Feeds

Mellanox rides the Xeon E5 wave

Big supers bump up network gear sales

High performance access to file storage

Switch and server adapter card maker Mellanox Technologies is surfing on two upgrade waves: Its own shift to faster InfiniBand and Ethernet products and Intel's launch of the Xeon E5-2600 processors, which came out in early March.

In the first quarter of 2012 ended in March, Mellanox posted revenues of $88.7m, up 61.2 per cent compared to the year-ago quarter, and it shifted to a very respectable $12.4m profit from a $1.6m loss a year ago.

Eyal Waldman, president, CEO, and chairman at the network equipment maker, said in a conference call with Wall Street analysts that the Fourteen Data Rate (FDR) InfiniBand products that Mellanox rolled out early this year have been ramping nicely.

Mellanox pushed out the FDR products in anticipation of the launch of the Xeon E5s, which sport on-chip PCI-Express 3.0 slots that are necessary for 56Gb/sec InfiniBand as well as 40 Gigabit Ethernet.

FDR InfiniBand accounted for only 4 per cent of revenues in the third quarter of last year, or around $2.7m, but has recently gone gangbusters and hit $27.5m, or about 31 per cent of total sales, in the first quarter of this year.

Slower DDR InfiniBand products represented about 45 per cent of sales, or $39.9m, and have been hovering a little north of $40m a quarter of the past year. Older DDR InfiniBand products are still selling and accounted for $8m in sales.

Customers with QDR and DDR clusters need to upgrade as they add server nodes and they don't always want to replace switches and adapters, particularly for workloads that are not bandwidth or latency sensitive and are more focused on compute cycles. The point is, DDR and QDR sales are humming along and FDR is all of the growth in the current quarter.

Mellanox bought its way into the Ethernet market when it acquired rival Voltaire, and that business is having its ups and downs still as Mellanox finds its footing. The company's Ethernet switches and adapters accounted for 10 per cent of overall revenues, or about $8.9m, according to Mellanox CFO Michael Gray.

In the quarter, switches drove 35 per cent of revenues, or $31.1m, while chips, boards, and adapters accounted for 49 per cent of revenues, or $43.4m. The rest was software and services.

IBM accounted for 24 per cent of Mellanox revenues in the quarter, and Hewlett-Packard represented 18 per cent.

Mellanox said that the pent-up demand for the E5-2600 processors will create a revenue bump in the second quarter, with somewhere between five and seven big deals expected to drive about $30m in incremental sales. The company had two such deals in the first quarter – one in the United States and the other in Europe – that accounted for close to $10m. ®

High performance access to file storage

More from The Register

next story
This time it's 'Personal': new Office 365 sub covers just two devices
Redmond also brings Office into Google's back yard
European Court of Justice rips up Data Retention Directive
Rules 'interfering' measure to be 'invalid'
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Cisco reps flog Whiptail's Invicta arrays against EMC and Pure
Storage reseller report reveals who's selling what
Bored with trading oil and gold? Why not flog some CLOUD servers?
Chicago Mercantile Exchange plans cloud spot exchange
Just what could be inside Dropbox's new 'Home For Life'?
Biz apps, messaging, photos, email, more storage – sorry, did you think there would be cake?
IT bods: How long does it take YOU to train up on new tech?
I'll leave my arrays to do the hard work, if you don't mind
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
HP ArcSight ESM solution helps Finansbank
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.