Mellanox beats Q3 profit forecast

Eyal Waldman
Eyal Waldman

The Israeli big data connectivity company sees continued record revenue in the fourth quarter.

Israeli big data connectivity company Mellanox Technologies Ltd. (Nasdaq:MLNX) beat the analysts and reported record revenue for the third quarter of 2016. Revenue was $224.2 million, up 4.4% from the preceding quarter, and up 31% from $171 million in the corresponding quarter.

GAAP net profit in the third quarter was $12 million, up from $4.7 million in the preceding quarter of 2016. Non-GAAP net profit was $46.2 million ($0.93 per share) in the third quarter, slightly above the analysts' consensus, and up from $42.7 million in the preceding quarter of 2016 ($0.86) and $20.6 million in the corresponding quarter of 2015.

“We are pleased to report the sixth consecutive quarter of record revenue. We see strong customer adoption of our 25/50/100 Gigabit Ethernet solutions. We believe the transition to 25/50/100 Gigabit Ethernet provides Mellanox significant growth opportunities due to our first mover advantage. We saw strong sequential growth in our InfiniBand business, driven by continued adoption of our 100 Gigabit EDR solutions,” said Eyal Waldman, president and CEO of Mellanox Technologies. “Our third quarter results show continued leadership in both Ethernet and InfiniBand, and we expect growth to continue, driven by our interconnect and processor technologies.

Mellanox sees fourth quarter revenue of $222 million to $228 million.

Published by Globes [online], Israel business news - www.globes-online.com - on October 30, 2016

© Copyright of Globes Publisher Itonut (1983) Ltd. 2016

Eyal Waldman
Eyal Waldman
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