Mellanox Technologies, Ltd.
) entered into a partnership agreement with Eucalyptus Systems. The
confluence was made with the clear intent of enhancing usability
and productivity of cloud infrastructure solutions.
Mellanox's 40GbE and InfiniBand Interconnect hardware devices
will come together with Eucalyptus' infrastructure as a service
(IaaS) cloud software platform as per the agreement. The merger
will then give birth to an easy-to-install, user-friendly,
inexpensive and high-performing cloud computing solution.
The industry has been awaiting a less-complicated and
inexpensive cloud infrastructure solution. We can, therefore, be
perspicacious of the burgeoning demand this platform would generate
for itself with this strategic alliance. Not only would there be
market share proliferation because of this venture but also would
there remain its indelible mark in the industry for a very long
On May 7, 2012, the company declared that it has crossed the $1
billion mark in accumulated revenues since its inception in 1999.
This is a clear depiction of the goodwill Mellanox has enjoyed over
time along with the strong market demand it currently generates for
it's interconnect solutions.
Such technological advancements and profitable mergers will most
certainly burgeon the growth rate of the company in the industry it
pertains to. However, there are some big players in the industry
the company should always be wary of. These include
Himax Technologies, Inc.
Cirrus Logic Inc.
The current Zacks Consensus Estimate for the second quarter of
2012 and for fiscal 2012 is 55 cents per share and $1.51 per share,
respectively. The company currently retains a Zacks #1 Rank, which
translates into a short-term 'Strong Buy' rating. However, we
presently maintain our 'Outperform' recommendation on the
AUTHENTEC INC (AUTH): Free Stock Analysis
CIRRUS LOGIC (CRUS): Free Stock Analysis Report
HIMAX TECH-ADR (HIMX): Free Stock Analysis
MELLANOX TECH (MLNX): Free Stock Analysis
To read this article on Zacks.com click here.