Saxena White P.A. Files Securities Fraud Class Action Against Mellanox Technologies Ltd.

Saxena White P.A. Files Securities Fraud Class Action Against Mellanox 
Technologies Ltd. 
BOCA RATON, FL -- (Marketwire) -- 02/22/13 --  Saxena White P.A. has
filed a securities fraud class action lawsuit in the United States
District Court for the Southern District of New York against Mellanox
Technologies Ltd. ("Mellanox" or the "Company") (NASDAQ: MLNX) on
behalf of investors who purchased or otherwise acquired the common
stock of the Company during the period from April 19, 2012 through
January 2, 2013 (the "Class Period"). The complaint brings forth
claims for violations of the Securities Exchange Act of 1934. 
Mellanox is a fabless semiconductor company that produces and
supplies interconnect products for computing, storage, and
communication applications in the computing, Web 2.0, storage,
financial services, database, and cloud markets. Mellanox's most
lucrative product offering at the start of the Class Period was its
InfiniBand product. InfiniBand technology is used to transfer and
store data in high-end computing and data centers. 
The complaint alleges that during the Class Period, defendants issued
materially false and misleading statements regarding the Company's
financial performance and future prospects. According to the
complaint, the true facts, which were known or recklessly disregarded
by each of the defendants but concealed from the investing public
during the Class Period, were as follows:  
(i) Mellanox was receiving a continuous stream of customer complaints
concerning glitches in its InfiniBand product;  
(ii) Mellanox knew that the pace of a competitor's development of its
own InfiniBand adaptor would diminish Mellanox's product offering and
increase competition in the InfiniBand market in which Mellanox
enjoyed a near monopoly; Mellanox knew that its outsized first and
second quarter 2012 sales growth was not sustainable and was not the
result of defendants' business acumen or growth in the InfiniBand
market;  
(iii) Mellanox's inventory was dramatically increasing, both at the
Company and in the hands of at least one significant customer, which
would decrease sales and profit margins going forward; and  
(iv) as a result, Mellanox knew its actual sales growth supported
neither its own fourth quarter 2012 guidance nor the inflated share
price targets the investment community was modeling based on
defendants' bullish Class Period statements and guidance.  
According to the complaint, through a series of partial disclosures
made between September 7, 2012 and January 3, 2013, the market
learned that the Company's business was not as defendants had
portrayed it throughout the Class Period. On September 7, 2012,
Mellanox shares were downgraded from Buy to Hold. Then on October 18,
2012, Mellanox reported third quarter 2012 financial results and
issued lower than expected fourth quarter 2012 fiscal guidance.
Finally, at the end of the day on January 2, 2013, defendants were
forced to concede that Mellanox had grossly missed its fourth quarter
2012 revenue guidance by upwards of 20%. This news, along with the
earlier negative announcements, shocked the market causing the price
of Mellanox stock to fall precipitously, on unusually high trading
volume. 
You may obtain a copy of the complaint and join the class action at
www.saxenawhite.com. If you purchased Mellanox stock between April
19, 2012 and January 2, 2013, inclusive, you may contact Joe White or
Marc Grobler at Saxena White P.A. to discuss your rights and
interests. 
If you purchased Mellanox common stock during the Class Period of
April 19, 2012 through January 2, 2013, inclusive, and wish to apply
to be the lead plaintiff in this action, a motion on your behalf must
be filed with the Court no later than April 8, 2013. You may contact
Saxena White P.A. to discuss your rights regarding the appointment of
lead plaintiff and your interest in the class action. Please note
that you may also retain counsel of your choice and need not take any
action at this time to be a class member. 
Saxena White P.A., located in Boca Raton, specializes in prosecuting
securities fraud and complex class actions on behalf of institutions
and individuals. Currently serving as lead counsel in numerous
securities fraud class actions nationwide, the firm has recovered
hundreds of millions of dollars on behalf of injured investors and is
active in major litigation pending in federal and state courts
throughout the United States. 
Joseph E. White, III
jwhite@saxenawhite.com 
Marc Grobler
mgrobler@saxenawhite.com 
Saxena White P.A.
2424 North Federal Highway, Suite 257
Boca Raton, FL 33431
Tel: (561) 394-3399
Fax: (561) 394-3382
www.saxenawhite.com 
 
 
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