[October 22, 2014] |
|
Mellanox Technologies, Ltd. Announces Third Quarter 2014 Financial Results
SUNNYVALE, Calif. & YOKNEAM, Israel --(Business Wire)--
Mellanox® Technologies, Ltd. (NASDAQ: MLNX), a leading supplier of
end-to-end interconnect solutions for servers and storage systems, today
announced financial results for its third quarter 2014, ended September
30, 2014.
Third Quarter 2014 Highlights
-
Revenues were $120.7 million
-
GAAP gross margins were 67.2 percent
-
Non-GAAP gross margins were 70.2 percent
-
GAAP operating loss was $1.1 million
-
Non-GAAP operating income was $16.5 million
-
GAAP net income was $0.4 million
-
Non-GAAP net income was $18.0 million
-
GAAP net income per diluted share was $0.01
-
Non-GAAP net income per diluted share was $0.38
-
$17.2 million in cash was provided by operating activities
-
Total cash and investments increased $10.6 million to $354.3 million
at September 30, 2014
Third Quarter Financial Results
In accordance with U.S. generally accepted accounting principles (GAAP),
the company reported revenue of $120.7 million for the third quarter of
2014, up 17.7 percent from $102.6 million in the second quarter of 2014,
and up 16.0 percent from $104.1 million in the third quarter of 2013.
GAAP gross margins in the third quarter of 2014 were 67.2 percent,
compared with 66.6 percent in the second quarter of 2014, and 64.6
percent in the third quarter of 2013.
Non-GAAP gross margins in the third quarter of 2014 were 70.2 percent,
compared with 69.1 percent in the second quarter of 2014, and 69.1
percent in the third quarter of 2013.
GAAP net income in the third quarter of 2014 was $0.4 million, or $0.01
per diluted share, compared with GAAP net loss of $9.0 million, or $0.20
per diluted share in the second quarter of 2014, and GAAP net loss of
$5.9 million, or $0.14 per diluted share, in the third quarter of 2013.
Non-GAAP net income in the third quarter of 2014 was $18.0 million, or
$0.38 per diluted share, compared with $6.8 million, or $0.15 per
diluted share in the second quarter of 2014, and $12.6 million, or $0.28
per diluted share, in the third quarter of 2013. The third quarter 2014
non-GAAP net income excludes $11.8 million of share-based compensation
expenses compared to $11.9 million in the second quarter of 2014, and
$11.9 million in the third quarter of 2013. Third quarter 2014 non-GAAP
net income also excludes the amortization of intangible assets of $2.8
million, acquisition-related charges of $1.7 million and settlement
costs of $1.3 million, compared to amortization expenses of acquired
intangible assets of $2.8 million and $1.0 million of
acquisition-related charges in the second quarter of 2014, and compared
to $4.6 million and $2.0 million, respectively, in the third quarter of
2013.
Total cash and investments increased by $10.6 million to $354.3 million
at September 30, 2014, compared to $343.7 million at June 30, 2014. The
company generated $17.2 million in cash from operating activities in the
third quarter.
"We are pleased with our results for the third quarter. Demand from
high-performance computing customers was strong which contributed to
solid revenue growth from our FDR InfiniBand solutions. Revenue from our
Ethernet solutions also increased in the quarter," said Eyal Waldman,
president and CEO of Mellanox Technologies. "The transition from 10
Gigabit Ethernet to 40 Gigabit Ethernet is happening now with our Web
2.0 and cloud customers. We expect to ship hundreds of thousands of 40
Gigabit Ethernet adapters in the fourth quarter to these markets. This
transition is driven by the growth of data producing and consuming
applications. We expect this transition to accelerate in 2015 and
beyond."
