ENGINEERING

Mellanox Technologies has announced record revenue in its fiscal second quarter 2010, ended June 30, 2010.

Second Quarter Highlights

Financial Results

In accordance with U.S. generally accepted accounting principles (GAAP), the company reported revenue of $40.0 million, up 10.4 percent from $36.2 million in the first quarter of 2010, and up 58.0 percent from $25.3 million in the second quarter of 2009.

Gross margins in the second quarter of 2010 were 74.5 percent, compared with 75.1 percent in the first quarter of 2010 and 74.1 percent in the second quarter of 2009.

GAAP net income in the second quarter was $5.3 million, up 1.5 percent from $5.2 million in the first quarter of 2010 and up 205.0 percent from $1.7 million in the second quarter of 2009. GAAP net income per diluted share in the second quarter was $0.15, same as in the first quarter of 2010 and $0.05 per diluted share in the second quarter of 2009.

Non-GAAP net income in the second quarter was $10.4 million, or $0.29 per diluted share, same as the first quarter of 2010 results and up from $4.7 million or $0.13 per diluted share in the second quarter of 2009. Second quarter non-GAAP net income increased 124.3 percent year-over-year. The second quarter 2010 non-GAAP net income results exclude $3.4 million of share-based compensation expenses and tax expense of $1.7 million from changes in certain deferred tax assets.

Total cash and investments increased to $233.9 million at June 30, 2010. The company generated $13.7 million in cash from operating activities during the quarter.

“We are pleased to report record quarterly revenues of $40 million and year-over-year net income growth of 205 percent due to increased demand for both our InfiniBand and Ethernet product line offerings,” said Eyal Waldman, chairman, president, and CEO of Mellanox Technologies. “Our efficient interconnect solutions gained traction in multiple markets including high-performance computing, virtualized data centers, financial services and Web 2.0. As reported on the June TOP500 list, Mellanox’s industry-leading InfiniBand products connect the world’s fastest 208 supercomputers, or approximately 42 percent of the list, highlighting the performance, scalability and return-on-investment of our leading InfiniBand end-to-end connectivity products.”