Conspiracy in Europe and What to Learn from Intel Reports: This Week in High-Tech

One of the questions about crises is how quickly the economy will emerge. Of course, this depends on the field of activity, type of customer, sales methods, product price and more. Either way, however, an economic crisis is not good for any company because at least some of its customers are apparently hurt. Yesterday, an announcement was made on CNBC that the CEO Dark Tim Cook told US President Donald Trump that the crisis would look like the letter V (meaning a sharp decline and a rapid and sharp recovery). Knowing no explanation appeared. Other options are that the crisis will look like the letter U, W or L (which means the recovery is slow and can continue Also a decade).

This week, the five tech giants will publish their financial statements (Google on Tuesday, Facebook and Microsoft on Wednesday, and Amazon Waffle on Thursday). The conference calls with the analysts after the reports are published will deal with this issue, which is of course relevant to all companies. When asked Coca-Cola CEO this week what scenarios he had anticipated, he said he believed the scenario was most likely to be U, but he also did not deny that there was any chance it would be L.

Technology companies’ recovery may be faster. In the conference call of Intel Released this week was not so focused on exit scenarios themselves, but the reports and CEOs did reflect the opportunities and challenges facing the company. In terms of numbers: the company’s revenues totaled $ 19.83 billion, up 23% year-over-year. Intel had $ 18.7 billion in revenue, down from $ 1.45 earnings per share, compared to $ 1.28 earnings per share, which was somewhat disappointing for the next quarter.

Five points from Intel reports:

1. The CEO demonstrates confidence – CEO Bob Swan quoted Andy Grove co-founder Andy Grove as saying: “” Bad companies are in crisis. Good companies survive them. Excellent companies are improving in times of crises. “Swan added:” Thanks to our DNA, competitive advantages and financial strength, we will emerge from this situation even stronger. “
2. Opportunities – Intel enjoys the need for technology infrastructures that support work and distance learning – communications networks, cloud and laptops. For example, Intel’s Data Centers activity grew 43% and this was the second best quarter of this activity (the high growth rate is partly because the corresponding quarter in 2019 was weak).
3. The activities that are affected – The global crisis hit the “Internet of Things” activity, especially in the industrial and retail sectors. In addition, the automotive sector was hit and the CEO noted that while Mobilai recorded record results in the first quarter, the company expects annual revenues to be lower than projections due to the injury to the automotive industry and the fact that fewer cars are produced. However, the CEO noted that Mobilai is in the growing industry The automotive. There is also a slowdown in demand from government organizations and bodies for Data Centers. The company also stated that they expect the computer market to suffer weakness in the second quarter due to the economic crisis.
4. Uncertainty – Like other companies, Intel has decided not to update its annual forecasts because of uncertainty over the year. While the company enjoys the transition to work and distance learning, the CEO said in a conversation that the company continues to assess how the impact on the economy will offset the positive impact of working remotely. He also noted that, for example, in the computer field, there is uncertainty about what activity will look like in the second half of the year.
5. Freeze the beeback – Buying shares (buy-back) is one of the things most American shareholders like. This allows them not to be depleted despite issuing employee options. That’s why Intel’s decision to freeze its backbone is an important statement, and it will be interesting to see what they do in other companies. In addition, the company raised $ 10.3 billion in debt.

“Mixed feelings”: Waldman in interview after confirming the sale of Melanox

A week and a half ago, the deal was finally approved Melanox, Which develops and markets telecommunications equipment for fast data transmission, to American Enabadia. Melanox is sold for $ 6.9 billion, or $ 7.36 billion, including the blocked shares, options and equity compensation held by employees.

“Emotions are mixed,” said Ilan Waldman, founder and CEO of Melanox technology company, to the likes of “Globes.” “We are very pleased with the deal that is very good for employees, shareholders and anyone related to Melanox, but I’m also a little sad because it’s the end A 21 year episode of building an amazing company, an amazing team. I am confident that we will continue to build a great, good and healthy company in Annabydia. ”

In an interview, Waldman talked about his future, whether the value was lower and the Corona crisis.

