Mellanox Technologies (Nasdaq: MLNX) reported earnings yesterday. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Mellanox Technologies beat slightly on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue improved significantly, and earnings per share improved.

Gross margins shrank, operating margins contracted, net margins improved.

Revenue details
Mellanox Technologies logged revenue of $72.7 million. The 11 analysts polled by S&P Capital IQ foresaw net sales of $71.4 million. Sales were 79% higher than the prior-year quarter's $40.7 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $0.31. The 10 earnings estimates compiled by S&P Capital IQ averaged $0.29 per share on the same basis. GAAP EPS were $0.11 for Q4 against -$0.02 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 64.0%, 780 basis points worse than the prior-year quarter. Operating margin was 8.1%, 110 basis points worse than the prior-year quarter. Net margin was 6.4%, 770 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $72.6 million. On the bottom line, the average EPS estimate is $0.29.

Next year's average estimate for revenue is $314.2 million. The average EPS estimate is $1.40.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 140 members out of 153 rating the stock outperform, and 13 members rating it underperform. Among 50 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 45 give Mellanox Technologies a green thumbs-up, and five give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Mellanox Technologies is outperform, with an average price target of $36.63.

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