Wednesday, October 17, 2012

Mellanox Technologies Ltd. (NASDAQ:MLNX) Slumps More On lackluster Guidance, Down 23%

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.

Should Investors Buy MLNX Now? Find Out Here

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.

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