guidance, which was somewhat disappointing when it was released in November, was in line with Mellanox's conservative approach.
For the fourth quarter of 2008, Mellanox reported revenue of $25.2 million, down 13% from the $29.1 million recorded in the third quarter, and up 2% from the $24.8 million reported in the corresponding quarter of 2007.
This is the first time since 2006 that Mellanox reported quarterly revenue lower than the previous quarter.
On a non-GAAP basis, the company recorded fourth quarter net profit of $4.4 million, or $0.13 per diluted share, compared with $9.6 million or $0.28 per diluted share in the third quarter of 2008, and $8.8 million or $0.26 per diluted share in the fourth quarter of 2007. The non-GAAP figures exclude $2 million of share-based compensation expenses and tax benefits of $5.6 million from changes in certain deferred tax assets.
The deferred tax assets helped the firm reach GAAP-based net profit of $8 million.
Mellanox will soon mark two years as a public company, and is very careful with its cash. It ended 2008 with $183.2 million in cash and investments, and its total assets are over $244 million. These are enviable figures, even for a company with no shortage of challenges. Nonetheless, the share price has fallen about 50% in the past six months, and Mellanox's share price of $9 gives a market cap of $285 million.
Mellanox CEO Eyal Waldman said in a conference call last night that the firm does not intend a strategic move in the short term with its cash reserves, saying that he believes that the firm will continue to generate cash from operations in 2009, and he feels that that is an advantage in this period.
Published by Globes [online], Israel business news - www.globes-online.com - on January 29, 2009
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