Mellanox Upgrades Outlook Following Record Quarterly Revenues

Nasdaq-listed Israeli chipmaker Mellanox Technologies Ltd. has achieved record revenues for the second quarter of 2018 and raised its outlook for the entire year, the company announced Monday.

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In June, Mellanox's board settled its differences with activist investor Starboard Value LP, which has been aggressively pushing for far-reaching operational and management changes in the company since it has acquired a 10.7% stake in November.

Mellanox reported revenues of $268.5 million for the quarter, the company announced Tuesday, a 26.7% increase year-over-year and higher than the $263.3 million analysts predicted for the quarter. The company also reported a non-GAAP net income of $1.25 per diluted share (GAAP of $0.30), compared to $0.44 in the second quarter of 2017 (GAAP net loss per diluted share of $0.16), and higher than the $1.09 predicted for the quarter.

Mellanox has raised its outlook for 2018, forecasting annual revenues of $1.065 billion to $1.085 billion, compared to the previous forecast of $1.05 billion to $1.07 billion.

Mellanox is currently trending up in after-hours trading.