Record Quarterly Revenue of $268.5 Million, Up 7 Percent Sequentially
and 27 Percent Year-Over-Year
Ethernet Revenue Up 81 Percent, and Ethernet Switch Revenue Up 114
Percent Year-Over-Year
Maintains Best ISS QualityScore for Governance for More Than a Year
Company Website:
http://www.mellanox.com
SUNNYVALE, Calif. & YOKNEAM, Israel -- (Business Wire)
Mellanox® Technologies, Ltd. (NASDAQ: MLNX), a leading supplier of
high-performance, end-to-end interconnect solutions for data center
servers and storage systems, today announced financial results for its
second quarter 2018 ended June 30, 2018.
“Mellanox has achieved another record financial performance in the
second quarter 2018. Our strong revenue growth reflects years of
investment in 25 gigabit per second and above Ethernet and InfiniBand
technologies. Our record profitability demonstrates the leverage we are
producing in the business by focusing our investments in the right
products,” said Eyal Waldman, President and CEO of Mellanox
Technologies. “We continue to see strong traction with our 25 gigabit
per second and above solutions as they become the preferred solution of
choice in hyperscale, cloud, high performance computing, artificial
intelligence, storage, financial services and other markets across the
globe. Our Ethernet revenue grew 81 percent year-over-year driven by
network adapter and switch growth with hyperscale and OEM customers. We
are proud to see our InfiniBand solutions accelerate the world’s top
three and four of the top five supercomputers, as seen in the recently
published TOP500 supercomputers list. Our performance in the second
quarter further shows the benefit of our investment in diversifying our
revenue base and the operational focus that is driving our higher
profitability.”
Second Quarter 2018 - Highlights
-
Revenue of $268.5 million, an increase of 26.7 percent, compared to
$212.0 million in the second quarter of 2017.
-
GAAP gross margins of 61.4 percent in the second quarter, compared to
65.4 percent in the second quarter of 2017.
-
Non-GAAP gross margins of 69.1 percent in the second quarter, compared
to 70.6 percent in the second quarter of 2017.
-
GAAP operating income of $16.6 million, compared to operating loss of
$4.4 million in the second quarter of 2017.
-
Non-GAAP operating income of $66.2 million, or 24.7 percent of
revenue, compared to $26.5 million, or 12.5 percent of revenue in the
second quarter of 2017.
-
GAAP net income of $16.5 million, compared to net loss of $8.0 million
in the second quarter of 2017.
-
Non-GAAP net income of $66.6 million, compared to $22.4 million in the
second quarter of 2017.
-
GAAP net income per diluted share of $0.30 in the second quarter,
compared to net loss per diluted share of $0.16 in the second quarter
of 2017.
-
Non-GAAP net income per diluted share of $1.25 in the second quarter,
compared to $0.44 in the second quarter of 2017.
-
$46.7 million in cash provided by operating activities, compared to
$6.4 million in the second quarter of 2017.
-
Cash and investments totaled $282.6 million at June 30, 2018, compared
to $273.8 million at December 31, 2017.
First Half 2018 - Highlights
-
Revenue of $519.5 million, an increase of 29.7 percent, compared to
$400.6 million in the first half of 2017.
-
GAAP operating income of $28.5 million, compared to operating loss of
$17.0 million in the first half of 2017.
-
Non-GAAP operating income of $118.4 million, or 22.8 percent of
revenue, compared to $42.1 million, or 10.5 percent of revenue in
first half of 2017.
-
GAAP benefit from taxes on income of $26.7 million, mainly due to a
reversal of valuation allowance on deferred tax assets.
-
GAAP net income of $54.4 million, compared to net loss of $20.2
million in the first half of 2017.
-
Non-GAAP net income of $118.0 million, compared to $37.0 million in
the first half of 2017.
-
GAAP net income per diluted share of $1.00, compared to net loss per
diluted share of $0.41 in the first half of 2017.
