Infiniband developer Mellanox Technologies Ltd. (Nasdaq:MLNX; TASE:MLNX) reported record results, following strong fourth quarter and full-year 2011 revenue and profit growth, beating most analysts' estimates. The share price rose 13.8% in after-hours trading on Nasdaq following the announcement.
Mellabox posted record revenue of $72.7 million for the fourth quarter, up 78.6% from the $40.7 million for the corresponding quarter of 2010. GAAP-based net profit was $4.7 million ($0.11 per share) for the fourth quarter compared with a net loss of $517,000 for the corresponding quarter, and non-GAAP net profit rose to $13.1 million ($0.31 per share) from $7.7 million. The company beat the analysts' estimate of $0.29 earnings per share on $71.5 million revenue.
For the year as a whole, revenue rose 67.6% to $259.3 million from $154.6 million in 2010, which does not include the results of Voltaire, which Mellanox acquired last year. GAAP-based net profit fell to $10 million ($0.26 per share) in 2011 from $13.5 million in 2010, but non-GAAP net profit rose to $45.6 million ($1.07 per share) from $36.7 million for the corresponding quarter. Mellanox missed the analysts' consensus of $1.11 earnings per share, but beat the revenue consensus of $258 million.
Cash flow from operations was a record $22.2 million for the fourth quarter and $63.1 million for 2011 as a whole. Mellanox had were $238.1 million in cash and investments at the end of 2011, down from $253.3 million a year earlier, after paying $203.7 million in cash for Voltaire and raising a net $104.2 million in a secondary offering in September.
Mellanox chairman, president and CEO Eyal Waldman said, "2011 was a record year for Mellanox. Our strategy to offer leading-edge connectivity products to markets with increasing bandwidth and lower latency needs resulted in strong revenue and non-GAAP earnings growth. Our first acquisition, Voltaire, has been successfully completed."
He added, "In 2011, we significantly penetrated new markets in addition to our traditional High Performance Computing (HPC) market, specifically, the Web 2.0, database, storage and cloud markets. The upcoming launch of Intel Romley and Sandy Bridge platforms will drive the industry toward 10 Gbps and faster interconnect speeds, such as 40 and 56Gbps. We lead the industry with the fastest end-to-end interconnect solutions that provide a higher return-on-investment. We expect to demonstrate continued growth in 2012 and 2013 as we further execute on our plan and serve the needs of additional markets and customers."
The strong financial results reversed the slide in Mellanox's share that was promoted by the acquisition of the Inifiband business of rival Qlogic Corporation (Nasdaq: QLGC) by Intel Corporation (Nasdaq: INTC) earlier this week, which caused an investor scare. Mellanox's share price rose 9% in morning trading on the TASE to NIS 130.10, after falling 2.4% on Nasdaq yesterday to $31.16, giving a market cap of $1.23 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on January 26, 2012
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