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

1. Financial Overview
Jacob Shulman − Chief Financial Officer
October 25, 2013

2. 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
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3. 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
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4. Historical Annual Revenue Growth
Annual Revenue ($M)
500.8
360.0
Mid-point of 4Q13
Guidance
392.8E
259.3
154.6
107.7
YoY
%
116.0
2008
2009
2010
2011
2012
2013E
28.1%
7.7%
33.3%
67.6%
93.2%
(21.6%)
Source: Company financial statements
CAGR over the past 5 years ~ 30%
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5. 2011 – 2013 Revenue Proforma
Annual Revenue ($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
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400.0410.0
430.0 440.0 E
2012
2013E
Proforma revenue (estimated)
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6. Historical Quarterly Revenue Growth
156.5
Quarterly Revenue ($M)
133.5
122.1
104.1
105 –
110
98.2
88.7
83.1
72.7
68.2
63.3
55.1
40.0
32.7
22.6
35.5
36.2
37.8
40.7
25.3
2009
2010
2011
2012
2013
Source: Company financial statements
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7. Percentage of Revenue by Product Family
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Q3’12 Q4’12 Q1’13 Q2’13 Q3’13
IC
Q3’12 Q4’12 Q1’13 Q2’13 Q3’13
Board
IC
Board
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Q3’12 Q4’12 Q1’13 Q2’13 Q3’13
Switch
Switch
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Q3’12 Q4’12 Q1’13 Q2’13 Q3’13
Cable / Other
Cable / Other
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8. Percentage of Revenue by Data Rate
100%
90%
80%
70%
60%
Other
Ethernet
50%
FDR
QDR
DDR
40%
SDR
30%
20%
10%
0%
1Q08
2008
© 2013 Mellanox Technologies
1Q09
2009
1Q10
2010
1Q11
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2011
1Q12
2012
1Q13
2013
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9. Quarterly Head Count Trend
18%
1,600
16%
1,371
14%
1,400
1,229
1,205
1,200
1,160
1,089
12%
1,000
10%
800
8%
600
6%
400
4%
200
2%
0%
0
Q3'12
Q4'12
Q1'13
Total HC
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Q2'13
Q3'13
% q-o-q increase
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10. Quarterly Head Count Trend (excluding Q3’13 acquisitions)
18%
1,600
16%
1,400
1,272
14%
1,229
1,205
1,200
1,160
1,089
12%
1,000
10%
800
8%
600
6%
400
4%
200
2%
0%
0
Q3'12
Q4'12
Q1'13
Total HC
© 2013 Mellanox Technologies
Q2'13
Q3'13
% q-o-q increase
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11. Positive Cash Flow from Operations
182.5
Cash Flow from Ops ($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
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12. 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
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13. 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
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14. Thank You
Thank You
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