This paragraph is one of saddest things I’ve read about networking companies:
Starboard says MLNX is spending too much on R&D and other corporate expenses to sufficiently grow revenue, sacrificing margins compared with peers, and wants the company to improve its operations and potentially explore a deal to boost the stock.
Basically, too much R&D is bad for profits but good for business. Starboard is a well known activist investor that “seagulls” into companies and forces them into debt and sacrifices the long term for a short term dividend.
Seagull: swoops in to steal your food while pooping on you and making loud noises. Annoying, smelly and a thief.