DJ Mellanox Drops 11%: FYQ2, Q3 View Miss on Intel Delays, Tech 'Transitions' -- Barron's Blog
Last update: 26/04/2017 4:43:52 pm
By Tiernan Ray
Shares of server connection technology maker Mellanox Technologies ( MLNX) are down $5.60, or 11%, at $45.30, after the company this afternoon reported fiscal Q2 revenue and profit sharply below analysts' expectations, in part blaming delays in new chips for server products from Intel ( INTC), but also vague "technology transitions" of tech users and system makers.
Revenue in the three months ended in March dropped 4%, year over year, to $188.7 million, yielding EPS of 29 cents.
Analysts had, on average, been modeling revenue of $204.7 million, and net income of 49 cents per share.
For the current quarter, the company sees revenue of $205 million to $215 million, which is below consensus for $223 million.
CEO Eyal Waldman said the company's revenue for its main "InfiniBand" product t was hampered by "delays in the general availability of next generation x86 CPUs, seasonal trends in high-performance computing, and technology transitions occurring across several end users and OEM customers." |
