Infiniband developer Mellanox Technologies Ltd. (Nasdaq:MLNX; TASE:MLNX) last night reported record revenue and profits on double-digit growth for the first quarter of 2012 and raised its guidance for the second quarter.
Revenue rose 22% to $88.7 million for the first quarter from $72.7 million for the preceding quarter, and up 61.2% from $55.1 million for the corresponding quarter of 2011. GAAP-based net profit rose to $12.4 million ($0.29 per share) for the first quarter from $4.7 million for the corresponding quarter. Non-GAAP net profit more than doubled to $22 million ($0.51 per share) from $9.2 million for the corresponding quarter and from $13.1 million for the preceding quarter. The company made a mockery of the analysts' consensus of $0.34 earnings per share on $81.6 million revenue.
Cash flow from operations during the first quarter was a record $23.6 million, helping boost Mellanox's cash and investments to $267.6 million at the end of March.
Mellanox raised its revenue guidance for the second quarter to $125-130 million, more than double its revenue for the corresponding quarter, and well above the analysts' estimates of $81-86 million. Mellanox CFO Michael Gray noted, however, that the guidance includes $30 million in opportunistic one-time sales.
Mellanox says that these one-time sales are related to Intel's launch of its Romley-based server platform, which greatly improves large data center server farms. Analysts believe that many organizations have been waiting for this server to upgrade their systems, and that Mellanox's products help boost the Romley platform's performance, so it will be a beneficiary of the demand for the new processor.
Mellanox chairman, president and CEO Eyal Waldman said, “Our strong quarterly revenue growth reflects the increased penetration of our high-performance InfiniBand and Ethernet interconnect solutions in new markets, in addition to our traditional high performance computing market, specifically, the Web 2.0, database, storage and cloud. The recent launch of Intel Romley and Sandy Bridge-based server and storage platforms has created a significant industry-upgrade and end-user demand for high-performance interconnects."
Mellanox's share price rose 14.7% in early trading on the TASE today to NIS 188, after falling 0.2% on Nasdaq yesterday but rising 17.7% in after-hours trading to $51.01, giving a market cap of $2 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on April 19, 2012
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