$MLNX,...Mellanox +8.9% on Q3 guidance, non-HPC growth
Though Q2 revenue was only in-line, Mellanox (NASDAQ:MLNX) guided on its CC (transcript) for Q3 revenue of $114M-$118M, largely above a $114.4M consensus.
CEO Eyal Waldman states Mellanox expects 2H14 growth from both its core HPC market (still half of revenue), and from storage and Web/cloud use cases. Design wins for EMC's new VMAX3 high-end storage systems - they use a 56-gig Mellanox InfiniBand interconnect - will help with storage growth.
As expected, Mellanox expects the 2H launch of Intel's Grantley Xeon CPU to boost HPC-related demand; other Intel efforts still pose a long-term threat, but Mellanox doesn't expect an impact before 2016. It's also upbeat about the launch of 100-gig InfiniBand switches and adapter cards.
IBM was the only 10%+ customer in Q2, accounting for 11% of revenue. 56-gig InfiniBand products made up 50% of revenue, 40-gig InfiniBand 15% of revenue, and Ethernet 19% of revenue.
Mellanox is counting on the Integrity Project acquisition to strengthen its position in an Ethernet market where its share is still limit
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