Mellanox hits record revenue of $279.2 million, up 24%

Mellanox Technologies reported record revenue of $279.2 million for Q3 2018, an increase of 23.7 percent, compared to $225.7 million in the third quarter of 2017. GAAP gross margins of 65.8 percent in the third quarter, compared to 65.7 percent in the third quarter of 2017. GAAP net income was $37.1 million in the third quarter, compared to $3.4 million in the third quarter of 2017.  Non-GAAP net income was $71.4 million in the third quarter, compared to $36.6 million in the third quarter of 2017.

“Mellanox continues to execute and gain momentum in the markets we participate in. We reported another record quarter in Q3, delivering 24% revenue growth and 90% non-GAAP operating income growth year-over-year. This resulted in a non-GAAP operating margin of 26.2%,” said Eyal Waldman, President and CEO of Mellanox Technologies. “Our strong results reflect the differentiated and superior product technologies that Mellanox has to offer for data center infrastructure.”

“The innovations built into our high-speed Ethernet adapters, switches and cables are fueling demand for our Ethernet products. Leading hyperscale, cloud, enterprise data center and artificial intelligence customers continue to choose Mellanox to maximize the efficiency and utilization of their compute and storage investments. This has resulted in further market share gains across our high-speed Ethernet products and 59% year-over-year revenue growth in our Ethernet business.”

Mellanox also announed that it has shipped more than 2.1 million Ethernet adapters during the first nine months of 2018.

The company said this milestone signals that high-performance Ethernet technology (25G and faster) has moved beyond the Super 7 cloud and web titans. The adoption of high-performance Ethernet technology has spread to enterprise data centers globally, including the next wave of cloud, telco/service providers, financial services and more.