Mellanox Technologies, Ltd. reported unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2012. For the quarter, the company's total revenue was $122,118,000 compared to $72,689,000 in the fourth quarter of 2011. Income from operations was $23,906,000 against $5,883,000 a year ago. Income before taxes was $24,175,000 against $6,090,000 a year ago. GAAP net income was $18,442,000 or $0.41 per diluted share, compared with $4,663,000 or $0.11 per diluted share in the fourth quarter of 2011. Non-GAAP net income was $30,694,000 or $0.69 per diluted share compared with $13,083,000 or $0.31 per diluted share in the fourth quarter of 2011. Non-GAAP income from operations was $36,158,000 compared to $14,303,000 a year ago. The company generated $25.4 million in cash from operating activities in the fourth quarter of 2012 compared to approximately $74.4 million in the third quarter of 2012. Purchases of property and equipment and leasehold improvements was $9.6 million.


For the year, the company's total revenue was $500,799,000 compared to $259,251,000 reported in 2011. Income from operations was $118,308,000 against $12,593,000 a year ago. Income before taxes was $119,567,000 against $13,352,000 a year ago. GAAP net income was $111,380,000 or $2.54 per diluted share compared with $9,977,000 or $0.26 per diluted share in 2011. Non-GAAP net income was $155,676,000 or $3.60 per diluted share compared with $45,598,000 or $1.16 per diluted share in 2011. Non-GAAP income from operations was $162,604,000 compared to $48,214,000 a year ago. Net cash provided by operating activities was $182,489,000 against $61,176,000 a year ago. Purchase of property and equipment was $30,544,000 against $22,717,000 a year ago.

The company provided non-GAAP earnings guidance for the first quarter of 2013. For the quarter, the company expected revenues of $78 million to $83 million, gross margins of 67% to 68%. The company expected a sequential increase in non-GAAP operating expenses of 7% to 9%. The company estimated first quarter stock compensation expense to be between $10.5 million to $11 million. Non-GAAP diluted share count guidance for first quarter is 44.4 million to 44.9 million shares.