[February 01, 2017] |
|
Mellanox Reports Continued Growth and Record Revenues for Full-Year 2016
Mellanox® Technologies, Ltd. (NASDAQ: MLNX) today announced
financial results for its fourth quarter ended December 31, 2016.
This Smart News Release features multimedia. View the full release here:
http://www.businesswire.com/news/home/20170201006187/en/
"During the fourth quarter we saw continued sequential growth in our
InfiniBand business, driven by robust customer adoption of our 100
Gigabit EDR solutions into artificial intelligence, machine learning,
high-performance computing, storage, database and more. Our quarterly,
and full-year 2016 results, highlight InfiniBand's continued leadership
in high-performance interconnects," said Eyal Waldman, president and CEO
of Mellanox Technologies. "Customer adoption of our 25, 50, and 100
gigabit Ethernet solutions continued to grow in the fourth quarter.
Adoption of Spectrum Ethernet switches by customers worldwide generated
positive momentum exiting 2016. Our fourth quarter and full-year 2016
results demonstrate Mellanox's diversification, and leadership in both
Ethernet and InfiniBand. We anticipate growth in 2017 from all Mellanox
product lines."
Fourth Quarter and Fiscal 2016 Highlights
-
Revenues were $221.7 million in the fourth quarter, and $857.5 million
in fiscal year 2016.
-
GAAP gross margins were 66.8 percent in the fourth quarter, and 64.8
percent in fiscal year 2016.
-
Non-GAAP gross margins were 71.9 percent in the fourth quarter, and
71.6 percent in fiscal year 2016.
-
GAAP operating income was $13.4 million, or 6.0 percent of revenue, in
the fourth quarter, and operating income was $30.6 million, or 3.6
percent of revenue, in fiscal year 2016.
-
Non-GAAP operating income was $44.4 million, or 20.0 percent of
revenue, in the fourth quarter, and $180.4 million, or 21.0 percent of
revenue, in fiscal year 2016.
-
GAAP net income was $9.0 million in the fourth quarter, and $18.5
million in fiscal year 2016.
-
Non-GAAP net income was $41.3 million in the fourth quarter, and
$169.5 million in fiscal year 2016.
-
GAAP net income per diluted share was $0.18 in the fourth quarter, and
$0.37 in fiscal year 2016.
-
Non-GAAP net income per diluted share was $0.82 in the fourth quarter,
and $3.43 in fiscal year 2016.
-
$54.0 million in cash was provided by operating activities during the
fourth quarter.
-
$196.1 million in cash was provided by operating activities during
fiscal year 2016.
-
Cash and investments totaled $328.4 million at December 31, 2016.
First Quarter 2017 Outlook
We currently project:
-
Quarterly revenues of $200 million to $210 million
-
Non-GAAP gross margins of 71 percent to 72 percent
-
An increase in non-GAAP operating expenses of 3 percent to 5 percent
-
Share-based compensation expense of $15.8 million to $16.3 million
-
Non-GAAP diluted share count of 50.3 million to 50.8 million shares
Recent Mellanox Press Release Highlights
•
|
|
December 12, 2016
|
|
Mellanox 25G/100G Ethernet Solutions Enables Artificial Intelligence
Speech Recognition Technology at iFLYTEK
|
•
|
|
December 6, 2016
|
|
Mellanox Announces Record Breaking Performance Enabling Stateful
Packet Processing at 400Gb/s with the NPS-400 Network Processor
|
•
|
|
December 5, 2016
|
|
Mellanox's EDR 100Gb/s InfiniBand Accelerates the Largest National
Institute of Health Supercomputer
|
•
|
|
November 15, 2016
|
|
Mellanox Technologies Receives Six HPCwire Readers' and Editors'
Choice Awards at the Supercomputing Conference
|
•
|
|
November 14, 2016
|
|
Mellanox InfiniBand to Accelerate the New National Computational
Infrastructure (NCI) Supercomputer
|
•
|
|
November 14, 2016
|
|
Mellanox Drives Virtual Reality To New Levels With Breakthrough
Performance
|
•
|
|
November 14, 2016
|
|
InfiniBand Chosen by Nearly 4X More End-Users Versus Proprietary
Offerings in 2016 as Shown on the TOP500 Supercomputers List
|
•
|
|
November 10, 2016
|
|
Mellanox Announces 200Gb/s HDR InfiniBand Solutions Enabling Record
Levels of Performance and Scalability
|
•
|
|
November 2, 2016
|
|
Mellanox Launches Open Source Software Initiative for Routers, Load
Balancers, and Firewalls
|
•
|
|
November 1, 2016
|
|
Mellanox Multi-Host Technology Reshapes Data Center Economics
|
Conference Call
Mellanox will hold its fourth quarter 2016 financial results conference
call today at 2 p.m. Pacific Time (5 P.M. Eastern Time) to discuss the
Company's financial results. To listen to the call, dial
+1-877-876-9176, or for investors outside the U.S., +1-785-424-1667,
approximately ten 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. A replay of the webcast will
also be available on the Mellanox website.
