EZchip Announces Record Second Quarter 2015 Results: Q2 Revenues Increase 28% Year-Over-Year To $28.3 Million

(PRNewswire) —  EZchip Semiconductor Ltd. (NASDAQ: EZCH), a leader in high-performance processing solutions for carrier and data center networks, today announced its results for the second quarter ended June 30, 2015.

Second Quarter 2015 Highlights:

  • Second quarter revenues of $28.3 million
  • Gross margin reached 76.7% on a non-GAAP basis
  • Gross margin reached 75.5% on a GAAP basis
  • Net income was $10.9 million on a non-GAAP basis
  • Net income was $5.4 million on a GAAP basis
  • Operating cash flow of $10.4 million
  • Repurchased 0.3 million shares during the second quarter for a total cost of $4.7 million
  • Net cash at end of quarter was $189 million

Second Quarter 2015 Results:

Total revenues in the second quarter of 2015 were $28.3 million, an increase of 28% compared to $22.1 million in the second quarter of 2014, and an increase of 5% compared to $26.9 million in the first quarter of 2015.

Net income, on a GAAP basis, for the second quarter of 2015 was $5.4 million, or $0.18 per share (diluted), compared to net income of $6.2 million, or $0.21 per share (diluted), in the second quarter of 2014, and a net loss of $8.3 million, which includes a one-time charge due to early repayment of $9.6 million to the Israeli Office of Chief Scientist (OCS), or $0.28 per share, in the first quarter of 2015.

Net income, on a non-GAAP basis, for the second quarter of 2015 was $10.9 million, or $0.34 per share (diluted), compared to non-GAAP net income of $11.0 million, or $0.36 per share (diluted), in the second quarter of 2014, and non-GAAP net income of $7.5 million, or $0.24 per share (diluted), in the first quarter of 2015.

Cash, cash equivalents, marketable securities and deposits as of June 30, 2015, totaled $189.0 million, compared to $184.1 million as of March 31, 2015. Cash generated from operations was $10.4 million, cash used in investing activities was $0.8 million, cash used in financing activities was $4.4 million (resulted mainly from the share repurchase program), and a decrease of $0.3 million resulted from cash adjustment of marketable securities, net.

First Six Months 2015 Results

Total revenues for the six months ended June 30, 2015 were $55.2 million, a year-over-year increase of 30% compared to $42.4 million for the six months ended June 30, 2014. Net loss on a GAAP basis for the six months ended June 30, 2015 was $2.8 million, which includes a one-time charge due to early repayment of $9.6 million to the Israeli Office of Chief Scientist (OCS), or $0.10 per share, compared to net income of $12.3 million, or $0.42 per share (diluted), for the six months ended June 30, 2014. Net income on a non-GAAP basis for the six months ended June 30, 2015 was $18.4 million or $0.58 per share (diluted), compared with non-GAAP net income of $21.0 million, or $0.69 per share (diluted), for the six months ended June 30, 2014.

Eli Fruchter, CEO of EZchip, commented,

"We are very pleased with our second quarter results. During the second quarter, EZchip delivered sequential and year-over-year growth, and robust non-GAAP EPS," said Eli Fruchter, CEO of EZchip. "NPS-400 remains on track to tape-out this month with customer samples expected in the fourth quarter of 2015.  Interest in NPS remains elevated, and we are very pleased to report five Tier-1 design wins in our new target markets for white boxes and data centers, as well as in our traditional carrier router markets, to commence following sample availability.

"Revenues in the first six months of 2015 saw significant increase compared to the first half of 2014, primarily driven by NP-4/5 and multi-core products. In fact, excluding sales to Cisco and ZTE, revenues to other customers nearly doubled compared to the same period last year. We believe this demonstrates the broadening of our customer base and revenue diversification.

"We are seeing changes in the competitive landscape for high-end merchant NPUs, which we believe could lead to a significant strengthening of our market leading position. To the best of our knowledge, there is no NPU-based roadmap within other merchant silicon vendors. This could position EZchip to become the only high-end merchant NPU vendor in the market able to satisfy the growing demand from both traditional networking vendors as well as from new white box customers," added Mr. Fruchter.

Conference Call

The Company will be hosting a conference call later today, August 12, 2015, at 10:00am ET, 7:00am PT, 3:00pm UK time and 5:00pm Israel time. On the call, management will review and discuss the results, and will be available to answer investor questions.

To participate through the live webcast, please access the investor relations section of the Company's web site at:  http://www.ezchip.com/Investor-Relations/?ezchip=527, at least 10 minutes before the conference call commences. If you would like to ask a question on the call, please contact the investor relations team for the telephone dial-in numbers.

For those unable to listen to the live webcast, a replay of the webcast will be available the day after the call under the 'Investor Relations' section of the website.

1 | 2 | 3 | 4 | 5 | 6  Next Page »



Review Article Be the first to review this article

EMA:

Featured Video
Editorial
Peggy AycinenaWhat Would Joe Do?
by Peggy Aycinena
Retail Therapy: Jump starting Black Friday
Peggy AycinenaIP Showcase
by Peggy Aycinena
REUSE 2016: Addressing the Four Freedoms
More Editorial  
Jobs
Development Engineer-WEB SKILLS +++ for EDA Careers at North Valley, CA
AE-APPS SUPPORT/TMM for EDA Careers at San Jose-SOCAL-AZ, CA
Principal Circuit Design Engineer for Rambus at Sunnyvale, CA
FAE FIELD APPLICATIONS SAN DIEGO for EDA Careers at San Diego, CA
ACCOUNT MANAGER MUNICH GERMANY EU for EDA Careers at MUNICH, Germany
Manager, Field Applications Engineering for Real Intent at Sunnyvale, CA
Upcoming Events
Zuken Innovation World 2017, April 24 - 26, 2017, Hilton Head Marriott Resort & Spa in Hilton Head Island, SC at Hilton Head Marriott Resort & Spa Hilton Head Island NC - Apr 24 - 26, 2017
CST Webinar Series



Internet Business Systems © 2016 Internet Business Systems, Inc.
595 Millich Dr., Suite 216, Campbell, CA 95008
+1 (408)-337-6870 — Contact Us, or visit our other sites:
AECCafe - Architectural Design and Engineering TechJobsCafe - Technical Jobs and Resumes GISCafe - Geographical Information Services  MCADCafe - Mechanical Design and Engineering ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy Policy