GOVERNMENT
Mellanox Technologies announces financial results for Q3 2007
Fifth consecutive quarter of record revenue and record operating and net income: Mellanox Technologies, a leading supplier of semiconductor-based, server and storage interconnect products, announced financial results for its third quarter of 2007, ended Sept. 30, 2007. 
In accordance with U.S. generally accepted accounting principles (GAAP), the company recorded revenue in the third quarter of $22.7 million, up 15 percent from $19.8 million in the second quarter of 2007 and up 69 percent from $13.4 million in the third quarter a year ago. Gross margins in the third quarter were 74.9 percent, compared with 75.1 percent in the second quarter of 2007 and 72.8 percent in the third quarter of 2006. GAAP net income in the third quarter was $7.0 million or $0.21 per diluted share, compared with $5.6 million or $0.17 per diluted share in the second quarter of 2007 and $2.8 million in the third quarter of 2006. On a non-GAAP basis, the company recorded third quarter net income of $8.0 million compared with $6.4 million in the second quarter of 2007 and $2.9 million in the third quarter a year ago. These non-GAAP net income results exclude share-based compensation expenses. Total cash and investments were $148.2 million at Sept. 30, 2007. The company generated $9.6 million of cash from operations during the quarter and $21.3 million during the first nine months of 2007. “Our third quarter marked the fifth consecutive quarter of record revenue, with net and operating income (both in dollars and as a percentage of sales) at record highs,” said Eyal Waldman, chairman, president and CEO. “Our ConnectX InfiniBand adapters are enjoying wide adoption by our OEM customer base, and are being integrated into large-cluster deployments, as well as in volume-level servers, blade servers and storage devices, expanding our addressable markets. “We are also seeing initial end-user deployments of our ConnectX 10 Gigabit Ethernet adapters for use in a variety of markets,” he said. Recent Mellanox Press Release Highlights: • Oct. 15 – IBRIX and Mellanox Offer the First InfiniBand-Attached Scalable NAS Solution • Oct. 9 – Mellanox 10 Gigabit Ethernet Products Demonstrate Industry-Wide Interoperability at UNH IOL Summit • Sept. 19 – Mellanox InfiniBand Drives Transaction Processing and Storage Performance Benchmark on HP BladeSystem c-Class • Sept. 18 – Mellanox ConnectX IB InfiniBand Adapters Accelerate IBM BladeCenter H • Sept. 17 – Mellanox Delivers First PCI Express 2.0 20Gb/s InfiniBand and 10 Gigabit Ethernet Adapters • Sept. 12 – Mellanox ConnectX IB InfiniBand Mezzanine Adapters and Switches Accelerate the New HP BladeSystem c3000 Enclosure • Sept. 11 – Mellanox and Verari Systems Demonstrate InfiniBand Converged Wire Benefits in Server Blades with VMware • Aug. 6 – Mellanox Announces Availability of Turnkey NFS-RDMA SDK for InfiniBand that Delivers 10X Throughput Improvement
In accordance with U.S. generally accepted accounting principles (GAAP), the company recorded revenue in the third quarter of $22.7 million, up 15 percent from $19.8 million in the second quarter of 2007 and up 69 percent from $13.4 million in the third quarter a year ago. Gross margins in the third quarter were 74.9 percent, compared with 75.1 percent in the second quarter of 2007 and 72.8 percent in the third quarter of 2006. GAAP net income in the third quarter was $7.0 million or $0.21 per diluted share, compared with $5.6 million or $0.17 per diluted share in the second quarter of 2007 and $2.8 million in the third quarter of 2006. On a non-GAAP basis, the company recorded third quarter net income of $8.0 million compared with $6.4 million in the second quarter of 2007 and $2.9 million in the third quarter a year ago. These non-GAAP net income results exclude share-based compensation expenses. Total cash and investments were $148.2 million at Sept. 30, 2007. The company generated $9.6 million of cash from operations during the quarter and $21.3 million during the first nine months of 2007. “Our third quarter marked the fifth consecutive quarter of record revenue, with net and operating income (both in dollars and as a percentage of sales) at record highs,” said Eyal Waldman, chairman, president and CEO. “Our ConnectX InfiniBand adapters are enjoying wide adoption by our OEM customer base, and are being integrated into large-cluster deployments, as well as in volume-level servers, blade servers and storage devices, expanding our addressable markets. “We are also seeing initial end-user deployments of our ConnectX 10 Gigabit Ethernet adapters for use in a variety of markets,” he said. Recent Mellanox Press Release Highlights: • Oct. 15 – IBRIX and Mellanox Offer the First InfiniBand-Attached Scalable NAS Solution • Oct. 9 – Mellanox 10 Gigabit Ethernet Products Demonstrate Industry-Wide Interoperability at UNH IOL Summit • Sept. 19 – Mellanox InfiniBand Drives Transaction Processing and Storage Performance Benchmark on HP BladeSystem c-Class • Sept. 18 – Mellanox ConnectX IB InfiniBand Adapters Accelerate IBM BladeCenter H • Sept. 17 – Mellanox Delivers First PCI Express 2.0 20Gb/s InfiniBand and 10 Gigabit Ethernet Adapters • Sept. 12 – Mellanox ConnectX IB InfiniBand Mezzanine Adapters and Switches Accelerate the New HP BladeSystem c3000 Enclosure • Sept. 11 – Mellanox and Verari Systems Demonstrate InfiniBand Converged Wire Benefits in Server Blades with VMware • Aug. 6 – Mellanox Announces Availability of Turnkey NFS-RDMA SDK for InfiniBand that Delivers 10X Throughput Improvement