About Mellanox
Mellanox Technologies (NASDAQ: MLNX) is a leading supplier of end-to-end
Ethernet and InfiniBand intelligent interconnect solutions and services
for servers, storage, and hyper-converged infrastructure. Mellanox's
intelligent interconnect solutions increase data center efficiency by
providing the highest throughput and lowest latency, delivering data
faster to applications and unlocking system performance. Mellanox offers
a choice of high performance solutions: network and multicore
processors, network adapters, switches, cables, software 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, network security, telecom 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, gains (losses) on equity investments and
income tax effects and adjustments. The purpose of income tax effects
and adjustments is to exclude tax consequences associated with the above
excluded expenses items, as well as the non-cash impact on the tax
provision pertaining to changes in deferred tax assets associated with
carryforward losses of group entities subject to tax holiday in Israel.
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, gains (losses) on equity investments,
and income tax effects and adjustments 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,
changes related to recognition of deferred taxes and the net impact on
the company's tax provision for non-GAAP adjustments 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 outlook for the three months
ended March 31, 2017, statements related to trends in the market for our
solutions and services, opportunities for our company in 2017 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, our ability to protect our intellectual property rights,
our ability to successfully acquire businesses and technologies and to
successfully integrate and operate these acquired businesses, our
success in realizing the anticipated benefits of mergers and
acquisitions, and our ability to obtain debt at competitive rates or in
sufficient amounts in order to fund our contractual commitments.
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 26, 2016. All forward-looking statements in
this press release, including the outlook for the three months ended
March 31, 2017, 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
|
|
Year Ended
|
|
|
December 31,
|
|
December 31,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Total revenues
|
|
$
|
221,676
|
|
|
$
|
176,940
|
|
|
$
|
857,498
|
|
|
$
|
658,140
|
|
Cost of revenues
|
|
73,507
|
|
|
51,815
|
|
|
301,986
|
|
|
189,209
|
|
Gross profit
|
|
148,169
|
|
|
125,125
|
|
|
555,512
|
|
|
468,931
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
Research and development
|
|
85,651
|
|
|
65,620
|
|
|
322,620
|
|
|
252,175
|
|
Sales and marketing
|
|
35,568
|
|
|
26,698
|
|
|
133,780
|
|
|
97,438
|
|
General and administrative
|
|
13,589
|
|
|
12,897
|
|
|
68,522
|
|
|
44,212
|
|
Total operating expenses
|
|
134,808
|
|
|
105,215
