[July 22, 2015] |
|
Mellanox Achieves Record Revenue for Second Quarter 2015
Mellanox® Technologies, Ltd. (NASDAQ:MLNX) today announced financial
results for its second quarter, ended June 30, 2015.
"We are excited to achieve record quarterly revenues and anticipate
continued revenue growth and record annual revenues for the full fiscal
year 2015. Our InfiniBand solutions continue to take market share on the
TOP500 list, and we now connect 51.4 percent of the systems," said Eyal
Waldman, president and CEO of Mellanox Technologies. "The growth of data
requires customers to adopt faster technologies in their data centers,
and they are eagerly waiting to move to the next generation of high
speed interconnects. Faster interconnects are needed in multiple
data-intensive markets and applications such as database, Big Data,
financials, machine learning, Web 2.0, cloud, high-performance
computing, health care, insurance, transportation, homeland security,
media and entertainment and many more. Mellanox is the first company to
provide such end-to-end solutions to the market. We expect 25 Gigabit
Ethernet to be the new 10, 50 to be the new 40, and 100 Gigabit Ethernet
to do the heavy-lifting for data intensive markets."
Second Quarter 2015 Highlights
-
Revenue of $163.1 million increased 11.2 percent, compared to $146.7
million in the first quarter of 2015.
-
GAAP gross margin was 71.1 percent, compared to 72 percent in the
first quarter of 2015.
-
Non-GAAP gross margins were 72.7 percent, compared to 73.4 percent in
the first quarter of 2015.
-
GAAP operating income was $19.4 million, compared to $15.2 million, in
the first quarter of 2015.
-
Non-GAAP operating income was $36.2 million, or 22.2 percent of
revenue, compared to $30.2 million, or 20.6 percent of revenue in the
first quarter of 2015.
-
GAAP net income was $19.2 million, compared to $10.5 million in the
first quarter of 2015.
-
Non-GAAP net income was $36.1 million, compared to $28.6 million in
the first quarter of 2015.
-
GAAP net income per diluted share of $0.40 increased 81.8 percent,
compared to $0.22 in the first quarter of 2015.
-
Non-GAAP net income per diluted share of $0.75 increased 25 percent,
compared to $0.60 in the first quarter of 2015.
-
$41.3 million in cash was provided by operating activities, compared
to $45.8 million in the first quarter of 2015.
-
Cash and investments totaled $467.2 million at June 30, 2015, compared
to $432.7 million at March 31, 2015.
Third Quarter 2015 Guidance
We currently project:
-
Quarterly revenues of $165 million to $170 million.
-
Non-GAAP gross margins of 71.5 percent to 72.5 percent.
-
An increase in non-GAAP operating expenses of 4 percent to 6 percent.
-
Share-based compensation expense from $12.7 million to $13.2 million.
-
Non-GAAP diluted share count from 47.9 million to 48.4 million shares.
Recent Mellanox Press Release Highlights
-
Jul 14, 2015 - HPC Industry Leaders Develop State-of-the-Art Network
Communication Framework for Next Generation Programming Models
-
Jul 13, 2015 - Bull Selects Mellanox EDR 100Gb/s InfiniBand Technology
for Next Generation Blade System
-
Jul 13, 2015 - Mellanox HPC-X Framework Gains Marked Cross-Industry
Adoption from HPC Market Leaders
-
Jul 13, 2015 - InfiniBand Continues to Take Market Share in High
Performance Computing, Now Connecting More than 50 Percent of the
TOP500 Supercomputing List
-
Jul 9, 2015 - Jülich Supercomputing Centre Selects Mellanox End-to-End
EDR 100Gb/s InfiniBand Solution for New Supercomputer System
-
Jul 9, 2015 - Mellanox EDR 100Gb/s InfiniBand Solutions Gain Momentum
with Industry-Wide Adoption to Further Enable Scalable
High-Performance Computing Systems
-
Jun 25, 2015 - Mellanox Improves Software-Defined Storage Performance
at 40Gb and 100Gb Ethernet Speeds
-
Jun 23, 2015 - Mellanox Releases Open Source Code for "Soft-RoCE" to
Accelerate Enterprise Deployments of RDMA
-
Jun 18, 2015 - Mellanox Introduces the World's First 25/100 Gigabit
Open Ethernet-based Switch
-
Jun 18, 2015 - Mellanox Announces ConnectX-4 Lx, the Most
Cost-Efficient 25/50 Gigabit Ethernet Network Adapter for Cloud, Web
2.0 and Enterprise Data Centers
-
May 19, 2015 - Mellanox Collaborates with Supermicro to Deliver
CloudX-based Hyper-Converged Infrastructure
-
May 5, 2015 - Mellanox Demonstrates First 100Gb/s Ethernet CloudX
Platform and Micron Hardware on Microsoft Technology
Conference Call
Mellanox will hold its second quarter 2015 financial results conference
call today at 2 p.m. Pacific Time to discuss the company's financial
results. To listen to the call, dial +1-785-424-1666 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.
