Mellanox boosted by record revenue and higher profit

Eyal Waldman Photo: Amir Meiri

Despite recent rises, the Israeli company's share price is still 9.5% below the amount Nvidia will pay for Mellanox shares, on concerns the Chinese regulator won't approve the deal.

Israeli big data connectivity chipmaker Mellanox Technologies Ltd. (Nasdaq:MLNX) last night reported its financial results for the second quarter of 2019.

Revenue in the second quarter of 2019 was $310.3 million, above the analysts' consensus and up 15.6% from $268.5 million in the corresponding quarter of 2018. Non-GAAP net profit was $83.9 million ($1.52 per share) in the second quarter, slightly below the analysts' expectations, compared with $66.6 million ($1.25 per share) in the second quarter of 2018. GAAP net profit was $38.4 million ($0.68 per share) in the second quarter, compared with $16.5 million ($0.30 per share) in the second quarter of 2018.

Mellanox president and CEO Eyal Waldman said, “Mellanox delivered record revenue in Q2, achieving 2% sequential growth and 16% year-over-year growth. We continue to demonstrate leadership with our Ethernet adapter solutions for data rates of 25 gigabit per second and above. The growth in our Ethernet business reflects strong demand from our cloud customers as well as expanding channel sales."

He added, “We are pleased with our financial performance this quarter and the adoption of our latest 25, 50, and 100Gb/s Ethernet and 200Gb/s HDR InfiniBand products,” continued Waldman. “We expect to maintain and grow our leadership in these segments as we expand our footprint for both adapters and switches in the data center.”

Despite Mellanox's share price rising 0.80% to $114.20, it is still 9.5% below the amount Nvidia will pay for the company by the end of 2019, on concerns that the Chinese regulator won't approve the deal.

Published by Globes, Israel business news - en.globes.co.il - on July 25, 2019

© Copyright of Globes Publisher Itonut (1983) Ltd. 2019

Eyal Waldman Photo: Amir Meiri
Eyal Waldman Photo: Amir Meiri
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