Mellanox Technologies, Ltd (MLNX) saw its loss widen to $12.24 million, or $0.25 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $7.17 million, or $0.15 a share. On the other hand, adjusted net income for the quarter stood at $14.66 million, or $0.29 a share compared with $39.30 million or $0.81 a share, a year ago. Revenue during the quarter dropped 4.15 percent to $188.65 million from $196.81 million in the previous year period. Gross margin for the quarter expanded 165 basis points over the previous year period to 65.84 percent. Operating margin for the quarter stood at negative 6.66 percent as compared to a negative 1.97 percent for the previous year period.
Operating loss for the quarter was $12.57 million, compared with an operating loss of $3.87 million in the previous year period.
However, the adjusted operating income for the quarter stood at $15.69 million compared to $41.33 million in the prior year period. At the same time, adjusted operating margin contracted 1268 basis points in the quarter to 8.32 percent from 21 percent in the last year period.
“Our first quarter InfiniBand revenues were down year-over-year, impacted by delays in the general availability of next generation x86 CPUs, seasonal trends in high-performance computing, and technology transitions occurring across several end users and OEM customers. We believe InfiniBand has maintained share in HPC, and expect revenues will see sequential growth in the coming quarters driven by current backlog and additional pipeline opportunities,” said Eyal Waldman, president and Chief executive officer of Mellanox Technologies. “Our first quarter Ethernet revenues grew across all product families sequentially, driven by the adoption of our 25/50/100 gigabit solutions. We expect 2017 to be a growth year for Mellanox.”
For the second-quarter, Mellanox Technologies expects revenue to be in the range of $205 million to $215 million.
Operating cash flow drops significantly
Mellanox Technologies, Ltd has generated cash of $35 million from operating activities during the quarter, down 27.97 percent or $ 13.59 million, when compared with the last year period. The company has spent $22.59 million cash to meet investing activities during the quarter as against cash outgo of $477.07 million in the last year period.
The company has spent $10.84 million cash to carry out financing activities during the quarter as against cash inflow of $283.18 million in the last year period.
Cash and cash equivalents stood at $58.36 million as on Mar. 31, 2017, down 50.51 percent or $59.56 million from $117.91 million on Mar. 31, 2016.
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