Mellanox Technologies (MLNX) Tops Q4 EPS by 12c, Revenues Beat; Provides Q1 EPS Guidance Above Consensus

January 30, 2019 4:07 PM

Mellanox Technologies (NASDAQ: MLNX) reported Q4 EPS of $1.42, $0.12 better than the analyst estimate of $1.30. Revenue for the quarter came in at $290.1 million versus the consensus estimate of $285.23 million.

“Mellanox had an outstanding 2018, delivering 26% annual revenue growth and achieving $1.09 billion in revenue for the first time in our history. We leveraged top line growth and strong expense discipline to accelerate profitability. We expect to carry this momentum into 2019 and deliver another year of healthy, double-digit revenue growth to drive operating margins even higher,” said Eyal Waldman, President and CEO of Mellanox Technologies.

“We achieved record quarterly revenue in our Ethernet switch business, capitalizing on design wins for our high-performance, feature-rich solutions, which support continued growth in 2019. We maintained our leadership in 25 gigabit and above Ethernet adapters and continue to benefit from the multi-year transition to higher speeds. Revenue for our 100 gigabit Ethernet adapters in 2018 was approximately 2.5 times that of 2017, an indication that the transition to 100 gigabit technology has begun, which will drive the next leg of growth. We are also gaining traction in a new growth vector for the next generation of intelligent interconnect with our BlueField SmartNICs and Storage Controllers.

We grew our InfiniBand business 8 percent year-over-year and see strong demand for our leading performance HDR 200 Gigabit per second InfiniBand solutions for high-performance computing, artificial intelligence, big data, cloud, storage, and additional applications. Our HDR InfiniBand solutions have begun to ramp with a healthy backlog for Q1 and beyond. We achieved record Q4 and 2018 revenue with our LinkX cables and transceivers and expect to continue seeing healthy growth of our LinkX product line in 2019. We continue to invest in research and development to maintain our leadership across all product lines to fuel our growth in 2019 and beyond,” Mr. Waldman concluded.

Fourth Quarter 2018 - Financial Results Summary


Mellanox Technologies sees Q1 2019 revenue of $295-305 million, versus the consensus of $283.17 million.

We currently project:

Quarterly revenue of $295 million to $305 million
Non-GAAP gross margins of 68.0% to 69.0%
Non-GAAP operating expenses of $123 million to $125 million
Non-GAAP diluted share count of 54.5 million to 55.0 million

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


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