Mellanox posts record revenue of $310.3m, up 16% yoy

Mellanox Technologies reported record revenue of $310.3 million in the second quarter, an increase of 15.6 percent, compared to $268.5 million in the second quarter of 2018. GAAP gross margins were 64.5 percent, compared to 61.4 percent in the second quarter of 2018. Non-GAAP net income amounted to $83.9 million in the second quarter, compared to $66.6 million in the second quarter of 2018.

“Mellanox delivered record revenue in Q2, achieving 2 percent sequential growth and 16 percent year-over-year growth. We continue to demonstrate leadership with our Ethernet adapter solutions for data rates of 25 gigabit per second and above. The growth in our Ethernet business reflects strong demand from our cloud customers as well as expanding channel sales. We are pleased that we’ve begun shipping 200 gigabit per second Ethernet adapters, switches, and cables to our data center customers, and expect this to be a future revenue growth driver,” said Eyal Waldman, president and CEO of Mellanox Technologies.

“We continue to see strong demand for our InfiniBand products across the high performance computing, artificial intelligence, cloud, and storage market segments, driven by our highest throughput 200 gigabit HDR InfiniBand solutions. InfiniBand accelerates six of the top ten supercomputers in the world today, including the top three. We are proud that multiple HDR InfiniBand systems have entered the TOP500 supercomputers list, led by the Frontera TACC system, which is the fastest TOP500 supercomputer built in 2019 and premiered at #5 on the list.”

“We are pleased with our financial performance this quarter and the adoption of our latest 25, 50, and 100Gb/s Ethernet and 200Gb/s HDR InfiniBand products,” continued Waldman. “We expect to maintain and grow our leadership in these segments as we expand our footprint for both adapters and switches in the data center.”

• On March 11, 2019, NVIDIA agreed to acquire all the issued and outstanding common shares of Mellanox for $125 per share in cash. The acquisition is pending.