Corporate Update - Mellanox Technologies: End-to-End InfiniBand · PDF fileThese slides and...
Transcript of Corporate Update - Mellanox Technologies: End-to-End InfiniBand · PDF fileThese slides and...
© 2018 Mellanox Technologies
Enabling The Use of DataApril 2018
Corporate Update
© 2018 Mellanox Technologies 2
Safe Harbor StatementThese slides and the accompanying oral presentation contain forward-looking statementsand information. The use of words such as “may”, “might”, “will”, “should”, “expect”,“plan”, “anticipate”, “believe”, “estimate”, “project”, “intend”, “future”, “potential” or“continued”, and other similar expressions are intended to identify forward-lookingstatements. All of these forward-looking statements are based on estimates andassumptions by our management that, although we believe to be reasonable, areinherently uncertain. Forward-looking statements involve risks and uncertainties,including, but not limited to, economic, competitive, governmental and technologicalfactors outside of our control, that may cause our business, industry, strategy or actualresults to differ materially from the forward-looking statement. These risks anduncertainties may include those discussed under the heading “Risk Factors” in theCompany’s most recent 10K and 10Qs on file with the Securities and ExchangeCommission, and other factors which may not be known to us. Any forward-lookingstatement speaks only as of its date. We undertake no obligation to publicly update orrevise any forward-looking statement, whether as a result of new information, futureevents or otherwise, except as required by law.
© 2018 Mellanox Technologies 3
We Live in a World of DataMore Devices
More Applications
More Data
© 2018 Mellanox Technologies 4
Cloud andWeb 2.0
Big Data
Enterprise
Business Intelligence
HPC
Storage
Security
Machine Learning
Internet of Things
Exponential Data Growth Everywhere
source: IDC
© 2018 Mellanox Technologies 5
Data is Growing Faster Than EverAutonomous vehicle generates 4000GByte per day
SONAR~10-100KB Per/Sec
CAMERA~20-40MB Per/sec
GPS~50KB Per/Sec
Data will grow by a factor of 10 over the next decade to 160 Zeta Bytes in 2025 (source: IDC)
Faster Data processing requires faster Interconnect speeds
RADAR~10-100KB Per/Sec
Light Detection & Ranging~10-70MB Per/Sec
© 2018 Mellanox Technologies 6
Finance, Fraud & Insurance Fraud Detection Credit/Risk Analysis High Frequency Trading
Automotive & Transportation Self Driving Image / Facial Recognition Logistics & Mapping
Medicine & Genomics Drug Discovery Diagnostic Assistance Cancer Cell Detection
Oil & Gas Seismic Imaging Reservoir Characterization Subsurface Fault Detection
Cloud, Web, Mobile, Retail Image Tagging Speech Recognition Sentiment Analysis
Security & Safety Surveillance Image Analysis Facial Recognition and Detection
Artificial Intelligence: Sparking The Next Industrial Revolution
© 2018 Mellanox Technologies 7
Data Drives a Better Future: Smart Cities
SMARTHealthcare
SMARTBuildings
SMARTTransportation
SMARTCommunications
SMARTTraffic
SMARTEducation
SMARTSensors
SMARTParking
SMARTEnergy
SMARTInfrastructure
© 2018 Mellanox Technologies 8
Higher Data SpeedsFaster Data Processing
Better Data Security
Exponential Data Growth Everywhere
source: IDC
© 2018 Mellanox Technologies 9
Higher Data SpeedsFaster Data Processing
Better Data Security
Adapters SwitchesCables &
Transceivers
SmartNIC System on a Chip
Exponential Data Growth Everywhere
© 2018 Mellanox Technologies 10
Data Growth is Mellanox Growth
11© 2018 Mellanox Technologies
Mellanox Leads Across IndustriesDelivering Highest Data Center Return on Investment
