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Mellanox Expects 2017 To Be A Growth Year

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Interconnect technologies provided by Mellanox help customers to compute, store, retrieve and distribute large amounts of data.

Mellanox Technologies, a firm with expertise in silicon photonics and headquarters in the US and Israel, is expecting 2017 to be a growth year for the company, despite its Q1 2017 revenue (USD 188.7million) being down 4.1% on the same period last year.

"Our results reflect the impact of seasonal trends in high-performance computing, delays in general availability of the next-generation x86 CPUs to the market and technology transitions occurring across several key customers," Eyal Waldman, President and CEO of Mellanox, told listeners to the firm's Q1 2017 earnings call. "We anticipate strong demand for our EDR [enhanced data rate] product in 2017, as customers continue to transition to higher network speeds as the need for higher bandwidth driven by data growth continues to accelerate for high-performance computing, machine learning, big data, storage, financial services and cloud deployment."

In March, the company introduced a new line of 200-gigabit per second silicon photonics and VCSEL-based tranceivers in the same QSFP28 package as today's 100Gb/s products, allowing customers make network upgrades without changing to a new form factor.

Mellanox's revenue outlook for Q2 2017 is USD 205 million to USD 215 million.



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