Thu, Oct. 8, 8:35 PM
- 11 months after announcing it plans to enter the ARM server CPU market, Qualcomm (NASDAQ:QCOM) says it has begun sampling to "tier-1 data centers" (possibilities include Amazon, Google, and Facebook) a development platform featuring a pre-production version of a 24-core CPU.
- Details are limited for now, though Qualcomm does state it's using custom ARM cores, as it does for many Snapdragon mobile processors. It also promises an upcoming server CPU "will be competitive in performance and price with current and future Intel (NASDAQ:INTC) chips," and that it will arrive "sooner rather than later" (no specific ETA is provided).
- AppliedMicro (NASDAQ:AMCC) and Cavium (NASDAQ:CAVM) are early leaders in the budding market for ARM server CPUs. Others in the space include AMD, Texas Instruments, and Marvell. Various Web/cloud service providers have shown interest in deploying the chips. But for now, they generally continue buying Intel Xeon CPUs by the thousands.
- Also: Qualcomm is partnering with FPGA vendor Xilinx (NASDAQ:XLNX) to create systems that pair Qualcomm server CPUs with Xilinx FPGAs to provide workload acceleration. Intel is doing something similar with Xilinx archrival Altera, which it's in the process of acquiring.
- A partnership has also been formed with InfiniBand/Ethernet connectivity hardware and chip developer Mellanox (NASDAQ:MLNX). Mellanox's 10-100G InfiniBand and Ethernet gear will be optimized for Qualcomm's CPUs.
Thu, Oct. 1, 9:16 AM
- Mellanox (NASDAQ:MLNX) now expects Q3 revenue of $169M-$171M, improved from a prior $165M-$170M and above a $167.8M consensus.
- Gross margin is expected to be "at the mid-point or better" relative to prior guidance; operating expenses are expected to be "toward the high end" of prior guidance. Full Q3 results arrive on Oct. 21.
- Shares have risen to $38.91 premarket. They fell 5% yesterday after the EZchip deal was announced. Summit Research had voiced concerns about the fact guidance wasn't reiterated during the conference call held to discuss the deal.
Wed, Sep. 30, 10:25 AM
- Mellanox (MLNX -7.3%) has sold off after announcing it's buying network processor (NPU) vendor and Israeli tech peer EZchip (EZCH +14.3%) for $811M in cash. Meanwhile, telecom/data center chipmakers Cavium (CAVM +3.5%), AppliedMicro (AMCC +4.1%), and PMC-Sierra (PMCS +7.9%) are rallying amid a 2% Nasdaq gain - each company's product line includes (but is by no means limited to) NPUs.
- Whereas Mellanox is focused on high-speed data center connectivity hardware (e.g. adapter cards, switches, switching and adapter ICs), EZchip still gets the majority of its revenue from NPUs going into edge routers and other telecom hardware. However, the company has been trying to expand its data center footprint, via its new NPS processor line (supports deeper packet analysis) and its Tilera unit (acquired in 2014, set to launch a processor supporting 100 ARM cores).
- Mellanox asserts EZchip's "products and expertise in security, deep packet inspection, video, and storage processing" will help it "deliver complete end-to-end, intelligent 10, 25, 40, 50, and 100Gb/s interconnect and processing solutions for advanced data center and [telecom] edge platforms." The purchase price is equal to 5.9x EZchip's 2016 sales consensus; Mellanox trades for just 2.3x 2016E sales.
- Update: Summit Research's Srini Nandury thinks Mellanox's selloff stems from the company's failure to reiterate Q3 guidance during today's conference call, in spite of repeatedly being asked by analysts to do so.
Wed, Sep. 30, 7:51 AM
- The price works out to $25.50 per share in cash for EZchip (NASDAQ:EZCH) versus last night's close of $21.99.
- "We expect our combined technologies, and product portfolios to deliver leading end-to-end intelligent interconnect and processing solutions to data centers and wide area networks," says Mellanox (NASDAQ:MLNX) CEO Eyal Waldman.
- The deal is expected to close in Q1.
- A conference call is set for 8:30 ET.
- Source: Press Release
Wed, Sep. 2, 3:07 PM
- Press Release: "Mellanox® Technologies (MLNX +0.4%) ... today announced it is now shipping Spectrum, the industry's first 10, 25, 40, 50 and 100 Gigabit Ethernet, Open Ethernet-based switch, to multiple cloud, Web 2.0 and enterprise data center customers world-wide. The shipment of Spectrum, combined with Mellanoxs ConnectX®-4 [network interface cards], and LinkX" fiber and copper cables, makes Mellanox the first to deliver comprehensive end-to-end 10, 25, 40, 50 and 100 Gigabit Ethernet data center connectivity solutions."
- Editor's note: The Spectrum switch represents an attempt by Mellanox, still better-known to many for its InfiniBand offerings, to grow sales to cloud service providers and enterprises relying on high-speed Ethernet server connectivity. Notably, Mellanox is using a proprietary switching chip (also called Spectrum) said to provide 6.4Tbps of capacity - market leader Broadcom's Tomahawk switching chip tops out at 3.2Tbps - and claims to deliver better latency than rival offerings while eliminating packet loss.
Wed, Jul. 22, 7:00 PM
- Mellanox (NASDAQ:MLNX) expects Q3 revenue of $165M-$170M, above a $163M consensus. Gross margin is expected to slip to 71.5%-72.5% from Q2's 72.7% (-70 bps Q/Q and +340 bps Y/Y).
- The company says it has begun shipping 100G interconnects, and now connects 51.4% of all systems on the TOP500 supercomputer list.
- MLNX +1.1% AH to $47.50. Shares fell 2.4% in regular trading ahead of the Q2 report.
- Q2 results, PR
Wed, Jul. 22, 4:07 PM
Tue, Jul. 21, 5:35 PM| Tue, Jul. 21, 5:35 PM | 5 Comments
Wed, Jul. 15, 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.
Thu, Jul. 9, 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.
Tue, Jun. 16, 5:38 PM
Thu, May 28, 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).
Tue, May 26, 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.
Tue, Apr. 21, 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
Tue, Apr. 21, 7:06 AM
Mon, Apr. 20, 5:30 PM
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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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