10 of Top 10 Automotive Manufacturers
3 of Top 5 Pharmaceutical Companies
9 of the Top 10 Oil and Gas Companies
5 of Top 6 Global Banks
9 of Top 10 Hyperscale Companies
12© 2018 Mellanox Technologies
Enabling Most Efficient Machine Learning PlatformsAllowing AI to Perform Critical & Real Time Decisions
Real Time Fraud Detection
18X Speedup For Image Recognition
4X Speedup For Image Recognition
Data Analytics Image Recognition
OCP Big Sur Artificial Intelligence Platform
Machine Learning System with 400Gb/s
World Record For Data Sort, 3X Faster
13© 2018 Mellanox Technologies
Yosemite Platform with Multi-Host Technology Lowers Total Cost of Ownership
Higher Performance While Reducing System Footprint by 50%
Concurrent Streams From a Single Server For the Highest Quality Viewing Experience
Business Success Depends on MellanoxDeliver the Highest Data Center Return on Investment
Reduction in Database Recovery Time97%
ReductionOf Latency
Military Systems
Tier-1 Fortune100 Web 2.0 Company
Tier-1 Trading Institution 10X
4X
100K
14© 2018 Mellanox Technologies
InfiniBand Connects 60% of the TOP500 HPC PlatformsAnd 77% of new TOP500 HPC systems (June’17-Nov’17)
Mellanox Connects All of 25G, 40G and 100G Ethernet Systems On the TOP500 List
Mellanox enable highest ROI for Machine Learning, High-Performance, Cloud, Storage, Big Data and more applications
InfiniBand to Connect Future #1 HPC Systems (Coral)
The Smart Choice for HPC Platforms
InfiniBand Leadership
EthernetLeadership
Accelerates the #1 Supercomputer & Connects 39% of Overall TOP500 Systems (192 Systems)
Deliver the Highest Data Center Return on Investment
15© 2018 Mellanox Technologies
Leadership in Storage PlatformsDelivering the Highest Data Center Return on Investment
SMB Direct
16© 2018 Mellanox Technologies
Software-Defined Network Intelligence
Mellanox Enables Data Centers of the Future - Today
Security Data Insights Real-Time
Highest-Performance 100Gb/s, 200Gb/s and 400Gb/s Interconnect Solutions
Performance Efficiency Scalability
17© 2018 Mellanox Technologies
Comprehensive End-to-End PortfolioInfiniBand and Ethernet
Metro / WAN
Cables/Modules
Adapter Cards
ICs
Software
NPU & Multicore
Switches/Gateways
18© 2018 Mellanox Technologies
Leading Supplierof End-to-End Interconnect Solutions
StorageFront /
Back-End
Server /Compute
Switch /Gateway
56/100/200G InfiniBand
10/25/40/50/100/200/400GbE
Virtual Protocol Interconnect
56/100/200G InfiniBand
10/25/40/50/100/200/400GbE
Virtual Protocol Interconnect
19© 2018 Mellanox Technologies
Highest Performance 100, 200 and 400Gb/s Interconnect Solutions
TransceiversActive Optical and Copper Cables (10 / 25 / 40 / 50 / 56 / 100 / 200Gb/s)
40 HDR (200Gb/s) Ports 80 HDR100 (100Gb/s) Ports 16Tb/s Throughput, 15.6 Billion msg/sec
Interconnect
Switch
Adapters200Gb/s, 0.6us Latency 200 Million Messages per Second(10 / 25 / 40 / 50 / 56 / 100 / 200Gb/s)
Switch16 400GbE Ports, 32 200GbE Ports64 100GbE Ports, 128 25/50GbE PortsThroughput of 6.4Tb/s
20© 2018 Mellanox Technologies
Enabling the Future of Machine Learning
HPC and Machine Learning Share Same Interconnect Needs
Storage
High PerformanceComputing
Financial
EmbeddedAppliances
Database
Hyperscale
Machine Learning
IoT
Healthcare
Manufacturing
Retail
Self-Driving Vehicles
21© 2018 Mellanox Technologies
Significant Growth of Ethernet Market at 25Gb/s and Above25G and above growing to 64% of the market @45% 5Y CAGR
Crehan Research: Long Range Forecast – Server-class Adapters & LOM (Jul 2017)
17%Of TotalMarket
10G 83%13%
1%1%
2%
High Speed Adapters
2016 ($1.2B)
10G
25G14%40G
