[January 27, 2016] |
|
Mellanox Achieves Record Quarterly and Annual Revenue
Mellanox® Technologies, Ltd. (NASDAQ: MLNX) today announced financial
results for its fourth quarter and fiscal year ended December 31, 2015.
"We are pleased to achieve record quarterly and annual revenues. Our
profitability grew 2.4 times year-over-year with operating income
representing 21.3% of revenues. We are proud to grow our annual net
income to $138.5 million and generate $150.5 million in cash from
operations in 2015 - while we continued to invest in our technology and
businesses," said Eyal Waldman, president and CEO of Mellanox
Technologies. "We saw strong growth in our Ethernet business in 2015,
and expect it to accelerate in 2016 and beyond. We are pleased to see
our InfiniBand business continue to grow across multiple markets and
technology generations, with strong adoption of our EDR 100 Gigabit
InfiniBand products. We look forward to closing the EZChip merger in the
second half of February 2016. This merger is important to Mellanox and
adds processing capabilities to our networking technologies. We believe
the combination of these technologies will lead to a superior position
in the data center interconnect market. We expect this transaction to be
accretive from day one."
Fourth Quarter and 2015 Fiscal Year Highlights
-
Revenues were $176.9 million in the fourth quarter, and $658.1 million
in fiscal year 2015.
-
GAAP gross margins were 70.7 percent in the fourth quarter, and 71.3
percent in fiscal year 2015.
-
Non-GAAP gross margins were 72.2 percent in the fourth quarter, and
72.8 percent in fiscal year 2015.
-
GAAP operating income was $19.9 million, or 11.3 percent of revenue,
in the fourth quarter, and operating income was $75.1 million, or 11.4
percent of revenue, in fiscal year 2015.
-
Non-GAAP operating income was $36.6 million, or 20.7 percent of
revenue, in the fourth quarter, and $139.9 million, or 21.3 percent of
revenue, in fiscal year 2015.
-
GAAP net income was $43.2 million in the fourth quarter and $92.9
million in fiscal year 2015 which included an income tax benefit from
the release of a valuation allowance of $22.4 million in the fourth
quarter.
-
Non-GAAP net income was $37.5 million in the fourth quarter, and
$138.5 million in fiscal year 2015.
-
GAAP net income per diluted share was $0.90 in the fourth quarter, and
$1.94 in fiscal year 2015.
-
Non-GAAP net income per diluted share was $0.77 in the fourth quarter,
and was $2.89 in fiscal year 2015.
-
$34.7 million in cash was provided by operating activities during the
fourth quarter.
-
$150.5 million in cash was provided by operating activities during
fiscal year 2015.
-
Cash and investments totaled $510.5 million at December 31, 2015.
First Quarter 2016 Guidance
We currently project:
-
Quarterly revenues of $180 million to $185 million
-
Non-GAAP gross margins of 71 percent to 72 percent
-
An increase in non-GAAP operating expenses of 2 percent to 4 percent
-
Share-based compensation expense of $12.4 million to $12.9 million
-
Non-GAAP diluted share count of 48.7 million to 49.2 million shares
Upon closing the EZchip transaction we will provide updated guidance for
the combined entity.
Recent Mellanox Press Release Highlights
• Dec 14, 2015
|
Mellanox 10/40 Gigabit Ethernet Switches Approved for Use in U.S.
