Data centers

11:36 PM
Frank Berry
Frank Berry
Commentary
50%
50%

Mellanox Q2FY10 Earnings: Blasting thru the Macro

Yesterday Mellanox announced second quarter revenues of $25.3 million for the period ended June 30, 2009. The company's results shine brilliantly through dreary global economic conditions that are smothering their competitors. After declining for two consecutive quarters that correspond with the bail-out period; Mellanox revenue bounced back onto the growth track with a strong 12% quarter over quarter increase.

Yesterday Mellanox announced second quarter revenues of $25.3 million for the period ended June 30, 2009. The company's results shine brilliantly through dreary global economic conditions that are smothering their competitors.  After declining for two consecutive quarters that correspond with the bail-out period; Mellanox revenue bounced back onto the growth track with a strong 12% quarter over quarter increase.

The performance by Mellanox reinforces my belief that results posted by Qlogic one day earlier were not all about "the macro."  Doing business side-by-side in the same macro-economic conditions, increasing Mellanox revenue reflects a growing InfiniBand market while slowing Qlogic revenue reflects a declining Fibre Channel market.

Highlighted on the Mellanox earnings call was the continued penetration of InfiniBand; the contribution of new products and the outlook for next quarter and beyond.

According to Mellanox, revenue from new 40 gigabit per second Quad Data Rate InfiniBand increased from 34% of total revenue in Q1 to 56% of total revenue in Q2. I believe this underscores the performance advantage of InfiniBand and why at least 50% of technical HPC clusters have already deployed the technology.  I expect QDR technology to give InfiniBand vendors a boost for the next year or two against low-latency Ethernet and open doors in high performance business computing environments such as trading.

Frank Berry is CEO of IT Brand Pulse, a company that surveys customers about their perceptions on vendors and their products. Berry is a 30 year veteran of the IT industry including senior executive positions with QLogic and Quantum. View Full Bio
Previous
1 of 2
Next
Comment  | 
Print  | 
More Insights
Cartoon
Slideshows
Audio Interviews
Archived Audio Interviews
Jeremy Schulman, founder of Schprockits, a network automation startup operating in stealth mode, joins us to explore whether networking professionals all need to learn programming in order to remain employed.
White Papers
Register for Network Computing Newsletters
Current Issue
Research: 2014 State of the Data Center
Research: 2014 State of the Data Center
Our latest survey shows growing demand, fixed budgets, and good reason why resellers and vendors must fight to remain relevant. One thing's for sure: The data center is poised for a wild ride, and no one wants to be left behind.
Video
Twitter Feed