Mellanox Accelerates Networking With Rapid Revenue Growth

Networking vendor Mellanox is proving today that the market for high-speed networking is a profitable one.

Mellanox reported second quarter fiscal 2012 earnings late Wednesday showing record revenue growth. For the quarter, revenue came in at $133.5 million, for a 111 percent gain over the $63.3 million in the second quarter of 2011.

Mellanox develops and sells both InfiniBand and high-speed Ethernet solutions. During Mellanox’s earning call, CEO Eyal Waldman noted that his companies InfiniBand products are doing particularly well.

“Our FDR InfiniBand products represented 54 percent of revenues compared to 31 percent in the first quarter of 2012 and 40 percent in the fourth quarter of 2011,” Waldman said. “In the current quarter we benefited primarily from FDR InfiniBand growth in the high-performance computing and Web 2.0 markets.”

Mellanox recently announced its next-generation InfiniBand adapter Connect-IB. That adapater is able to provide over 100 gigabit per second interconnect throughput on a single PCI Express 3 adapter IC and card through two 56 gigabit per second ports.

From a product revenue perspective, switch systems accounted for approximately 36 percent of Mellanox revenues. Ethernet-related revenues represented approximately 7 percent of second quarter revenues.

Mellanox’s big quarter was in part driven by two large customers that together represent 49 percent of the company’s revenues. HP was one at 30 percent and IBM was the other at 19 percent.

“The best match for Intel-only based platforms are Mellanox’s FDR InfiniBand and 40 gigabit Ethernet interconnect solutions, specifically our Virtual Protocol Interconnect product,” Waldman said. “We expect to demonstrate continued growth during these macroeconomic headwinds.”

Sean Michael Kerner is a senior editor at, the news service of the IT Business Edge Network, the network for technology professionals Follow him on Twitter @TechJournalist.

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