Howard G. Smith Investigates Mellanox

Law Offices of Howard G. Smith is investigating potential claims against Mellanox Technologies, Ltd. concerning possible violations of federal securities laws.

The investigation focuses on allegations that certain statements issued by Mellanox between April 19, 2012 and January 2, 2013 were false and misleading concerning the company’s financial performance and prospects. Mellanox produces and supplies high-performance interconnect products that facilitate efficient data transmission between servers, storage systems and communications infrastructure equipment and other embedded systems.

The investigation is related to Mellanox’s January 2, 2013 announcement lowering the company’s fourth quarter 2012 revenue guidance. Citing "a weaker demand environment, challenging macroeconomic conditions, and a technical issue associated with FDR 56Gb/s IB cabling which caused approximately $20 million of FDR deployments to be delayed."

The company revised its fourth quarter financial outlook to a range of $119 million to $121 million, sharply below the company’s previous guidance of $145 million to $150 million.

As a result of this news, the company’s stock price dropped more than 17%, or $10.46 per share, to a closing price of $50.70 per share on January 3, 2013 on heavy volume of more than 8.2 million shares traded.