Technology StocksMellanox Technologies, Ltd.

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From: brokendreams8/25/2017 1:39:13 PM
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Interesting read on why Tokyo Tech switched from InfiniBand to OPA. Hopefully Mellanox can push back on this.

"It wasn’t just the speed. There were many more salient points by which we chose the Intel fabric."

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From: The Ox8/29/2017 9:17:10 AM
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Mellanox Technologies (MLNX +1.80%) was initiated a new ‘Buy’ at Benchmark Company LLC with a 12-month target price of $60.

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To: The Ox who wrote (883)8/31/2017 11:08:27 AM
From: Jim Mullens
1 Recommendation   of 940
Ox, re: Benchmark- more detail.....................................

Benchmark initiates coverage on Mellanox Technologies (NASDAQ: MLNX) with a Buy rating and a price target of $60.00.

The analyst expects a return to top-line growth to be motivated by ramping 25Gbps Ethernet NIC and switch sales as well as normalization in the storage market following the consolidation events in 2016 and product refreshes. The analyst also expects that fresh server processor product cycles from Intel and AMD will help boost growth along with Infiniband share gains driven by MLNX's 200 Gbps HDR.

For an analyst ratings summary and ratings history on Mellanox Technologies click here. For more ratings news on Mellanox Technologies click here.


Mellanox Can Ride the Rise of Flash Memory, Says Benchmark

Mellanox has a number of factors to recommend its shares as it returns to growth next year, writes Benchmark's Gary Mobley, including its newer chips to create a "fabric" for interconnecting flash-based storage in data centers.

By Tiernan Ray

Aug. 29, 2017 12:43 p.m. ET

Shares of high-speed interconnect technology provider Mellanox Technologies ( MLNX) are up $1.65, or almost 4%, at $46.85, in an otherwise down market, after The Benchmark Company’s Gary Mobley today started coverage of the stock with a Buy rating, and a $60 price target, writing that growth is coming back into its business from a number of factors, including especially the rise of non-volatile memory, such as flash, in data centers.

Mobley starts his thesis by citing all the negatives against the stock, given that it has trailed the Philadelphia Semiconductor Index ( SOX) in the last five years:

The shares have underperformed the SOX benchmark on a five-, three- and one-year basis. Most of the underperformance occurred during the past year when the Company witnessed lower-than-expected Infiniband sales as a result of server/storage OEM consolidation (HPE+SGI; Dell-EMC), delayed product launches from HPE and general sluggishness in the storage systems market. On the Ethernet side of Mellanox’s business, customer transitions from 40Gbps to 25Gbps solutions created a pocket of weakness. The “bears” will likely argue that Mellanox will have a difficult time growing revenue against a backdrop of slowing data center cap ex and a maturing external storage market. Additionally, they’ll likely argue that a sales mix shift toward NIC and switch systems will drive down gross margin, ignoring the fact this shift creates multiples more in average deal size and related gross profit.

But, writes Mobley, chip speed increases in new server chips from Intel ( INTC) and Advanced Micro Devices ( AMD), "will always drive a treadmill of innovation for Mellanox,” especially as those chips have to increasingly connect to faster and faster storage and main memory systems.

Mobley identifies the company’s competitive advantage in the move away from traditional “fibre channel” networking to connect to storage, and toward ethernet and other technologies:

This shift toward cloud compute, combined with growth in flash-based storage, machine learning, object storage, etc. is driving a migration away from plain-vanilla Fibre-Channel and a movement toward mainstream Ethernet, Infiniband, and soon NVMe over fabric, with the latter three key markets and technologies being focus areas for Mellanox.

He spends quite a bit of time explaining the company’s newer “BlueField” chips, which connect arrays of flash-based drives:

At the recent Flash Memory Summit, Mellanox shared details regarding its BlueField SoC, related reference designs and ecosystem partners. The launch of BlueField is significant for Mellanox as the SoC specifically addresses the emerging NVMe-over-fabric market and complements existing Infiniband-and Ethernet-based technologies. BlueField also represents the first example of integration of the EZchip/Tilera packet inspection and multi-core (ARMv8.0) processor technology. Mellanox acquired EZchip in 2016. Mellanox has integrated the hardware needed to frontend an NVMe over-fabrics flash array into a single SoC, making it easier for shared flash storage system builders to put together NVMe JBOFs (a bunch of flash drives) – NVMe SSDs in this case.

