Apr. 22, 2014, 2:28 PM
- The ITC has issued a final ruling clearing Mellanox's (MLNX +4.2%) optical cables and VCSEL laser drivers of infringing an Avago (AVGO +2.8%) laser driver patents. An administrative law judge (ALJ) had ruled in Mellanox's favor in January.
- At the same time, the ITC has upheld an ALJ ruling declaring Mellanox infringes another Avago VCSEL-related patent, and has issued cease-and-desist orders related to covered products (supplied to Mellanox by third parties).
- Mellanox insists the latter ruling won't affect its ability to supply optical cables, or otherwise affect its product line.
- Mellanox and Avago are both rallying on a good day for tech stocks. Mellanox's Q1 report is due on Thursday.
Mar. 12, 2014, 9:36 AM
Mar. 11, 2014, 6:46 PM
- Intel's (INTC) new MXC server interconnect cables leverage the chip giant's silicon photonics tech and optical fibers developed by Corning (GLW) to enable 1.6Tbps transfer speeds (800Gbps each way) via 64 fibers running at 25Gbps apiece. Traditional solutions work at 10Gbps, and max out at 12-24 fibers.
- Corning plans to begin selling MXC cable assemblies, which have a range of 300 meters, in Q3. Intel asserts the technology's per-fiber throughput could eventually double to 50Gbps. The companies think supercomputer (HPC) vendors and cloud computing firms will be among the first buyers.
- Over time, MXC's blistering speeds stand to further Intel's goal of creating server architectures in which CPU, memory, storage, networking, and other resources can be separately pooled and upgraded as needed. "The ability to take my memory and stash it a rack away, optical can enable that," says Intel exec Mario Paniccia.
- Intel's efforts pose a challenge to optical component vendor Finisar (FNSR), whose shares sold off a year ago on worries about Intel and Cisco's silicon photonics efforts. They're also a challenge to high-speed interconnect leader Mellanox (MLNX), which last year acquired silicon photonics startup Kotura and 100G interconnect developer IPtronics. Since then, Mellanox has said it will ship 100G silicon photonics products in late 2014 or early 2015.
Jan. 30, 2014, 3:58 PM
- In addition to missing Q4 revenue estimates (while beating on EPS), Mellanox (MLNX -5.1%) guided on its CC (transcript) for Q1 revenue of $100M-$105M, below a $112.4M consensus.
- The maker of InfiniBand/Ethernet switches and adapter cards also said it expects its 2014 revenue to rise Y/Y, but analysts are already forecasting 28% growth.
- When pressed by a Stifel analyst regarding the Q1 guidance, CEO Eyal Waldman mentioned "a large portion" of Mellanox customers in the high-performance computing (HPC) space (responsible for half of its revenue) are waiting for the launch of Intel's Grantley server CPUs (expected in Q3).
- It looks as if Barclays' pre-earnings take was more accurate than Stifel's.
Jan. 29, 2014, 4:43 PM
Jan. 29, 2014, 12:10 AM| Jan. 29, 2014, 12:10 AM | 5 Comments
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Jan. 27, 2014, 4:26 PM
- Stifel (Buy) thinks Mellanox (MLNX +3.7%) will post Q4 revenue at the high end of its guidance range. The company guided on its Q3 CC (transcript) for Q4 revenue of $105M-$110M (consensus is at $107.9M).
- Shares fell hard on Friday following a downgrade to Underweight from Barclays. Q4 results arrive on Wednesday.
Jan. 24, 2014, 9:45 AM
- SAP (SAP -1.5%) has been cut to Hold by Argus and Berenberg. The software giant posted mixed Q4 results and offered cautious guidance earlier this week.
- Mellanox (MLNX -5.9%) has been cut to Underweight by Barclays ahead of Wednesday's Q4 report.
- Angie's List (ANGI +0.2%) has been upgraded to Buy by B. Riley. Q4 results arrive on Feb. 12.
- FireEye (FEYE -4.7%) has been cut to Equal Weight by Barclays following a massive run-up in the wake of the Mandiant deal.
- Fairchild (FCS -4.6%) has been cut to Underperform by BofA/Merrill a day after delivering mixed Q4 results and forecasting a Q1 gross margin decline. Deutsche cut shares to Hold yesterday.
Jan. 24, 2014, 9:10 AM
Jan. 14, 2014, 9:47 AM
- Intel (INTC +2.2%) has been upgraded to Overweight by JPMorgan ahead of Thursday's Q4 report.
- Facebook (FB +1.1%) and Yelp (YELP +1.7%) have been started at Outperform by FBN as part of an Internet sector coverage launch. Facebook reports on Jan. 29.
- Nokia (NOK -1.1%) has been cut to Underperform by Raymond James. Q4 results arrive on Jan. 23.
- Juniper (JNPR -0.6%) has been upgraded to Outperform by Oppenheimer a day after Elliott Management disclosed a 6.2% stake and called for big changes.
- SAP (SAP -0.7%) has been cut to Underweight by Santander four days after releasing preliminary Q4 results. Pac Crest downgraded shares yesterday, albeit to little effect.
- Brocade (BRCD +2.5%) and VeriFone (PAY +4%) have been upgraded to Overweight by JPMorgan.
