Mellanox Technologies, Ltd. (MLNX) - NASDAQ
  • Jul. 15, 2015, 5:19 PM
    • Intel (up 2.4% AH) beat Q2 estimates and provided better-than-expected Q3 and full-year guidance. The chip giant reported a 14% Y/Y drop in PC/mobile CPU division sales, and a 10% increase in server CPU division sales.
    • Various names with PC and/or server exposure are following Intel higher. HP (NYSE:HPQ) +1.2% AH. Micron (NASDAQ:MU) +2.2%. AMD +2%. Nvidia (NASDAQ:NVDA) +1.3%. Mellanox (NASDAQ:MLNX) +1%.
    • Micron fell 3.7% in regular trading, after having surged yesterday on a WSJ report about a buyout offer from China's Tsinghua Unigroup. John McCain let it be known today he isn't thrilled with the idea of a Chinese company acquiring "the last major American manufacturer of memory chips."
    • AMD is 9 days removed from plunging on account of a Q2 warning. The Intel rival's Q2 report arrives tomorrow.
    | Jul. 15, 2015, 5:19 PM | 13 Comments
  • Jul. 9, 2015, 10:04 AM
    • InfiniBand/Ethernet server connectivity hardware and chip developer Mellanox (NASDAQ:MLNX) and Fibre Channel/Ethernet switch vendor Brocade (NASDAQ:BRCD) are selling off after QLogic (down 20.9%) issued a major FQ1 (June quarter) warning.
    • QLogic blamed weak enterprise server/storage demand and an OEM inventory buildup caused by "a slower next-generation server transition in enterprise environments." The latter is an apparent reference to Intel's Grantley Xeon server CPU platform, which has acted as a tailwind for Mellanox.
    • Mellanox reports on July 22. Given its historical reporting, Brocade should report next month.
    | Jul. 9, 2015, 10:04 AM | 1 Comment
  • Jun. 16, 2015, 5:38 PM
    | Jun. 16, 2015, 5:38 PM
  • Jun. 16, 2015, 11:53 AM
    • ZTE plans to use EZchip's (NASDAQ:EZCH) NPS-400 network processor in its next-gen carrier router line cards. The NPS-400, which succeeds the current-gen NP-5, delivers up to 480Gbps of throughput (twice the NP-5's), and is set to begin sampling in 2H15.
    • ZTE accounted for 8% of EZchip's Q1 sales, trailing only Cisco's 35%. EZchip tumbled last month after using its Q1 report to announce Cisco is expected to use an proprietary ASIC in its next-gen edge router line cards in lieu of the NPS-400. The company is still hoping to sell Cisco on the NPS-1000, a future processor expected to provide 1Tbps of throughput.
    | Jun. 16, 2015, 11:53 AM
  • May 28, 2015, 1:34 PM
    • In a presentation (.pdf) discussing their planned merger, Avago (AVGO -0.4%) and Broadcom (BRCM -2.6%) state they're aiming for a 40% long-term op. margin, up from the 30% collectively possessed by the companies today. Gross margin is forecast to rise to 60% from a current 57%, and R&D and SG&A spend respectively fall to 16% and 4% of revenue from 20% and 7%.
    • Avago and Broadcom, who have $15.1B in revenue between them, are only forecasting a 5% long-term revenue CAGR. However, Avago CEO Hock Tan states the outlook is "probably conservative."
    • Avago plans to partly finance the $17B cash portion of the deal via $9B worth of new debt. The post-merger company is expected to have $15.5B in debt and $1.3B in cash; Broadcom shareholders will have a 32% stake. The deal is expected to close in Q1 2016.
    • Many potential product synergies exist. Among the possibilities: Wi-Fi/Bluetooth solutions that pair Broadcom's combo chips with Avago RF components; server/storage connectivity product lines featuring a mixture of Broadcom's Ethernet transceivers and switching chips and Avago's adapter cards and optical transceivers - Stifel thinks Mellanox (MLNX -0.3%) could be at risk here - and telecom equipment product lines that combine Broadcom's network processors and switching chips with Avago's optical components.