As far as estimates, Mobley is basically matching the Street for this year and next. He estimates $866.6 million in revenue this year and $2.14 per share in non-GAAP net income, compared to consensus for $867.7 million and $2.14. For 2018, he sees revenue of $976 million and EPS of $2.84, against consensus for $977.9 million and $2.85 per share.

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To: Jim Mullens who wrote (884)8/31/2017 11:27:41 AM
From: The Ox
   of 940
Thank you for the more comprehensive details to the analyst upgrade. It will be interesting to see if MLNX can execute well enough to reach those numbers next year, in a very competitive sector!!

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From: Eyalro9/16/2017 12:40:53 AM
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Shlomit weiss, VP @ intel until June this year (been with intel for the past 28 years),
Just joined Mellanox and will replace Alon Webman as VP of engineering.
It is unclear at this point what position Alon will take if any.

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To: Eyalro who wrote (886)9/18/2017 9:17:19 AM
From: PaulAquino
3 Recommendations   of 940
Shlomit Weiss moves from Intel to Mellanox

Weiss will replace Mellanox co-founder Alon Webman at the head of Mellanox's silicon engineering team.

Mellanox Technologies Ltd. (Nasdaq:MLNX) is hiring Intel executive Shlomit Weiss as senior VP silicon engineering, sources inform "Globes." She will report directly to Mellanox president, CEO, and director Eyal Waldman. Mellanox confirmed the report. Waldman said, "I am very pleased to recruit Shlomit, who brings vast experience and extensive know-how to Mellanox's management team and to the management of our silicon engineering team.

Weiss, currently Intel VP Data Center Group – General Manager Silicon Development Networking Group, has served in a number of positions at Intel since 1989. Intel is actually her first and only place of work before her current move to Mellanox. She began working at Intel after finishing her MSc in electrical engineering summa cum laude at Technion Israel Institute of Technology.

Weiss will replace Alon Webman, one of Mellanox's nine founders. Mellanox said that Webman would remain at the company, and would continue contributing to its performance.

Based in Yokneam, Mellanox develops, produces, and markets communications equipment, including chips, cards, communications switches, and high-speed data transmission cables using InfiniBand and Ethernet technologies. 18 months ago, Mellanox completed the acquisitions of Israeli company EZchip, which develops chips for communications network routers, for over $800 million.

Published by Globes [online], Israel Business News - - on September 17, 2017

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To: PaulAquino who wrote (887)9/18/2017 10:03:03 AM
From: brokendreams
   of 940
Interesting, so their VP of Operations left and was replaced by someone below him a few months ago and now their VP of Silicon Engineering is replaced. Both had been with the Company from basically the start. Chances are that Alon is just their until transition is complete. Makes you wonder what's going on.

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To: PaulAquino who wrote (887)9/18/2017 11:34:34 AM
From: Jim Mullens
1 Recommendation   of 940
Paul, re: Shlomit Weiss moves from Intel to Mellanox.....................................

The below article (April 2016) may shed some light.

Word has it that Murthy Renduchintala was difficult to work for at QCOM, and that’s perhaps one of the reasons that he was “excessed” at QCOM.... and **not** hired away by INTC as is generally reported.

Ms. Weiss is just one of many INTC’s top execs that have parted since Murthy joined INTC.

From her qualifications she may well be a great addition to MLNX (and a loss to INTC).


Behind the Intel realignment is Renduchintala, an executive who was hired away from Qualcomm and brought in to help the company in its bid to redirect, said Gradman. “Several top level executives in charge of the PC and other divisions,” including Kirk Skaugen, Doug Davis, and Aicha Evans – have either already left the company or are planning to soon. “Those resignations preceded Wednesday’s announcement, which is a continuation of the shakeup at the company.”