Access the webcast 15 minutes prior to the start of the call to download
and install any necessary audio software. Replay of the webcast will
also be available on the Mellanox website.
About Mellanox
Mellanox Technologies is a leading supplier of end-to-end InfiniBand and
Ethernet 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 capability.
Mellanox offers a choice of fast interconnect products: adapters,
switches, software, cables 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.
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, acquisition related
expense, settlement costs, changes related to recognition of deferred
tax valuation allowance and gains (losses) on equity investments. 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, acquisition related
expense, settlement costs, changes related to recognition of deferred
tax valuation allowance and gains (losses) on equity investments 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 and changes related to recognition of
deferred tax valuation allowance 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.
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 guidance for the three months
ended September 30, 2015, statements related to our expectations for
achievement of continued revenue growth and record revenue for the
fiscal year 2015, trends in the market for our solutions and services,
opportunities for our company in 2015 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, and our ability to protect our intellectual property
rights. 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 Form 10-Q filed with the SEC on
May 1, 2015, and our annual report on Form 10-K filed with the SEC on
March 2, 2015. All forward-looking statements in this press release,
including the guidance for the three months ended September 30, 2015,
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,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
Total revenues
|
|
$
|
163,148
|
|
|
$
|
102,823
|
|
|
$
|
309,823
|
|
|
$
|
201,825
|
|
Cost of revenues
|
|
|
47,178
|
|
|
|
34,433
|
|
|
|
88,265
|
|
|
|
68,164
|
|
Gross profit
|
|
|
115,970
|
|
|
|
68,390
|
|
|
|
221,558
|
|
|
|
133,661
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
62,576
|
|
|
|
49,506
|
|
|
|
120,694
|
|
|
|
97,843
|
|
Sales and marketing
|
|
|
23,366
|
|
|
|
18,722
|
|
|
|
45,924
|
|
|
|
38,001
|
|
General and administrative
|
|
|
10,670
|
|
|
|
9,462
|
|
|
|
20,371
|
|
|
|
17,677
|
|
Total operating expenses
|
|
|
96,612
|
|
|
|
77,690
|
|
|
|
186,989
|
|
|
|
153,521
|
|
Income (loss) from operations
|
|
|
19,358
|
|
|
|
(9,300
|
)
|
|
|
34,569
|
|
|
|
(19,860
|
)
|
Other income (loss), net
|
|
|
912
|
|
|
|
357
|
|
|
|
(1,557
|
)
|
|
|
591
|
|
Income (loss) before taxes
|
|
|
20,270
|
|
|
|
(8,943
|
)
|
|
|
33,012
|
|
|
|
(19,269
|
)
|
Benefit from (provision for) taxes on income
|
|
|
(1,022
|
)
|
|
|
76
|
|
|
|
(3,268
|
)
|
|
|
(578
|
)
|
Net income (loss)
|
|
$
|
19,248
|
|
|
$
|
(8,867
|
)
|
|
$
|
29,744
|
|
|
$
|
(19,847
|
)
|
Net income (loss) per share - basic
|
|
$
|
0.42
|
|
|
$
|
(0.20
|
)
|
|
$
|
0.65
|
|
|
$
|
(0.45
|
)
|
Net income (loss) per share - diluted
|
|
$
|
0.40
|
|
|
$
|
(0.20
|
)
|
|
$
|
0.63
|
|
|
$
|
(0.45
|
)
|
Shares used in per share calculation:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
46,191
|
|
|
|
44,671
|
|
|
|
45,943
|
|
|
|
44,475
|
|
Diluted
|
|
|
47,568
|
|
|
|
44,671
|
|
|
|
47,341
|
|
|
|
44,475
|
|
|
Mellanox Technologies, Ltd.
