Israel Will Overcome Covid-19 Crisis by June, Says Mellanox CEO
Eyal Waldman, CEO of Israeli chipmaker Mellanox, is optimistic Israeli ingenuity will help it recover from the financial crisis caused by coronavirus
Naomi Zoref | 15:57 01.04.2020
Israel will overcome the coronavirus (Covid-19) crisis by June, according to Eyal Waldman, CEO of Israeli chipmaker Mellanox Technologies Ltd. Speaking with reporter Sophie Shulman on Tuesday in an online meetup held by Calcalist, Waldman said that his company has already prepared plans for the day after the pandemic. "I think you can learn a lot from what is currently happening in China,” Waldman said. “The crisis there lasted for around three or four months and I think it will also be behind us by May or June.
"We are trying to help wherever we can," he said. "We are also working on flying over as many ventilators as possible and acquiring parts that can be used to assemble ventilators in Israel."Shortly before the outbreak of the coronavirus crisis, Mellanox was valued at nearly $7 billion, the amount Nvidia Corp. agreed to pay for it last year. Back in March 2019, when the $6.9 billion acquisition deal was announced, that sum reflected a 17% premium on Mellanox’s market capitalization. According to Waldman, Mellanox is well positioned to overcome the shockwaves of the coronavirus pandemic. He also offered some advice to smaller companies. "It is important to comprehend the situation and to cut expenses," he said. "during the 2008 crisis, I cut my salary down to the minimum monthly wage and there were those who took 10% and 15% cuts and we saved a lot of money by reducing salaries for a year and a half. That allowed us to not fire anyone. The next thing to do is not cut research and development expenses so you can exit the crisis in a much better situation than you entered it. You must remember that your competition is also facing the same problems so you must not delay development. At Mellanox, we have overcome three or four global crises and three or four local geopolitical crises."