SUNNYVALE, Calif. and YOKNEAM, ISRAEL – July 24, 2013 – Mellanox® Technologies, Ltd. (NASDAQ: MLNX; TASE: MLNX), a leading supplier of end-to-end interconnect solutions for servers and storage systems, today announced financial results for its second quarter 2013, ended June 30, 2013.
Second Quarter 2013 Highlights
- Revenues were $98.2 million
- GAAP gross margins were 67.2 percent
- Non-GAAP gross margins were 69.4 percent
- GAAP operating income was $0.3 million
- Non-GAAP operating income was $15.8 million
- GAAP net loss was $1.7 million
- Non-GAAP net income was $13.8 million
- GAAP net loss per diluted share was $0.04
- Non-GAAP net income per diluted share was $0.30
- $11.5 million in cash was provided by operating activities
- Total cash and investments increased $8.4 million to $411.3 million at June 30, 2013
In accordance with U.S. generally accepted accounting principles (GAAP), the company reported revenue of $98.2 million for the second quarter of 2013, up 18.2 percent from $83.1 million in the first quarter of 2013, and down 26.5 percent from $133.5 million in the second quarter of 2012.
GAAP gross margins in the second quarter of 2013 were 67.2 percent, compared with 65.2 percent in the first quarter of 2013, and 68.8 percent in the second quarter of 2012.
Non-GAAP gross margins in the second quarter of 2013 were 69.4 percent, compared with 68.1 percent in the first quarter of 2013, and 70.5 percent in the second quarter of 2012.
GAAP net loss in the second quarter of 2013 was $1.7 million, or $0.04 per diluted share, compared with GAAP net loss of $8.5 million, or $0.20 per diluted share in the first quarter of 2013, and GAAP net income of $32.1 million, or $0.74 per diluted share in the second quarter of 2012.
Non-GAAP net income in the second quarter of 2013 was $13.8 million, or $0.30 per diluted share, compared with $4.3 million, or $0.10 per diluted share in the first quarter of 2013, and $42.9 million, or $0.99 per diluted share in the second quarter of 2012. The second quarter 2013 non-GAAP net income excludes $11.2 million of share-based compensation expenses compared to $10.4 million in the first quarter of 2013, and compared to $8.4 million in the second quarter of 2012. The second quarter 2013 non-GAAP net income also excludes amortization of acquired intangible assets of $2.5 million and $1.8 million of acquisition related charges associated with the acquisition of Kotura, Inc. and IPtronics A/S, compared to $2.4 million of amortization expenses for acquired intangible assets in the first quarter of 2013, and compared to $2.3 million in the second quarter of 2012.
Total cash and investments increased by $8.4 million to $411.3 million at June 30, 2013, compared to $402.9 million at March 31, 2013. The company generated $11.5 million in cash from operating activities in the second quarter.
“We are pleased with our Q2 results. We see growth in the demand of our InfiniBand and Ethernet products. We increased our Ethernet top-of-rack switch system revenue by 81 percent sequentially, and, although off of a small base, we believe this indicates our growth opportunity once we have all the building blocks required for the various markets we serve,” said Eyal Waldman, president and CEO of Mellanox Technologies. “Our acquisitions of Kotura and IPtronics solidify our strategy to provide full end-to-end 100Gb/s server and storage interconnect solutions to the high-performance computing, cloud, Web 2.0, storage and data center markets.”
Mellanox will broadcast its second quarter 2013 financial results conference call today at 2 p.m. Pacific Time (5 p.m. Eastern Time). To listen to the call, dial +1-785-424-1825 approximately ten minutes prior to the start time. Mellanox will also conduct a conference call on Thursday, July 25, 2013, at 9 a.m. Israel Time to discuss the company’s second quarter 2013 financial results in Hebrew. To listen to the call, dial +972-3-9180609 approximately 10 minutes prior to the start of the call. Both of the Mellanox financial results conference calls will be available via live webcasts on the investor relations section of the Mellanox website at http://ir.mellanox.com. Access the webcast 15 minutes prior to the start of the call to download and install any necessary audio software. Replays of the webcasts will also be available on the Mellanox website.
Mellanox Technologies is a leading supplier of end-to-end InfiniBand and Ethernet interconnect solutions and services for servers and storage. Mellanox interconnect solutions increase data center efficiency by providing the highest throughput and lowest latency, delivering data faster to applications and unlocking system performance capability. Mellanox offers a choice of fast interconnect products: adapters, switches, software, cables and silicon that accelerate application runtime and maximize business results for a wide range of markets including high performance computing, enterprise data centers, Web 2.0, cloud, storage and financial services. More information is available at www.mellanox.com.
Mellanox, BridgeX, ConnectX, CORE-Direct, InfiniBridge, InfiniHost, InfiniScale, MLNX-OS, PhyX, SwitchX, Virtual Protocol Interconnect and Voltaire are registered trademarks of Mellanox Technologies, Ltd. Connect-IB, CoolBox, FabricIT, Mellanox Federal Systems, Mellanox Software Defined Storage, MetroX, MetroDX, Mellanox Open Ethernet, Open Ethernet, ScalableHPC, Unbreakable-Link, UFM and Unified Fabric Manager are trademarks of Mellanox Technologies, Ltd. All other trademarks are property of their respective owners.