Mellanox: Fiscal 3Q16 Financial ResultsRecord revenue increasing 4% Q/Q and 31% Y/Y, lower profit
This is a Press Release edited by StorageNewsletter.com on 2016.10.28
|(in $ million)||3Q15||3Q16||9 mo. 15||9 mo. 16|
|Net income (loss)||20.0||9.5||49.7||9.5|
Mellanox Technologies, Ltd. announced financial results for its third quarter ended September 30, 2016.
"We are pleased to report the sixth consecutive quarter of record revenue. We see strong customer adoption of our 25/50/100GbE solutions. We believe the transition to 25/50/100GbE provides Mellanox significant growth opportunities due to our first mover advantage. We saw strong sequential growth in our IB business, driven by continued adoption of our 100 Gigabit EDR solutions," said Eyal Waldman, president and CEO. "Our third quarter results show continued leadership in both Ethernet and IB, and we expect growth to continue, driven by our interconnect and processor technologies."
Third Quarter 2016 Highlights
- Revenues of $224.2 million increased 4.4%, compared to $214.8 million in the second quarter of 2016.
- GAAP gross margins of 65.1% in the third quarter compared to 62.8% in the second quarter of 2016.
- Non-GAAP gross margins of 71.8%, compared to 71.4% in the second quarter of 2016.
- GAAP operating income was $14.5 million, compared to $6.6 million in the second quarter of 2016.
- Non-GAAP operating income was $49.2 million, or 22.0% of revenue, compared to non-GAAP operating income of $45.5 million, or 21.2%% of revenue in the second quarter of 2016.
- GAAP net income was $12.0 million, compared to $4.7 million in the second quarter of 2016.
- Non-GAAP net income was $46.2 million, compared to $42.7 million in the second quarter of 2016.
- GAAP net income per diluted share was $0.24 in the third quarter compared to $0.09 in the second quarter of 2016.
- Non-GAAP net income per diluted share was $0.93 in the third quarter compared to $0.87 in the second quarter of 2016.
- $48.7 million in cash was provided by operating activities, compared to $44.8 million in the second quarter of 2016.
- Cash and investments totaled $292.4 million at September 30, 2016, compared to $276.5 million at June 30, 2016.
Fourth Quarter 2016 Outlook
- Quarterly revenues of $222 million to $228 million
- Non-GAAP gross margins of 71% to 72%
- An increase in non-GAAP operating expenses of 2% to 4%
- Share-based compensation expense of $17.4 million to $17.9 million
- Non-GAAP diluted share count of 49.8 million to 50.3 million shares