Guidance Update, Board Changes Send Chip Company’s Stock Up
Mellanox has been embroiled in a control struggle with activist investor Starboard since the latter acquired a 10.7% stake in November and began pushing for operational and board reforms
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The announcements sent Mellanox up by as much as 11% in after-hours trading on Nasdaq.
The two new board members named Wednesday are Steve Sanghi and Umesh Padval, and neither were among Starboard's suggested candidates. Mr. Sanghi is the CEO of semiconductor manufacturing company Microchip Technology Inc., which reported revenues of $3.4 billion for the fiscal year ended March 31. Mr. Padval is a partner at venture capital firm Thomvest Ventures Inc., and was formerly the CEO of video infrastructure and distribution company C-Cube Microsystems Inc. and also headed its semiconductor division.
"The Mellanox board of directors has been actively seeking highly qualified, independent directors to fill the two remaining seats on our board, and we are delighted to welcome Steve and Umesh," said Irwin Federman, Chairman of Mellanox's board, in a statement.A replacement for Mr. Shulman has not yet been found, and Mellanox has been searching for potential successors, the company said in a statement.