Reconciliation of Non-GAAP Adjustments
(in thousands, percentages, unaudited)
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP net income (loss) to
non-GAAP net income:
|
|
|
|
|
|
|
|
|
|
|
GAAP net income (loss)
|
|
$
|
19,248
|
|
|
$
|
(8,867
|
)
|
|
$
|
29,744
|
|
|
$
|
(19,847
|
)
|
Adjustments:
|
|
|
|
|
|
|
|
|
Share-based compensation expense:
|
|
|
|
|
|
|
|
|
Cost of revenues
|
|
|
610
|
|
|
|
532
|
|
|
|
1,157
|
|
|
|
1,054
|
|
Research and development
|
|
|
7,553
|
|
|
|
6,753
|
|
|
|
14,321
|
|
|
|
13,431
|
|
Sales and marketing
|
|
|
2,750
|
|
|
|
2,479
|
|
|
|
5,144
|
|
|
|
4,912
|
|
General and administrative
|
|
|
2,373
|
|
|
|
2,183
|
|
|
|
4,382
|
|
|
|
4,188
|
|
Total share-based compensation expense
|
|
|
13,286
|
|
|
|
11,947
|
|
|
|
25,004
|
|
|
|
23,585
|
|
Amortization of acquired intangibles:
|
|
|
|
|
|
|
|
|
Cost of revenues
|
|
|
2,073
|
|
|
|
1,777
|
|
|
|
3,548
|
|
|
|
4,048
|
|
Research and development
|
|
|
195
|
|
|
|
196
|
|
|
|
389
|
|
|
|
391
|
|
Sales and marketing
|
|
|
197
|
|
|
|
1,039
|
|
|
|
780
|
|
|
|
2,078
|
|
Total amortization of acquired intangibles
|
|
|
2,465
|
|
|
|
3,012
|
|
|
|
4,717
|
|
|
|
6,517
|
|
Acquisition related charges:
|
|
|
|
|
|
|
|
|
Cost of revenues
|
|
|
-
|
|
|
|
535
|
|
|
|
-
|
|
|
|
619
|
|
Research and development
|
|
|
840
|
|
|
|
335
|
|
|
|
1,603
|
|
|
|
733
|
|
Sales and marketing
|
|
|
225
|
|
|
|
174
|
|
|
|
450
|
|
|
|
412
|
|
Total acquisition related charges
|
|
|
1,065
|
|
|
|
1,044
|
|
|
|
2,053
|
|
|
|
1,764
|
|
Impairment loss on equity investment in a private company
|
|
|
-
|
|
|
|
-
|
|
|
|
3,189
|
|
|
|
-
|
|
Non-GAAP net income
|
|
$
|
36,064
|
|
|
$
|
7,136
|
|
|
$
|
64,707
|
|
|
$
|
12,019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP gross profit to
non-GAAP:
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
163,148
|
|
|
$
|
102,823
|
|
|
$
|
309,823
|
|
|
$
|
201,825
|
|
GAAP gross profit
|
|
|
115,970
|
|
|
|
68,390
|
|
|
|
221,558
|
|
|
|
133,661
|
|
GAAP gross margin
|
|
|
71.1
|
%
|
|
|
66.5
|
%
|
|
|
71.5
|
%
|
|
|
66.2
|
%
|
Share-based compensation expense
|
|
|
610
|
|
|
|
532
|
|
|
|
1,157
|
|
|
|
1,054
|
|
Amortization of acquired intangible assets
|
|
|
2,073
|
|
|
|
1,777
|
|
|
|
3,548
|
|
|
|
4,048
|
|
Acquisition related charges
|
|
|
-
|
|
|
|
535
|
|
|
|
-
|
|
|
|
619
|
|
Non-GAAP gross profit
|
|
$
|
118,653
|
|
|
$
|
71,234
|
|
|
$
|
226,263
|
|
|
$
|
139,382
|
|
Non-GAAP gross margin
|
|
|
72.7
|
%
|
|
|
69.3
|
%
|
|
|
73.0
|
%
|
|
|
69.1
|
%
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP operating expenses to
non-GAAP:
|
|
|
|
|
|
|
|
GAAP operating expenses
|
|
$
|
96,612
|
|
|
$
|
77,690
|
|
|
$
|
186,989
|
|
|
$
