Mellanox lowered its Q4 forecast by 20%, Due to “Cabling Issue”‘
4 January, 2013
Mellanox share at NASDAQ stock exchange lost 17% of its price, bringing the company's valuation down to $2.15 billion
Mellanox Technologies announced that its fourth quarter revenue is projected to be in the range of $119-$121 million, below the company’s previous guidance of $145-$150, bringing 2012 annual revenue to approximately $500 million, up from $259 million in 2011.
The shortfall is primarily the result of a weaker demand environment, challenging macroeconomic conditions, and a technical issue associated with FDR 56Gb/s InfiniBand cabling which caused approximately $20 million of FDR deployments to be delayed. The company said that “the cabling issue has been resolved and is not expected to impact revenue in the future.”
Mellanox from Yokneam, Israel, is a supplier of end-to-end InfiniBand and Ethernet interconnect solutions and services for servers and storage. The company’s end-to-end FDR InfiniBand solution was chosen for many high-end computing infrastructure complexes around the globe. In June 2012 Mellanox was selected for the Commonwealth Scientific and Industrial Research Organisation (CSIRO) new accelerated cluster in Australia.
NVIDIA chose Mellanox for its new GPUDirect™ technology, to accelerate the communications between GPUs by providing a direct peer-to-peer communication data path, without transferring data to the CPU or server memory subsystem.
In September 2012 it was selected to connect Atlantic.Net (www.atlantic.net) cloud infrastructures. Atlantic.Net is a leading cloud hosting provider that operates a massively scalable and secure cloud hosting platform.
Following the surprising announcement, Mellanox share at NASDAQ stock exchange lost 17% of its price, bringing the company’s valuation down to $2.15 billion.