QLogic and Mellanox report positive financial results

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Both QLogic and Mellanox reported quarterly results last week, and both did well. Mellanox reported [PDF] record second quarter revenue of $40M, up about 10% sequentially and 58% year over year.

Mellanox logo“We are pleased to report record quarterly revenues of $40 million and year-over-year net income growth of 205 percent due to increased demand for both our InfiniBand and Ethernet product line offerings,” said Eyal Waldman, chairman, president, and CEO of Mellanox Technologies. “Our efficient interconnect solutions gained traction in multiple markets including high-performance computing, virtualized data centers, financial services and Web 2.0. As reported on the June TOP500 list, Mellanox’s industry-leading InfiniBand products connect the world’s fastest 208 supercomputers, or approximately 42 percent of the list, highlighting the performance, scalability and return-on-investment of our leading InfiniBand end-to-end connectivity products.”

QLogic also reported growth in its first quarter of 2011, with revenue up 16% year over year.

QLogic logo“We are very pleased with our strong financial performance during the first quarter, which was highlighted by a 16% increase in net revenue and a significant increase in profitability from the first quarter of last year,” said H.K. Desai, chief executive officer, QLogic. “We continue to realize tangible results from our strategic initiatives. During the first quarter, we achieved a significant milestone with revenue totaling $10 million from products serving host applications for the fast-growing converged network market.”

These results are interesting for the role they play as a leading indicator for global HPC deployments. Mellanox is probably a better indicator of this than QLogic, as it is far less diversified and touches less of the traditional enterprise. QLogic doesn’t break out IB separately in its results, but did offer this insight during its earnings call

First quarter revenue from Network Products, which comprised primarily of fibre channel and InfiniBand switches was $25.6 million and increased 3% from $25 million recorded in the first quarter of last year.


  1. Mellanox and Qlogic lost respectively 30% and 15% of their market cap the day after their earnings were released, both due to low guidance.