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Mellanox Technologies reported lower third-quarter net profit on Wednesday, falling short of analysts' expectations.

Net profit under American GAAP standards came in at $3.5 million, or 10 cents per share fully-diluted, 21.7% less than the $4.8 million a year earlier, or 14 cents per share fully-diluted. The company, a supplier of end-to-end connectivity solutions for servers and storage systems, also reports on an adjusted non-GAAP basis, eliminating items such as share-based compensation expenses.

Under these standards, net profit came in at $8.1 million, against $8.7 million a year earlier, with earnings per share at 22 cents versus 25 cents. Analysts had forecast 19 cents.

Revenues rose 15.6% to $37.8 million. This was slightly above the company's forecast of between $37 million and $37.5 million, and analysts' forecast of $37.3 million, which had been revised three months ago.

Analysts had originally projected sales of $41.4 million, but they changed their forecasts after the company's prediction that was published at the end of the second quarter. That triggered a 32.5% plunge in the company's share price.

Mellanox reported $27.9 million in gross profit for the quarter, against $24.6 million a year earlier, an increase of 13.4%. But the gross profit margin fell to 73.9% from 75.2%.

Operating expenses climbed to $23.1 million, up more than 29% from the $17.9 million the previous year. This brought pretax profit to $4.9 million, a 29% drop.

Mellanox also reported cash and short-term investments of $242.8 million at the end of the quarter. The company's net cash flow from operating activities for the quarter came to $9.3 million.