2%
50G15%
100G27%
200G6%
36%High Speed Ethernet
Adapter Forecast2021 TAM ($2.0B)
10GbE 25GbE 40GbE 50GbE 100GbE
64%17% →
200GbE
40G
22© 2018 Mellanox Technologies
Spectrum Delivers Highest Data Center ROI
Flexibility
Scalability
Programmability
TCO
Performance
10, 25, 40, 50, 100, 200 and 400 Gigabit Speeds, variety of port configurations
10X better scalability, optimized data center utilization and end-user experience
Programmable flexible parser and packet modifier, support user defined protocols
1.3X lower power consumption versus competition
1.4X lower latency versus competition, enable real-time data analysis and insights
Open Ethernet
23© 2018 Mellanox Technologies
SecurityData Center Infrastructure Protection
NFV Performance and Flexibility at Lower Cost
Storage Enabling the Path to NVMe-over-Fabric Storage Platforms
Machine Learning The Most Efficient Machine Learning Systems
Bluefield - Combining Mellanox’sBest-in-Class ConnectX Technology with ARM v8 Multicore Processors
BlueField Enables Growing Market Segments
24© 2018 Mellanox Technologies
End-to-End Solutions for All Platforms
Highest Performance and Scalability for Intel, AMD, IBM Power,NVIDIA, Qualcomm, ARM and FPGA-based Compute and StoragePlatforms at 10, 20, 25, 40, 50, 100, 200 and 400Gb/s Speeds
Unleashing the Power of all Compute Architectures
X86Open
POWERGPU ARM FPGA
25© 2018 Mellanox Technologies
Company Headquarters
Mellanox Overview
Ticker: MLNX
Yokneam, IsraelSunnyvale, CaliforniaWorldwide Offices
~2,720 Employees worldwide
26© 2018 Mellanox Technologies
1Q18 Revenue of $251.0M
1Q18 non-GAAP GM of 69.0%
1Q18 non-GAAP EBIT Margin of 20.8%
1Q18 non-GAAP EPS of $0.98
Cash & Investments of $286.3M as of 1Q’18
Solid financial position
Mellanox Overview
A reconciliation of GAAP to non-GAAP condensed consolidated statements of operations is presented in the financial statements of our most recent earnings release located on the "Investor Relations" page on our website
27© 2018 Mellanox Technologies
Leader in End-to-End InfiniBand and Ethernet Technologies
Introducing New Products to Accelerate Future Growth (Switch Systems/Silicon, Acq. EZchip Technology)
Well Positioned to Benefit from Market Transition from 10Gb to 25/50/100Gb
Technology and Product Leadership
Mellanox Overview
28© 2018 Mellanox Technologies
Annual Revenue ($M)
2013
$390.4
2014
463.6
658.1
2015 2016
857.5 4-Year (2013-2017) CAGR 22%
Approaching $1 Billion in Annual Revenues
Source: Company financial statements
2017
863.9
29© 2018 Mellanox Technologies
Strong Outlook for Second Quarter and Full Year 2018SECOND QUARTER 2018 OUTLOOK:• Revenues of $255-$265 million• Non-GAAP gross margin range of 68.5-69.5 percent• Non-GAAP operating expenses of $119-$121 million
FULL YEAR 2018 OUTLOOK:• Revenues of $1,030-$1,050 million• Non-GAAP gross margins of 68.0-69.0 percent• Non-GAAP operating margin of 21.0-22.0 percent
30© 2018 Mellanox Technologies
Investment Highlights Summary
Interconnect technology is critical for business performanceIncreases application productivity and ROI
End markets have shown consistent growth Mellanox’s TAM forecasted to reach ~$15B by 2018
Mellanox uniquely positioned to continue market leadershipProviding compelling technology benefits to multiple, high growth markets
Well positioned as industry transitions to 25Gb+ technologyShipping 25/40/50/100Gb technology today (end-to-end solution)
Demonstrated revenue growth, strong cash flow and increasing profitability with attractive gross marginsSolid revenue growth (~22% CAGR) over the last 4 years
© 2018 Mellanox Technologies
Thank You