Mellanox Technologies posted 4Q2019 revenue of $379.8 million, an increase of 30.9 percent, compared to $290.1 million in the fourth quarter of 2018. GAAP gross margins were 66.2 percent in the fourth quarter, compared to 65.4 percent in the fourth quarter of 2018. GAAP net income was $73.9 million in the fourth quarter, compared to $42.8 million in the fourth quarter of 2018. Non-GAAP net income was $129.3 million in the fourth quarter, compared to $77.1 million in the fourth quarter of 2018. GAAP net income per diluted share of $1.29 in the fourth quarter, compared to $0.78 in the fourth quarter of 2018.
“Mellanox delivered record revenue, operating income, and cash flow from operations in both the fourth quarter and the full year 2019. All our major product lines grew in the fourth quarter, demonstrating the advantages of our broad product portfolio. We are shipping over 1.2 million units per quarter of ConnectX and Bluefield adapters, driven by strong adoption of our smart offload and secure in-network compute capabilities. We continue to lead with our Ethernet adapters at data rates of 25 gigabits per second and above. Our Ethernet switch business is expanding at a healthy rate as well, attaining sequential revenue growth of 25% for two quarters in a row. Powered by our Spectrum product line with data rates of up to 400 gigabits per second, our Ethernet switch solutions are being deployed in a wide range of applications for hyperscale, cloud, storage, and financial markets. We expect to see continued growth with the introduction of Spectrum-3 products very soon,” said Eyal Waldman, president and CEO of Mellanox Technologies.
“Fourth quarter revenue for our InfiniBand solutions grew 19% sequentially, and 2019 annual revenue grew 29% compared to 2018, driven by the strong adoption of our 200 gigabit per second HDR solutions in the high performance computing, artificial intelligence, cloud, and storage market segments. HDR InfiniBand accelerates nearly one-third of the new InfiniBand platforms on the recent TOP500 supercomputing list and has been selected to connect some of the most powerful supercomputing installations in 2020, including Meteo France, the European Centre for Medium-Range Weather Forecasts (ECMWF), the Eni Supercomputing platform, and several national and Exascale programs,” continued Waldman.