Recent Mellanox Press Release Highlights
-
Oct. 21, 2014 - Mellanox InfiniBand Powers Top European High
Performance Computing Centers
-
Oct. 20, 2014 - Mellanox Ethernet Solutions Selected for New HP 64-bit
ARM Data Center Platform
-
Oct. 15, 2014 - Mellanox Introduces New Ethernet Switches to Provide
Enhanced Features and Performance for Hyperscale and Cloud Data Centers
-
Oct. 6, 2014 - Mellanox Technologies Named to Inaugural CRN Cloud
Partner Program Guide
-
Sept. 30, 2014 - Science & Technology Facilities Council Selects
Mellanox's Ethernet Solutions to Further Atmospheric Science and
Research
-
Sept. 29, 2014 - Yahoo! Japan Selects Mellanox InfiniBand Solutions
-
Sept. 29, 2014 - Mellanox's CloudX Platform Now Supported with Oracle
OpenStack for Oracle Linux
-
Sept. 16, 2014 - Mellanox Announces Complete End-to-End Support for
New RDMA over Converged Ethernet Version 2 (RoCEv2) Specification
-
Sept. 8, 2014 - Mellanox End-to-End InfiniBand and Ethernet
Interconnect Solutions Optimized for Intel Xeon E5-2600 v3 Product
Family (code name "Haswell") Platforms
-
Aug. 25, 2014 - Mellanox Enables Highly Efficient Virtual Desktop
Infrastructure using VMware's Virtual SAN Storage Solution and Micron
SSDs
Fourth Quarter 2014 Guidance
Our guidance for fourth quarter 2014 non-GAAP results is as follows:
-
Quarterly revenues of $133 million to $137 million
-
Non-GAAP gross margins of 69 percent to 70 percent
-
An increase in non-GAAP operating expenses of 4 percent to 6 percent
-
Share-based compensation expense of $11.9 million to $12.4 million
-
Non-GAAP diluted share count of 46.9 million to 47.4 million shares
Conference Calls
Mellanox will hold its third quarter 2014 financial results conference
call today at 2 p.m. Pacific Time to discuss the company's financial
results. To listen to the call, dial +1-785-424-1826 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 and settlement costs. 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 and settlement costs
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 and amortization of
acquired intangible assets 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 "Investors" 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 December 31, 2014, statements related to the technologies we
acquired in 2013, trends in the market for our solutions and services
and opportunities for our company in 2014 and beyond. 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 annual report on Form 10-K filed
with the SEC on February 28, 2014 and in our subsequent quarterly
reports filed on Form 10-Q. All forward-looking statements in this press
release, including the guidance for the three months ended December 31,
2014, 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.
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|
|
|
|
Mellanox Technologies, Ltd.
Condensed Consolidated Statements of Operations
(in thousands, except per share data, unaudited)
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
September 30,
|
|
September 30,
|
|
|
2014
|
|
2013 *
|
|
2014
|
|
2013 *
|
|
|
|
|
|
Total revenues
|
|
$
|
120,708
|
|
|
$
|
104,067
|
|
|
$
|
321,987
|
|
|
$
|
285,315
|
|
Cost of revenues
|
|
|
39,540
|
|
|
|
36,869
|
|
|
|
107,788
|
|
|
|
97,974
|
|
Gross profit
|
|
|
81,168
|
|
|
|
67,198
|
|
|
|
214,199
|
|
|
|
187,341
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
54,220
|
|
|
|
44,607
|
|
|
|
152,063
|
|
|
|
121,498
|
|
Sales and marketing
|
|
|
18,864
|
|
|
|
18,204
|
|
|
|
56,865
|
|
|
|
51,389
|
|
General and administrative
|
|
|
9,184
|
|
|
|
9,674
|
|
|
|
26,861
|
|
|
|
27,193
|
|
Total operating expenses
|
|
|
82,268
|
|
|
|
72,485
|
|
|
|
235,789
|
|
|
|
200,080
|
|
Loss from operations
|
|
|
(1,100
|
)
|
|
|
(5,287
|
)
|
|
|
(21,590
|
)
|
|
|
(12,739
|
)
|
Other income, net
|
|
|
361
|
|
|
|
482
|
|
|
|
952
|
|
|
|
927
|
|
Loss before taxes
|
|
|
(739
|
)
|
|
|
(4,805
|
)
|
|
|
(20,638
|
)
|
|
|
(11,812
|
)
|
Benefit (provision) for taxes on income
|
|
|
1,167
|
|
|
|
(1,080
|
)
|
|
|
589
|
|
|
|
(4,092
|
)
|
Net income (loss)
|
|
$
|
428
|
|
|
$
|
(5,885
|
)
|
|
$
|
(20,049
|
)
|
|
$
|
(15,904
|
)
|
Net income (loss) per share - basic
|
|
$
|
0.01
|
|
|
$
|
(0.14
|
)
|
|
$
|
(0.45
|
)
|
|
$
|
(0.37
|
)
|
Net income (loss) per share - diluted
|
|
$
|
0.01
|
|
|
$
|
(0.14
|
)
|
|
$
|
(0.45
|
)
|
|
$
|
(0.37
|
)
|
Shares used in computing income (loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
44,984
|
|
|
|
43,579
|
|
|
|
44,646
|
|
|
|
43,257
|
|
Diluted
|
|
|
46,229
|
|
|
|
43,579
|
|
|
|
44,646
|
|
|
|
43,257
|
|
|
|
|
* Certain prior year amounts have been revised to reflect
non-material adjustments.
