For the first quarter EZchip reported earnings of 33 cents a share, beating the Capital IQ Consensus Estimate of 32 cents a share by 1 cent. Revenue grew 32.7% from the year-ago quarter to $20.3 million. Analysts expected revenue of $20 million for the quarter.
"This has been a record quarter for EZchip in revenues, up 33% compared to the first quarter last year," EZchip CEO Eli Fruchter said in a press release. "During the quarter we continued the testing of the NP-5 and expect the NP-5 to move to production in the second half of the year, in line with the typical three year gap we have seen between NP generations, starting with the NP-1 in 2002. Our upcoming NPS will double the throughput of its NP-5 predecessor and is expected to arrive sooner than the typical three year gap we have had with previous chip generations."
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TheStreet Ratings team rates EZCHIP SEMICONDUCTOR LTD as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate EZCHIP SEMICONDUCTOR LTD (EZCH) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year."