Research Desk Line-up: Microchip TechnologyPost Earnings Coverage
LONDON, UK / ACCESSWIRE / November 21, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Mellanox Technologies, Ltd (NASDAQ: MLNX), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=MLNX, following the Company's release of its financial results on October 25, 2017, for the third quarter fiscal 2017. The supplier of computer networking products saw its revenue increased 0.7% on a y-o-y basis. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
Get more of our free earnings reports coverage from other constituents of the Semiconductor - Broad Line industry. Pro-TD has currently selected Microchip Technology Incorporated (NASDAQ: MCHP) for due-diligence and potential coverage as the Company reported on November 06, 2017, its financial results for Q2 FY18 which ended on September 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on Microchip Technology when we publish it.
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For three months ended September 30, 2017, Mellanox's total revenue increased 0.7% to $225.70 million from $224.21 million in Q3 FY16. Total revenue was below analysts' expectations of $226.6 million.
For the reported quarter, the Company's InfiniBand revenue decreased 7.3% on a sequential basis to $100.2 million. The decrease was due to a large Department of Energy CORAL deployment in the second quarter of 2017. For the reported quarter, the Company's Ethernet revenue increased 27.2% on a sequential basis to $110.7 million. The increase was driven primarily by 25 gigabit and above adapters.
During Q3 FY17, Mellanox's gross profit increased 1.6% to $148.36 million from $146.02 million in the same period last year. For the reported quarter, the Company's adjusted gross profit decreased 0.9% to $159.48 million from $160.90 million in the third quarter of 2016. The Company's adjusted gross margin decreased 110 basis points to 70.7% of revenue in Q3 FY17 from 71.8% of revenue in Q3 FY16.
For the reported quarter, Mellanox's research and development (R&D) expenses increased 8.7% to $90.92 million from $83.61 million in Q3 FY16. The Company's sales and marketing (S&M) expenses increased 9.9% to $37.83 million in Q3 FY17 from $34.41 million in the third quarter of 2016. During Q3 FY17, the Company's general and administrative (G&A) expenses decreased 3.4% to $13.04 million from $13.50 million in the same period last year.
During Q3 FY17, Mellanox's operating income decreased 54.6% to $6.58 million from $14.50 million in the same period last year. For the reported quarter, the Company's adjusted operating income decreased 21.8% to $38.50 million from $49.24 million in the third quarter of 2016.During Q3 FY17, the Company's adjusted operating margin decreased 490 basis points to 17.1% of revenue from 22% of revenue in the same period last year.
For the reported quarter, Mellanox's net income decreased 71.7% to $3.40 million from $12.04 million in Q3 FY16. During Q3 FY17, the Company's diluted EPS decreased 70.8% to $0.07 from $0.24 in the same period last year. For the reported quarter, Mellanox's adjusted net income decreased 20.7% to $36.61 million from $46.19 million in Q3 FY16. During Q3 FY17, the Company's adjusted diluted EPS decreased 23.7% to $0.71 from $0.93 in the same period last year. Adjusted diluted EPS surpassed analysts' expectations of $0.64.
As on September 30, 2017, Mellanox's cash and cash equivalents increased 2.9% to $58.42 million from $56.78 million on December 31, 2016. For the reported quarter, the Company's term debt decreased 20.3% to $174.44 million from $218.79 million in Q4 FY16.
For the reported quarter, the Company's net accounts receivable decreased 5.7% to $133.62 million from $141.77 million in the fourth quarter of 2016. For the reported quarter, the Company's accounts payable decreased 29.3% to $42.07 million from $59.53 million in Q4 FY16.
During FY17, the Company's YTD cash provided by operating activities decreased 31.2% to $94.38 million from $137.27 million in the same period last year.
For Q4 FY17, Mellanox expects revenue to be in the range of $230 million to $240 million and adjusted gross margin to be in the range of 69% to 70% of revenue.
At the closing bell, on Monday, November 20, 2017, Mellanox Technologies' stock rose2.00%, ending the trading session at $51.05. A total volume of 721.81 thousand shares have exchanged hands, which was higher than the 3-month average volume of 491.70 thousand shares. The Company's stock price surged 16.15% in the last three months, 6.02% in the past six months, and 13.82% in the previous twelve months. Moreover, the stock rallied 24.82% since the start of the year. The stock currently has a market cap of $2.57 billion.
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