    • Meanwhile, in its FQ2 report (issued in tandem with the merger announcement), Avago has guided for FQ3 revenue of $1.74B (+/- $25M), above a $1.68B consensus. The company reported a 66% Y/Y increase in FQ2 wireless chip revenue (aided by strong Apple/Samsung demand), along with 74% and 64% increases in wired infrastructure and industrial/other revenue (lifted by both organic growth and M&A).
    | May 28, 2015, 1:34 PM
  • May 26, 2015, 11:30 AM
    • Mehdi Asgahri has been named Mellanox's (MLNX -1.1%) VP of silicon photonics, Eyal Babish its VP of hardware, Ronnen Lovinger its VP of operations and corporate quality, Alon Webman its VP of silicon engineering, and Henning Lysdal is VP of active interconnect engineering. Save for Lysdal, who will be reporting to Webman, all of the execs will be reporting to CEO Eyal Waldman.
    • Together with the pending departures of COO Shai Cohen and engineering SVP Roni Ashuri (announced in April), the appointments give Waldman more direct oversight of Mellanox's R&D and business operations.
    | May 26, 2015, 11:30 AM
  • May 13, 2015, 12:07 PM
    • EZchip (NASDAQ:EZCH) has guided on its Q1 CC (prepared remarks - .pdf) for Q2 revenue of $27.5M-$28.5, in-line with a $28.3M consensus. Gross margin is expected to be around 75% - it was at 74% in Q1, down from 81.7% a year ago thanks to the Tilera acquisition.
    • The company also tried hard to argue it can offset Cisco's decision not to use EZchip's NPS-400 NPU in its next-gen edge router line cards with various NPS-400 design wins from carriers, networking hardware vendors, and (Internet) data center owners. Tilera's TILE-Mx processors (support up to 100 ARM cores, aimed at data centers) were also cited as a future growth driver.
    • Cisco accounted for 35% of EZchip's Q1 revenue, and ZTE 8%; Cisco sales are expected to grow in 2015 as NP-5 shipments ramp. The NPS processor line is expected to start producing revenue "as early as 2016," and the TILE-Mx line in 2017.
    • Shares remain down sharply, but have slightly pared their premarket losses.
    | May 13, 2015, 12:07 PM
  • May 13, 2015, 9:26 AM
    • EZchip (NASDAQ:EZCH) uses its Q1 report to state its largest customer (i.e. Cisco) doesn't currently plan to use EZchip's NPS-400 network processor (NPU) in its next-gen edge router line cards.
    • The company adds Cisco (NASDAQ:CSCO) recently began using EZchip's NP-5 NPU (entered production in late 2014), that it doesn't think "a next generation successor for the NP-5 is likely to ship for approximately three years," and that the NP-5 is expected to "continue generating revenues at this customer for several more years beyond this three year period."
    • Concerns that Cisco could drop EZchip in favor of an in-house NPU have been around since the networking giant unveiled its nPower X1 NPU in Sep. 2013. At the time, EZchip said it believes Cisco hasn't made a decision on which processor will succeed the NP-5.
    • Today,  EZchip says it believes Cisco's next-gen edge router line cards will require more throughput than is provided by the NPS-400 (480 Gbps), and that Cisco is "currently developing such a solution in-house." EZchip, for its part, is working on an NPS-400 successor (the 1Tbps NPS-1000) that it hopes to sell Cisco on. The NPS-400 begins sampling in 2H15, and is being considered for other platforms at Cisco (as well as other clients).
    • EZchip has tumbled to $14.28 in premarket trading.
    • Q1 results, PR
    | May 13, 2015, 9:26 AM | 3 Comments
  • May 13, 2015, 9:15 AM
    | May 13, 2015, 9:15 AM | 1 Comment
  • May 13, 2015, 8:14 AM
    • EZchip Semiconductor (NASDAQ:EZCH): Q1 EPS of $0.24 beats by $0.01.
