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Yokne'am-based Mellanox had a good third quarter, during which its share rose 45 percent to yesterday's close on Nasdaq of $17.51, giving a market cap of $560 million. The share rose 1.3 percent by mid-afternoon on the TASE today to NIS 66.19.
It is therefore possible to believe Mellanox chairman, president, and CEO Eyal Waldman when he says during the conference call, "We're pleased with our results for the quarter. Mellanox will be one of the few semiconductor companies to show growth from 2008 to 2009."
Mellanox posted $32.7 million revenue for the third quarter, up 12 percent from $29.1 million for the corresponding quarter of 2008, and 29 percent more than for the preceding quarter. This was the first time since the third quarter that the company posted sequential revenue growth.
GAAP-based net profit fell to $4.8 million ($0.14 per share) for the third quarter from $5.2 million for the corresponding quarter. Non-GAAP net profit fell to $8.9 million ($0.25 per share) from $9.6 million for the corresponding quarter. Profit was up compared with the preceding quarter, however. The company beat the analysts' consensus of non-GAAP earning per share of $0.20.
Mellanox boosted its cash and investments $208.1 million at the end of September, thanks in part to cash flow from operations of $14.2 million during the third quarter.
Mellanox predicts $34.5-35 million revenue for the fourth quarter, which will give it $115 million revenue for the year as a whole, 7.1 percent more than in 2008. The analysts' consensus is $33.5 million revenue for the fourth quarter.
Despite a drama-filled quarter, with reports that Mellanox signed an memorandum of understanding to acquire CopperGate Communications Ltd., but then withdrew the offer in the face of shareholder outrage, during the conference call, Mellanox executives made no mention of what they would do with the company's cash reserves. The company is still deciding what to do with its money.
Last week, CopperGate announced that it had signed a definitive agreement to be acquired by Sigma Designs Inc. (Nasdaq: SIGM) for $160 million.
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