Department of Defense Networks
|
|
|
• Nov 23, 2015
|
Mellanox and Oak Ridge National Laboratory Recognized by R&D 100
Awards
|
|
|
• Nov 17, 2015
|
Mellanox Announces "HPC Centers of Excellence" to Drive Advancement
Toward Exascale Computing
|
|
|
• Nov 16, 2015
|
EDR 100Gb/s and FDR 56Gb/s InfiniBand Continues Growth and
Interconnect Leadership on the TOP500
|
|
|
• Nov 16, 2015
|
Mellanox Announces ConnectX-4 Lx Programmable Adapter with Onboard
Xilinx FPGA Acceleration
|
|
|
• Nov 16, 2015
|
TACC Selects Mellanox's End-to-End EDR 100Gb/s InfiniBand Solution
to Further Cutting-Edge Medical and Science Research
|
|
|
• Nov 16, 2015
|
Centre for High-Performance Computing South Africa Selects Mellanox
InfiniBand Solutions to Accelerate New Petaflop-Capable System
|
|
|
• Nov 12, 2015
|
Mellanox Introduces the Switch-IB 2, World's First 100Gb/s Smart
Switch
|
|
|
• Nov 4, 2015
|
IBM Teams with Mellanox to Help Maximize Performance of Power
Systems LC Line Servers for Cloud and Cluster Deployments
|
|
|
• Nov 2, 2015
|
Mellanox Open Ethernet Switches Accepted By Open Compute Project
|
|
|
Conference Call
Mellanox will hold its fourth quarter and fiscal year 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 (impairment 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 (impairment 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 March 31, 2016, statements related to our expectations for
achievement of continued revenue growth and record revenue for the
fiscal year 2016, statements related to trends in the market for our
solutions and services, opportunities for our company in 2016 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
October 30, 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 March 31, 2016, 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 December 31,
|
|
Twelve Months Ended December 31,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Total revenues
|
|
$
|
176,940
|
|
|
$
|
141,116
|
|
|
$
|
658,140
|
|
|
$
|
463,649
|
|
Cost of revenues
|
|
|
51,815
|
|
|
|
41,131
|
|
|
|
189,209
|
|
|
|
148,672
|
|
Gross profit
|
|
|
125,125
|
|
|
|
99,985
|
|
|
|
468,931
|
|
|
|
314,977
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
65,620
|
|
|
|
56,814
|
|
|
|
252,175
|
|
|
|
208,877
|
|
Sales and marketing
|
|
|
26,698
|
|
|
|
19,995
|
|
|
|
97,438
|
|
|
|
76,860
|
|
General and administrative
|
|
|
12,897
|
|
|
|
9,570
|
|
|
|
44,212
|
|
|
|
36,431
|
|
Total operating expenses
|
|
|
105,215
|
|
|
|
86,379
|
|
|
|
393,825
|
|
|
|
322,168
|
|
Income (loss) from operations
|
|
|
19,910
|
|
|
|
13,606
|
|
|
|
75,106
|
|
|
|
(7,191
|
)
|
Other income (loss), net
|
|
|
592
|
|
|
|
497
|
|
|
|
(524
|
)
|
|
|
1,449
|
|
Income (loss) before taxes
|
|
|
20,502
|
|
|
|
14,103
|
|
|
|
74,582
|
|
|
|
(5,742
|
)
|
Benefit from (provision for) taxes on income
|
|
|
22,696
|
|
|
|
(18,856
|
)
|
|
|
18,312
|
|
|
|
(18,267
|
)
|
Net income (loss)
|
|
$
|
43,198
|
|
|
$
|
(4,753
|
)
|
|
$
|
92,894
|
|
|
$
|
(24,009
|
)
|
Net income (loss) per share - basic
|
|
$
|
0.92
|
|
|
$
|
(0.10
|
)
|
|
$
|
2.00
|
|
|
$
|
(0.54
|
)
|
Net income (loss) per share - diluted
|
|
$
|
0.90
|
|
|
$
|
(0.10
|
)
|
|
$
|
1.94
|
|
|
$
|
(0.54
|
)
|
Shares used in per share calculation:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
46,978
|
|
|
|
45,380
|
|
|
|
46,365
|
|
|
|
44,831
|
|
Diluted
|
|
|
48,221
|
|
|
|
45,380
|
|
|
|
47,778
|
|
|
|
44,831
|
|
|
Mellanox Technologies, Ltd. Reconciliation of
Non-GAAP Adjustments (in thousands, percentages,
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
Twelve Months Ended December 31,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Reconciliation of GAAP net income (loss) to
