Mellanox Discontinuing 1550nm Silicon Photonics Development Activities
January 09 2018 - 8:30AM
Business Wire
Mellanox Technologies, Ltd. (NASDAQ: MLNX), a leading supplier
of high-performance, end-to-end smart interconnect solutions for
data center servers and storage systems, today announced that it
will discontinue its 1550nm silicon photonics development
activities, effective immediately.
The company expects that there will be no impact for the
Variable Optical Attenuators (VOA) product and Mellanox will
continue to sell to and support its VOA customers. This action is
expected to have only a minor impact on the LinkX cables and
transceivers product line. The company plans to execute on its
roadmap to deliver 200 gigabit, 400 gigabit and beyond cables and
transceivers solutions on schedule, utilizing other technologies
including Mellanox own IC designs. The company intends to retain
the silicon photonics intellectual property.
“The Mellanox Board of Directors and management team continually
review our strategic priorities and investments to ensure they meet
our future goals. We began our review of the silicon photonics
business in May of 2017, but as the business did not become
accretive as we had hoped, we decided to discontinue our 1550nm
Silicon Photonics development activities,” said Eyal Waldman,
president and CEO of Mellanox Technologies. “We appreciate all of
the efforts of the silicon photonics team over the years and wish
them success in their future endeavors.”
The discontinuation of Mellanox’s 1550nm silicon photonics
development activities is not expected to have an impact on fiscal
2018 revenues and is projected to result in expected fiscal 2018
non-GAAP operating expense savings of $26 million to $28 million.
Also, this action will result in an estimated aggregate charge of
$21 million to $24 million, including approximately $4 million to
$5 million of cash expenditures – mostly related to the severance
costs of a reduction in force of about 100 people – as well as
approximately $17 million to $19 million of other charges,
consisting primarily of non-cash items. Mellanox expects to
recognize most of the restructuring charges in the first quarter of
2018. Mellanox will provide more detail on its 2017 results and
2018 outlook in its fourth quarter earnings report which will take
place on January 18, 2018.
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Google+, LinkedIn, and YouTube
- Join the Mellanox Community
About Mellanox
Mellanox Technologies (NASDAQ: MLNX) is a leading supplier of
end-to-end InfiniBand and Ethernet smart interconnect solutions and
services for servers and storage. Mellanox interconnect solutions
increase data center efficiency by providing the highest throughput
and lowest latency, delivering data faster to applications and
unlocking system performance capability. Mellanox offers a choice
of fast interconnect products: adapters, switches, software and
silicon that accelerate application runtime and maximize business
results for a wide range of markets including high performance
computing, enterprise data centers, Web 2.0, cloud, storage and
financial services. More information is available at:
www.mellanox.com.
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995
All statements included or incorporated by reference in this
release are forward looking statements including the anticipated
financial impact of the discontinued operations. 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-looking statements. All of these
forward-looking statements are based on estimates and assumptions
by our management that, although we believe to be reasonable, are
inherently uncertain. Forward-looking statements involve risks and
uncertainties, including, but not limited to, economic,
competitive, governmental and technological factors outside of our
control, that may cause our business, industry, strategy or actual
results to differ materially from the forward-looking statement.
These risks and uncertainties may include those discussed under the
heading “Risk Factors” in the Company’s most recent 10K and 10Qs on
file with the Securities and Exchange Commission, and other factors
which may not be known to us. Any forward-looking statement speaks
only as of its date. We undertake no obligation to publicly update
or revise any forward-looking statement, whether as a result of new
information, future events or otherwise, except as required by
law.
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version on businesswire.com: http://www.businesswire.com/news/home/20180109005749/en/
Mellanox Technologies, Ltd.Press/Media
ContactMcGrath/Power Public Relations and CommunicationsAllyson
Scott, +1-408-727-0351allysonscott@mcgrathpower.comorIsrael PR
ContactGalai Communications Public RelationsJonathan Wolf, +972
(0) 3-613-52-84yoni@galaipr.com
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