-
Non-GAAP net income per diluted share of $2.23, compared to $0.73 in
the first half of 2017.
-
$102.1 million in cash provided by operating activities, compared to
$41.4 million in the first half of 2017.
Eyal Waldman continued, “In the first half of 2018 our revenue growth
has proven the value of our investments and we look forward to
continuing our momentum into the second half of the year. We grew our
revenue almost 30% in the first half and more than doubled our non-GAAP
operating income year over year. We expect our margin expansion to
continue with further revenue growth and operational efficiency. We are
confident that our strategy, investments and innovation will continue to
produce market-leading products that drive growth for Mellanox for the
rest of 2018 and beyond.”
Third Quarter 2018 Outlook
We currently project:
-
Quarterly revenue of $270 million to $280 million
-
Non-GAAP gross margins of 68.5 percent to 69.5 percent
-
Non-GAAP operating expenses of $122 million to $124 million
-
Share-based compensation expense of $19.0 million to $19.5 million
-
Non-GAAP diluted share count of 53.5 million to 54.0 million
Full Year 2018 Outlook
We currently project:
-
Revenue of $1,065 million to $1,085 million
-
Non-GAAP gross margins of 68.5 percent to 69.5 percent
-
Non-GAAP operating margin of 23.0 percent to 24.0 percent
Recent Mellanox Press Release Highlights
•
|
June 25, 2018
|
|
|
InfiniBand Accelerates the World-Fastest HPC and Artificial
Intelligence Supercomputer at Oak Ridge National Laboratory
|
•
|
June 25, 2018
| | |
InfiniBand Accelerates New Large Scale Supercomputer at
Forschungszentrum Jülich
|
•
|
June 25, 2018
| | |
InfiniBand Accelerates the Top Three Supercomputers on TOP500
Supercomputer List
|
•
|
June 19, 2018
| | |
InfiniBand to Connect World’s Top Arm-Based Supercomputer at Sandia
National Laboratory
|
•
|
June 19, 2018
| | |
Mellanox Announces Agreement with Starboard
|
•
|
May 29, 2018
| | |
Mellanox Launches Ground-Breaking Open Hyper-Scalable Enterprise
Framework
|
•
|
May 24, 2018
| | |
Mellanox Shareholders Overwhelmingly Support Company’s Best-in-Class
Governance Proposals
|
•
|
May 17, 2018
| | |
Mellanox Technologies Increases Second Quarter and Full Year 2018
Outlook
|
•
|
May 8, 2018
| | |
Mellanox and Red Hat Deliver Enhanced Performance and Simplicity for
NFV Infrastructure and Agile Cloud Data Centers
|
•
|
May 7, 2018
| | |
Mellanox Sends Letter to Shareholders
|
•
|
April 23, 2018
| | |
Eyal Waldman, CEO and President of Mellanox Technologies Receives
the 2018 Global Industry Leader Award
|
| | | |
|
Conference Call
Mellanox will hold its second quarter 2018 financial results conference
call today, at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time), to
discuss the company’s financial results. To listen to the call, dial
+1-877-876-9176, or for investors outside the U.S., +1-785-424-1667,
approximately 10 minutes prior to the start time.
The Mellanox financial results conference call will be available via
live webcast on the investor relations section of the Mellanox website
at: http://ir.mellanox.com.
A replay of the webcast will also be available on the Mellanox website
after the call.
About Mellanox
Mellanox Technologies (NASDAQ: MLNX) is a leading supplier of end-to-end
Ethernet and InfiniBand smart interconnect solutions and services for
servers and storage. Mellanox interconnect solutions increase data
center efficiency by providing the highest throughput and lowest
latency, delivering data faster to applications and unlocking system
performance. Mellanox offers a choice of fast interconnect products:
adapters, switches, software and silicon that accelerate application
runtime and maximize business results for a wide range of markets
including high performance computing, enterprise data centers, Web 2.0,
cloud, storage and financial services. More information is available at: www.mellanox.com.