|
153,521
|
|
Share-based compensation expense
|
|
|
(12,676
|
)
|
|
|
(11,415
|
)
|
|
|
(23,847
|
)
|
|
|
(22,531
|
)
|
Amortization of acquired intangible assets
|
|
|
(392
|
)
|
|
|
(1,235
|
)
|
|
|
(1,169
|
)
|
|
|
(2,469
|
)
|
Acquisition related charges
|
|
|
(1,065
|
)
|
|
|
(509
|
)
|
|
|
(2,053
|
)
|
|
|
(1,145
|
)
|
Non-GAAP operating expenses
|
|
$
|
82,479
|
|
|
$
|
64,531
|
|
|
$
|
159,920
|
|
|
$
|
127,376
|
|
|
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,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Reconciliation of GAAP income (loss) from
operations to non-GAAP:
|
|
|
|
|
|
|
|
|
GAAP income (loss) from operations
|
|
$
|
19,358
|
|
|
$
|
(9,300
|
)
|
|
$
|
34,569
|
|
|
$
|
(19,860
|
)
|
Share-based compensation expense
|
|
|
13,286
|
|
|
|
11,947
|
|
|
|
25,004
|
|
|
|
23,585
|
|
Amortization of acquired intangible assets
|
|
|
2,465
|
|
|
|
3,012
|
|
|
|
4,717
|
|
|
|
6,517
|
|
Acquisition related charges
|
|
|
1,065
|
|
|
|
1,044
|
|
|
|
2,053
|
|
|
|
1,764
|
|
Non-GAAP income from operations
|
|
$
|
36,174
|
|
|
$
|
6,703
|
|
|
$
|
66,343
|
|
|
$
|
12,006
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing GAAP diluted earnings per share
|
|
|
47,568
|
|
|
|
44,671
|
|
|
|
47,341
|
|
|
|
44,475
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of dilutive securities under GAAP*
|
|
|
(1,377
|
)
|
|
|
-
|
|
|
|
(1,398
|
)
|
|
|
-
|
|
Total options vested and exercisable
|
|
|
1,636
|
|
|
|
1,851
|
|
|
|
1,636
|
|
|
|
1,851
|
|
Shares used in computing non-GAAP diluted earnings per share
|
|
|
47,827
|
|
|
|
46,522
|
|
|
|
47,579
|
|
|
|
46,326
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted net income (loss) per share
|
|
$
|
0.40
|
|
|
$
|
(0.20
|
)
|
|
$
|
0.63
|
|
|
$
|
(0.45
|
)
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based compensation expense
|
|
|
0.28
|
|
|
|
0.27
|
|
|
|
0.53
|
|
|
|
0.53
|
|
Amortization of acquired intangibles
|
|
|
0.06
|
|
|
|
0.07
|
|
|
|
0.10
|
|
|
|
0.15
|
|
Acquisition related charges
|
|
|
0.02
|
|
|
|
0.02
|
|
|
|
0.04
|
|
|
|
0.04
|
|
Impairment loss on equity investment in a private company
|
|
|
-
|
|
|
|
-
|
|
|
|
0.06
|
|
|
|
-
|
|
Effect of dilutive securities under GAAP*
|
|
|
0.02
|
|
|
|
-
|
|
|
|
0.04
|
|
|
|
-
|
|
Total options vested and exercisable
|
|
|
(0.03
|
)
|
|
|
(0.01
|
)
|
|
|
(0.05
|
)
|
|
|
(0.01
|
)
|
Non-GAAP diluted income per share
|
|
$
|
0.75
|
|
|
$
|
0.15
|
|
|
$
|
1.35
|
|
|
$
|
0.26
|
|
*This adjustment adds back the GAAP effect of additional ordinary
shares that would have been outstanding if the dilutive potential
ordinary shares from stock options had been issued under the Treasury
method.
|
Mellanox Technologies, Ltd.
