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Will Mellanox Make IPO Move?

With a confused stock market and tech giants reporting uneven results, it's not the most auspicious time to be pondering an IPO. But InfiniBand specialist Mellanox is doing exactly that, according to press reports, with Credit Suisse and JP Morgan as the lead underwriters for a $75 million offering, at a company value of $350 million.

Technology IPOs have been a rarity in the last couple years, and Mellanox's reported plans drew a firm "no comment" from the vendor when contacted by Byte and Switch earlier today. (See In the Public Domain and Report Hedges High-Speed Bets.) Analysts, however, say stranger things have happened.

"It certainly wouldn't surprise me," says Steve Berg of Punk Ziegel. "To my knowledge, the company has been profitable for the last couple of quarters, and they have a high enough revenue run rate to go public."

That run rate runs around $50 million, according to an industry analyst, who asked not to be named. "From a revenue perspective, that's the right range for a company to go IPO," he says.

"We have been expecting them to file soon," adds Bob Wheeler, senior analyst at consulting firm the Linley Group, highlighting the firm's growing presence in the supercomputing space.

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