For the full interview.

Not everyone is a paintmaker from Rothschild

The Ministry of Finance this week approved the transfer of NIS 1.2 billion to the Innovation Authority for its annual budget. Of this amount, NIS 500 million will go to fast grants (royalties) to companies that are in financial distress following the crisis.

Over the past two weeks, the decision to assist the high-tech industry based on deep-pocketed investors has been criticized. Some of the criticism was based on inaccurate information and, to my mind, went a long way with populist headlines, but when it comes to policy this is still an important question. This week I posted an interview with Aaron Aaron, CEO of the Innovation Authority, and he replied to critics, both those who think you shouldn’t give money and those who think you give too little.

Aharon thinks that very little money will go to Rothschild companies (a code name for the relatively nonsensical companies) and also said: “People don’t understand how PA works. When you say high-tech, we all have a picture in mind of the Finchmakers sitting in Rothschild …”. He said NIS 500 million went to the life sciences industry, NIS 400 million went to the periphery, NIS 150 million to the manufacturing industry and another NIS 150 million to start-ups that support production. “In the interview he also talks about the institutions and whether they should invest in high-tech and more.

For the full interview.

More interesting things from last week:

• Are Fifth Generation Networks Causing Corona? The conspiracy that started from an interview with a doctor in a Belgian newspaper and out of control in Europe – and its connection to Russia. Very interesting article By Jasmine Yablonko. And also: Facebook An Israeli group closed That deals with the same conspiracy.
• Threat to Zoom? Facebook has launched Video calls to groups in the Messenger app. First publication by Uri Berkowitz, which surfaced before the social network was able to publish a message in the world.
• Another chapter in Facebook’s lawsuit against Israeli cyber attack firm NSO: Social Network The filing this week will make a statement to the court In it, attempts to undermine NSO-linked servers were used in the attack on Wetsap users. Facebook also tried to undermine the NSO’s claim that it does not operate in the US.
• Amazon’s stock is at an all-time high. As revenues flow, then, less is heard about the risky work environment for warehouse workers and neither is the criticism of the over-rich philanthropist of the world’s richest man, Jeff Bezos, who in recent months has raised his fortune by $ 26 billion. Jasmine Jablonko’s article Explains how this all happens.
• Planetaire helps many governments deal with the Corona in the hope that it will allow them to establish long-term business relationships that will generate future revenue. But the company is also facing financial challenges. Meanwhile, Planetaire has postponed the offering, reduced manpower, and like too many prominent high-tech private companies – presents financial results through creative accounting. What’s going on in the company of billionaire Peter Thill?. Wall Street Journal article.
• As the Corona crisis accelerates the transition to online services, and the world’s leading real estate infrastructure enables fast and reliable access to the cloud applications, the Data Infrastructure field offers a unique investment opportunity. Spring Lightweight and Asaf Barel Handley of Oppenheimer with Investment recommendation.
• The startup Who wants to shorten your shipping time From the supermarket
• Here’s how to avoid “zoom bombs”: Guide to Privacy and Security Settings In the popular avalanche

What’s in the industry

Funds:

• The venture capital fund S Capital announced the closure of a new $ 120 million fund. The foundation was founded in 2018 by Aya Petersburg and Haim Sedger with the aim of investing in companies that develop deep technology. The fund manages $ 270 million, about 100 of which is in its first fund, another 50 in a separate fund designed for growth companies, and the rest in the new fund. Petburg and Sedgar do not disclose to the fund’s investors, but they say most of them are American institutional entities, as well as a large European investor. Full Article.

Fundraising:

• Israeli startup Granulate, which is developing a product to improve real-time performance of cloud servers, announced the completion of $ 12 million in funding (to date, the company has raised $ 15.5 million). Granulite was established in 2018 by Asaf Ezra and Tal Sage. The round was led by the American Insight Partners fund, which also included existing investors, TLV Partners and Arrow Ventures, serial entrepreneur Benny Schneider, founders of WalkMe Dan Adika and Rafi Swiry, and founders of Demisto sold to Palo Alto for about half a million. Full Article.