Layoffs loom, but there’s hope for Intel Israel employees, says expert

Major cuts at Israel's largest single tech employer may not materialize, according to Israeli High Tech CEO Forum chairman

By David Shamah April 20, 2016, 5:59 pm

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To: Jim Mullens who wrote (889)9/18/2017 12:41:46 PM
From: brokendreams
1 Recommendation   of 940
and the fact that almost all of the execs worked at Intel means chances of them knowing each other is high, too.

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From: PaulAquino9/24/2017 4:15:44 PM
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Mellanox CEO: Intel is over a generation behind us

The Israeli company's planned system-on-a-chip will bring Mellanox beyond just connectivity and into the processors sector.

Exactly two years after Mellanox Technologies Ltd. (Nasdaq:MLNX) announced it was buying neighboring Israeli semiconductor company EZchip for $811 million - a deal that was only completed in February 2016 - "Globes" spoke to Mellanox founder president and CEO Eyal Waldman.

How does the merger look 18 months after its completion?

"Most of the things that we were expecting before the merger have actually happened although of course not everything. There was the painful departure of people not integrated into the organization but 70% are still with Mellanox. There were those that we didn't want and they left. Most of EZchip's senior management did not stay but that's only natural."

Mellanox will soon launch its first product that combines the technologies of both companies or as Waldman describes it as the product "that was the main reason for the merger:" the product is a system-on-a-chip that enables Mellanox to enter the world of processors and not just provide connectivity solutions.
If previously, Mellanox provided only the connectivity and processing of certain information, the merger with EZChip brings it into the field of data center with processors.

EZchip, founded by CEO Eli Fruchter, was acquired by Mellanox several months after being hit by a mini-crisis when its main customer Cisco announced that it would not be using the Israeli company's next generation chip. There has always been a hope that Cisco would change its mind but Waldman does not believe that the US giant will do so and stresses that the acquisition, "has brought us near to Cisco and we are moving in there with new products."

Are there further acquisitions on the horizon?

"At the moment we have no need to buy in order to grow. Sometimes we see opportunities along the way and we have discussions but there is nothing imminent."

There has been a wave of consolidations in your industry. Have there been attempts to acquire Mellanox?

"In our industry everybody talks about everybody else."

Since the merger was first announced, Mellanox's share price has risen 16% but there has been a zero rise since the deal was completed. Mellanox is traded on Nasdaq at a market price of $2.3 billion after delisting from the TASE in 2013 with great fanfare. Changes on the TASE since then have not convinced Waldman to return. He said, "The situation is much better than the period when we were there. When I wanted to dual-list everyone told me that it's not worthwhile. We made a mistake because of Zionism but the business atmosphere and regulation in Israel did not allow us to continue. There has been major change on the TASE and good management but regulation must be more transparent and similar to the US, and more favorable for companies. At the moment we don't intending zigzagging and coming back."

Many analysts cover Mellanox but if last year most of them were positive today they are more cautious and most of them are neutral

Waldman chuckles, "I always recommend going against what the analysts say. But seriously, it is always worth identifying a trend before it begins and everyone identifies it. In 2017, we will have a small rise in revenue and then in 2018 it will be more significant. I think you see in the share that the market is beginning to understand and to expect this."

Mellanox's main competitors include Intel, Broadcom and Cavium but Waldman talks about "coopetition" - competition alongside cooperation. Intel is also a customer and Mellanox benefits from cycles of upgrades among Intel customers as intel launches new platforms, which creates "on the side" demand for Mellanox's solutions. Such a positive cycle should occur in 2018. In any event, it doesn't look like direct competition with Intel, which worried investors in the past, keeps Waldman awake at night.

He said, "Intel is a generation or a generation and a half behind us. Our competition is implemented through performance. We are simply better and this is the only way that we can lead."

Waldman added, "Analysts predict that next year we will present revenue of about $1 billion. I believe that we will continue to grow by tens of percentage points and that Mellanox can be significantly bigger."

Published by Globes [online], Israel business news - - on September 24, 2017

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