Mellanox Technologies Ltd. (Nasdaq:MLNX; TASE:MLNX), which provides interconnect solutions for servers and storage systems, reported its first quarter results yesterday after the close on Wall Street. The company's revenue was at the upper end of its guidance, and its earnings beat estimates, but its share price nonetheless fell in after-hours trading. On the Tel Aviv Stock Exchange this morning, Mellanox is down 6.49%, at NIS 206.20. The company has a market cap of $2.66 billion.
On a GAAP basis, first quarter was $83.1 million for the first quarter, down 32.0% from $122.1 million for the fourth quarter 2012, and down 6.4% from $88.7 million for the first quarter of 2012.
GAAP gross margins in the first quarter of 2013 were 65.2%, compared with 68.1% in the fourth quarter of 2012 and 67.4% in the first quarter of 2012.
Non-GAAP gross margins in the first quarter of 2013 were 68.1%, compared with 70.0% in the fourth and first quarters of 2012.
The GAAP net loss in the first quarter of 2013 was $8.5 million or $0.20 per diluted share, compared with a net profit of $18.4 million or $0.41 per diluted share in the fourth quarter of 2012 and net income of $12.4 million or $0.29 per diluted share in the first quarter of 2012.
Non-GAAP net profit in the first quarter of 2013 was $4.3 million, or $0.10 per diluted share, compared with $30.7 million, or $0.69 per diluted share in the fourth quarter of 2012, and $22.0 million, or $0.51 per diluted share in the first quarter of 2012. Analysts had expected earnings per share of $0.06.
Total cash and investments decreased by $23.4 million to $402.9 million at the end of the March quarter, compared with $426.3 million at the end of December 2012.
“Despite the decline in our financial results over the past two quarters, we believe increased demand will restore growth in coming quarters,” said Mellanox president, CEO and chairman Eyal Waldman. “In the first quarter, our FDR InfiniBand revenue share increased from 39% to 50%, demonstrating the continued demand for our highest performing InfiniBand products. We expect that our future growth will be driven by the increased adoption of FDR InfiniBand as well our 10/40/56Gb/s Ethernet products.”
Published by Globes [online], Israel business news - www.globes-online.com - on April 25, 2013
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