|
|
|
524,922
|
|
|
393,825
|
|
Income from operations
|
|
13,361
|
|
|
19,910
|
|
|
30,590
|
|
|
75,106
|
|
Interest expense
|
|
(1,944
|
)
|
|
-
|
|
|
(7,352
|
)
|
|
-
|
|
Other income (loss), net
|
|
108
|
|
|
592
|
|
|
1,090
|
|
|
(524
|
)
|
Interest and other, net
|
|
(1,836
|
)
|
|
592
|
|
|
(6,262
|
)
|
|
(524
|
)
|
Income before taxes on income
|
|
11,525
|
|
|
20,502
|
|
|
24,328
|
|
|
74,582
|
|
(Provision for) benefit from taxes on income
|
|
(2,530
|
)
|
|
22,696
|
|
|
(5,810
|
)
|
|
18,312
|
|
Net income
|
|
$
|
8,995
|
|
|
$
|
43,198
|
|
|
$
|
18,518
|
|
|
$
|
92,894
|
|
Net income per share - basic
|
|
$
|
0.18
|
|
|
$
|
0.92
|
|
|
$
|
0.38
|
|
|
$
|
2.00
|
|
Net income per share - diluted
|
|
$
|
0.18
|
|
|
$
|
0.90
|
|
|
$
|
0.37
|
|
|
$
|
1.94
|
|
Shares used in computing net income per share:
|
|
|
|
|
|
|
|
|
Basic
|
|
48,926
|
|
|
46,978
|
|
|
48,145
|
|
|
46,365
|
|
Diluted
|
|
49,971
|
|
|
48,221
|
|
|
49,523
|
|
|
47,778
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mellanox Technologies, Ltd.
|
Reconciliation of Non-GAAP Adjustments
|
(in thousands, except percentages, unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Year Ended
|
|
|
December 31,
|
|
December 31,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Reconciliation of GAAP net income to
non-GAAP:
|
|
|
|
|
|
|
|
|
GAAP net income
|
|
$
|
8,995
|
|
|
$
|
43,198
|
|
|
$
|
18,518
|
|
|
$
|
92,894
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Share-based compensation expense:
|
|
|
|
|
|
|
|
|
Cost of revenues
|
|
602
|
|
|
617
|
|
|
2,375
|
|
|
2,366
|
|
Research and development
|
|
10,156
|
|
|
7,317
|
|
|
40,474
|
|
|
28,821
|
|
Sales and marketing
|
|
3,809
|
|
|
2,544
|
|
|
15,183
|
|
|
10,309
|
|
General and administrative
|
|
2,615
|
|
|
2,452
|
|
|
13,086
|
|
|
9,268
|
|
Total share-based compensation expense
|
|
17,182
|
|
|
12,930
|
|
|
71,118
|
|
|
50,764
|
|
Amortization of acquired intangibles:
|
|
|
|
|
|
|
|
|
Cost of revenues
|
|
10,640
|
|
|
2,073
|
|
|
48,119
|
|
|
7,694
|
|
Research and development
|
|
196
|
|
|
195
|
|
|
781
|
|
|
779
|
|
Sales and marketing
|
|
2,230
|
|
|
196
|
|
|
7,713
|
|
|
1,173
|
|
Total amortization of acquired intangibles
|
|
13,066
|
|
|
2,464
|
|
|
56,613
|
|
|
9,646
|
|
Settlement and other (income) expense:
|
|
|
|
|
|
|
|
|
General and administrative
|
|
(125
|
)
|
|
-
|
|
|
4,981
|
|
|
-
|
|
Total settlement and other (income) expense
|
|
(125
|
)
|
|
-
|
|
|
4,981
|
|
|
-
|
|
Acquisition related charges:
|
|
|
|
|
|
|
|
|
Cost of revenues
|
|
-
|
|
|
-
|
|
|
8,261
|
|
|
-
|
|
Research and development
|
|
787
|
|
|
225
|
|
|
1,834
|
|
|
2,118
|
|
Sales and marketing
|
|
-
|
|
|
-
|
|
|
206
|
|
|
450
|
|
General and administrative
|
|
97
|
|
|
1,078
|
|
|
6,844
|
|
|
1,820
|
|
Total acquisition related charges
|
|
884
|
|
|
1,303
|
|
|
17,145
|
|
|
4,388
|
|
Impairment of investment in a privately-held company
|
|
-
|
|
|
-
|
|
|
-
|
|
|
3,189
|
|
Tax effects and adjustments
