MIRA INFORM REPORT
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Report Date : |
15.03.2012 |
IDENTIFICATION DETAILS
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Name : |
MELLANOX TECHNOLOGIES LTD. |
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Registered Office : |
P.O. Box 586, Hermon Industrial Zone, Yoqneam Illit 2069207 |
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Country : |
Israel |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
30.03.1999 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Developers, marketers and exporters of end-to-end
connectivity solutions for servers and storage that optimize data center
performance |
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No. of Employees
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Group having 778
full time employees, as well as 63 part time employees, of which 648 full
time and all part time employees in Israel |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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Status : |
Good |
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Payment
Behaviour : |
No Complaints |
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Litigation : |
Clear |
NOTES:
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – September 30th, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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Israel |
a2 |
a2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
MELLANOX TECHNOLOGIES LTD.
Telephone 972 4 909 72 00; 74 723 72 00
Fax 972 4
959 32 45
P.O. Box 586
Hermon Industrial Zone
YOQNEAM ILLIT 2069207,ISRAEL
Originally
established as a private limited company, incorporated as per file No. 51-276328-5 on the 30.03.1999.
On February 8th,
2007 published a prospectus offering shares to the public through the NASDAQ,
and converted into a public limited liability company (keeping the same
registration number).
On July 9th,
2007 published a prospectus offering shares to the public through the Tel Aviv
Stock Exchange.
Authorized share capital NIS 2,400,000.00, divided into: -
137,142,857
ordinary shares of NIS 0.0175 each,
of which
40,046,048 shares amounting to NIS 700,805.84 were issued.
1. FMR LLC (FIDELITY Fund), 15%,
American institutional investor,
2. ORACLE CORP., 9.6%, of the USA (Nasdaq:
ORCL),
3. Eyal
Waldman, 4%,
4. Shares
are also traded on the NASDAQ Stock Exchange (symbol MLNX) and on the Tel Aviv Stock Exchange.
In October 2010
subject announced that ORACLE acquired 10.2% of its shares.
1. Eyal Waldman, Chairman and General Manager,
2. Irwin Federman,
3. Ms. Glenda Dorchak,
4. Amal M. Johnson,
5. Thomas Riordan,
6. Thomas Weatherford,
7. Dov Baharav.
Developers, marketers and exporters of end-to-end connectivity solutions
for servers and storage that optimize data center performance.
Among name brands
"BridgeX", "ConnectX", "InfiniBlast".
Subject also
serves as an OEM supplier
Manufacturing is
carried out by sub-contractors.
Over 99% of
subject's sales were export (93% in 2010), of which 52.5% to North America.
Among clientele:
ORACLE, DELL, HP, IBM, Sun Microsystems,
LSI/Engenio Corporation, Network Appliance, Isilon, Voltaire, Xsigo, GE,
Toshiba Medical, Seachange International, SUPERMICRO COMPUTER, VOLTAIRE,
NASA, Goethe University of Frankfurt, Texas Advanced Computing Center, and
more.
Amongst local
suppliers: COMTEL ISRAEL ELECTRONICS SOLUTIONS.
Operating from
rented premises (Engineering Headquarters, development facilities), on an area
of 2,370 sq. meters, in Mellanox House, Hermon Industrial Zone, Yoqneam Illit
(or 'Upper Yoqneam'), from development centers in Ramat Hachayal Industrial
& Hi-Tech Zone, Tel Aviv, in Tel Hai (a Kibbutz in the country’s north) and
in Raanana. Also operating from Corporate Headquarters from rented premises on
an area of 9.650 sq. meters in Sunnyvale, California, USA.
Group having 778
full time employees, as well as 63 part time employees, of which 648 full time
and all part time employees in Israel.
Group
significantly increased its employee number following the acquisition of
VOLTAIRE LTD. in February 2011 (some 200 employees).
In February 2007
subject raised US$117.3 million via NASDAQ.
R&D expenses
in 2011 were US$ 92.5 million (US$ 56.8 million in 2010).
Subject is an
“Approved Enterprise” and as such enjoys tax benefits and State incentives. In
April 2001 the Israel Investment Center (IIC) approved a US$ 7,118,000
investment in subject's plant. In June 2004, IIC approved NIS 5.7 million
investment plan for the expansion of subject’s plant.
Consolidated B/S
shows:
US$
(thousands)
31.12.2011 31.12.2010
ASSETS
Current assets
Cash & short term investments 238,083 253,306
Accounts receivables 48,215 19,893
Other assets 7,373 4,487
Inventories 24,955 11,717
318,626 289,403
Property
and equipment (net) 36,806 15,490
Goddwill
and intangible assets 158,542 290
Other
long term assets 16,056 4,780
530,030 315,755
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LIABILITIES
Current
liabilities 67,093 23,778
Long term
liabilities 20,590 10,287
Equity 442,347 281,690
530,030 315,755
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Current market
value US$ 1.47 billion.
There are 3
charges for unlimited amounts, as well as 4 charges for the total sums of US$ 2,274.00
and NIS 6,418,133.00 registered on the company's assets, in favor of Bank Leumi
Le'Israel Ltd., Bank Hapoalim Ltd. and a leasing company (last charge placed
August 2011).
Consolidated
Statement of Income
US$
(thousands)
Year
ended 31.12
2011 2010 2009
Revenues 259,251 154,640 116,044
Gross profit 167,236 114,090 87,375
Operating income 12,593 23,438 18,747
Income before taxes 13,352 23,303 19,265
Net income 9,977 13,540 12,886
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The revenues of 2011 include the sales of
acquired VOLTAIRE.