|
|
|
Mellanox Technologies, Ltd.
Reconciliation of Non-GAAP Adjustments
(in thousands, percentages, unaudited)
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
September 30,
|
|
September 30,
|
|
|
2014
|
|
2013 *
|
|
2014
|
|
2013 *
|
|
|
|
|
|
Reconciliation of GAAP net income (loss) to
non-GAAP:
|
|
|
|
|
|
|
|
|
GAAP net income (loss)
|
|
$
|
428
|
|
|
$
|
(5,885
|
)
|
|
$ (20,049
|
)
|
|
$
|
(15,904
|
)
|
Adjustments:
|
|
|
|
|
|
|
|
|
Share-based compensation expense:
|
|
|
|
|
|
|
|
|
Cost of revenues
|
|
|
532
|
|
|
|
461
|
|
|
1,586
|
|
|
|
1,359
|
|
Research and development
|
|
|
6,756
|
|
|
|
6,898
|
|
|
20,187
|
|
|
|
19,148
|
|
Sales and marketing
|
|
|
2,473
|
|
|
|
2,407
|
|
|
7,385
|
|
|
|
6,873
|
|
General and administrative
|
|
|
2,088
|
|
|
|
2,166
|
|
|
6,276
|
|
|
|
6,092
|
|
Total share-based compensation expense
|
|
|
11,849
|
|
|
|
11,932
|
|
|
35,434
|
|
|
|
33,472
|
|
Amortization of acquired intangibles:
|
|
|
|
|
|
|
|
|
Cost of revenues
|
|
|
1,562
|
|
|
|
3,570
|
|
|
5,367
|
|
|
|
7,230
|
|
Research and development
|
|
|
195
|
|
|
|
164
|
|
|
586
|
|
|
|
339
|
|
Sales and marketing
|
|
|
1,039
|
|
|
|
837
|
|
|
3,117
|
|
|
|
1,912
|
|
Total amortization of acquired intangibles
|
|
|
2,796
|
|
|
|
4,571
|
|
|
9,070
|
|
|
|
9,481
|
|
Settlement costs:
|
|
|
|
|
|
|
|
|
Cost of revenues
|
|
|
1,250
|
|
|
|
-
|
|
|
1,250
|
|
|
|
-
|
|
Total settlement costs
|
|
|
1,250
|
|
|
|
-
|
|
|
1,250
|
|
|
|
-
|
|
Acquisition related charges:
|
|
|
|
|
|
|
|
|
Cost of revenues
|
|
|
230
|
|
|
|
699
|
|
|
849
|
|
|
|
699
|
|
Research and development
|
|
|
1,216
|
|
|
|
333
|
|
|
1,949
|
|
|
|
333
|
|
Sales and marketing
|
|
|
225
|
|
|
|
261
|
|
|
637
|
|
|
|
261
|
|
General and administrative
|
|
|
-
|
|
|
|
672
|
|
|
-
|
|
|
|
2,500
|
|
Total acquisition related charges
|
|
|
1,671
|
|
|
|
1,965
|
|
|
3,435
|
|
|
|
3,793
|
|
Non-GAAP net income
|
|
$
|
17,994
|
|
|
$
|
12,583
|
|
|
$ 29,140
|
|
|
$
|
30,842
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP gross profit to
non-GAAP:
