Total revenues for the nine months ended September 30, 2012 were $39.5 million, a year-over-year decrease of 20% compared to $49.2 million for the nine months ended September 30, 2011. Net income on a GAAP basis for the nine months ended September 30, 2012 was $10.8 million, or $0.38 per share (diluted), compared to net income of $13.9 million, or $0.50 per share (diluted), for the nine months ended September 30, 2011. Net income on a non-GAAP basis for the nine months ended September 30, 2012 was $19.3 million or $0.65 per share (diluted), compared to non-GAAP net income of $24.7 million, or $0.87 per share (diluted), for the nine months ended September 30, 2011.
Eli Fruchter, CEO of EZchip, commented, "We are pleased to report that two additional large customers entered production with their NP-4 based platforms at the end of the third quarter and we expect a third large customer to enter production before the end of the year, resulting in our five major CESR customers being in production with NP-4 before the end of the year. We expect these customers to begin contributing to our revenues in the fourth quarter, and to contribute more significantly to our revenues in 2013. The actual revenue ramp from these new NP-4 platforms will depend on their success in the market and the CAPEX level of carriers."
"During the quarter we unveiled our upcoming product, the NPS - Network Processor for Smart networks - that we believe is a game changer. It integrates a 400 Gbps NPU, Traffic Manager, Deep Packet Inspection (DPI) and security functions, search engines, C programming and support for the Linux ® operating system in one chip. The NPS will target the carrier, cloud and data center equipment markets and support Software Defined Networks (SDN), OpenFlow and virtualization. With NPS, we are targeting these markets with an extremely competitive product that merges functions provided by multiple devices today, at significantly higher speeds and significantly lower power consumption and cost. This is in addition to targeting our traditional edge routing market in which we believe the NPS leapfrogs in-house and other merchant silicon solutions with its L2-7 capabilities for next generation line cards."