Corporate Update. Enabling The Use of Data January Mellanox Technologies

Transcription

1 Corporate Update Enabling The Use of Data January 2018

2 Safe Harbor Statement These slides and the accompanying oral presentation contain forward-looking statements and information. 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. 2

3 We Live in a World of Data More Devices More Applications More Data 3

4 Exponential Data Growth Everywhere Cloud and Web 2.0 HPC Big Data Security Internet of Things Enterprise Storage Machine Learning Business Intelligence source: IDC 4

5 Data is Growing Faster Than Ever Autonomous vehicle generates 4000GByte per day CAMERA ~20-40MB Per/sec SONAR ~10-100KB Per/Sec GPS ~50KB Per/Sec RADAR ~10-100KB Per/Sec Light Detection & Ranging ~10-70MB Per/Sec Data will grow by a factor of 10 over the next decade to 160 Zeta Bytes in 2025 (source: IDC) Faster Data processing requires faster Interconnect speeds 5

6 Artificial Intelligence: Sparking The Next Industrial Revolution Finance, Fraud & Insurance Cloud, Web, Mobile, Retail Automotive & Transportation Medicine & Genomics Security & Safety Oil & Gas Fraud Detection Credit/Risk Analysis High Frequency Trading Image Tagging Speech Recognition Sentiment Analysis Self Driving Image / Facial Recognition Logistics & Mapping Drug Discovery Diagnostic Assistance Cancer Cell Detection Surveillance Image Analysis Facial Recognition and Detection Seismic Imaging Reservoir Characterization Subsurface Fault Detection 6

7 Data Drives a Better Future: Smart Cities SMART Healthcare SMART Buildings SMART Transportation SMART Communications SMART Traffic SMART Education SMART Sensors SMART Parking SMART Energy SMART Infrastructure 7

8 Exponential Data Growth Everywhere Higher Data Speeds Faster Data Processing Better Data Security source: IDC 8

9 Exponential Data Growth Everywhere SmartNIC System on a Chip Higher Data Speeds Faster Data Processing Better Data Security Adapters Switches Cables & Transceivers 9

10 Data Growth is Mellanox Growth 10

11 Mellanox Leads Across Industries Delivering Highest Data Center Return on Investment 5 of Top 6 Global Banks 9 of Top 10 Hyperscale Companies 9 of the Top 10 Oil and Gas Companies 3 of Top 5 Pharmaceutical Companies 10 of Top 10 Automotive Manufacturers 11

12 Enabling Most Efficient Machine Learning Platforms Allowing AI to Perform Critical & Real Time Decisions OCP Big Sur Artificial Intelligence Platform Real Time Fraud Detection Machine Learning System with 400Gb/s 18X Speedup For Image Recognition 4X Speedup For Image Recognition Data Analytics Image Recognition World Record For Data Sort, 3X Faster 12

13 Business Success Depends on Mellanox Deliver the Highest Data Center Return on Investment Tier-1 Trading Institution 10X Reduction Of Latency Tier-1 Fortune100 Web 2.0 Company Reduction in Database 97% Recovery Time Military Systems 4X Higher Performance While Reducing System Footprint by 50% Yosemite Platform with Multi-Host Technology Lowers Total Cost of Ownership 100K Concurrent Streams From a Single Server For the Highest Quality Viewing Experience 13

14 The Smart Choice for HPC Platforms Deliver the Highest Data Center Return on Investment Accelerates the #1 Supercomputer & Connects 39% of Overall TOP500 Systems (192 Systems) InfiniBand to Connect Future #1 HPC Systems (Coral) InfiniBand Leadership Ethernet Leadership InfiniBand Connects 60% of the TOP500 HPC Platforms And 77% of new TOP500 HPC systems (June 17-Nov 17) Mellanox Connects All of 25G, 40G and 100G Ethernet Systems On the TOP500 List Mellanox enable highest ROI for Machine Learning, High- Performance, Cloud, Storage, Big Data and more applications 14

15 Leadership in Storage Platforms Delivering the Highest Data Center Return on Investment SMB Direct 15

16 Mellanox Enables Data Centers of the Future - Today Security Data Insights Real-Time Software-Defined Network Intelligence Performance Efficiency Scalability Highest-Performance 100Gb/s, 200Gb/s and 400Gb/s Interconnect Solutions 16

17 Comprehensive End-to-End Portfolio InfiniBand and Ethernet Software NPU & Multicore Metro / WAN Switches/Gateways Adapter Cards ICs Cables/Modules 17

18 Leading Supplier of End-to-End Interconnect Solutions Server / Compute Virtual Protocol Interconnect 56/100/200G InfiniBand 10/25/40/50/ 100/200/400GbE Switch / Gateway Virtual Protocol Interconnect 56/100/200G InfiniBand 10/25/40/50/ 100/200/400GbE Storage Front / Back-End 18

