ACADEMIA

Q4 Revenue up 30 percent over Prior Year: Mellanox Technologies, a leading supplier of semiconductor-based, high-performance interconnect products, has announced record financial results for its fourth quarter and year ended Dec. 31, 2006. In accordance with U.S. generally accepted accounting principles (GAAP), the company recorded record revenue in the fourth quarter of $15.8 million, up 18 percent from $13.4 million in the third quarter of 2006 and up 30 percent from $12.2 million in the fourth quarter of 2005. For the year ended Dec. 31, 2006, revenue was $48.5 million, and represented an increase of 15 percent from $42.1 million in 2005. Gross margins in the fourth quarter were 75 percent, compared with 73 percent in the third quarter of 2006 and 68 percent in the fourth quarter of 2005. GAAP operating income increased to 23 percent of revenue from 22 percent in the third quarter of 2006 and from 11 percent of revenue in the fourth quarter of 2005. GAAP net income in the fourth quarter was $3.8 million, up 31 percent compared with $2.9 million in the third quarter of 2006 and up 192 percent compared with $1.3 million in the fourth quarter of 2005. On a non-GAAP basis, the company recorded fourth quarter net income of $4.1 million compared with $2.9 million in the third quarter of 2006 and $1.4 million in the fourth quarter of 2005. Non-GAAP net income for the year ended 2006 was $7.7 million, compared with non-GAAP net income of $3.2 million in the prior year. These non-GAAP net income results exclude share based compensation expenses. Total cash and investments were $20.6 million at Dec. 31, 2006. The company completed its initial public offering on Feb. 13, 2007 raising approximately $107 million in net proceeds. “We had a successful 2006, and look forward to continued profitable growth in 2007,” said Eyal Waldman, chairman, president and CEO. “Mellanox continues to be the leading supplier of InfiniBand products, and we believe we are well-positioned to benefit from the increasing market adoption of these interconnect products. In the quarters to come, we expect to expand our product development, marketing and sales activities as we build a larger, more diversified company.” Recent Mellanox Press Release Highlights: Feb. 7 - Mellanox Technologies Announces Initial Public Offering Nov. 28 - Amal M. Johnson Joins Mellanox’s Board of Directors Nov. 13 - InfiniBand More Than Doubles Usage on TOP500 Taking Share from Ethernet and Proprietary Interconnects Nov. 13 - Mellanox Adapter Architecture Delivers Seamless Connectivity to InfiniBand and Ethernet Oct. 31 - Mellanox 20Gb/s InfiniBand Delivers World-Class Network File System Performance Sept. 25 - Mellanox Launches Intel Processor-Based “Helios” High Performance Cluster to Mellanox Cluster Center Aug. 14 - Mellanox and AMD Introduce “Neptune” High Performance Cluster for Applications Development and Testing July 24 - Mellanox “InfiniBand Accelerated” PCI ExpressModule Adapters Power Sun Blade™ 8000 Modular System June 28 - Mellanox “InfiniBand Accelerated” Supercomputers Continue Rapid Growth on Distinguished TOP500 June 27 - Mellanox and Novell Drive Real-time Quality of Service to Clustered Applications June 27 - Mellanox InfiniBand Delivers Break-through I/O Performance on Dual Core Processor Server Platforms June 26 - Mellanox InfiniBand Empowers High-Performance Clusters With Microsoft Windows Compute Cluster Server 2003 June 26 - Mellanox Announces Support for OpenFabrics Enterprise Distribution June 26 - Mellanox InfiniBand Supercharges HP Blade Server