Big data connectivity developer Mellanox Technologies Ltd. (Nasdaq:MLNX) saw its share price jump 4.6% yesterday on a higher-than-average trading volume, closing the day at $46.50, reflecting a market cap of $2.1 billion for the technology company. Mellanox yesterday reported a new contract in South Africa, but the share's rise was probably caused by the publication two days ago of Intel's financial results. Among other things, Intel reported good sales of Grantley, the company's new platform.
Infiniband developer Mellanox is benefiting from the trend toward upgrading of Intel's customers through the latter's new platform, which is also generating demand for Mellanox's solutions. Mellanox supplies communications equipment: chips, cards, switches, and cables for high-speed data transmission in organizational communications. Under its new contract, it will supply communications switches and cables for the construction of the world's largest radio telescope.
Based in Yokneam, Mellanox is managed by cofounder, president, and CEO Eyal Waldman. The company was delisted from the Tel Aviv Stock Exchange (TASE) two years ago, after complaining about regulation. The company share has climbed 8.7% since the beginning of the year in rather volatile trading.
Mellanox is scheduled to publish its financial statements for the first quarter of 2015 on April 21, next week. Analysts covering the share expect the company to announce $142.7 million in revenue in the quarter (the company forecast $140-145 million), and a net profit of $0.48 per share. The analysts' forecast reflects 44.6% growth in revenue, compared with the corresponding quarter last year, and a $0.02 per share increase in net profit.
Published by Globes [online], Israel business news - www.globes-online.com - on April 15, 2015
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