non-GAAP:
|
|
|
|
|
|
|
|
|
GAAP net income (loss)
|
|
$
|
43,198
|
|
|
$
|
(4,753
|
)
|
|
$
|
92,894
|
|
|
$
|
(24,009
|
)
|
Adjustments:
|
|
|
|
|
|
|
|
|
Share-based compensation expense:
|
|
|
|
|
|
|
|
|
Cost of revenues
|
|
617
|
|
|
576
|
|
|
2,366
|
|
|
2,162
|
|
Research and development
|
|
7,317
|
|
|
6,792
|
|
|
28,821
|
|
|
26,979
|
|
Sales and marketing
|
|
2,544
|
|
|
2,370
|
|
|
10,309
|
|
|
9,755
|
|
General and administrative
|
|
2,452
|
|
|
2,063
|
|
|
9,268
|
|
|
8,339
|
|
Total share-based compensation expense
|
|
12,930
|
|
|
11,801
|
|
|
50,764
|
|
|
47,235
|
|
Amortization of acquired intangibles:
|
|
|
|
|
|
|
|
|
Cost of revenues
|
|
2,073
|
|
|
1,474
|
|
|
7,694
|
|
|
7,173
|
|
Research and development
|
|
195
|
|
|
195
|
|
|
779
|
|
|
781
|
|
Sales and marketing
|
|
196
|
|
|
1,039
|
|
|
1,173
|
|
|
4,156
|
|
Total amortization of acquired intangibles
|
|
2,464
|
|
|
2,708
|
|
|
9,646
|
|
|
12,110
|
|
Settlement costs:
|
|
|
|
|
|
|
|
|
Cost of revenues
|
|
-
|
|
|
-
|
|
|
-
|
|
|
1,250
|
|
Total settlement costs
|
|
-
|
|
|
-
|
|
|
-
|
|
|
1,250
|
|
Acquisition related charges:
|
|
|
|
|
|
|
|
|
Cost of revenues
|
|
-
|
|
|
-
|
|
|
-
|
|
|
849
|
|
Research and development
|
|
225
|
|
|
744
|
|
|
2,118
|
|
|
2,693
|
|
Sales and marketing
|
|
-
|
|
|
226
|
|
|
450
|
|
|
863
|
|
General and administrative
|
|
1,078
|
|
|
-
|
|
|
1,820
|
|
|
-
|
|
Total acquisition related charges
|
|
1,303
|
|
|
970
|
|
|
4,388
|
|
|
4,405
|
|
Other (income) loss, net:
|
|
|
|
|
|
|
|
|
Impairment loss on equity investment in a private company
|
|
-
|
|
|
-
|
|
|
3,189
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
3,189
|
|
|
-
|
|
(Benefit from) provision for income taxes - valuation allowance
adjustment
|
|
(22,410
|
)
|
|
17,231
|
|
|
(22,410
|
)
|
|
17,231
|
|
Non-GAAP net income
|
|
$
|
37,485
|
|
|
$
|
27,957
|
|
|
$
|
138,471
|
|
|
$
|
58,222
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP gross profit to
non-GAAP:
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
176,940
|
|
|
$
|
141,116
|
|
|
$
|
658,140
|
|
|
$
|
463,649
|
|
GAAP gross profit
|
|
125,125
|
|
|
99,985
|
|
|
468,931
|
|
|
314,977
|
|
GAAP gross margin
|
|
70.7
|
%
|
|
70.9
|
%
|
|
71.3
|
%
|
|
67.9
|
%
|
Share-based compensation expense
|
|
617
|
|
|
576
|
|
|
2,366
|
|
|
2,162
|
|
Amortization of acquired intangibles
|
|
2,073
|
|
|
1,474
|
|
|
7,694
|
|
|
7,173
|
|
Settlement costs
|
|
-
|
|
|
-
|
|
|
-
|
|
|
1,250
|
|
Acquisition related charges
|
|
-
|
|
|
-
|
|
|
-
|
|
|
849
|
|
Non-GAAP gross profit
|
|
$
|
127,815
|
|
|
$
|
102,035
|
|
|
$
|
478,991
|
|
|
$
|
326,411
|
|
Non-GAAP gross margin
|
|
72.2
|
%
|
|
72.3
|
%
|
|
72.8
|
%
|
|
70.4
|
%
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP operating expenses to
non-GAAP:
|
|
|
|
|
|
|
|
|
GAAP operating expenses
|
|
$
|
105,215
|
|
|
$
|
86,379
|
|
|
$
|
393,825
|
|
|
$
|
322,168
|
|
Share-based compensation expense
|
|
(12,313
|
)
|
|
(11,225
|
)
|
|
(48,398
|
)
|
|
(45,073
|
)
|
Amortization of acquired intangibles
|
|
(391
|
)
|
|
(1,234
|
)
|
|
(1,952
|
)
|
|
(4,937
|
)
|
Acquisition related charges
|
|
(1,303
|
)
|
|
(970
|
)
|
|
(4,388
|
)
|
|
(3,556
|
)
|
Non-GAAP operating expenses
|
|
$
|
91,208
|
|
|
$
|
72,950
|
|
|
$
|
339,087
|
|
|
$
|
268,602
|
|
|
Mellanox Technologies, Ltd. Reconciliation of
Non-GAAP Adjustments (in thousands, except per share
data, unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
Twelve Months Ended December 31,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP income (loss) from
operations to non-GAAP:
|
|
|
|
|
|
|
|
|
GAAP income (loss) from operations
|
|
19,910
|
|
|
13,606
|
|
|
75,106
|
|
|
(7,191
|
)
|
Share-based compensation expense
