Shares of Mellanox Technologies, Ltd.(NASDAQ:MLNX) continued to slid in after hours with a fall of 23%, extending its regular sessions’ fall of 6.50%. Shares of the company rose just after announcing the result, however quickly it reversed gains as the company’s better than estimated third quarter earnings over shadowed by poor guidance.
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The company said that it projects to generate revenue in the range of $145-$150 million in the fourth quarter, missing analysts target of $157 million.
However, the company reported strong third quarter results and earned $1.37 on revenue of $156.5 million, well above analysts’ target of $1.13 a share on revenue of $153.07 million.
The InfiniBand switch/adapter card vendor had little margin for error after a huge 2012 run-up left it with steep multiples. Intel mentioned yesterday demand had weakened for high-end server CPUs, which Mellanox's products are often used with.