MELLANOX
TECHNOLOGIES INC., 100%, USA.
VOLTAIRE LTD.,
100%, designers and developers of InfiniBand based connectivity solutions for
data centers.
VOLTAIRE UK LTD.,
100%,
MELLANOX KK LTD., 100%,
MELLANOX
TECHNOLOGIES DISTRIBUTION LTD., 100%.
Bank Hapoalim
Ltd., Yoqneam Branch (No. 722), Yoqneam, account No. 398395.
A check with the Central Banks' database did not reveal any negative
information regarding subject's a/m account.
Nothing
unfavorable learned.
Despite our efforts, we were unable to speak with subject's officials,
as they were always unavailable. We left messages which so far remain
unanswered.
In April 2008
subject won ‘Best of Interop’ Award, which recognize exhibitors that have made
significant technological advancements in specific category areas.
In January 2009
subject announced that its shares are now listed on the NASDAQ Global Select
Market, the highest initial listing standards of any exchange in the world.
During 2009 subject negotiated to acquire COPPERGATE COMMUNICATIONS LTD. for US$ 200 million, however this deal did not pull through.
In November 2009 subject
was ranked number 20 Fastest Growing Company in Israel on Deloitte’s 2009
Israel Technology Fast 50 Program and number 298 Fastest Growing Company in
North America on Deloitte’s 2009 Technology Fast 500™.
In January 2010
Subject's General Manager Eyal Waldman was named ‘CEO of the Year’ by the
Israeli Center for Management.
In February 2010 subject opened its 3rd
develompnt center in Tel Hai Industry Gardens located in Northern Israel, and
recruted 15 employees with an intention to recrute fuerther 30 employees. In
November 2010 the Ministry of Industry, Labor and trade approved a
participation in the salary of employees in the Te Hai facility.
In March 2010 subject announced the establishment of UK
subsidiary, itended to inhance European activities.
In November 2010
subject and the Beijing Computing Center, announced a joint cooperative
agreement to build the Beijing Public Cloud Computing Center including a joint
cloud computing laboratory.
In November 2010
subject won the "Cloud Networking Innovator Editors Choice Award" in
the first annual HPC in the Cloud Readers’ and Editors’ Choice Awards and also
won the "Best HPC Interconnect Product or Technology” in the annual
HPCwire Readers’ and Editors’ Choice Awards.
In November 2010
Texas Advanced Computing Center chose subject's products for it computing
cluster.
In February 2011 subject completed the
acquisition of the Israeli-based VOLTAIRE LTD. (was publicly traded on Nasdq),
among the leading companies in the world in its field, for a total sum of US$
218 million (US$ 207 million in cash).
The global economic crisis which erupted in the last third of 2008
adversely affected the global electronics and hi-tech markets and in-turn, hit
the local electronics industry. Nevertheless, local
companies in the Electronics and Software branches in general have proven
ability to withstand light of the crisis, much given the fact that global
electronics sector begun recovery since mid 2009. According to the Israel
Association of Electronics & Software, hi-tech industries sales in 2011
reached around US$ 25 billion, up from US$ 23.5 billion in 2010, US$ 22.85
billion in 2009 and US$ 21.3 billion in 2008.
2010
sales divided into export of US$ 19.9 billion (US$ 19.45 billion and US$ 18
billion in 2009 and 2008, respectively) and US$ 3.6 billion sales to the local
market. Division of export: 32% to North America, 28% - Europe, 27% - Asia.
Export
of electronic products in 2011 kept rising and reached US$ 21 million: 3.4%
increase in Electronic Components & Computers, and 3.9% increase in
Communications, Medical & Scientific Equipment.
The division of companies by production within the
branches is as follows: 22% Software, 23% Civilian Communications &
Telecommunications, 18% Industrial Equipment, 19% Defense Systems, 14%
Components and 7% Medical Systems.
From the Israel Export
Institute (IEI) data, export of telecommunications equipment in 2010 reached
US$ 2.7 billion, 5% up from 2009 (when it fell 24% from 2008). Sales for export
were expected to rise further and reach US$ 2.84 billion in 2011, according to
IEI.
68,000 employees were serving in the Electronics sectors, and 83,000 in
the software sectors.
According
to the Central Bureau of Statistics (CBS), import of raw materials
for the local Machine and Electronics Manufacturing rose in 2010 by 19.8% from
2009, reaching US$ 7,817 million, after a 18.2% decrease in 2009 (from 2008),
which was due to the global economic crisis. The trend continued in 2011 –11.9%
rise from 2010, totaling US$ 8,743.7 million.
Investments
(capital formation) by the hi-tech industries in machinery and equipment from
import in 2010 rose by 11.2% from 2009 (when it plunged by 61% from 2008) and
summed up to NIS 3,227 million. A break of the above investments sum reveals
that there was a 15% decrease in the Electronic Components segment to NIS 784
million (after 81% fall in 2009 from 2008); Investment in the equipment for
Control & Medical/Scientific segment was NIS 1,260 million (32.5% increase
after 20% decrease); Electronic Communications equipment - NIS 1,082 million
(15.3% increase after 31% decrease); and in Office & Computing equipment a
32.5% rise was noted (after 11% fall in 2009), reaching NIS 101 million.
Good for trade
engagements.
Maximum unsecured
credit recommended several US$ millions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.49.90 |
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UK Pound |
1 |
Rs.78.15 |
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Euro |
1 |
Rs.65.09 |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with full
security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NB |
New Business |
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This score serves as a reference to assess SC’s credit risk and
to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.