Mellanox Technologies Shares Popped: What You Need to Know

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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of connectivity specialist Mellanox Technologies (NAS: MLNX) have popped today, gaining as much as 17%, after the company reported fourth-quarter results.

So what: Sales added up to $72.7 million, leading to $0.31 per share in profit. Both numbers look particularly tall when standing next to the consensus estimates of $71.4 million and $0.29 per share in profit.

Now what: CEO Eyal Waldman called it a "record year for Mellanox," driven by its ability to address increasing bandwidth and lower latency needs as well as "significantly" penetrating new markets. It was a record year in numerous ways, including fourth quarter revenue, operating income, net income, and operating cash flow. Full-year revenue jumped 68% to $259.3 million, also reaching uncharted territory for Mellanox.

Interested in more info on Mellanox Technologies? Add it to your watchlist byclicking here.

At the time this article was published Fool contributorEvan Niuholds no position in any company mentioned.Click hereto see his holdings and a short bio. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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