EZchip Announces Record Third Quarter 2015 Results

 

EZchip Semiconductor Ltd.
Reconciliation of GAAP to Non-GAAP Measures
(U.S. Dollars in thousands, except per share amounts)
(Unaudited)








Three Months Ended


Nine Months Ended



September 30,


June 30,


September 30,


September 30,


September 30,



2015


2015


2014


2015


2014












GAAP gross profit


$       22,753


$       21,354


$       15,874


$       53,304


$       50,176

Stock-based compensation


102


102


75


307


225

Amortization of purchased intangible
assets


 

233


 

233


 

--


 

1,439


 

--

Repayment of OCS grants*


--


--


--


9,636


--

Non-GAAP gross profit


$      23,088


$      21,689


$      15,949


$       64,686


$       50,401












GAAP gross profit as percentage of revenues


74.1%


75.5%


82.5%


62.1%


81.4%

Non-GAAP gross profit as percentage of revenues


 

75.2%


 

76.7%


 

82.9%


 

75.3%


 

81.8%























GAAP operating expenses


$       17,851


$       16,422


$       12,013


$       52,027


$       34,759

Stock-based compensation:











    Research and development


(2,964)


(2,996)


(2,360)


(8,894)


(7,048)

    Selling, general and administrative


(1,670)


(1,787)


(1,590)


(5,222)


(4,826)

Acquisition related costs











    Selling, general and administrative


(899)


--


(320)


(899)


(980)

Amortization of purchased intangible assets - Selling, general and administrative


 

 

(347)


 

 

(347)


 

 

--


 

 

(1,041)


 

 

--

Non-GAAP operating expenses


$       11,971


$       11,292


$         7,743


$       35,971


$       21,905























GAAP operating income


$         4,902


$         4,932


$         3,861


$      1,277


$       15,417












Non-GAAP operating income


$       11,117


$       10,397


$         8,206


$       28,715


$       28,496












GAAP net income


$         5,234


$         5,419


$         4,199


$      2,387


$       16,499

Stock-based compensation


4,736


4,885


4,025


14,423


12,099

Acquisition related costs


899


--


320


899


980

Amortization of purchased intangible assets


 

580


 

580


 

--


 

2,480


 

--

Income taxes


31


--


--


31


--

Repayment of OCS grants*


--


--


--


9,636


--

Non-GAAP net income


$       11,480


$       10,884


$        8,544


$       29,856


$       29,578












Non-GAAP net income per share - Diluted


$          0.36


$          0.34


$          0.28


$           0.94


$           0.96

Non-GAAP weighted average shares - Diluted**


 

31,616,888


 

31,811,176


 

30,784,673


 

31,657,220


 

30,678,851












* During February 2015 the Company made a one-time early payment of $9.6 million to the Israeli Office of Chief Scientist, representing the full balance of the contingent liability related to the NP-5 grants received. Upon making this payment, the Company eliminated all future royalty obligations related to its anticipated NP-5 revenues and saved the associated future interest payments related to such obligations. This amount was excluded from the non-GAAP statements of operations as it represents future royalty obligations.

** In calculating diluted non-GAAP net income per share, the diluted weighted average number of shares outstanding excludes the effects of stock-based compensation expenses in accordance with FASB ASC 718.

 


EZchip Semiconductor Ltd.

Condensed Consolidated Balance Sheet

(U.S. Dollars in thousands)









September 30,


December 31,




2015


2014




(Unaudited)


(Audited)


ASSETS






CURRENT ASSETS:






Cash, cash equivalents, marketable securities and deposits


$      200,381


$      185,757


Trade receivables, net


13,513


10,865


Other receivables


3,106


4,735


Inventories


5,941


6,459


Total current assets


222,941


207,816








NON CURRENT ASSETS:






Severance pay fund


7,346


7,091


Long term investment and others


1,013


348


Total non current assets


8,359


7,439








PROPERTY AND EQUIPMENT, NET


2,857


3,601








INTANGIBLE ASSETS, NET


16,142


17,312








GOODWILL


127,706


127,355








TOTAL ASSETS


$      378,005


$      363,523







LIABILITIES AND SHAREHOLDERS' EQUITY






CURRENT LIABILITIES:






Trade payables


$          2,970


$          2,664


Other payables and accrued expenses


13,752


13,726


Total current liabilities


16,722


16,390








ACCRUED SEVERANCE PAY


8,155


7,815








SHAREHOLDERS' EQUITY:






Share capital


170


169


Additional paid-in capital


364,794


349,050


Treasury shares at cost


(4,748)


--


Accumulated other comprehensive loss


(305)


(731)


Accumulated deficit


(6,783)


(9,170)


Total shareholders' equity


353,128


339,318








TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY


$        378,005


$        363,523














 


EZchip Semiconductor Ltd.

Selected Condensed Consolidated Cash Flow Data on a Non-GAAP Basis

(U.S. Dollars in thousands)

(Unaudited)







Three Months Ended


Nine Months Ended



September 30,


June 30,


September 30,


September 30,


September 30,



2015


2015


2014


2015


2014

Cash flows from operating activities:











Net income


$     5,234


$     5,419


$     4,199


$    2,387


$     16,499

Adjustments to reconcile net income to net
cash provided by operating activities:











Repayment of OCS grants*


--


--


--


9,636


--

Depreciation and amortization


1,364


1,372


175


4,519


509

Decrease (increase) in trade and other receivables, net


 

(1,900)


 

2,351


 

5,315


 

(654)


 

3,747

Decrease (increase) in inventory


1,279


(1,640)


1,645


518


1,640

Increase (decrease) in trade payables and other accrued liabilities, net


 

1,457


 

(2,024)


 

(1,233)


 

(596)


 

(1,663)

Stock-based compensation

 


4,736


4,885


4,025


14,423


12,099

Net cash provided by operating activities


12,170


10,363


14,126


30,233


32,831












Cash flows from investing activities:











Purchase of property and equipment


(282)


(240)


(318)


(605)


(538)

Purchase of technology


(250)


(250)


--


(500)


(2,415)

Long term investment and others


(740)


(351)


(10,000)


(1,091)


(10,000)

Net cash used in investing activities


(1,272)


(841)


(10,318)


(2,196)


(12,953)












Cash flows from financing activities:











Proceeds from exercise of options


646


359


498


1,322


902

Purchase of treasury shares


--


(4,748)


--


(4,748)


--

Net cash provided by (used in) financing activities


 

646


 

(4,389)


 

498


 

(3,426)


 

902












Repayment of OCS grants*


--


--


--


(9,636)


--

Cash adjustment of marketable securities, net**


(143)


(274)


(85)


(351)


(205)












Increase in cash, cash equivalents, marketable securities and deposits


 

11,401


 

4,859


 

4,221


 

14,624


 

20,575

Cash, cash equivalents, marketable securities and deposits at the beginning of the period


 

188,980


 

184,121


 

219,219


 

185,757


 

202,865

Cash, cash equivalents, marketable securities
and deposits at the end of the period


 

$   200,381


 

$  188,980


$   223,440


 

$   200,381


$   223,440














* During February 2015 the Company made a one-time early payment of $9.6 million to the Israeli Office of Chief Scientist, representing the full balance of the contingent liability related to the NP-5 grants received. Upon making this payment, the Company eliminated all future royalty obligations related to its anticipated NP-5 revenues and saved the associated future interest payments related to such obligations. This amount was excluded from the non-GAAP operating cash flow as it represents future royalty obligations.

** Including unrealized loss on marketable securities, accumulated interest accretion and amortization of discount and premium on marketable securities.

 

Contact:
Jeffrey A Schreiner
Email Contact
Tel: (US) 1 408 520 3676

To view the original version on PR Newswire, visit: http://www.prnewswire.com/news-releases/ezchip-announces-record-third-quarter-2015-results-300173192.html

SOURCE EZchip Semiconductor Ltd.

Contact:
EZchip Semiconductor Ltd.
Web: http://www.ezchip.com



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