Condensed Consolidated Balance Sheets
(in thousands, unaudited)
|
|
|
|
|
|
|
|
June 30, 2015
|
|
December 31, 2014
|
ASSETS
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
68,203
|
|
|
$
|
51,326
|
|
Short-term investments
|
|
|
395,344
|
|
|
|
334,038
|
|
Restricted cash
|
|
|
3,604
|
|
|
|
3,604
|
|
Accounts receivable, net
|
|
|
61,004
|
|
|
|
64,922
|
|
Inventories
|
|
|
62,805
|
|
|
|
44,470
|
|
Deferred taxes and other current assets
|
|
|
21,880
|
|
|
|
18,147
|
|
Total current assets
|
|
|
612,840
|
|
|
|
516,507
|
|
Property and equipment, net
|
|
|
92,260
|
|
|
|
78,827
|
|
Severance assets
|
|
|
10,002
|
|
|
|
9,474
|
|
Intangible assets, net
|
|
|
37,340
|
|
|
|
42,067
|
|
Goodwill
|
|
|
200,743
|
|
|
|
200,743
|
|
Deferred taxes and other long-term assets
|
|
|
9,813
|
|
|
|
15,600
|
|
Total assets
|
|
$
|
962,998
|
|
|
$
|
863,218
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
50,241
|
|
|
$
|
39,811
|
|
Accrued liabilities
|
|
|
73,447
|
|
|
|
61,974
|
|
Deferred revenue
|
|
|
16,186
|
|
|
|
14,758
|
|
Capital lease liabilities, current
|
|
|
1,040
|
|
|
|
1,102
|
|
Total current liabilities
|
|
|
140,914
|
|
|
|
117,645
|
|
Accrued severance
|
|
|
13,087
|
|
|
|
11,850
|
|
Deferred revenue
|
|
|
10,348
|
|
|
|
8,942
|
|
Capital lease liabilities
|
|
|
-
|
|
|
|
494
|
|
Other long-term liabilities
|
|
|
26,276
|
|
|
|
22,535
|
|
Total liabilities
|
|
|
190,625
|
|
|
|
161,466
|
|
|
|
|
|
|
|
|
Shareholders' equity:
|
|
|
|
|
|
|
Ordinary shares
|
|
|
197
|
|
|
|
192
|
|
Additional paid-in capital
|
|
|
649,976
|
|
|
|
615,148
|
|
Accumulated other comprehensive income (loss)
|
|
|
2,024
|
|
|
|
(4,020
|
)
|
Retained earnings
|
|
|
120,176
|
|
|
|
90,432
|
|
Total shareholders' equity
|
|
|
772,373
|
|
|
|
701,752
|
|
Total liabilities and shareholders' equity
|
|
$
|
962,998
|
|
|
$
|
863,218
|
|
|
Mellanox Technologies, Ltd.
Condensed Consolidated Statement of Cash Flows
(in thousands, unaudited)
|
|
|
|
|
|
|
|
Six Months Ended June 30,
|
|
|
|
2015
|
|
2014
|
Cash flows from operating activities:
|
|
|
|
|
|
|
Net income (loss)
|
|
$
|
29,744
|
|
|
$
|
(19,847
|
)
|
Adjustments to reconcile net income (loss) to net cash provided by
operating activities:
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
19,775
|
|
|
|
19,446
|
|
Deferred income taxes
|
|
|
134
|
|
|
|
807
|
|
Share-based compensation expense
|
|
|
25,004
|
|
|
|
23,585
|
|
Gain on investments
|
|
|
(2,388
|
)
|
|
|
(1,200
|
)
|
Impairment loss on equity investment in a private company
|
|
|
3,189
|
|
|
|
-
|
|
Changes in assets and liabilities:
|
|
|
|
|
|
|
Accounts receivable, net
|
|
|
3,918
|
|
|
|
520
|
|
Inventory
|
|
|
(22,513
|
)
|
|
|
(1,150
|
)
|
Prepaid expenses and other assets
|
|
|
419
|
|
|
|
(4,710
|
)
|
Accounts payable
|
|
|
8,755
|
|
|
|
594
|
|
Accrued liabilities and other payables
|
|
|
21,063
|
|
|
|
(91
|
)
|
Net cash provided by operating activities
|
|
|
87,100
|
|
|
|
17,954
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
Purchases of severance related insurance policies
|
|
|
(381
|
)
|
|
|
(409
|
)
|
Purchases of short-term investments
|
|
|
(188,161
|
)
|
|
|
(159,388
|
)
|
Proceeds from sale of short-term investments
|
|
|
98,742
|
|
|
|
90,321
|
|
Proceeds from maturities of short-term investments
|
|
|
30,717
|
|
|
|
37,760
|
|
Restricted cash deposit
|
|
|
-
|
|
|
|
(103
|
)
|
Purchases of property and equipment
|
|
|
(20,413
|
)
|
|
|
(10,265
|
)
|
Purchase of equity investment in a private company
|
|
|
-
|
|
|
|
(1,438
|
)
|
Net cash used in investing activities
|
|
|
(79,496
|
)
|
|
|
(43,522
|
)
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
Principal payments on capital lease obligations
|
|
|
(556
|
)
|
|
|
(683
|
)
|
Proceeds from exercise of share awards
|
|
|
9,829
|
|
|
|
7,109
|
|
Net cash provided by financing activities
|
|
|
9,273
|
|
|
|
6,426
|
|
|
|
|
|
|
|
|
Increase (decrease) in cash and cash equivalents
|
|
|
16,877
|
|
|
|
(19,142
|
)
|
Cash and cash equivalents at beginning of period
|
|
|
51,326
|
|
|
|
63,164
|
|
Cash and cash equivalents at end of period
|
|
$
|
68,203
|
|
|
$
|
44,022
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20150722006369/en/
[ Back To TMCnet.com's Homepage ]
|