Mellanox has achieved and maintained the highest ISS Quality Score
possible beginning in May of 2017 and through the date of this release,
July 17, 2018.
GAAP to Non-GAAP Reconciliation
To supplement our consolidated financial statements presented in
accordance with generally accepted accounting principles (GAAP),
Mellanox uses non-GAAP measures of net income which are adjusted from
results based on GAAP to exclude share-based compensation expense,
amortization expense of acquired intangible assets, settlement costs,
acquisition and other charges, restructuring charges, and income tax
effects and adjustments. Settlement costs represent the charges related
to the settlement of a contingent royalty obligation. Acquisition and
other charges include expenses related to acquisitions of other
companies and expenses related to the proxy contest. Restructuring
charges include costs that are the result of restructuring, consisting
of employee termination and severance costs, facilities related costs,
contract cancellation charges, and impairment of long-lived assets. The
purpose of income tax effects and adjustments is to exclude tax
consequences associated with the above excluded expenses items, as well
as the non-cash impact on the tax provision pertaining to changes in
deferred tax assets associated with carryforward losses of group
entities subject to tax holiday in Israel. The company believes the
non-GAAP results provide useful information to both management and
investors, as these non-GAAP results exclude expenses that are not
indicative of our core operating results. Management believes it is
useful to exclude share-based compensation expense, amortization expense
of acquired intangible assets, settlement costs, acquisition and other
charges, restructuring charges, and income tax effects and adjustments
because it enhances investors' ability to understand our business from
the same perspective as management, which believes that such items are
not directly attributable to nor reflect the underlying performance of
the company's business operations. Further, management believes certain
non-cash charges such as share-based compensation, amortization of
acquired intangible assets, changes related to recognition of deferred
taxes and the net impact on the company's tax provision for non-GAAP
adjustments do not reflect the cash operating results of the business.
These measures should be considered in addition to results prepared in
accordance with GAAP, but should not be considered a substitute for or
superior to GAAP results. These non-GAAP measures may be different than
the non-GAAP measures used by other companies. A reconciliation of GAAP
to non-GAAP condensed consolidated statements of operations is also
presented in the financial statements portion of this release and is
posted under the "Investor Relations" section on our website.
The company has not reconciled its non-GAAP gross margins or non-GAAP
operating expenses to GAAP gross margins or GAAP operating expenses,
respectively, in the outlook section of this press release, because it
does not provide an outlook for GAAP gross margins or GAAP operating
expenses due to uncertainty and variability of acquired intangibles,
acquisition and other charges, and restructuring charges, which are
reconciling items between non-GAAP gross margins and non-GAAP operating
expenses, and GAAP gross margins and GAAP operating expenses,
respectively. The company has not reconciled its non-GAAP diluted share
count to GAAP diluted share count in this press release because it does
not provide an outlook for GAAP diluted share count due to the
uncertainty in its GAAP net income (loss) due to variability of GAAP
gross margins and operating expenses described above. Because such items
cannot be reasonably predicted and could have a significant impact on
the calculation of GAAP gross margins, GAAP operating expenses and GAAP
diluted share count, a reconciliation of our outlook of these non-GAAP
financial measures to the corresponding GAAP measures is not available
without unreasonable effort.
Safe Harbor Statement under the Private Securities Litigation Reform
Act of 1995
All statements included or incorporated by reference in this release,
other than statements or characterizations of historical fact, are
forward-looking statements, including the outlook for the three months
ending September 30, 2018 and full fiscal 2018, statements related to
trends in the market for our solutions and services, opportunities for
our company in 2018 and beyond, and future product capabilities. These
forward-looking statements are based on our current expectations,
estimates and projections about our industry and business, management's
beliefs and certain assumptions made by us, all of which are subject to
change.
