APPLICATIONS

Mellanox Technologies, Ltd., a leading supplier of semiconductor-based, high-performance interconnect products, has announced record financial results for its fiscal first quarter of 2007, ended March 31, 2007. In accordance with U.S. generally accepted accounting principles (GAAP), the company recorded revenue in the first quarter of $16.9 million, up seven percent from the $15.8 million in the fourth quarter of 2006 and up 98 percent from $8.5 million in the first quarter a year ago. Gross margins in the first quarter were 74.7 percent, compared with 75.1 percent in the fourth quarter and 70.5 percent in the first quarter a year ago. GAAP net income in the first quarter was $3.3 million or 20 percent of revenue. On a non-GAAP basis, the company recorded first quarter net income of $3.9 million, compared with $4.1 million in the fourth quarter of 2006. These non-GAAP net income results exclude share-based compensation expenses. The company generated a record $6.7 million of cash from operations during the quarter. Total cash and investments were $132.8 million at March 31, 2007. “We are very pleased to report that our first quarter 2007 revenues nearly doubled from the comparable quarter of 2006 and represented the third consecutive quarter of record revenues, further demonstrating the increasing rate of InfiniBand adoption in the markets we are addressing,” said Eyal Waldman, chairman, president and CEO. “We continue to see our InfiniBand products being adopted in new applications, both in the Enterprise Data Center and the High Performance Computing markets. During the quarter we began sampling ConnectX IB, the first InfiniBand product from our fourth generation ConnectX architecture, to our major OEM customers. Interest in our ConnectX family of products continues to build, and we plan to begin sampling our ConnectX EN Ethernet adapters during the second quarter.” Recent Mellanox Press Release Highlights: * April 16 - Mellanox Promotes Marc Sultzbaugh to Vice President of Worldwide Sales * April 16 - Mellanox Demonstrates 40Gb/s Connectivity with PCI Express 2.0 * March 26 - New Mellanox ConnectX IB Adapters Unleash Multi-core Processor Performance * March 19 - Mellanox Technologies Promotes Aviram Gutman to Vice President of Software Engineering * March 12 - Mellanox Technologies Delivers Microsoft Logo Qualified InfiniBand Adapters for Windows