- Jabil (JBL +5.1%) has been upgraded to Conviction Buy by Goldman. Shares cratered last month after the company provided disappointing guidance.
- ON Semi (ONNN +2.2%) has been upgraded to Outperform by Credit Suisse.
- Logitech (LOGI +2.8%) has been upgraded to Buy by Goldman.
- ChannelAdvisor (ECOM -5.5%) and Demandware (DWRE -2.1%) have been cut to Neutral by Goldman. Though offering different products/services, both companies cater to e-commerce firms.
- TripAdvisor (TRIP -2%) has been cut to Hold by Wunderlich.
- Mellanox (MLNX +3.5%) has been started at Outperform by Macquarie.
Dec. 19, 2013, 2:15 PM
- A number of enterprise IT hardware names are moving higher on a slightly down day for the Nasdaq after Oracle provided better-than-expected numbers for its long-struggling hardware unit.
- After falling 14% Y/Y in the August quarter and badly missing estimates,, Oracle's hardware product sales only fell 3% in the November quarter, a decline that's favorable to a guidance midpoint of -6%. In addition, Oracle has set an FQ3 guidance range for the business of -2% to +8%.
- H-P (HPQ +2.4%), EMC (EMC +1.7%), NetApp (NTAP +1.3%), SGI (SGI +2.1%), Cray (CRAY +1.5%), Fusion-io (FIO +1.9%), and newly-public Nimble Storage (NMBL +1.8%) are among the companies rallying.
- Mellanox (MLNX +5.5%), which supplies InfiniBand hardware for Oracle's engineered systems (now 30% of hardware product revenue), is up sharply.
Dec. 9, 2013, 9:49 AM
- 3D Systems (DDD +1.8%) has been started at Outperform by Pac Crest.
- Mellanox (MLNX +4.2%) has been upgraded to Buy by Maxim. Jefferies started shares at Hold on Friday.
- Chegg (CHGG -3%) has received five bullish ratings, and one neutral rating, on underwriter coverage day.
- Ceragon (CRNT +8.3%) has been started at Strong Buy by Needham.
Dec. 6, 2013, 11:41 AM
- Jefferies' James Kisner has started Mellanox (MLNX +3%) with a Hold and $40 PT.
- Kisner predicts adoption of Mellanox's "superior" InfiniBand interconnect tech will continue growing thanks to rising penetration of Web/cloud services and HPC/big data deployments (both place a premium on fast I/O transfer speeds). But he also thinks Mellanox's valuation assumes a 2014 revenue ramp "that is not riskless."
- Following a difficult 2013 (sales are expected to be down 21% Y/Y), Mellanox is expected to post 27% 2014 revenue growth. The company's shares, pressured by concerns about Intel's planned 2014 launch of Xeon server CPUs with built-in I/O connectivity, currently trade at 19x and 2014E EPS and 2.9x 2014E sales, after backing out net cash/investments.
Nov. 18, 2013, 10:38 AM
- Nvidia (NVDA) has unveiled the Tesla K40, a server/HPC GPU it claims is 40% more powerful than its predecessor (the Tesla K20X) and the first product of its kind optimized for big data/analytics and large-scale scientific use cases.
- The K40, which competes against AMD's FirePro and Intel's Xeon Phi lines, comes with 12GB of memory and 2,880 GPU cores, as well as Nvidia's GPU Boost tech.
- In tandem with the K40 launch, Nvidia has announced a partnership with IBM to develop "GPU-accelerated versions" of IBM apps running on Big Blue's high-end Power systems (they rely on IBM's Power CPUs). Nvidia's CUDA programming model (allows apps to be optimized for Nvidia GPUs) will be leveraged, as will IBM's Rational software development tools.
- IBM has been getting creative in its efforts to grow Power-related sales in the face of plunging demand for traditional UNIX Power servers. Three months ago, IBM announced it would license the Power architecture and related technologies to spur broader adoption, particularly among Web/cloud companies; Nvidia was one of the launch partners. More recently, the company opened up its Power-based Watson A.I. computing platform to 3rd-party developers.
- Nvidia has also announced SGI, Cray, and other server vendors will offer the K40, and that the Tesla GPUs will work with Mellanox's (MLNX +1.9%) InfiniBand adapters (often used in HPC applications).
- Nvidia's Tesla GPU sales have been growing quickly, helping offset PC and Tegra weakness. The chipmaker has also been targeting the server GPU space with its Grid GPUs (meant for cloud gaming and PC virtualization apps).
- Previous: Nvidia hit by Morgan Stanley downgrade
Nov. 15, 2013, 12:07 PM
- Mellanox (MLNX +11.1%) director Dov Baharav discloses he bought 57.7K shares on Tuesday at a price of $34.64.
- The maker of InfiniBand and high-speed Ethernet switches and adapter cards remains down 34% YTD, and 67% from its Aug. '12 highs. Shares have been pressured this year by server industry weakness, slowing growth for top customer Oracle's engineered systems, and concerns about Intel's plans to launch server CPUs in 2014 that feature built-in I/O connectivity.
Mellanox Technologies Ltd designs, manufactures and sells interconnect products and solutions that facilitate data transmission between servers, storage systems and communications infrastructure equipment and other embedded systems.
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