InfiniBand developer Mellanox Technologies Ltd. (Nasdaq:MLNX) published its financial report for the first quarter of 2014 after Wall Street closed on Thursday. The company missed the analysts' earnings per share consensus, and the share price fell 6.4% in after-hours trading and by a further 15.3% on Friday to $33.61, giving a market cap of $1.5 billion.
Mellanox, managed by president and CEO Eyal Waldman, reported non-GAAP earnings per share of $0.10, compared with the analysts' consensus of $0.12. Although non-GAAP net profit rose to $4.5 million for the first quarter from $4.3 million for the corresponding quarter of 2013, it was 53% less than for the preceding quarter.
The GAAP-based net loss widened to $11.4 million for the first quarter from $8.5 million for the corresponding quarter and $7.3 million for the preceding quarter.
Revenue rose 18.8% from the corresponding quarter to $98.7 million for the first quarter, but missed the analysts' consensus of $102.9 million and the company's guidance of $100-105 million. Revenue was 6.5% less than for the preceding quarter.
"Our first quarter results are a significant achievement given the pause in the HPC market ahead of its refresh cycle and the lower than expected revenues from one of our largest customers,” said Waldman. “We believe that we will grow year-over-year in 2014 with our growth accelerating in the second half of the year.”
The GAAP-based operating loss was $10.9 million and the non-GAAP operating profit was $4.9 million. The GAAP-based gross margin was 65.7% and the non-GAAP gross margin was 68.6%.
Published by Globes [online], Israel business news - www.globes-online.com - on April 27, 2014
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