Forward-looking statements can often be identified by words such as
"projects," "anticipates," "expects," "intends," "plans," "predicts,"
"believes," "seeks," "estimates," "may," "will," "should," "would,"
"could," "potential," "continue," "ongoing," similar expressions and
variations or negatives of these words. These forward-looking statements
are not guarantees of future results and are subject to risks,
uncertainties and assumptions that could cause our actual results to
differ materially and adversely from those expressed in any
forward-looking statement. The risks and uncertainties that could cause
our results to differ materially from those expressed or implied by such
forward-looking statements include the continued expansion of our
product line, customer base and the total available market of our
products, the continued growth in demand for our products, the
continued, increased demand for industry standards-based technology, our
ability to react to trends and challenges in our business and the
markets in which we operate, our ability to anticipate market needs or
develop new or enhanced products to meet those needs, the adoption rate
of our products, our ability to establish and maintain successful
relationships with our OEM partners, our ability to effectively compete
in our industry, fluctuations in demand, sales cycles and prices for our
products and services, our success converting design wins to
revenue-generating product shipments, the continued launch and volume
ramp of large customer sales opportunities, our ability to protect our
intellectual property rights, our ability to successfully acquire
businesses and technologies and to successfully integrate and operate
these acquired businesses, our success in realizing the anticipated
benefits of mergers and acquisitions, and our ability to obtain debt at
competitive rates or in sufficient amounts in order to fund our
contractual commitments. Furthermore, the majority of our quarterly
revenues are derived from customer orders received and fulfilled in the
same quarterly period. We have limited visibility into actual end-user
demand as such demand impacts us and our OEM customer inventory balances
in any given quarter. Consequently, this introduces risk and uncertainty
into our revenue and production forecasts and business planning and
could negatively impact our financial results. In addition, current
uncertainty in the global economic environment poses a risk to the
overall economy as businesses may defer purchases in response to tighter
credit conditions, changing overall demand for our products, and
negative financial news. Consequently, our results could differ
materially from our prior results due to these general economic and
market conditions, political events and other risks and uncertainties
described more fully in our documents filed with or furnished to
the Securities and Exchange Commission.
More information about the risks, uncertainties and assumptions that may
impact our business is set forth in our annual report on Form 10-K filed
with the SEC on February 16, 2018. All forward-looking statements in
this press release, including the outlook for the three months ending
