Mellanox has delivered rising revenues and profits for the second 2019 quarter.
Second 2019 quarter Mellanox revenues of $310.3m were up 15.6 per cent y/y and profits of $38.43m were up 132.5 per cent from $16.5m last year. CEO Eyal Waldman talked of record revenues and said: “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.”
He also said: “We are pleased that we’ve begun shipping 200 gigabit per second Ethernet adapters, switches, and cables to our data centre customers, and expect this to be a future revenue growth driver.”
The business produced GAAP gross margins of 64.5 per cent in the second quarter, compared to 61.4 per cent a year earlier. Operating activities generated $58.6m in cash ($46.7m). Cash and investments totalled $610.6m at quarter end, up from $552.6m three months earlier.
Fast networking is a cash generator and the need for higher switch bandwidth in the future looks solid.
Mellanox has not provided forward guidance or run an earnings conference call due to the pending Nvidia acquisition. The networking switch supplier is soon to be a fully owned subsidiary of Nvidia – with the $6.9bn deal expected to close at the end of the year. Nvidia sees a growing need for more and faster Ethernet and InfiniBand switching to deliver more data faster to its GPUs.