|
|
1,294
|
|
|
(22,410
|
)
|
|
1,086
|
|
|
(22,410
|
)
|
Non-GAAP net income
|
|
$
|
41,296
|
|
|
$
|
37,485
|
|
|
$
|
169,461
|
|
|
$
|
138,471
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP gross profit to
non-GAAP:
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
221,676
|
|
|
$
|
176,940
|
|
|
$
|
857,498
|
|
|
$
|
658,140
|
|
GAAP gross profit
|
|
148,169
|
|
|
125,125
|
|
|
555,512
|
|
|
468,931
|
|
GAAP gross margin
|
|
66.8
|
%
|
|
70.7
|
%
|
|
64.8
|
%
|
|
71.3
|
%
|
Share-based compensation expense
|
|
602
|
|
|
617
|
|
|
2,375
|
|
|
2,366
|
|
Amortization of acquired intangibles
|
|
10,640
|
|
|
2,073
|
|
|
48,119
|
|
|
7,694
|
|
Acquisition related charges
|
|
-
|
|
|
-
|
|
|
8,261
|
|
|
-
|
|
Non-GAAP gross profit
|
|
$
|
159,411
|
|
|
$
|
127,815
|
|
|
$
|
614,267
|
|
|
$
|
478,991
|
|
Non-GAAP gross margin
|
|
71.9
|
%
|
|
72.2
|
%
|
|
71.6
|
%
|
|
72.8
|
%
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP operating expenses to
non-GAAP:
|
|
|
|
|
|
|
|
|
GAAP operating expenses
|
|
$
|
134,808
|
|
|
$
|
105,215
|
|
|
$
|
524,922
|
|
|
$
|
393,825
|
|
Share-based compensation expense
|
|
(16,580
|
)
|
|
(12,313
|
)
|
|
(68,743
|
)
|
|
(48,398
|
)
|
Amortization of acquired intangibles
|
|
(2,426
|
)
|
|
(391
|
)
|
|
(8,494
|
)
|
|
(1,952
|
)
|
Settlement and other income (expense)
|
|
125
|
|
|
-
|
|
|
(4,981
|
)
|
|
-
|
|
Acquisition related charges
|
|
(884
|
)
|
|
(1,303
|
)
|
|
(8,884
|
)
|
|
(4,388
|
)
|
Non-GAAP operating expenses
|
|
$
|
115,043
|
|
|
$
|
91,208
|
|
|
$
|
433,820
|
|
|
$
|
339,087
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mellanox Technologies, Ltd.
|
Reconciliation of Non-GAAP Adjustments
|
(in thousands, except per share data, unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Year Ended
|
|
|
December 31,
|
|
December 31,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP income from operations to non-GAAP:
|
|
|
|
|
|
|
|
|
GAAP income from operations
|
|
$
|
13,361
|
|
|
$
|
19,910
|
|
|
$
|
30,590
|
|
|
$
|
75,106
|
|
Share-based compensation expense
|
|
17,182
|
|
|
12,930
|
|
|
71,118
|
|
|
50,764
|
|
Settlement and other (income) expense:
|
|
(125
|
)
|
|
-
|
|
|
4,981
|
|
|
-
|
|
Amortization of acquired intangibles
|
|
13,066
|
|
|
2,464
|
|
|
56,613
|
|
|
9,646
|
|
Acquisition related charges
|
|
884
|
|
|
1,303
|
|
|
17,145
|
|
|
4,388
|
|
Non-GAAP income from operations
|
|
$
|
44,368
|
|
|
$
|
36,607
|
|
|
$
|
180,447
|
|
|
$
|
139,904
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing GAAP diluted earnings per share
|
|
49,971
|
|
|
48,221
|
|
|
49,523
|
|
|
47,778
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Effect of dilutive securities under GAAP*
|
|
(1,045
|
)
|
|
(1,243
|
)
|
|
(1,378
|
)
|
|
(1,413
|
)
|
Total options vested and exercisable
|
|
1,217
|
|
|
1,546
|
|
|
1,217
|
|
|
1,546
|
|
Shares used in computing non-GAAP diluted earnings per share
|
|
50,143
|
|
|
48,524
|
|
|
49,362
|
|
|
47,911