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
120,708
|
|
|
$
|
104,067
|
|
|
$ 321,987
|
|
|
$
|
285,315
|
|
GAAP gross profit
|
|
|
81,168
|
|
|
|
67,198
|
|
|
214,199
|
|
|
|
187,341
|
|
GAAP gross margin
|
|
|
67.2
|
%
|
|
|
64.6
|
%
|
|
66.5
|
%
|
|
|
65.7
|
%
|
Share-based compensation expense
|
|
|
532
|
|
|
|
461
|
|
|
1,586
|
|
|
|
1,359
|
|
Amortization of acquired intangibles
|
|
|
1,562
|
|
|
|
3,570
|
|
|
5,367
|
|
|
|
7,230
|
|
Settlement costs
|
|
|
1,250
|
|
|
|
-
|
|
|
1,250
|
|
|
|
-
|
|
Acquisition related charges
|
|
|
230
|
|
|
|
699
|
|
|
849
|
|
|
|
699
|
|
Non-GAAP gross profit
|
|
$
|
84,742
|
|
|
$
|
71,928
|
|
|
$ 223,251
|
|
|
$
|
196,629
|
|
Non-GAAP gross margin
|
|
|
70.2
|
%
|
|
|
69.1
|
%
|
|
69.3
|
%
|
|
|
68.9
|
%
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP operating expenses to
non-GAAP:
|
|
|
|
|
|
|
|
|
GAAP operating expenses
|
|
$
|
82,268
|
|
|
$
|
72,485
|
|
|
$ 235,789
|
|
|
$
|
200,080
|
|
Share-based compensation expense
|
|
|
(11,317
|
)
|
|
|
(11,471
|
)
|
|
(33,848
|
)
|
|
|
(32,113
|
)
|
Amortization of acquired intangibles
|
|
|
(1,234
|
)
|
|
|
(1,001
|
)
|
|
(3,703
|
)
|
|
|
(2,251
|
)
|
Acquisition related charges
|
|
|
(1,441
|
)
|
|
|
(1,266
|
)
|
|
(2,586
|
)
|
|
|
(3,094
|
)
|
Non-GAAP operating expenses
|
|
$
|
68,276
|
|
|
$
|
58,747
|
|
|
$ 195,652
|
|
|
$
|
162,622
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP loss from operations
to non-GAAP income:
|
|
|
|
|
|
|
|
|
GAAP loss from operations
|
|
$
|
(1,100
|
)
|
|
$
|
(5,287
|
)
|
|
$ (21,590
|
)
|
|
$
|
(12,739
|
)
|
Share-based compensation expense
|
|
|
11,849
|
|
|
|
11,932
|
|
|
35,434
|
|
|
|
33,472
|
|
Amortization of acquired intangibles
|
|
|
2,796
|
|
|
|
4,571
|
|
|
9,070
|
|
|
|
9,481
|
|
Settlement costs
|
|
|
1,250
|
|
|
|
-
|
|
|
1,250
|
|
|
|
-
|
|
Acquisition related charges
|
|
|
1,671
|
|
|
|
1,965
|
|
|
3,435
|
|
|
|
3,793
|
|
Non-GAAP income from operations
|
|
$
|
16,466
|
|
|
$
|
13,181
|
|
|
$ 27,599
|
|
|
$
|
34,007
|
|
|
|
|
|
|
|
|
|
|
Mellanox Technologies, Ltd.