September 30, 2018 and full fiscal 2018, are based on information
available to us as of the date hereof, and we assume no obligation to
update these forward-looking statements.
Mellanox is a registered trademark of Mellanox Technologies, Ltd. All
other trademarks are property of their respective owners.
|
Mellanox Technologies, Ltd. |
Condensed Consolidated Statements of Operations |
(in thousands, except per share data, unaudited) |
|
|
| Three Months Ended June 30, |
| Six Months Ended June 30, |
| | 2018 |
| 2017 | | 2018 |
| 2017 |
| |
|
Total revenues
| |
$
|
268,462
| | |
$
|
211,962
| | |
$
|
519,462
| | |
$
|
400,613
| |
Cost of revenues
| |
103,668
|
| |
73,427
|
| |
192,666
|
| |
137,877
|
|
Gross profit
| |
164,794
|
| |
138,535
|
| |
326,796
|
| |
262,736
|
|
Operating expenses:
| | | | | | | | |
Research and development
| |
87,152
| | |
92,348
| | |
173,578
| | |
180,839
| |
Sales and marketing
| |
35,673
| | |
38,110
| | |
75,167
| | |
73,867
| |
General and administrative
| |
23,635
| | |
12,476
| | |
40,151
| | |
24,995
| |
Restructuring charges
| |
1,774
|
| |
—
|
| |
9,361
|
| |
—
|
|
Total operating expenses
| |
148,234
|
| |
142,934
|
| |
298,257
|
| |
279,701
|
|
Income (loss) from operations
| |
16,560
| | |
(4,399
|
)
| |
28,539
| | |
(16,965
|
)
|
Interest expense
| |
(871
|
)
| |
(1,996
|
)
| |
(2,042
|
)
| |
(3,989
|
)
|
Other income, net
| |
533
|
| |
827
|
| |
1,171
|
| |
1,510
|
|
Interest and other, net
| |
(338
|
)
| |
(1,169
|
)
| |
(871
|
)
| |
(2,479
|
)
|
Income (loss) before taxes on income
| |
16,222
| | |
(5,568
|
)
| |
27,668
| | |
(19,444
|
)
|
Provision for (benefit from) taxes on income
| |
(304
|
)
| |
2,423
|
| |
(26,701
|
)
| |
791
|
|
Net income (loss)
| |
$
|
16,526
|
| |
$
|
(7,991
|
)
| |
$
|
54,369
|
| |
$
|
(20,235
|
)
|
Net income (loss) per share — basic
| |
$
|
0.31
|
| |
$
|
(0.16
|
)
| |
$
|
1.04
|
| |
$
|
(0.41
|
)
|
Net income (loss) per share — diluted
| |
$
|
0.30
|
| |
$
|
(0.16
|
)
| |
$
|
1.00
|
| |
$
|
(0.41
|
)
|
Shares used in computing net income (loss) per share:
| | | | | | | | |
Basic
| |
52,615
| | |
50,056
| | |
52,219
| | |
49,698
| |
Diluted
| |
54,466
| | |
50,056
| | |
54,149
| | |
49,698
| |
|
Mellanox Technologies, Ltd. |
Reconciliation of Non-GAAP Adjustments |
(in thousands, percentages, unaudited) |
|
|
| Three Months Ended June 30, |
| Six Months Ended June 30, |
| | 2018 |
| 2017 | | 2018 |
| 2017 |
Reconciliation of GAAP net income (loss) to
non-GAAP: | | | | | | | | |
GAAP net income (loss)
| |
$
|
16,526
| | |
$
|
(7,991
|
)
| |
$
|
54,369
| | |
$
|
(20,235
|
)
|
Adjustments:
| | | | | | | | |
Share-based compensation expense:
| | | | | | | | |
Cost of revenues
| |
415
| | |
575
| | |
826
| | |
1,056
| |
Research and development
| |
8,340
| | |
10,297
| | |
16,514
| | |
18,988
| |
Sales and marketing
| |
3,646
| | |
4,010
| | |
7,245
| | |
7,348
| |
General and administrative
| |
2,515
|
| |
2,783
|
| |
5,305
|
| |
5,041
|
|
Total share-based compensation expense
| |
14,916
| | |
17,665
| | |
29,890
| | |
32,433
| |
Amortization of acquired intangibles:
| | | | | | | | |
Cost of revenues
| |
11,106
| | |
10,614
| | |
21,988
| | |
21,200
