Mellanox Technologies, Ltd. (NASDAQ:MLNX) Q4 2018 Earnings Conference Call - Final Transcript

Jan 30, 2019 • 05:00 pm ET

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Mellanox Technologies, Ltd. (NASDAQ:MLNX) Q4 2018 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good afternoon, and welcome to the Mellanox Technologies Fourth Quarter and Fiscal Year 2018 Financial Results Conference Call. At this time, all participants have been placed in a listen-only mode and the floor will be open for your questions following the prepared remarks. As a reminder, this call is being recorded.

And now, I would like to turn the conference over to Shanye from Mellanox Investor Relations. Please go ahead.

Executive
Shanye Hudson

Thanks, Alice. Good afternoon, and welcome to Mellanox Technologies fourth quarter 2018 conference call. Joining me on the call today are Eyal Waldman, President and Chief Executive Officer; and Doug Ahrens, our recently appointed Chief Financial Officer. By now you've seen our press release and associated financial information that we furnished to the SEC on Form 8-K earlier this afternoon. If not, you may access them on our website at ir.mellanox.com.

As a reminder, today's discussion includes predictions, expectations, estimates and other information, all of which we consider to be forward-looking statements. Throughout today's discussion we present important factors relating to our business that may potentially affect these forward-looking statements. These forward-looking statements are also subject to risks and uncertainties that may cause actual results to differ materially from statements being made today.

As a result, we caution you against placing undue reliance on these forward-looking statements. We encourage you to review our most recent SEC reports, including our 10-K and 10-Q for a complete discussion of these factors and other risks that may affect our future results or the market price of our ordinary shares. Finally, we are not obligated to revise our results or publicly release any revisions to these forward-looking statements in light of new information or future events.

Now I would like to turn the call over to Eyal for his opening remarks. Eyal?

Executive
Eyal Waldman

Thank you, Shanye. Good afternoon, everyone and thank you for joining us for our fourth quarter 2018 earnings call. Let me begin by introducing Doug Ahrens, who joined Mellanox at the beginning of the year as Senior Vice President and Chief Financial Officer.

Most recently Doug was CFO of GlobalLogic, an international software development company. He also brings over 20 years of financial and strategic experience across multiple large semiconductor companies including Intel, Maxim Integrated and AppliedMicro, where he served as their CFO. His depth of experience make him well suited for his role and we believe that Doug will further strengthen our leadership team and we're excited to have him on board.

I'll now provide an overview of our performance and business trends before turning the call over to Doug to share details of our Q4 financial results and outlook for the Q1 of 2019. We had an outstanding financial result in fiscal '18, increasing top-line revenue by 26%, while holding operating expenses flat, even with the successful completion of three new 60-nanometer product tape outs. Additionally, I am pleased to report that we have met or exceeded all of the financial targets we set at the beginning of both periods.

Fourth