Mellanox Technologies, Ltd. reported unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2013. In accordance with U.S. generally accepted accounting principles (GAAP), the company reported total revenue of $105.5 million for the fourth quarter, up 1.4% from $104.1 million in the third quarter of 2013, and down 13.6% from $122.1 million in the fourth quarter of 2012. GAAP net loss in the fourth quarter of 2013 was $7.3 million, or $0.17 per diluted share, compared with GAAP net loss of $5.4 million, or $0.12 per diluted share in the third quarter of 2013 and net income of $18.4 million or $0.41 per diluted share in the fourth quarter of 2012. Non-GAAP net income in the fourth quarter of 2013 was $9.7 million, or $0.21 per diluted share, compared with $13.1 million, or $0.29 per diluted share in the third quarter of 2013, and $30.7 million, or $0.69 per diluted share in the fourth quarter of 2012. $30.7 million in cash was provided by operating activities during the fourth quarter. GAAP operating loss was $7.9 million in the fourth quarter, and $20.3 million in fiscal year 2013. Non-GAAP operating income was $9.1 million in the fourth quarter, and $43.4 million in fiscal year 2013. Loss before taxes was $7.591 million against income of $24.175 million a year ago. Loss from operations was $7.892 million against income of $23.906 million a year ago.

For the year ended December 31, 2013, total Revenue was $390.9 million, a decrease of 22.0% from revenue of $500.8 million reported in 2012. GAAP net loss in 2013 was $22.9 million, or $0.53 per diluted share, compared to $111.4 million of GAAP net income, or $2.54 per diluted share in 2012. Non-GAAP net income in 2013 was $40.9 million, or $0.90 per diluted share, compared to $155.7 million or $3.60 per diluted share in 2012. Loss from operations was $20.337 million against income of $118.308 million a year ago. Loss before taxes was $19.109 million against income of $119.567 million a year ago. Net cash provided by operating activities was $52.002 million against $182.489 million a year ago. Purchase of property and equipment was $30.911 million against $30.544 million a year ago.

The company currently expects first quarter 2014 non-GAAP results to be as follows: quarterly revenues of $100 million to $105 million and gross margins of 67.5% to 68.5%.

The company expects 2014 annual revenues to increase over 2013.