| |
Research and development
| |
194
| | |
194
| | |
386
| | |
386
| |
Sales and marketing
| |
2,033
|
| |
2,230
|
| |
4,263
|
| |
4,460
|
|
Total amortization of acquired intangibles
| |
13,333
| | |
13,038
| | |
26,637
| | |
26,046
| |
Settlement costs:
| | | | | | | | |
Cost of revenues
| |
9,161
|
| |
—
|
| |
9,161
|
| |
—
|
|
Total settlement costs
| |
9,161
| | |
—
| | |
9,161
| | |
—
| |
Acquisition and other charges (1):
| | | | | | | | |
Research and development
| |
88
| | |
153
| | |
375
| | |
436
| |
Sales and marketing
| |
48
| | |
—
| | |
208
| | |
60
| |
General and administrative
| |
10,366
|
| |
—
|
| |
14,197
|
| |
134
|
|
Total acquisition and other charges
| |
10,502
| | |
153
| | |
14,780
| | |
630
| |
Restructuring charges
| |
1,774
| | |
—
| | |
9,361
| | |
—
| |
Tax effects and adjustments
| |
366
|
| |
(492
|
)
| |
(26,237
|
)
| |
(1,843
|
)
|
Non-GAAP net income
| |
$
|
66,578
|
| |
$
|
22,373
|
| |
$
|
117,961
|
| |
$
|
37,031
|
|
| | | | | | | |
|
Reconciliation of GAAP gross profit to
non-GAAP: | | | | | | | | |
Revenues
| |
$
|
268,462
| | |
$
|
211,962
| | |
$
|
519,462
| | |
$
|
400,613
| |
GAAP gross profit
| |
164,794
| | |
138,535
| | |
326,796
| | |
262,736
| |
GAAP gross margin
| |
61.4
|
%
| |
65.4
|
%
| |
62.9
|
%
| |
65.6
|
%
|
Share-based compensation expense
| |
415
| | |
575
| | |
826
| | |
1,056
| |
Amortization of acquired intangibles
| |
11,106
| | |
10,614
| | |
21,988
| | |
21,200
| |
Settlement costs
| |
9,161
|
| |
—
|
| |
9,161
|
| |
—
|
|
Non-GAAP gross profit
| |
$
|
185,476
|
| |
$
|
149,724
|
| |
$
|
358,771
|
| |
$
|
284,992
|
|
Non-GAAP gross margin
| |
69.1
|
%
| |
70.6
|
%
| |
69.1
|
%
| |
71.1
|
%
|
| | | | | | | |
|
Reconciliation of GAAP operating expenses to
non-GAAP: | | | | | | | | |
GAAP operating expenses
| |
$
|
148,234
| | |
$
|
142,934
| | |
$
|
298,257
| | |
$
|
279,701
| |
Share-based compensation expense
| |
(14,501
|
)
| |
(17,090
|
)
| |
(29,064
|
)
| |
(31,377
|
)
|
Amortization of acquired intangibles
| |
(2,227
|
)
| |
(2,424
|
)
| |
(4,649
|
)
| |
(4,846
|
)
|
Acquisition and other charges (1)
| |
(10,502
|
)
| |
(153
|
)
| |
(14,780
|
)
| |
(630
|
)
|
Restructuring charges
| |
(1,774
|
)
| |
—
|
| |
(9,361
|
)
| |
—
|
|
Non-GAAP operating expenses
| |
$
|
119,230
|
| |
$
|
123,267
|
| |
$
|
240,403
|
| |
$
|
242,848
|
|
|
Mellanox Technologies, Ltd. |
Reconciliation of Non-GAAP Adjustments |
(in thousands, except per share data, unaudited) |
|
|
| Three Months Ended June 30, |
| Six Months Ended June 30, |
| | 2018 |
| 2017 | | 2018 |
| 2017 |
| | | | | | | |
|
Reconciliation of GAAP income (loss) from
operations to non-GAAP: | | | | | | | | |
GAAP income (loss) from operations
| |
$
|
16,560
| | |
$
|
(4,399
|
)
| |
$
|
28,539
| | |
$
|
(16,965
|
)
|
Share-based compensation expense
| |
14,916
| | |
17,665
| | |
29,890
| | |
32,433
| |
Settlement costs
| |
9,161
| | |
—
| | |
9,161
| | |
—
| |
Amortization of acquired intangibles
| |
13,333
| | |
13,038
| | |
26,637
| | |
26,046
| |
Acquisition and other charges (1)
| |
10,502
| | |
153
| | |
14,780
| | |
630
| |
Restructuring charges
| |
1,774
|
| |
—
|
| |
9,361
|
| |
—
|
|
Non-GAAP income from operations
