Shares of Mellanox Technologies (NASDAQ:MLNX) have gotten crushed today, down by 12% as of 12 p.m. EDT, after the company reported first-quarter earnings that fell short of analyst expectations.
Revenue in the first quarter came in at $188.7 million, which translated into non-GAAP net income of $14.7 million, or $0.29 per share. Those results don't stack up favorably compared to the consensus estimates of $204.7 million in sales with an adjusted profit of $0.49 per share. The company attributed InfiniBand revenue shortfalls to "delays in the general availability of next generation x86 CPUs," referring to new server processors from Intel. Mellanox also cited "seasonal trends" and "technology transitions" as contributing to the weakness.
Despite the troubles, CEO Eyal Waldman said he expects "2017 to be a growth year for Mellanox." On the conference call, Waldman added that while Mellanox is disappointed in the results, the company expects to see sequential growth in coming quarters and Mellanox continues to score design wins that will begin shipping later this year and into 2018. Guidance for the second quarter left a little to be desired, however. Second-quarter revenue is expected in the range of $205 million to $215 million, while the Street was modeling for $223 million.