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted net income per share
|
|
$
|
0.18
|
|
|
$
|
0.90
|
|
|
$
|
0.37
|
|
|
$
|
1.94
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Share-based compensation expense
|
|
0.33
|
|
|
0.27
|
|
|
1.44
|
|
|
1.06
|
|
Amortization of acquired intangibles
|
|
0.26
|
|
|
0.04
|
|
|
1.14
|
|
|
0.20
|
|
Settlement and other expense
|
|
-
|
|
|
-
|
|
|
0.10
|
|
|
-
|
|
Acquisition related charges
|
|
0.02
|
|
|
0.02
|
|
|
0.34
|
|
|
0.09
|
|
Impairment of investment in a privately-held company
|
|
-
|
|
|
-
|
|
|
-
|
|
|
0.07
|
|
Tax effects and adjustments
|
|
0.03
|
|
|
(0.46
|
)
|
|
0.02
|
|
|
(0.47
|
)
|
Effect of dilutive securities under GAAP*
|
|
0.02
|
|
|
0.02
|
|
|
0.10
|
|
|
0.09
|
|
Total options vested and exercisable
|
|
(0.02
|
)
|
|
(0.02
|
)
|
|
(0.08
|
)
|
|
(0.09
|
)
|
Non-GAAP diluted net income per share
|
|
$
|
0.82
|
|
|
$
|
0.77
|
|
|
$
|
3.43
|
|
|
$
|
2.89
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* 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 and RSUs had been issued
under the Treasury method.
|
Mellanox Technologies, Ltd.
Condensed Consolidated Balance Sheets
(in thousands, unaudited)
|
|
|
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
2016
|
|
2015
|
ASSETS
|
|
|
|
|
Current assets:
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
56,780
|
|
|
$
|
263,199
|
|
Short-term investments
|
|
271,661
|
|
|
247,314
|
|
Accounts receivable, net
|
|
139,918
|
|
|
84,273
|
|
Inventories
|
|
65,523
|
|
|
62,473
|
|
Other current assets
|
|
17,346
|
|
|
19,979
|
|
Total current assets
|
|
551,228
|
|
|
677,238
|
|
Property and equipment, net
|
|
118,585
|
|
|
100,018
|
|
Severance assets
|
|
15,870
|
|
|
9,514
|
|
Intangible assets, net
|
|
278,031
|
|
|
32,154
|
|
Goodwill
|
|
471,228
|
|
|
200,743
|
|
Deferred taxes and other long-term assets
|
|
36,713
|
|
|
33,715
|
|
Total assets
|
|
$
|
1,471,655
|
|
|
$
|
1,053,382
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
Current liabilities:
|
|
|
|
|
Accounts payable
|
|
$
|
57,683
|
|
|
$
|
44,600
|
|
Accrued liabilities
|
|
105,042
|
|
|
74,787
|
|
Deferred revenue
|
|
24,364
|
|
|
17,743
|
|
Current portion of term debt
|
|
23,628
|
|
|
-
|
|
Total current liabilities
|
|
210,717
|
|
|
137,130
|
|
Accrued severance
|
|
19,874
|
|
|
12,464
|
|
Deferred revenue
|
|
15,968
|
|
|
12,439
|
|
Term debt
|
|
218,786
|
|
|
-
|
|
Other long-term liabilities
|
|
30,580
|
|
|
24,668
|
|
Total liabilities
|
|
495,925
|
|
|
186,701
|
|
Shareholders' equity:
|
|
|
|
|
Ordinary shares
|
|
209
|
|
|
200
|
|
Additional paid-in capital
|
|
774,605
|
|
|
684,824
|
|
Accumulated other comprehensive loss
|
|
(928
|
)
|
|
(1,669
|
)
|
Retained earnings
|
|
201,844
|
|
|
183,326
|
|
Total shareholders' equity
|
|
975,730
|
|
|
866,681
|
|
Total liabilities and shareholders' equity
|
|
$
|
1,471,655
|
|
|
$
|
1,053,382
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mellanox Technologies, Ltd.