19 Highest Performance 100, 200 and 400Gb/s Interconnect Solutions Adapters 200Gb/s, 0.6us Latency 200 Million Messages per Second (10 / 25 / 40 / 50 / 56 / 100 / 200Gb/s) Switch 40 HDR (200Gb/s) Ports 80 HDR100 (100Gb/s) Ports 16Tb/s Throughput, 15.6 Billion msg/sec Switch GbE Ports, GbE Ports GbE Ports, /50GbE Ports Throughput of 6.4Tb/s Interconnect Transceivers Active Optical and Copper Cables (10 / 25 / 40 / 50 / 56 / 100 / 200Gb/s) 19

20 Enabling the Future of Machine Learning HPC and Machine Learning Share Same Interconnect Needs IoT Storage Self-Driving Vehicles Database Embedded Appliances High Performance Computing Machine Learning Healthcare Retail Financial Manufacturing Hyperscale 20

21 Significant Growth of Ethernet Market at 25Gb/s and Above 25G and above growing to 64% of the 5Y CAGR 200G 6% High Speed Adapters 2016 ($1.2B) 17% Of Total Market 1% 1% 13% 2% 40G 10G 83% 100G 27% High Speed Ethernet Adapter Forecast 2021 TAM ($2.0B) 10G 36% 10GbE 25GbE 40GbE 50GbE 100GbE 17% 64% 200GbE 50G 15% 40G 2% 25G 14% Crehan Research: Long Range Forecast Server-class Adapters & LOM (Jul 2017) 21

22 Spectrum Delivers Highest Data Center ROI Flexibility Scalability Programmability TCO Performance Open Ethernet 10, 25, 40, 50, 100, 200 and 400 Gigabit Speeds, variety of port configurations 10X better scalability, optimized data center utilization and end-user experience Programmable flexible parser and packet modifier, support user defined protocols 1.3X lower power consumption versus competition 1.4X lower latency versus competition, enable real-time data analysis and insights 22

23 BlueField Enables Growing Market Segments Bluefield - Combining Mellanox s Best-in-Class ConnectX Technology with ARM v8 Multicore Processors Security Data Center Infrastructure Protection Storage Enabling the Path to NVMe-over-Fabric Storage Platforms Machine Learning The Most Efficient Machine Learning Systems NFV Performance and Flexibility at Lower Cost 23

24 End-to-End Solutions for All Platforms Unleashing the Power of all Compute Architectures X86 Open POWER GPU ARM FPGA Highest Performance and Scalability for Intel, AMD, IBM Power, NVIDIA, Qualcomm, ARM and FPGA-based Compute and Storage Platforms at 10, 20, 25, 40, 50, 100, 200 and 400Gb/s Speeds 24

25 Mellanox Overview Company Headquarters Yokneam, Israel Sunnyvale, California Worldwide Offices ~2,950 Employees worldwide Ticker: MLNX 25

26 Mellanox Overview Solid financial position 2017 Revenue of $863.9M 2017 non-gaap GM of 70.4% 2017 non-gaap EBIT Margin of 13.7% 2017 non-gaap EPS of $2.28 Cash & Investments of $273.8M as of 4Q 17 A reconciliation of GAAP to non-gaap condensed consolidated statements of operations is presented in the financial statements of our most recent earnings release located on the "Investor Relations" page on our website 26

27 Mellanox Overview Technology and Product Leadership Leader in End-to-End InfiniBand and Ethernet Technologies Introducing New Products to Accelerate Future Growth (Switch Systems/Silicon, Acq. EZchip Technology) Well Positioned to Benefit from Market Transition from 10Gb to 25/50/100Gb 27

28 Approaching $1 Billion in Annual Revenues 4-Year ( ) CAGR 22% $ Annual Revenue ($M) Source: Company financial statements 28

29 Strong Outlook for First Quarter and Full Year 2018 FIRST QUARTER 2018 OUTLOOK: Revenues of $222-$232 million Non-GAAP gross margin range of percent Non-GAAP operating expenses of $120-$122 million In the first quarter of 2018 we expect to recognize remaining restructuring charges related to discontinuation of 1550nm silicon photonics activities in amount of $9 million to $12 million FULL YEAR 2018 OUTLOOK: Revenues of $970-$990 million Non-GAAP gross margins of percent Non-GAAP operating margin of percent Non-GAAP operating margin > than 20.0 percent exiting

30 Investment Highlights Summary Interconnect technology is critical for business performance Increases application productivity and ROI End markets have shown consistent growth Mellanox s TAM forecasted to reach ~$15B by 2018 Mellanox uniquely positioned to continue market leadership Providing compelling technology benefits to multiple, high growth markets Well positioned as industry transitions to 25Gb+ technology Shipping 25/40/50/100Gb technology today (end-to-end solution) Demonstrated revenue growth, strong cash flow and increasing profitability with attractive gross margins Solid revenue growth (~22% CAGR) over the last 4 years 30

31 Thank You