Mellanox under securities investigation
Investigation focuses on alleged "false and misleading" statements issued by Mellanox between April 19, 2012 and January 2, 2013, concerning the company’s financial performance and prospects.
Glancy Binkow & Goldberg LLP (Los Angeles) announced that it is investigating potential claims on behalf of purchasers of the common stock of Mellanox Technologies, Ltd. (NASDAQ: MLNX) concerning possible violations of federal securities laws. According to a press release, the investigation focuses on allegations that certain statements issued by Mellanox between April 19, 2012 and January 2, 2013, concerning the company’s financial performance and prospects, were false and misleading.
Related: Cabling issue costs Mellanox $20M in revenue, sends shares tumbling
The investigation is specifically related to Mellanox’s January 2, 2013 announcement lowering the company’s fourth quarter 2012 revenue guidance. Citing “a weaker demand environment, challenging macroeconomic conditions, and a technical issue associated with FDR 56Gb/s InfiniBand cabling which caused approximately $20 million of FDR deployments to be delayed,” the company revised its fourth quarter financial outlook to a range of $119 million to $121 million, sharply below the company’s previous guidance of $145 million to $150 million.
As a result of this news, the company’s stock price dropped more than 17%, or $10.46 per share, to a closing price of $50.70 per share on January 3, 2013, on heavy volume of more than 8.2 million shares traded.
Mellanox is a provider of high-performance interconnect products that facilitate efficient data transmission between servers, storage systems and communications infrastructure equipment and other embedded systems. Products include adapter, gateway and switch ICs, adapter cards, switch systems, gateway systems and software.
To learn more about the investigation's claims, contact Michael Goldberg, Esquire, of Glancy Binkow & Goldberg LLP, 1925 Century Park East, Suite 2100, Los Angeles, California 90067, by telephone at (310) 201-9150, toll free at (888) 773-9224, by e-mail to firstname.lastname@example.org, or visit the website at http://www.glancylaw.com.
See also: Data center interconnect specialist Mellanox creates U.S. federal govt subsidiary