Why Mellanox Technologies (MLNX) Stock Is Down Today

NEW YORK (TheStreet) -- Mellanox Technologies (MLNX) shares are down -15.4% to $33.58 in trading on Friday following the release of the company's first quarter earnings results.

The server and storage systems solutions provider reported revenues of $98.7 million, in line with analysts guidance, but down 6.5% from the previous quarter.

Non-GAAP net income for the quarter was $4.5 million, or 10 cents per diluted share, missing analysts quarterly estimate by 1 cent.

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TheStreet Ratings team rates MELLANOX TECHNOLOGIES LTD as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:

"We rate MELLANOX TECHNOLOGIES LTD (MLNX) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and a generally disappointing performance in the stock itself."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

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