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Mellanox Financial Overview
 

Mellanox Financial Overview

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Mellanox Analyst Day - October 25, 2013. Presented by Jacob Sulman, Chief Financial Officer

Mellanox Analyst Day - October 25, 2013. Presented by Jacob Sulman, Chief Financial Officer

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    Mellanox Financial Overview Mellanox Financial Overview Presentation Transcript

    • Financial Overview Jacob Shulman − Chief Financial Officer October 25, 2013
    • Major Takeaways from Earlier Presentations  Exponential increase in data consumption emphasizes critical importance of interconnect  Experience developing 7 generations of interconnects gives us an advantage in reaching 100 Gb/s solutions  Solutions deliver unmatched ROI for multiple markets  Global sales team focused on opportunities within traditional and new markets  Mellanox focuses on building an infrastructure to enable scalable growth © 2013 Mellanox Technologies - Mellanox Confidential - 2
    • Core Affects from Acquisitions Voltaire 1Q11 IPtronics 3Q13 Kotura 3Q13 TAM ASP Long-term Gross Margins * Accretive after 4 Quarters * IP Portfolio Team Geography Israel Denmark US *Based on Company forecasts © 2013 Mellanox Technologies - Mellanox Confidential - 3
    • Historical Annual Revenue Growth Annual Revenue ($M) 500.8 360.0 Mid-point of 4Q13 Guidance 392.8E 259.3 154.6 107.7 YoY % 116.0 2008 2009 2010 2011 2012 2013E 28.1% 7.7% 33.3% 67.6% 93.2% (21.6%) Source: Company financial statements CAGR over the past 5 years ~ 30% © 2013 Mellanox Technologies - Mellanox Confidential - 4
    • 2011 – 2013 Revenue Proforma Annual Revenue ($M) 500.8 300.0310.0 154.6 107.7 YoY % 116.0 2008 2009 2010 28.1% 7.7% 33.3% 2011 Actual revenue © 2013 Mellanox Technologies 400.0410.0 430.0 440.0 E 2012 2013E Proforma revenue (estimated) - Mellanox Confidential - 5
    • Historical Quarterly Revenue Growth 156.5 Quarterly Revenue ($M) 133.5 122.1 104.1 105 – 110 98.2 88.7 83.1 72.7 68.2 63.3 55.1 40.0 32.7 22.6 35.5 36.2 37.8 40.7 25.3 2009 2010 2011 2012 2013 Source: Company financial statements © 2013 Mellanox Technologies - Mellanox Confidential - 6
    • Percentage of Revenue by Product Family 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Q3’12 Q4’12 Q1’13 Q2’13 Q3’13 IC Q3’12 Q4’12 Q1’13 Q2’13 Q3’13 Board IC Board © 2013 Mellanox Technologies Q3’12 Q4’12 Q1’13 Q2’13 Q3’13 Switch Switch - Mellanox Confidential - Q3’12 Q4’12 Q1’13 Q2’13 Q3’13 Cable / Other Cable / Other 7
    • Percentage of Revenue by Data Rate 100% 90% 80% 70% 60% Other Ethernet 50% FDR QDR DDR 40% SDR 30% 20% 10% 0% 1Q08 2008 © 2013 Mellanox Technologies 1Q09 2009 1Q10 2010 1Q11 - Mellanox Confidential - 2011 1Q12 2012 1Q13 2013 8
    • Quarterly Head Count Trend 18% 1,600 16% 1,371 14% 1,400 1,229 1,205 1,200 1,160 1,089 12% 1,000 10% 800 8% 600 6% 400 4% 200 2% 0% 0 Q3'12 Q4'12 Q1'13 Total HC © 2013 Mellanox Technologies Q2'13 Q3'13 % q-o-q increase - Mellanox Confidential - 9
    • Quarterly Head Count Trend (excluding Q3’13 acquisitions) 18% 1,600 16% 1,400 1,272 14% 1,229 1,205 1,200 1,160 1,089 12% 1,000 10% 800 8% 600 6% 400 4% 200 2% 0% 0 Q3'12 Q4'12 Q1'13 Total HC © 2013 Mellanox Technologies Q2'13 Q3'13 % q-o-q increase - Mellanox Confidential - 10
    • Positive Cash Flow from Operations 182.5 Cash Flow from Ops ($M) 63.1 41.2 31.0 32.8 21.3 2008 1Cash 2009 2010 2011 2012 YTD 2013 and investments include $7.4m in restricted cash Cash and Investments @ September 30, 2013 = $306.4M1 © 2013 Mellanox Technologies - Mellanox Confidential - 11
    • Long-Term Target Model 1 Percentage-Based Income Statement (Non-GAAP ) Q3 2013 FY 2012 Long term model Revenue 100% 100% 100% Gross Margin 69% 70% 65% - 69% R&D 35% 24% 26% - 30% SG&A 20% 14% 15% - 18% Operating Income 13% 33% 24% - 29% Net Income 13% 31% 23% - 28% a reconciliation of non-GAAP to GAAP financial measures, please reference the Company’s 3Q13 financial results press release Source: Company financial statements 1For Strategy is to drive revenue and earnings growth rates with end-to-end solutions, expand distribution channels and enhance product offerings © 2013 Mellanox Technologies - Mellanox Confidential - 12
    • Drive Shareholder Value  Focus on high growth, profitable opportunities in the data center  Continue to drive efficiencies across the organization  Make strategic investments in technologies in our core business  Deliver increased operating profits and EPS  Generate healthy levels of cash flow © 2013 Mellanox Technologies - Mellanox Confidential - 13
    • Thank You Thank You © 2013 Mellanox Technologies - Mellanox Confidential - 14