Mellanox Technologies, Ltd. (Mellanox) has reported revenues of $107.7 million for the year 2008, compared with the revenues of $84.1 million in the previous year-end. It has also reported a net income of $22.4 million, or $0.68 per diluted share, for the year 2008, compared with the net income of $35.6 million, or $1.18 per diluted share, in the previous year-end.
Fourth Quarter and Fiscal Year Highlights
Revenues were $25.2 million for Q4’08 and $107.7 million in 2008.
Fourth quarter gross margins were 77.5% and 78.3% in 2008.
Fourth quarter net income: $8.0 million GAAP, $4.4 million non-GAAP.
Fiscal year net income: $22.4 million GAAP, $32.2 million non-GAAP.
Fourth quarter net income per diluted share: $0.24 GAAP, $0.13 non-GAAP.
Fiscal year net income per diluted share: $0.68 GAAP, $0.92 non-GAAP.
$10.9 million in cash provided by operating activities during the fourth quarter.
$31.0 million in cash provided by operating activities during the year.
$183.2 million in total cash and investments at year end.
The company reported revenue of $25.2 million, down from $29.1 million in the third quarter of 2008 and up from the $24.8 million reported in the fourth quarter of 2007. For the year ended Dec. 31, 2008, revenue was $107.7 million, an increase of 28% from revenue of $84.1 million reported in 2007.
Gross margins in the fourth quarter were 77.5%, compared with 79.1% in the third quarter of 2008 and 73.8% in the fourth quarter of 2007. Gross margins in 2008 were 78.3%, compared with 74.6% in 2007. GAAP net income in the fourth quarter was $8.0 million or $0.24 per diluted share, compared with $19.7 million or $0.60 per diluted share in the fourth quarter of 2007. GAAP net income in 2008 was $22.4 million or $0.68 per diluted share, compared with $35.6 million or $1.18 per diluted share in 2007.
On a non-GAAP basis, the company recorded fourth quarter net income of $4.4 million, or $0.13 per diluted share, compared with $9.6 million or $0.28 per diluted share in the third quarter of 2008, and $8.8 million or $0.26 per diluted share in the fourth quarter of 2007. These fourth quarter 2008 non-GAAP net income results exclude $2.0 million of share-based compensation expenses and tax benefits of $5.6 million from changes in certain deferred tax assets.
On a non-GAAP basis, the company recorded annual net income of $32.2 million, or $0.92 per diluted share, up from $27.1 million or $0.81 per diluted share in 2007. These 2008 non-GAAP net income results exclude $7.9 million of share-based compensation expenses and tax expenses of $1.9 million from changes in certain deferred tax assets.
Total cash and investments were $183.2 million at Dec. 31, 2008. The company generated $10.9 million in cash from operating activities during the quarter and $31.0 million for the year.
“We are proud of our achievements in 2008, growing annual revenue by 28%, generating a record $31.0 million in cash from operations, and taping out two new devices that will contribute to future revenues. We continued to expand our end-to-end connectivity offerings and customer base,” said Eyal Waldman, chairman, president and chief executive officer of Mellanox. “There was strong adoption of our 40Gb/s InfiniBand-based products. We also saw increased deployments of our InfiniBand products in enterprise data centers, including Oracle Database Appliances, an important growth area for us.
“In the fourth quarter, we introduced the latest addition to our Ethernet product line, ConnectX ENt, which is the industry’s first 10GBASE-T LAN-on-Motherboard. Overall, the continuing success of our end-to-end product family demonstrates the growing demand for cost-effective, high-performance solutions that provide better efficiency and future-proofing capabilities for data center infrastructures,” Waldman said.