Mellanox Shares lost 2% following the Third Quarter Report
26 October, 2017
“During the third quarter, InfiniBand revenues declined seven percent sequentially mainly due to a large Department of Energy CORAL deployment"
Mellanox Technologies were down 2% in NASDAQ today, following a disappointing results in the third quarter. The revenues of $225.7 million were 0.7% higher than the $224.2 million in the third quarter of 2016, but lower the analysts expectations. Cash and investments totaled $346.2 million at September 30, 2017, compared to $328.4 million at December 31, 2016. During the first nine months ended 0n September 2017, Mellanox revenues totalled $626.3 million – less than the $635,8 million in the first nine months of 2016. The company Q4 forecast is $230 million to $240 million.
Mellanox Technologies is a leading supplier of end-to-end InfiniBand and Ethernet interconnect solutions and services for servers and storage. “During the third quarter, InfiniBand revenues declined seven percent sequentially mainly due to a large Department of Energy CORAL deployment in the second quarter,” said Eyal Waldman, President and CEO of Mellanox Technologies. “On a year-over-year basis, our InfiniBand high-performance computing and artificial intelligence revenues increased by double digit percentages.
“We believe Mellanox is well positioned to meet our customers’ expanding performance needs with the introduction of multiple new products. We see multiple growth engines for our Ethernet and InfiniBand products.” CORAL is a US multi department collaboration, aimed to purchase three ultra-high performance supercomputers at Lawrence Livermore, Oak Ridge, and Argonne national laboratories. During this year, CORAL made changes in its targets that caused delays in some of the supercomputer elements’ and their delivery.
Photo above: The supercomputer Titan in Oak Ridge National Laboratory