Advertisement
U.S. markets closed
  • S&P 500

    5,254.35
    +5.86 (+0.11%)
     
  • Dow 30

    39,807.37
    +47.29 (+0.12%)
     
  • Nasdaq

    16,379.46
    -20.06 (-0.12%)
     
  • Russell 2000

    2,124.55
    +10.20 (+0.48%)
     
  • Crude Oil

    83.11
    -0.06 (-0.07%)
     
  • Gold

    2,254.80
    +16.40 (+0.73%)
     
  • Silver

    25.10
    +0.18 (+0.74%)
     
  • EUR/USD

    1.0796
    +0.0002 (+0.02%)
     
  • 10-Yr Bond

    4.2060
    +0.0100 (+0.24%)
     
  • GBP/USD

    1.2640
    +0.0017 (+0.14%)
     
  • USD/JPY

    151.2360
    -0.1360 (-0.09%)
     
  • Bitcoin USD

    70,078.70
    -1,160.05 (-1.63%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,952.62
    +20.64 (+0.26%)
     
  • Nikkei 225

    40,369.44
    +201.37 (+0.50%)
     

Earnings Review and Free Research Report:Mellanox Technologies Reported Better Than Expected Earnings Results

Research Desk Line-up: Microchip TechnologyPost Earnings Coverage

LONDON, UK / ACCESSWIRE / November 21, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Mellanox Technologies, Ltd (NASDAQ: MLNX), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=MLNX, following the Company's release of its financial results on October 25, 2017, for the third quarter fiscal 2017. The supplier of computer networking products saw its revenue increased 0.7% on a y-o-y basis. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

http://protraderdaily.com/register/

Get more of our free earnings reports coverage from other constituents of the Semiconductor - Broad Line industry. Pro-TD has currently selected Microchip Technology Incorporated (NASDAQ: MCHP) for due-diligence and potential coverage as the Company reported on November 06, 2017, its financial results for Q2 FY18 which ended on September 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on Microchip Technology when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on MLNX; also brushing on MCHP. With the links below you can directly download the report of your stock of interest free of charge at:

http://protraderdaily.com/optin/?symbol=MLNX

http://protraderdaily.com/optin/?symbol=MCHP

Earnings Reviewed

For three months ended September 30, 2017, Mellanox's total revenue increased 0.7% to $225.70 million from $224.21 million in Q3 FY16. Total revenue was below analysts' expectations of $226.6 million.

For the reported quarter, the Company's InfiniBand revenue decreased 7.3% on a sequential basis to $100.2 million. The decrease was due to a large Department of Energy CORAL deployment in the second quarter of 2017. For the reported quarter, the Company's Ethernet revenue increased 27.2% on a sequential basis to $110.7 million. The increase was driven primarily by 25 gigabit and above adapters.

During Q3 FY17, Mellanox's gross profit increased 1.6% to $148.36 million from $146.02 million in the same period last year. For the reported quarter, the Company's adjusted gross profit decreased 0.9% to $159.48 million from $160.90 million in the third quarter of 2016. The Company's adjusted gross margin decreased 110 basis points to 70.7% of revenue in Q3 FY17 from 71.8% of revenue in Q3 FY16.

For the reported quarter, Mellanox's research and development (R&D) expenses increased 8.7% to $90.92 million from $83.61 million in Q3 FY16. The Company's sales and marketing (S&M) expenses increased 9.9% to $37.83 million in Q3 FY17 from $34.41 million in the third quarter of 2016. During Q3 FY17, the Company's general and administrative (G&A) expenses decreased 3.4% to $13.04 million from $13.50 million in the same period last year.

During Q3 FY17, Mellanox's operating income decreased 54.6% to $6.58 million from $14.50 million in the same period last year. For the reported quarter, the Company's adjusted operating income decreased 21.8% to $38.50 million from $49.24 million in the third quarter of 2016.During Q3 FY17, the Company's adjusted operating margin decreased 490 basis points to 17.1% of revenue from 22% of revenue in the same period last year.

For the reported quarter, Mellanox's net income decreased 71.7% to $3.40 million from $12.04 million in Q3 FY16. During Q3 FY17, the Company's diluted EPS decreased 70.8% to $0.07 from $0.24 in the same period last year. For the reported quarter, Mellanox's adjusted net income decreased 20.7% to $36.61 million from $46.19 million in Q3 FY16. During Q3 FY17, the Company's adjusted diluted EPS decreased 23.7% to $0.71 from $0.93 in the same period last year. Adjusted diluted EPS surpassed analysts' expectations of $0.64.

Balance Sheet

As on September 30, 2017, Mellanox's cash and cash equivalents increased 2.9% to $58.42 million from $56.78 million on December 31, 2016. For the reported quarter, the Company's term debt decreased 20.3% to $174.44 million from $218.79 million in Q4 FY16.

For the reported quarter, the Company's net accounts receivable decreased 5.7% to $133.62 million from $141.77 million in the fourth quarter of 2016. For the reported quarter, the Company's accounts payable decreased 29.3% to $42.07 million from $59.53 million in Q4 FY16.

During FY17, the Company's YTD cash provided by operating activities decreased 31.2% to $94.38 million from $137.27 million in the same period last year.

Outlook

For Q4 FY17, Mellanox expects revenue to be in the range of $230 million to $240 million and adjusted gross margin to be in the range of 69% to 70% of revenue.

Stock Performance

At the closing bell, on Monday, November 20, 2017, Mellanox Technologies' stock rose2.00%, ending the trading session at $51.05. A total volume of 721.81 thousand shares have exchanged hands, which was higher than the 3-month average volume of 491.70 thousand shares. The Company's stock price surged 16.15% in the last three months, 6.02% in the past six months, and 13.82% in the previous twelve months. Moreover, the stock rallied 24.82% since the start of the year. The stock currently has a market cap of $2.57 billion.

Pro-Trader Daily:

Pro-Trader Daily (Pro-TD) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. PRO-TD has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles, and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

PRO-TD has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst [for further information on analyst credentials, please email contact@protraderdaily.com. Rohit Tuli, a CFA® charter-holder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by PRO-TD. PRO-TD is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

PRO-TD, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. PRO-TD, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, PRO-TD, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither PRO-TD nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://protraderdaily.com/disclaimer/.

CONTACT

For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: contact@protraderdaily.com

Phone number: (917) 341.4653

Office Address: Mainzer Landstrasse 50 Frankfurt am Main, Germany 60325

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Pro-Trader Daily

Advertisement