Breaking News
FONT-SIZE Plus   Neg
Share SHARE

EZchip Profit Tops Estimate; But Stock Down - Update

RELATED NEWS
Trade EZCH now with 

Israel-based Ethernet network processor maker EZchip Semiconductor Ltd. (EZCH: Quote), Wednesday reported a swing to fourth-quarter profit, on higher revenues and the absence of one-time charges incurred a year ago. The company's earnings and revenues for the quarter also topped Street estimates.

EZchip said that Huawei, one of its five major NP-4 network processor customers, has not yet placed any production orders and may "offer a lower-end in-house solution in parallel to the high-end NP-4 solution."

The company said it believes that NP-4 can prop up its revenues in the next few years, and expects year-over-year growth in 2013 when compared with 2011.

Investors were mostly unimpressed with the results, dragging EZchip shares down by about 10 percent in morning trade on the Nasdaq.

EZchip reported fourth-quarter net income of $4.8 million or $0.17 per share, compared with a net loss of $6 million or $0.22 per share last year.

Results for the prior year included a charge of $10 million related to early repayment to the Israeli Office of Chief Scientist.

Excluding items, adjusted earnings for the quarter were $7.8 million or $0.26 per share, compared with $6.3 million or $0.22 per share a year ago.

Analysts polled by Thomson Reuters expected earnings of $0.21 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenues in the quarter increased 7 percent to $15 million from $14 million in the prior year. Analysts on consensus estimated revenues of $14 million for the quarter.

Gross margin for the quarter expanded to 83.2 percent from 6.6 percent a year ago.

EZchip is trading at $29.06, down 9.86%, on a volume of 1.8 million shares.

Register
To receive FREE breaking news email alerts for EZchip Semiconductor Ltd. and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Stocks moved notably higher over the course of the trading day on Tuesday after recovering from an initial move to the downside. With the strong upward move on the day, the Dow reached a new record intraday high before giving back some ground. President Barack Obama is scheduled to travel to the headquarters of the Centers for Disease Control and Prevention in Atlanta, Georgia, on Tuesday to outline steps the U.S. will take to help combat the Ebola outbreak in West Africa. Senate Republicans once again voted Monday to block a Democratic bill aimed at narrowing the national gender wage gap. The Senate voted 52 to 40 in favor of limiting debate on the Paycheck Fairness Act, falling well short of the 60 votes required.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.