Just Before Nvidia Merger, Mellanox Reports 132% Increase in Net Income for Q2 2019

The Israeli chipmaker ended the second quarter of 2019 with a GAAP net income of $38.4 million and an almost 16% increase in revenue

Shortly before its acquisition by Nvidia Corp., announced March, is completed, Israeli chipmaker Mellanox Technologies Ltd. published on Wednesday its earnings report for the second quarter of 2019. The company reported a 15.6% increase in revenue year-over-year to $310.3 million, slightly above the analyst consensus of $307.24 million, and a 132.7% increase in GAAP net income, from $16.5 million to $38.4 million. Gross profit stood at $200.29 million, compared to $164.79 million in the second quarter of 2018. The non-GAAP net income was $83.5 million, or $1.52 per share, compared to $66.5 million, or $1.25 per share, in 2018, under the analyst consensus of $1.53 per share.

 

For the first six months of 2019, Mellanox reported revenue of $615.5 million, up from $519.4 million in the first six months of 2018, and GAAP net income of $87 million, or $1.16 per share, compared to $54.3 million, or $1.04 per share, in the first half of 2019. The non-GAAP net income for the first half of 2019 stood at $170.3 million, up from $117.9 million in 2018.

 

Due to the pending acquisition, Mellanox stated it will not hold an earnings conference call, or provide forward-looking guidance.

 

Mellanox CEO Eyal Waldman (left), Nvidia CEO Jensen Huang. Photo: Gil Nehushtan