Reconciliation of Non-GAAP Adjustments
(in thousands, except per share data, unaudited)
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
September 30,
|
|
September 30,
|
|
|
2014
|
|
2013 *
|
|
2014
|
|
2013 *
|
|
|
|
|
|
|
|
|
|
Shares used in computing GAAP diluted earnings per share
|
|
|
46,229
|
|
|
|
43,579
|
|
|
|
44,646
|
|
|
|
43,257
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Effect of dilutive securities under GAAP**
|
|
|
(1,245
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Total options vested and exercisable
|
|
|
1,879
|
|
|
|
1,911
|
|
|
|
1,879
|
|
|
|
1,911
|
|
Shares used in computing non-GAAP diluted earnings per share
|
|
|
46,863
|
|
|
|
45,490
|
|
|
|
46,525
|
|
|
|
45,168
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted net income (loss) per share
|
|
$
|
0.01
|
|
|
$
|
(0.14
|
)
|
|
$
|
(0.45
|
)
|
|
$
|
(0.37
|
)
|
Adjustments:
|
|
|
|
|
|
|
|
|
Share-based compensation expense
|
|
|
0.25
|
|
|
|
0.27
|
|
|
|
0.79
|
|
|
|
0.77
|
|
Amortization of acquired intangibles
|
|
|
0.06
|
|
|
|
0.11
|
|
|
|
0.20
|
|
|
|
0.22
|
|
Settlement costs
|
|
|
0.03
|
|
|
|
0.00
|
|
|
|
0.03
|
|
|
|
0.00
|
|
Acquisition related charges
|
|
|
0.04
|
|
|
|
0.05
|
|
|
|
0.08
|
|
|
|
0.09
|
|
Effect of dilutive securities under GAAP**
|
|
|
0.01
|
|
|
|
0.00
|
|
|
|
0.00
|
|
|
|
0.00
|
|
Total options vested and exercisable
|
|
|
(0.02
|
)
|
|
|
(0.01
|
)
|
|
|
(0.02
|
)
|
|
|
(0.03
|
)
|
Non-GAAP diluted income per share
|
|
$
|
0.38
|
|
|
$
|
0.28
|
|
|
$
|
0.63
|
|
|
$
|
0.68
|
|
|
|
|
* Certain prior year amounts have been revised to reflect
non-material adjustments.
|
|
** 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)
|
|
|
|
|
|
|
|
September 30,
|
|
December 31,
|
|
|
2014
|
|
2013 *
|
ASSETS
|
|
|
|
|
Current assets:
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
54,852
|
|
|
$
|
63,164
|
Short-term investments
|
|
|
295,795
|
|
|
|
263,528
|
Restricted cash
|
|
|
3,604
|
|
|
|
-
|
Accounts receivable, net
|
|
|
72,959
|
|
|
|
70,566
|
Inventories
|
|
|
39,326
|
|
|
|
35,963
|
Deferred taxes and other current assets
|
|
|
24,511
|
|
|
|
17,581
|
Total current assets
|
|
|
491,047
|
|
|
|
450,802
|
Property and equipment, net
|
|
|
73,954
|
|
|
|
70,815
|
Severance assets
|
|
|
9,814
|
|
|
|
10,630
|
Intangible assets, net
|
|
|
44,975
|
|
|
|
54,362
|
Goodwill
|
|
|
201,105
|
|
|
|
199,558
|
Deferred taxes and other long-term assets
|
|
|
21,327
|
|
|
|
20,613
|
Total assets
|
|
$
|
842,222
|
|
|
$
|
806,780
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
Current liabilities:
|
|
|
|
|
Accounts payable
|
|
$
|
37,245
|
|
|
$
|
29,964
|
Accrued liabilities
|
|
|
57,894
|
|
|
|
51,251
|
Deferred revenue
|
|
|
14,539
|
|
|
|
15,849
|
Capital lease liabilities, current
|
|
|
1,101
|
|
|
|
1,245
|
Total current liabilities
|
|
|
110,779
|
|
|
|
98,309
|
Accrued severance
|
|
|
12,401
|
|
|
|
13,418
|
Deferred revenue
|
|
|
8,669
|
|
|
|
9,045
|
Capital lease liabilities
|
|
|
768
|
|
|
|
1,600
|
Other long-term liabilities
|
|
|
14,889
|
|
|
|
17,091
|
Total liabilities
|
|
|
147,506
|
|
|
|
139,463
|
Shareholders' equity:
|
|
|
|
|
Ordinary shares
|
|
|
191
|
|
|
|
185
|
Additional paid-in capital
|
|
|
601,840
|
|
|
|
550,795
|
Accumulated other comprehensive income (loss)
|
|
|
(2,213
|
)
|
|
|
1,390
|
Retained earnings
|
|
|
94,898
|
|
|
|
114,947
|
Total shareholders' equity
|
|
|
694,716
|
|
|
|
667,317
|
Total liabilities and shareholders' equity
|
|
$
|
842,222
|
|
|
$
|
806,780
|
|
|
|
* Certain prior year amounts have been revised to reflect
non-material adjustments.
|
|
|
Mellanox Technologies, Ltd.
