Israeli Infiniband big data connectivity company Mellanox Technologies Ltd. (Nasdaq:MLNX) today announced financial results for its first quarter 2018. Revenue in the first quarter of 2018 was $251 million up 33% from $188.7 million in the first quarter of 2017 and slightly higher than the revenue forecast of $240-250 million. GAAP net profit was $37.8 million compared with a net loss of $12.2 million in the first quarter of 2017. Non-GAAP net profit was $51.4 million, compared with $14.7 million in the first quarter of 2017.
Mellanox president and CEO Eyal Waldman said, “Our record first quarter financial performance is the result of the successful execution of our growth strategy and a testament to years of carefully planned R&D investments in 25 gigabit per second and above Ethernet technology, which is fast becoming the industry standard in markets around the world."
He added, “First quarter Ethernet revenues, increased 12 percent sequentially, due to expanding global customer adoption of our 25 gigabit per second and above solutions. Our market leading Ethernet adapters, experienced broad based growth across global hyperscale, OEM, storage, financial services and artificial intelligence customers. Deployments of our LinkX Ethernet cables and transceivers accelerated across global hyperscale customers who recognize the benefits of performance, low-power, and configurability. InfiniBand revenues were up sequentially in the first quarter, outperforming seasonal trends, driven by strong demand from our high-performance computing and artificial intelligence customers using our EDR solutions. Our improved profitability during the first quarter, demonstrates the successful execution of our commitment to deliver top-line revenue growth and increased operating leverage.”
He concluded, “We have increased our full year 2018 outlook based on the strength of our first quarter, and improved visibility we have into market trends as we enter the second quarter. We remain committed to delivering top-line revenue growth and driving down costs to enhance operational efficiencies and achieve our increased non-GAAP operating margin target for fiscal 2018. Our updated financial outlook is further evidence of the strength of our strategy, innovation and investment priorities. With the ramp of our BlueField System-on-Chip and 200 gigabit per second HDR InfiniBand in 2018, we expect to build on our positive momentum and deliver even greater shareholder value.”
Published by Globes [online], Israel business news - www.globes-online.com - on April 17, 2018
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