Israeli big data connectivity developer Mellanox Technologies Ltd. (Nasdaq:MLNX) has reported record revenue for the first quarter of 2016 even before the sales of EZchip, which it acquired during the quarter, begin to kick-in. Moreover, Mellanox sees quarterly revenues of $210 million to $215 million in 2016.
Revenue in the first quarter of 2016 was $196.8 million, up 11.2% from $176.9 million in the preceding quarter and up from $146.7 million in the corresponding quarter of 2015.. Non-GAAP net profit was $39.3 million ($0.81 per share), up from $37.5 million ($0.77 per share) in the preceding quarter, and up from $28.6 million ($0.60 per share) in the corresponding quarter of 2015. But due to the acquisition of EZchip, the company reported a GAAP net loss of $7.2 million in the first quarter of 2016.
Cash and investments totaled $261.8 million at March 31, 2016, compared to $510.5 million at December 31, 2015.
Mellanox CEO Eyal Waldman said, “We are pleased to report the fourth consecutive quarter of record revenue. Our profitability grew 37.2% year-over-year. During the quarter we closed the acquisition of EZchip Semiconductor Ltd. We see great promise in the combination of EZchip’s intelligent processors, and Mellanox’s leading interconnect technology. We believe the combined company can deliver compelling value to current and future customers,” said Eyal Waldman, president and CEO of Mellanox Technologies. “We recorded strong growth in our Ethernet business, supported by adoption of our 40 Gigabit Ethernet adapters. We are seeing strong interest in the Spectrum product line and expect revenues to accelerate in the coming quarters. Tests demonstrate superior performance, costs, resiliency, and power of Spectrum compared to alternative products. We are pleased to see our InfiniBand business grow year-over-year. We see additional hyperscale entities deployed InfiniBand in their data centers.”
Published by Globes [online], Israel business news - www.globes-online.com - on April 21, 2016
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