Cloud Computing Lifts Mellanox As Networks Need Speed

Chip designer Mellanox Technologies is banking on newly unveiled innovations to quell doubts and extend its recent flurry of robust earnings deep into 2016.  The Israel-based company, a designer of chips used in servers and data storage systems, has generated strong earnings growth in recent quarters, in part on generational upgrades to high-performance data center computers that are equipped with Intel processors.

 

When industry giantIntel ( INTC ) rolls out a new rendition of its Xeon chips, as it did in the second half of 2014 with its so-called “Grantley” performance boost, technology companies tend to invest in the upgrade. When they do this, they often also invest in new auxiliary products such as those created byMellanox ( MLNX )…

 

In April, Mellanox posted first-quarter earnings per share of 60 cents ex items, a whopping 445% jump from a year earlier, on a 48% surge in revenue to $146.7 million. That followed strong gains in the two previous quarters…

Read more from the source @ http://www.themarketsurge.com/2015/07/cloud-computing-lifts-mellanox-as-networks-need-speed/