Monday, EZchip Semiconductor Ltd. (EZCH) reported a wider loss for the second quarter, negatively affected by a principal customer's decision to consume existing inventory instead of purchasing processors from the company during much of the quarter.
For the quarter, net loss widened to $0.71 million or $0.03 per share from $0.13 million or $0.01 per share a year ago.
On an adjusted basis, net income declined to $1.25 million from $1.33 million last year. On a per-share basis, adjusted earnings remained unchanged at $0.05 for the quarter.
Quarterly revenues were $6.67 million, down from $8.01 million in the comparable period, impacted by EZchip's principal customer's decision to temporarily reduce the purchase of processors from the company during most of the second quarter and instead to consume existing inventory.
For the quarter, selling, general and administrative expenses increased to $2.03 million from $1.81 million in the year-earlier quarter. Operating loss widened to $949 thousand from $459 thousand a year ago.
At June 30, cash, cash equivalents and marketable securities totaled $55.4 million, compared to $50.4 million as of March 31, 2009.
For the six-month period, net earnings were $0.70 million or $0.02 per share, compared with a loss of $6.43 million or $0.28 per share in the same period last year. On an adjusted basis, net income surged to $4.6 million or $0.18 per share from $1.8 million or $0.07 per share in the year-ago period.
Year-to-date, net revenues increased to $16.52 million from $14.96 million in the previous-year period.
Eli Fruchter, chief executive officer, said, "I am pleased to report that the temporary decline in orders from our principal customer ended in May, and, starting from June, we witnessed a strong increase in orders from this customer and from other customers."
"This strong order pickup underscores our belief that the second quarter revenue shortfall was a singular event and we expect to return to, and potentially exceed, first quarter 2009 revenue levels already in the third quarter," Fruchter added.
EZCH is currently trading at 13.72, up 7.12%, on the Nasdaq.
For comments and feedback: editorial@rttnews.com