ACADEMIA

Fourth Consecutive Quarter of Record Revenue: Mellanox Technologies, a leading supplier of semiconductor-based, server and storage interconnect products, today announced record financial results for its fiscal second quarter of 2007, ended June 30, 2007. In accordance with U.S. generally accepted accounting principles (GAAP), the company recorded revenue in the second quarter of $19.8 million, up 17 percent from the $16.9 million in the first quarter of 2007 and up 83 percent from $10.8 million in the second quarter a year ago. Gross margins in the second quarter were 75.1 percent, compared with 74.7 percent in the first quarter of 2007 and 68.1 percent in the second quarter a year ago. GAAP net income in the second quarter was $5.6 million or $0.17 per diluted share, compared with $3.3 million or $0.15 per diluted share in the first quarter of 2007 and $649,000 or $0.02 per diluted share a year ago. On a non-GAAP basis, the company recorded second quarter net income of $6.4 million compared with $3.9 million in the first quarter of 2007 and $712,000 a year ago. These non-GAAP net income results exclude share-based compensation expenses. Total cash and investments were $137.7 million at June 30, 2007. The company generated $5.0 million of cash from operations during the quarter or $11.7 million for the first half of 2007. “We are pleased with our second quarter results, which represented the fourth consecutive quarter of record revenues for Mellanox,” said Eyal Waldman, chairman, president and CEO. “We are continuing to expand our OEM customer base, and increasing the number of enterprise and commercial applications we are addressing with InfiniBand. “We have already begun production shipments of our ConnectX IB InfiniBand adapters to Hewlett-Packard for its BladeSystem c-Class, and expect to ship to additional tier-one server companies later this year. We have also secured our first ConnectX EN 10 Gigabit Ethernet adapter design win. “In addition to our NASDAQ listing, Mellanox is proud to have listed with the Tel Aviv Stock Exchange (TASE), and to be included in four TASE indexes: the TA-75, TA-100, Tel-Tech and Tel-Tech 15,” he said.