Condensed Consolidated Statement of Cash Flows
(in thousands, unaudited)
|
|
|
|
|
|
Year ended December 31,
|
|
|
2016
|
|
2015
|
Cash flows from operating activities:
|
|
|
|
|
Net income
|
|
$
|
18,518
|
|
|
$
|
92,894
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
Depreciation and amortization
|
|
97,731
|
|
|
41,372
|
|
Deferred income taxes
|
|
809
|
|
|
(22,607
|
)
|
Share-based compensation
|
|
66,309
|
|
|
50,764
|
|
Gain on short-term investments
|
|
(1,774
|
)
|
|
(3,000
|
)
|
Excess tax benefit from share-based compensation
|
|
46
|
|
|
(53
|
)
|
Impairment of investment in a privately-held company
|
|
-
|
|
|
3,189
|
|
Changes in assets and liabilities, net of effect of acquisitions:
|
|
|
|
|
Accounts receivable
|
|
(39,481
|
)
|
|
(19,351
|
)
|
Inventories
|
|
8,263
|
|
|
(24,735
|
)
|
Prepaid expenses and other assets
|
|
6,948
|
|
|
(2,619
|
)
|
Accounts payable
|
|
11,480
|
|
|
3,750
|
|
Accrued liabilities and other liabilities
|
|
27,261
|
|
|
30,884
|
|
Net cash provided by operating activities
|
|
196,110
|
|
|
150,488
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
Purchase of severance-related insurance policies
|
|
(1,172
|
)
|
|
(743
|
)
|
Purchase of short-term investments
|
|
(300,858
|
)
|
|
(219,459
|
)
|
Proceeds from sales of short-term investments
|
|
237,764
|
|
|
179,700
|
|
Proceeds from maturities of short-term investments
|
|
149,725
|
|
|
129,279
|
|
Purchase of property and equipment
|
|
(42,976
|
)
|
|
(48,601
|
)
|
Restricted cash
|
|
-
|
|
|
3,604
|
|
Purchase of intangible assets
|
|
(7,962
|
)
|
|
(210
|
)
|
Purchase of investments in privately-held companies
|
|
(4,982
|
)
|
|
-
|
|
Acquisitions, net of cash acquired of $87.5 million
|
|
(693,692
|
)
|
|
-
|
|
Net cash provided by (used) in investing activities
|
|
(664,153
|
)
|
|
43,570
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
Proceeds from term debt
|
|
280,000
|
|
|
-
|
|
Principal payments on term debt
|
|
(34,000
|
)
|
|
-
|
|
Term debt issuance costs
|
|
(5,521
|
)
|
|
-
|
|
Principal payments on capital lease and intangible assets obligations
|
|
(1,364
|
)
|
|
(1,105
|
)
|
Proceeds from issuances of ordinary shares through employee equity
incentive plans
|
|
22,555
|
|
|
18,867
|
|
Excess tax benefit from share-based compensation
|
|
(46
|
)
|
|
53
|
|
Net cash provided by financing activities
|
|
261,624
|
|
|
17,815
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents
|
|
(206,419
|
)
|
|
211,873
|
|
Cash and cash equivalents at beginning of period
|
|
263,199
|
|
|
51,326
|
|
Cash and cash equivalents at end of period
|
|
$
|
56,780
|
|
|
$
|
263,199
|
|
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20170201006187/en/
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