    • Revenue of $26.9M (+32.6% Y/Y) beats by $0.4M.
    | May 13, 2015, 8:14 AM
  • May 12, 2015, 5:30 PM
    | May 12, 2015, 5:30 PM | 1 Comment
  • Apr. 21, 2015, 9:36 AM
    • In tandem with its Q1 report, Mellanox (MLNX +1.2%) announces COO Shai Cohen and engineering SVP Roni Ashuri (both co-founders) "have indicated their intentions to retire to spend more time with their families." They'll remain with the company into Q4 to ensure an orderly transition.
    • Q2 guidance is for revenue of $155M-$160M, soundly above a $149.3M consensus. Strong numbers were expected after Intel reported 19% Y/Y server CPU division growth last week on the back of strong Grantley Xeon CPU sales and demand from cloud/telco clients (Mellanox rallied in response).
    • Discussing Q1, Mellanox notes the 40G Ethernet transition at major customers helped drive its top-line growth, and since its overall Ethernet share grew. The company's mainstay InfiniBand offerings say 46% Y/Y growth.
    • Perhaps looking to counter fears of Intel competition, CEO Eyal Waldman asserts Mellanox is "the only company shipping full end-to-end 100 Gigabit [Ethernet and InfiniBand] solutions," that its 100G offerings deliver superior performance, and that its 40G Ethernet switches "were found to have zero packet loss and lower latency compared with competitive products."
    • Contributing to the EPS beat: Gross margin rose to 73.4% from 72.3% in Q4 and 68.8% a year ago; Q2 GM guidance is at 71%-72%. Operating expenses (non-GAAP) rose 23% Y/Y to $77.4M (compares with 48% rev. growth). Mellanox ended Q1 with $432.7M in cash/investments, and no debt (compares with a $2.2B market cap).
    • Q1 results, PR
    | Apr. 21, 2015, 9:36 AM
  • Apr. 21, 2015, 7:06 AM
    • Mellanox Technologies (NASDAQ:MLNX): Q1 EPS of $0.60 beats by $0.12.
    • Revenue of $146.7M (+48.6% Y/Y) beats by $4.04M.
    • Shares +2.5% PM.
    | Apr. 21, 2015, 7:06 AM
  • Apr. 20, 2015, 5:30 PM
    | Apr. 20, 2015, 5:30 PM | 3 Comments
  • Apr. 15, 2015, 2:32 PM
    • InfiniBand and Ethernet adapter/switch/controller vendor Mellanox (MLNX +4.8%) is up strongly after Intel reported 19% Y/Y server CPU division growth. Fibre Channel and Ethernet adapter/switch/controller vendor QLogic (QLGC +2.4%) is also having a good day.
    • On its CC (transcript), Intel (NASDAQ:INTC) stated its Grantley Xeon E5 CPUs (launched last September, used in HPC deployments featuring Mellanox hardware) now account for over half of its 2-socket server CPU volume. Not surprisingly, the company also reported seeing strong cloud and telco server CPU demand.
    • Mellanox reports on April 21. QLogic hasn't set a calendar Q1 earnings date yet.
    | Apr. 15, 2015, 2:32 PM
  • Mar. 23, 2015, 9:12 AM
    • EZchip's (NASDAQ:EZCH) buyback is good for repurchasing 3.3% of shares at current levels. It arrives after shares closed on Friday just $1.29 above a 52-week low of $18.19.
    • The network processor vendor had $185.8M in cash (equal to 31% of its market cap) to pay for buybacks with at the end of 2014, and no debt.
    • EZCH +1.5% premarket to $19.78.
    | Mar. 23, 2015, 9:12 AM
Company Description
Mellanox Technologies Ltd. engages in the provision of semiconductor-based interconnect products that facilitate data transmission between servers, storage systems, communications infrastructure equipment, and other embedded systems. Its products include adapters, gateways, switches, integrated... More
Sector: Technology
Industry: Semiconductor - Broad Line
Country: United States