| |
$
|
66,246
|
| |
$
|
26,457
|
| |
$
|
118,368
|
| |
$
|
42,144
|
|
| | | | | | | |
|
Shares used in computing GAAP diluted earnings per share
| |
54,466
| | |
50,056
| | |
54,149
| | |
49,698
| |
Adjustments:
| | | | | | | | |
Effect of dilutive securities under GAAP
| |
(1,851
|
)
| |
—
| | |
(1,930
|
)
| |
—
| |
Total options vested and exercisable
| |
600
|
| |
1,069
|
| |
600
|
| |
1,069
|
|
Shares used in computing non-GAAP diluted earnings per share
| |
53,215
|
| |
51,125
|
| |
52,819
|
| |
50,767
|
|
| | | | | | | |
|
GAAP diluted net income (loss) per share
| |
$
|
0.30
| | |
$
|
(0.16
|
)
| |
$
|
1.00
| | |
$
|
(0.41
|
)
|
Adjustments:
| | | | | | | | |
Share-based compensation expense
| |
0.28
| | |
0.36
| | |
0.55
| | |
0.66
| |
Amortization of acquired intangibles
| |
0.24
| | |
0.26
| | |
0.49
| | |
0.53
| |
Settlement costs
| |
0.17
| | |
—
| | |
0.17
| | |
—
| |
Acquisition and other charges (1)
| |
0.19
| | |
—
| | |
0.27
| | |
0.01
| |
Restructuring charges
| |
0.03
| | |
—
| | |
0.17
| | |
—
| |
Tax effects and adjustments
| |
0.01
| | |
(0.01
|
)
| |
(0.48
|
)
| |
(0.04
|
)
|
Effect of dilutive securities under GAAP
| |
0.04
| | |
—
| | |
0.08
| | |
—
| |
Total options vested and exercisable
| |
(0.01
|
)
| |
(0.01
|
)
| |
(0.02
|
)
| |
(0.02
|
)
|
Non-GAAP diluted net income per share
| |
$
|
1.25
|
| |
$
|
0.44
|
| |
$
|
2.23
|
| |
$
|
0.73
|
|
|
| |
(1)
| |
Acquisition and other charges include $10.1 million and $13.5
million of expenses related to the proxy contest for the three and
six months ended June 30, 2018, respectively.
|
|
Mellanox Technologies, Ltd. |
Condensed Consolidated Balance Sheets |
(in thousands, unaudited) |
|
|
| June 30, |
| December 31, |
| | 2018 | | 2017 |
ASSETS | | |
Current assets:
| | | | |
Cash and cash equivalents
| |
$
|
63,422
| | |
$
|
62,473
|
Short-term investments
| |
219,225
| | |
211,281
|
Accounts receivable, net
| |
155,664
| | |
154,213
|
Inventories
| |
94,484
| | |
64,657
|
Other current assets
| |
12,007
|
| |
14,295
|
Total current assets
| |
544,802
| | |
506,919
|
Property and equipment, net
| |
106,746
| | |
109,919
|
Severance assets
| |
17,111
| | |
18,302
|
Intangible assets, net
| |
208,450
| | |
228,195
|
Goodwill
| |
473,916
| | |
472,437
|
Deferred taxes and other long-term assets
| |
98,744
|
| |
66,162
|
Total assets
| |
$
|
1,449,769
|
| |
$
|
1,401,934
|
LIABILITIES AND SHAREHOLDERS' EQUITY | | |
Current liabilities:
| | | | |
Accounts payable
| |
$
|
71,137
| | |
$
|
59,090
|
Accrued liabilities
| |
124,792
| | |
114,058
|
Deferred revenue
| |
20,719
|
| |
23,485
|
Total current liabilities
| |
216,648
| | |
196,633
|
Accrued severance
| |
21,464
| | |
23,205
|
Deferred revenue
| |
17,791
| | |
17,820
|
Term debt
| |
—
| | |
72,761
|
Other long-term liabilities
| |
32,117
|
| |
34,067
|
Total liabilities
| |
288,020
|
| |
344,486
|
Shareholders’ equity:
| | | | |
Ordinary shares
| |
229
| | |
221
|
Additional paid-in capital
| |
923,202
| | |
873,979
|
Accumulated other comprehensive income (loss)
| |
(2,182
|
)
| |
1,618
|
Retained earnings
| |
240,500
|
| |
181,630
|
Total shareholders’ equity
| |
1,161,749
|
| |
1,057,448
|