Condensed Consolidated Statement of Cash Flows
(in thousands, unaudited)
|
|
|
|
|
|
Nine Months Ended September 30,
|
|
|
2014
|
|
2013 *
|
Cash flows from operating activities:
|
|
|
|
|
Net loss
|
|
$
|
(20,049
|
)
|
|
$
|
(15,904
|
)
|
Adjustments to reconcile net loss to net cash provided by operating
activities:
|
|
|
|
|
Depreciation and amortization
|
|
|
28,999
|
|
|
|
25,439
|
|
Deferred income taxes
|
|
|
(202
|
)
|
|
|
(2,403
|
)
|
Share-based compensation
|
|
|
35,434
|
|
|
|
33,472
|
|
Gain on investments
|
|
|
(94
|
)
|
|
|
(710
|
)
|
Excess tax benefit from share-based compensation
|
|
|
(346
|
)
|
|
|
(2,796
|
)
|
Changes in assets and liabilities:
|
|
|
|
|
Accounts receivable, net
|
|
|
(1,530
|
)
|
|
|
(12,137
|
)
|
Inventories
|
|
|
(4,239
|
)
|
|
|
12,942
|
|
Prepaid expenses and other assets
|
|
|
(10,040
|
)
|
|
|
699
|
|
Accounts payable
|
|
|
6,692
|
|
|
|
(8,896
|
)
|
Accrued liabilities and other payables
|
|
|
406
|
|
|
|
(8,429
|
)
|
Net cash provided by operating activities
|
|
|
35,031
|
|
|
|
21,277
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
Acquisition of Kotura, Inc., net of cash acquired of $101
|
|
|
-
|
|
|
|
(80,671
|
)
|
Acquisition of IPtronics A/S., net of cash acquired of $2,077
|
|
|
-
|
|
|
|
(42,848
|
)
|
Purchase of severance-related insurance policies
|
|
|
(597
|
)
|
|
|
(632
|
)
|
Purchases of short-term investments
|
|
|
(202,818
|
)
|
|
|
(151,535
|
)
|
Proceeds from sale of short-term investments
|
|
|
130,652
|
|
|
|
133,435
|
|
Proceeds from maturities of short-term investments
|
|
|
39,801
|
|
|
|
63,947
|
|
Increase in restricted cash deposits
|
|
|
(103
|
)
|
|
|
(3,943
|
)
|
Purchase of property and equipment
|
|
|
(21,228
|
)
|
|
|
(24,050
|
)
|
Purchase of intangible assets
|
|
|
-
|
|
|
|
(6,440
|
)
|
Purchase of equity investment in private companies
|
|
|
(3,691
|
)
|
|
|
(3,123
|
)
|
Net cash used in investing activities
|
|
|
(57,984
|
)
|
|
|
(115,860
|
)
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
Principal payments on capital lease obligations
|
|
|
(976
|
)
|
|
|
(960
|
)
|
Proceeds from exercise of share awards
|
|
|
15,271
|
|
|
|
13,571
|
|
Excess tax benefit from share-based compensation
|
|
|
346
|
|
|
|
2,796
|
|
Net cash provided by financing activities
|
|
|
14,641
|
|
|
|
15,407
|
|
|
|
|
|
|
Net decrease in cash and cash equivalents
|
|
|
(8,312
|
)
|
|
|
(79,176
|
)
|
Cash and cash equivalents at beginning of period
|
|
|
63,164
|
|
|
|
117,054
|
|
Cash and cash equivalents at end of period
|
|
$
|
54,852
|
|
|
$
|
37,878
|
|
|
|
|
* Certain prior year amounts have been revised to reflect
non-material adjustments.
|
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|