|
|
12,930
|
|
|
11,801
|
|
|
50,764
|
|
|
47,235
|
|
Settlement costs
|
|
-
|
|
|
-
|
|
|
-
|
|
|
1,250
|
|
Amortization of acquired intangibles
|
|
2,464
|
|
|
2,708
|
|
|
9,646
|
|
|
12,110
|
|
Acquisition related charges
|
|
1,303
|
|
|
970
|
|
|
4,388
|
|
|
4,405
|
|
Non-GAAP income from operations
|
|
36,607
|
|
|
29,085
|
|
|
139,904
|
|
|
57,809
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing GAAP diluted earnings per share
|
|
48,221
|
|
|
45,380
|
|
|
47,778
|
|
|
44,831
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Effect of dilutive securities under GAAP*
|
|
(1,242
|
)
|
|
-
|
|
|
(1,413
|
)
|
|
-
|
|
Total options vested and exercisable
|
|
1,546
|
|
|
1,837
|
|
|
1,546
|
|
|
1,837
|
|
Shares used in computing non-GAAP diluted earnings per share
|
|
48,525
|
|
|
47,217
|
|
|
47,911
|
|
|
46,668
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted net income (loss) per share
|
|
$
|
0.90
|
|
|
$
|
(0.10
|
)
|
|
$
|
1.94
|
|
|
$
|
(0.54
|
)
|
Adjustments:
|
|
|
|
|
|
|
|
|
Share-based compensation expense
|
|
0.27
|
|
|
0.26
|
|
|
1.06
|
|
|
1.05
|
|
Amortization of acquired intangibles
|
|
0.04
|
|
|
0.06
|
|
|
0.20
|
|
|
0.27
|
|
Settlement costs
|
|
-
|
|
|
-
|
|
|
-
|
|
|
0.03
|
|
Acquisition related charges
|
|
0.02
|
|
|
0.02
|
|
|
0.09
|
|
|
0.10
|
|
Impairment loss on equity investment in a private company
|
|
-
|
|
|
-
|
|
|
0.07
|
|
|
-
|
|
(Benefit from) provision for income taxes - valuation allowance
adjustment
|
|
(0.46
|
)
|
|
0.38
|
|
|
(0.47
|
)
|
|
0.38
|
|
Effect of dilutive securities under GAAP*
|
|
0.02
|
|
|
-
|
|
|
0.09
|
|
|
-
|
|
Total options vested and exercisable
|
|
(0.02
|
)
|
|
(0.03
|
)
|
|
(0.09
|
)
|
|
(0.04
|
)
|
Non-GAAP diluted income per share
|
|
$
|
0.77
|
|
|
$
|
0.59
|
|
|
$
|
2.89
|
|
|
$
|
1.25
|
|
* 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)
|
|
|
|
|
|
|
|
December 31, 2015
|
|
December 31, 2014 (*)
|
ASSETS
|
|
|
|
|
Current assets:
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
263,199
|
|
|
$
|
51,326
|
|
Short-term investments
|
|
247,314
|
|
|
334,038
|
|
Restricted cash
|
|
-
|
|
|
3,604
|
|
Accounts receivable, net
|
|
84,273
|
|
|
64,922
|
|
Inventories
|
|
62,473
|
|
|
44,470
|
|
Other current assets
|
|
19,979
|
|
|
15,876
|
|
Total current assets
|
|
677,238
|
|
|
514,236
|
|
Property and equipment, net
|
|
100,018
|
|
|
78,827
|
|
Severance assets
|
|
9,514
|
|
|
9,474
|
|
Intangible assets, net
|
|
32,154
|
|
|
42,067
|
|
Goodwill
|
|
200,743
|
|
|
200,743
|
|
Deferred taxes and other long-term assets
|
|
33,715
|
|
|
17,871
|
|
Total assets
|
|
$
|
1,053,382
|
|
|
$
|
863,218
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
Current liabilities:
|
|
|
|
|
Accounts payable
|
|
$
|
44,600
|
|
|
$
|
39,811
|
|
Accrued liabilities
|
|
74,296
|
|
|
61,974
|
|
Deferred revenue
|
|
17,743
|
|
|
14,758
|
|
Capital lease liabilities, current
|
|
491
|
|
|
1,102
|
|
Total current liabilities
|
|
137,130
|
|
|
117,645
|
|
Accrued severance
|
|
12,464
|
|
|
11,850
|
|
Deferred revenue
|
|
12,439
|
|
|
8,942
|
|
Capital lease liabilities
|
|
-
|
|
|
494
|
|
Other long-term liabilities
|
|
24,668
|
|
|
22,535
|
|
Total liabilities
|
|
186,701
|
|
|
161,466
|
|
Shareholders' equity:
|
|
|
|
|
Ordinary shares
|
|
200
|
|
|
192
|
|
Additional paid-in capital
|
|
684,824
|
|
|
615,148
|
|
Accumulated other comprehensive loss
|
|
(1,669
|
)
|
|
(4,020
|
)
|
Retained earnings
|
|
183,326
|
|
|
90,432
|
|
Total shareholders' equity
|
|
866,681
|
|
|
701,752
|
|
Total liabilities and shareholders' equity
|
|
$
|
1,053,382
|
|
|
$
|
863,218
|
|
(*) Certain prior year amounts have been reclassified to conform to 2015
presentation.
