Mellanox Technologies (MLNX) Tops Q3 EPS by 7c, Slight Miss on Revenues; Offers Q4 Revenue Outlook

Mellanox Technologies (NASDAQ: MLNX) reported Q3 EPS of $0.71, $0.07 better than the analyst estimate of $0.64. Revenue for the quarter came in at $225.7 million versus the consensus estimate of $226.81 million.

Fourth Quarter 2017 Outlook

We currently project:

• Quarterly revenues of $230 million to $240 million
• Non-GAAP gross margins of 69 percent to 70 percent
• Non-GAAP operating expenses of $125 million to $127 million
• Share-based compensation expense of $18.3 million to $18.8 million
• Non-GAAP diluted share count of 51.7 million to 52.2 million

GUIDANCE:

Mellanox Technologies sees Q4 2017 revenue of $230-250 million, versus the consensus of $240.43 million.

Third Quarter 2017 - Highlights

• Revenues of $225.7 million increased 0.7 percent, compared to $224.2 million in the third quarter of 2016.
• GAAP gross margins of 65.7 percent, compared to 65.1 percent in the third quarter of 2016.
• Non-GAAP gross margins of 70.7 percent, compared to 71.8 percent in the third quarter of 2016.
• GAAP operating income was $6.6 million, compared to $14.5 million in the third quarter of 2016.
• Non-GAAP operating income was $38.5 million, or 17.1 percent of revenue, compared to $49.2 million, or 22.0 percent of revenue in the third quarter of 2016.
• GAAP net income was $3.4 million, compared to $12.0 million in the third quarter of 2016.
• Non-GAAP net income was $36.6 million, compared to $46.2 million in the third quarter of 2016.
• GAAP net income per diluted share was $0.07, compared to $0.24 in the third quarter of 2016.
• Non-GAAP net income per diluted share was $0.71, compared to $0.93 in the third quarter of 2016.
• $53.0 million in cash was provided by operating activities, compared to $43.8 million in the third quarter of 2016.
• Cash and investments totaled $346.2 million at September 30, 2017, compared to $328.4 million at December 31, 2016.

For earnings history and earnings-related data on Mellanox Technologies (MLNX) click here.

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