Mellanox Reports Earnings

SANTA CLARA, Calif. -- Mellanox(tm) Technologies, Ltd. (NASDAQ:MLNX), a leading supplier of semiconductor-based, high-performance interconnect products, today announced record financial results for its fourth quarter and year ended Dec. 31, 2006.

In accordance with U.S. generally accepted accounting principles (GAAP), the company recorded record revenue in the fourth quarter of $15.8 million, up18 percent from $13.4 million in the third quarter of 2006 and up 30 percent from $12.2 million in the fourth quarter of 2005. For the year ended Dec.31, 2006, revenue was $48.5 million, and represented an increase of 15 percent from $42.1 million in 2005.

Gross margins in the fourth quarter were 75 percent, compared with 73 percent in the third quarter of 2006 and 68 percent in the fourth quarter of 2005. GAAP operating income increased to 23 percent of revenue from 22 percent in the third quarter of 2006 and from 11 percent of revenue in the fourth quarter of 2005.

Mellanox Technologies Ltd.