Mellanox® Technologies, Ltd. (NASDAQ: MLNX) (TASE: MLNX), a leading supplier of high-performance, end-to-end interconnect solutions for data center servers and storage systems, today announced that its fourth quarter revenue is projected to be in the range of $119 million to $121 million, below the company’s previous guidance of $145 million to $150 million, bringing 2012 annual revenue to approximately $500 million, up from $259 million in 2011. The shortfall is primarily the result of a weaker demand environment, challenging macroeconomic conditions, and a technical issue associated with FDR 56Gb/s InfiniBand cabling which caused approximately $20 million of FDR deployments to be delayed. The cabling issue has been resolved and is not expected to impact revenue in the future.
The company continues to expect its fourth quarter 2012 non-GAAP gross margin to be in the range of 68.5 to 69.5 percent and a quarter-over-quarter sequential increase in non-GAAP operating expenses of six to eight percent.
Mellanox is scheduled to present at the 15 th Annual Needham Growth Conference on January 17, 2013 at 1:30 p.m. Eastern Time. A webcast of the live event as well as a replay will be available on the company's investor relations website at http://ir.mellanox.com.
Mellanox plans to conduct a conference call on Wednesday, January 23, 2013 at 2 p.m. Pacific Time to discuss the company’s fourth quarter 2012 financial results. To listen to the call, dial +1-785-424-1834 approximately 10 minutes prior to the start time.Mellanox also plans to conduct a conference call on Thursday, January 24, 2013 at 9 a.m. Israel Time to discuss the company’s fourth quarter 2012 financial results in Hebrew. To listen to the call, dial +972-3-9180609 approximately 10 minutes prior to the start of the call. Both of the Mellanox financial results conference calls will be available via live webcasts 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. Replays of the webcasts 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 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. 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. 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.