{
  "docId": "019dd923-622b-71dc-a6d9-cc3cfd82bad8",
  "docSlug": "1c59255c89a2",
  "documentTitle": "Mellanox Technologies, Ltd. (MLNX)",
  "authorId": "03_Starboard_Value",
  "authorName": "Peter A. Feld",
  "documentKindSlug": "shareholder-letter",
  "documentKindLabel": "Shareholder letter",
  "sourceTypeSlug": "activist_investor",
  "sourceTypeLabel": "Activist investor",
  "presentationDate": "2018-01-08 00:00:00",
  "orientation": "portrait",
  "aspectRatio": 0.77272725,
  "pageNumber": 2,
  "pageCount": 6,
  "prevPage": 1,
  "nextPage": 3,
  "slideType": "peer_gap",
  "function": "expose_gap",
  "density": "dense",
  "nDataPoints": 15,
  "notes": "The slide uses a 'villain' narrative (Starboard Value) to frame the stock underperformance as a result of management execution.",
  "elementsJson": [
    "line_chart",
    "paragraph",
    "bar_chart_vertical",
    "footnote"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622b-71dc-a6d9-cc3cfd82bad8/2",
  "deckHref": "/decks/019dd923-622b-71dc-a6d9-cc3cfd82bad8",
  "deckJsonHref": "/decks/019dd923-622b-71dc-a6d9-cc3cfd82bad8.json",
  "deckAnchorHref": "/decks/019dd923-622b-71dc-a6d9-cc3cfd82bad8#slide-2",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "This consistent underperformance is troubling and puzzling, given both the strong performance of Mellanox’s peers and the tailwinds provided by the Company’s favorable exposure to many of the most attractive end markets in the industry.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd952-ee38-728b-98c7-83a365028a80",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.18,
        "w": 0.78,
        "x": 0.11,
        "y": 0.69
      },
      "kind": "chart",
      "text": "Bar chart comparing 2017E Gross Margins across peers",
      "attrs": null,
      "subkind": "bar-vertical",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "67bf2502-1041-4b05-87fb-14091a2ab86a",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.25,
        "w": 0.78,
        "x": 0.11,
        "y": 0.12
      },
      "kind": "chart",
      "text": "Stock performance chart showing MLNX vs SOX Index and Peer Group",
      "attrs": null,
      "subkind": "line",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "8a47c951-4f3f-445a-a0ed-4138d5add107",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "gross margin: 70.6%",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd952-ee38-728b-98c7-8605a9a9d75e",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.12,
        "w": 0.78,
        "x": 0.11,
        "y": 0.43
      },
      "kind": "paragraph",
      "text": "This consistent underperformance is troubling and puzzling... driven by a pattern of weak execution that has included both excessive spending and missed growth opportunities.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "81460a99-f51a-482b-a6bd-70206c0f9391",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.05,
        "w": 0.78,
        "x": 0.11,
        "y": 0.56
      },
      "kind": "paragraph",
      "text": "Looking at margins, Mellanox is one of the few fabless semiconductor companies that has been able to achieve gross margins in excess of 70%.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "e0f3d488-1e4e-41ce-800e-d804894883f3",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.03,
        "w": 0.78,
        "x": 0.11,
        "y": 0.65
      },
      "kind": "title",
      "text": "2017E Gross Margin",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "42efecca-8acd-469a-99e3-7f4965d156fd",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.03,
        "w": 0.78,
        "x": 0.11,
        "y": 0.09
      },
      "kind": "title",
      "text": "Five Year Stock Price Performance",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "d7667816-cefb-4224-84d8-8167b9a7baf3",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "antagonist-introduction",
      "slug": null,
      "matchId": "f8eeff82-0229-4e49-850a-96494b269a7b",
      "evidence": "Starboard Value 13D filing callout",
      "confidence": 0.9
    },
    {
      "name": "comparison-frame",
      "slug": null,
      "matchId": "b51e093b-ab30-4476-8a40-ab4fdd39a674",
      "evidence": "Peer benchmarking of stock and margins",
      "confidence": 1
    }
  ],
  "arcBeats": [
    {
      "to": 2,
      "from": 2,
      "beatId": "5d6a369c-6801-4209-98e1-3a87aafd6a75",
      "arcName": "The Consultant's Gambit",
      "arcSlug": "consultants-gambit",
      "beatName": "Problem & Complication",
      "beatSlug": "consultants-gambit-problem-complication",
      "evidence": "The peer gap slide highlights the problem of Mellanox's stock performance lagging peers.",
      "position": 1,
      "confidence": 0.8,
      "parentBeatName": "Complication",
      "parentBeatSlug": "complication"
    }
  ],
  "loops": [
    {
      "to": 5,
      "from": 2,
      "name": "Benchmark Gap",
      "slug": "39-benchmark-gap",
      "bestFor": "Performance improvement, competitive analysis, target setting",
      "matchId": "c3c12e15-48e7-44fe-9121-0107873e4c9c",
      "evidence": "The use of peer benchmarks and financial data to highlight the gap.",
      "position": 0,
      "objective": "To demonstrate the gap in stock performance and financial metrics between Mellanox and its peers, and to question why this gap exists.",
      "structure": "Our Performance -> Industry Average -> Best-in-Class -> The Gap = The Opportunity",
      "confidence": 0.8,
      "description": "Compare performance against best-in-class to quantify the opportunity"
    }
  ],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}