Mellanox Q3 profit down 20%

Eyal Waldman
Eyal Waldman

The Israeli semiconductor company's profit was down on record revenue.

Israeli semiconductor developer Mellanox Technologies Ltd. (Nasdaq:MLNX) has announced financial results for the third quarter of 2017.

The company reported revenue of $225.7 million, up 0.7% from $224.2 million in the third quarter of 2016. GAAP net profit in the third quarter of 2017 was $3.4 million ($0.07 per share, down from $12.0 million ($0.24 per share) in the third quarter of 2016, while non-GAAP net profit was $36.6 million ($0.71 per share), down 20% from $46.2 million ($0.93 per share) in the third quarter of 2017.

Mellanox president and CEO Eyal Waldman said, “We are pleased to achieve a record revenue quarter and resume our growth. Our third quarter Ethernet revenues achieved double digit sequential growth, driven by increasing deployments of our 25 gigabit per second and above products, which demonstrates our leadership position in these markets. During the third quarter, InfiniBand revenues declined 7% sequentially mainly due to a large Department of Energy CORAL deployment in the second quarter. On a year-over-year basis, our InfiniBand high-performance computing and artificial intelligence revenues increased by double digit percentages. We believe Mellanox is well positioned to meet our customers’ expanding performance needs with the introduction of multiple new products. We see multiple growth engines for our Ethernet and InfiniBand products.”

Mellanox sees quarterly revenue of $230 million to $240 million in the fourth quarter.

Mellanox share price has risen 12% since the beginning of the year on Wall Street, giving a market cap of $2.3 billion.

Published by Globes [online], Israel business news - www.globes-online.com - on October 26, 2017

© Copyright of Globes Publisher Itonut (1983) Ltd. 2017

Published by Globes [online], Israel business news - www.globes-online.com - on October 26, 2017

© Copyright of Globes Publisher Itonut (1983) Ltd. 2017

Eyal Waldman
Eyal Waldman
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