Mellanox profit halved despite higher revenue

The market greeted the results favorably with the share price jumping.

InfiniBand solutions provider Mellanox Technologies Ltd. (Nasdaq:MLNX) reported revenue of $102.6 million for the second quarter of 2014, up 3.9% from $98.7 million in the first quarter of 2014, and up 4.5% from $98.2 million in the corresponding quarter of 2013.

GAAP net loss in the second quarter of 2014 was $9 million ($0.20 per share) compared with GAAP net loss of $11.4 million ($0.26 per share) in the first quarter of 2014, and GAAP net loss of $1.7 million ($0.04 per share) in the second quarter of 2013.

Non-GAAP net profit in the second quarter of 2014 was $6.8 million ($0.15 per share), compared with $4.5 million ($0.10 per share) in the first quarter of 2014, and $13.8 million ($0.30 per share) in the second quarter of 2013.

The second quarter 2014 non-GAAP net income excludes $11.9 million of share-based compensation expenses compared to $11.6 million in the first quarter of 2014, and $11.2 million in the second quarter of 2013. Second quarter 2014 non-GAAP net income also excludes the amortization of intangible assets of $2.8 million and acquisition-related charges of $1.0 million, compared to amortization expenses of acquired intangible assets of $3.5 million and $0.7 million of acquisition-related charges in the first quarter of 2014, and compared to $2.5 million and $1.8 million, respectively, in the second quarter of 2013.

Total cash and investments increased by $3.6 million to $343.7 million as of June 30, 2014, compared to $340.1 million on March 31, 2014. The company generated $7.3 million in cash from operating activities in the second quarter.

Mellanox Technologies President and CEO Eyal Waldman said, “We are pleased with our results for the second quarter. We made several announcements that demonstrate our leadership as an interconnect provider, including our 100 Gigabit per second EDR InfiniBand switch and our increased penetration on the TOP500 list of supercomputers. FDR InfiniBand systems nearly doubled year-over-year and FDR is now the leading InfiniBand solution on the list.

He added, "We achieved another quarter of record Ethernet revenue as our 10 and 40 Gigabit per second Ethernet solutions continue to be adopted by Web 2.0, cloud and storage customers. We look forward to continued sequential revenue growth in the third quarter of 2014.”

The market greeted the results favorably with the share price jumping 18.18% to $44.40, giving a market cap of $1.98 billion.

Published by Globes [online], Israel business news - www.globes-online.com - on July 27, 2014

© Copyright of Globes Publisher Itonut (1983) Ltd. 2014

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