|
|
|
Mellanox Technologies, Ltd.
Condensed Consolidated Statement of Cash Flows
(in thousands, unaudited)
|
|
|
|
|
|
Year ended December 31,
|
|
|
2015
|
|
2014
|
Cash flows from operating activities:
|
|
|
|
|
Net income (loss)
|
|
$
|
92,894
|
|
|
$
|
(24,009
|
)
|
Adjustments to reconcile net income (loss) to net cash provided by
operating activities:
|
|
|
|
|
Depreciation and amortization
|
|
41,372
|
|
|
38,671
|
|
Deferred income taxes
|
|
(22,607
|
)
|
|
13,832
|
|
Share-based compensation expense
|
|
50,764
|
|
|
47,235
|
|
(Gain) loss on investments
|
|
(3,000
|
)
|
|
425
|
|
Excess tax benefit from share-based compensation
|
|
(53
|
)
|
|
(342
|
)
|
Impairment of equity investment in a private company
|
|
3,189
|
|
|
-
|
|
Changes in assets and liabilities:
|
|
|
|
|
Accounts receivable, net
|
|
(19,351
|
)
|
|
5,421
|
|
Inventory
|
|
(24,735
|
)
|
|
(9,624
|
)
|
Prepaid expenses and other assets
|
|
(2,619
|
)
|
|
(7,687
|
)
|
Accounts payable
|
|
3,750
|
|
|
9,659
|
|
Accrued liabilities and other payables
|
|
30,884
|
|
|
6,549
|
|
Net cash provided by operating activities
|
|
150,488
|
|
|
80,130
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
Acquisitions, net of cash acquired of $2,464
|
|
-
|
|
|
(2,253
|
)
|
Purchase of severance-related insurance policies
|
|
(743
|
)
|
|
(777
|
)
|
Purchase of short term investments
|
|
(219,459
|
)
|
|
(307,924
|
)
|
Proceeds from sale of short term investments
|
|
179,700
|
|
|
158,054
|
|
Proceeds from maturities of short term investments
|
|
129,279
|
|
|
78,567
|
|
Purchase of property and equipment
|
|
(48,601
|
)
|
|
(29,924
|
)
|
Restricted cash
|
|
3,604
|
|
|
-
|
Purchase of intangible finite-lived assets
|
|
(210
|
)
|
|
-
|
Purchase of equity investment in a private company
|
|
-
|
|
|
(3,455
|
)
|
Net cash provided by (used in) investing activities
|
|
43,570
|
|
|
(107,712
|
)
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
Principal payments on capital lease obligations
|
|
(1,105
|
)
|
|
(1,381
|
)
|
Proceeds from exercise of share awards
|
|
18,867
|
|
|
16,783
|
|
Excess tax benefit from share-based compensation
|
|
53
|
|
|
342
|
|
Net cash provided by financing activities
|
|
17,815
|
|
|
15,744
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents
|
|
211,873
|
|
|
(11,838
|
)
|
Cash and cash equivalents at beginning of period
|
|
51,326
|
|
|
63,164
|
|
Cash and cash equivalents at end of period
|
|
$
|
263,199
|
|
|
$
|
51,326
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160127006351/en/
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