Total liabilities and shareholders' equity
| |
$
|
1,449,769
|
| |
$
|
1,401,934
|
|
Mellanox Technologies, Ltd. |
Condensed Consolidated Statement of Cash Flows |
(in thousands, unaudited) |
|
|
| Six Months Ended June 30, |
| | 2018 |
| 2017 |
| |
|
Cash flows from operating activities:
| | | | |
Net income (loss)
| |
$
|
54,369
| | |
$
|
(20,235
|
)
|
Adjustments to reconcile net income (loss) to net cash provided by
operating activities:
| | | | |
Depreciation and amortization
| |
52,674
| | |
50,814
| |
Deferred income taxes
| |
(28,085
|
)
| |
(704
|
)
|
Share-based compensation
| |
29,890
| | |
32,433
| |
Gain on investments, net
| |
(1,828
|
)
| |
(1,701
|
)
|
Impairment and loss on disposal of property and equipment
| |
1,567
| | |
—
| |
Changes in assets and liabilities:
| | | | |
Accounts receivable
| |
(1,451
|
)
| |
(7,780
|
)
|
Inventories
| |
(30,598
|
)
| |
(7,679
|
)
|
Prepaid expenses and other assets
| |
718
| | |
(2,667
|
)
|
Accounts payable
| |
12,530
| | |
48
| |
Accrued liabilities and other liabilities
| |
12,334
|
| |
(1,141
|
)
|
Net cash provided by operating activities
| |
102,120
|
| |
41,388
|
|
| | | |
|
Cash flows from investing activities:
| | | | |
Purchase of severance-related insurance policies
| |
(612
|
)
| |
(651
|
)
|
Purchase of short-term investments
| |
(82,486
|
)
| |
(69,110
|
)
|
Proceeds from sales of short-term investments
| |
13,893
| | |
74,359
| |
Proceeds from maturities of short-term investments
| |
62,396
| | |
13,590
| |
Proceeds from sales of property and equipment
| |
3,239
| | |
—
| |
Purchase of property and equipment
| |
(20,078
|
)
| |
(27,120
|
)
|
Purchase of intangible assets
| |
(6,383
|
)
| |
(1,647
|
)
|
Purchase of investments in private companies
| |
(6,000
|
)
| |
(11,000
|
)
|
Acquisition, net of cash acquired
| |
(7,129
|
)
| |
—
|
|
Net cash used in investing activities
| |
(43,160
|
)
| |
(21,579
|
)
|
| | | |
|
Cash flows from financing activities:
| | | | |
Principal payments on term debt
| |
(74,000
|
)
| |
(30,000
|
)
|
Payments on capital lease and intangible asset financings
| |
(3,446
|
)
| |
(3,263
|
)
|
Proceeds from issuances of ordinary shares through employee equity
incentive plans
| |
19,341
|
| |
12,396
|
|
Net cash used in financing activities
| |
(58,105
|
)
| |
(20,867
|
)
|
| | | |
|
Net increase (decrease) in cash, cash equivalents, and restricted
cash
| |
855
| | |
(1,058
|
)
|
Cash, cash equivalents, and restricted cash at beginning of period
| |
70,498
|
| |
56,780
|
|
Cash, cash equivalents, and restricted cash at end of period
| |
$
|
71,353
|
| |
$
|
55,722
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20180717005985/en/
Contacts:
Mellanox Technologies, Ltd.
Press/Media Contact
McGrath/Power
Public Relations and Communications
Derek James, +1-408-727-0351
derekjames@mcgrathpower.com
or
Investor
Contact
Erik Bylin, +1-510-315-1004
erik@nmnadvisors.com
or
Israel
PR Contact
Galai Communications Public Relations
Jonathan
Wolf, +972-3-613-52-84
yoni@galaipr.com
or
Israel
IR Contact
Gelbart Kahana Investor Relations
Emanuel
Kahana, +972-3-607-47-17
mano@gk-biz.com
Source: Mellanox Technologies, Ltd.
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