About EZchip
EZchip is a fabless semiconductor company that provides high-performance processing solutions for a wide range of applications for the carrier, cloud and data center networks. EZchip's broad portfolio of solutions scales from a few to hundreds of Gigabits-per-second, and includes network processors, multi-core processors, intelligent network adapters, high-performance appliances and a comprehensive software ecosystem. EZchip's processing solutions excel at providing great flexibility and high performance coupled with superior integration and power efficiency. For more information on our company, visit the web site at
http://www.ezchip.com.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are statements that are not historical facts and may include financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future operations, products and services, and statements regarding future performance. These statements are only predictions based on EZchip's current expectations and projections about future events based on its current knowledge. There are important factors that could cause EZchip's actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements. Those factors include, but are not limited to, the impact of general economic conditions, competitive products (including in-house customer developed products), product demand and market acceptance risks, customer order cancellations, reliance on key strategic alliances, fluctuations in operating results, delays in development of highly-complex products, the consummation of the Tilera acquisition and other factors indicated in EZchip's filings with the Securities and Exchange Commission (SEC). For more details, refer to EZchip's SEC filings and the amendments thereto, including its Annual Report on Form 20-F filed on March 27, 2014 and its Current Reports on Form 6-K. EZchip undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or to changes in our expectations, except as may be required by law.
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EZchip Semiconductor Ltd. Condensed Consolidated Statements of Operations (U.S. Dollars in thousands, except per share amounts) (Unaudited) | ||||||||||
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Three Months Ended |
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Nine Months Ended | ||||||
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September
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June 30,
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September
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September
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September
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2014 |
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2014 |
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2013 |
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2014 |
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2013 |
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Revenues |
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$ 19,241 |
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$ 22,102 |
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$ 18,804 |
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$ 61,631 |
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$ 50,753 |
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Cost of revenues |
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3,367 |
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4,300 |
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2,926 |
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11,455 |
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8,342 |
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Gross profit |
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15,874 |
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17,802 |
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15,878 |
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50,176 |
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42,411 |
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Operating expenses: |
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Research and development, net |
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7,953 |
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7,394 |
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6,527 |
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22,449 |
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18,892 |
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Selling, general and administrative |
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4,060 |
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4,478 |
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3,310 |
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12,310 |
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9,836 |
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Total operating expenses |
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12,013 |
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11,872 |
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9,837 |
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34,759 |
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28,728 |
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Operating income |
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3,861 |
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5,930 |
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6,041 |
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15,417 |
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13,683 |
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Financial income, net |
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338 |
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284 |
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487 |
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1,082 |
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1,502 |
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Net income |
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$ 4,199 |
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$ 6,214 |
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$ 6,528 |
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$ 16,499 |
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$ 15,185 |
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Net income per share: |
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Basic |
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$ 0.14 |
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$ 0.21 |
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$ 0.23 |
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$ 0.57 |
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$ 0.53 |
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Diluted |
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$ 0.14 |
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$ 0.21 |
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$ 0.22 |
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$ 0.56 |
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$ 0.52 |
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Weighted average shares used in per
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Basic |
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29,297,876 |
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29,157,533 |
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28,717,575 |
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29,145,777 |
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28,562,581 |
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Diluted |
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29,657,471 |
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29,473,870 |
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29,151,003 |
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29,620,204 |
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29,092,293 |
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EZchip Semiconductor Ltd.
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Three Months Ended |
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Nine Months Ended | ||||||
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Sept. 30, |
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June 30, |
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Sept. 30, |
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Sept. 30, |
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Sept. 30, |
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2014 |
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2014 |
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2013 |
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2014 |
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2013 |
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GAAP gross profit |
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$ 15,874 |
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$ 17,802 |
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$ 15,878 |
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$ 50,176 |
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$ 42,411 |
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Stock-based compensation |
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75 |
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76 |
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73 |
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225 |
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219 |
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Non-GAAP gross profit |
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$ 15,949 |
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$ 17,878 |
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$ 15,951 |
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$ 50,401 |
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$ 42,630 |
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GAAP gross profit as percentage of
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82.5% |
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80.5% |
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84.4% |
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81.4% |
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83.6% |
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Non-GAAP gross profit as percentage of revenues |
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82.9% |
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80.9% |
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84.8% |
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81.8% |
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84.0% |
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GAAP operating expenses |
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$ 12,013 |
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$ 11,872 |
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$ 9,837 |
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$ 34,759 |
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$ 28,728 |
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Stock-based compensation: |
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Research and development |
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(2,360) |
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(2,421) |
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(2,044) |
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(7,048) |
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(5,918) |
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Selling, general and administrative |
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(1,590) |
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(1,652) |
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(1,425) |
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(4,826) |
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(4,150) |
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Acquisition related costs |
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Selling, general and administrative |
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(320) |
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(660) |
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-- |
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(980) |
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-- |
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Non-GAAP operating expenses |
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$ 7,743 |
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$ 7,139 |
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$ 6,368 |
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$ 21,905 |
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$ 18,660 |
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GAAP operating income |
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$ 3,861 |
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$ 5,930 |
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$ 6,041 |
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$ 15,417 |
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$ 13,683 |
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Non-GAAP operating income |
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$ 8,206 |
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$ 10,739 |
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$ 9,583 |
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$ 28,496 |
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$ 23,970 |
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GAAP net income |
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$ 4,199 |
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$ 6,214 |
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$ 6,528 |
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$ 16,499 |
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$ 15,185 |
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Stock-based compensation |
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4,025 |
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4,149 |
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3,542 |
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12,099 |
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10,287 |
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Acquisition related costs |
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320 |
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660 |
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-- |
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980 |
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-- |
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Non-GAAP net income |
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$ 8,544 |
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$ 11,023 |
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$ 10,070 |
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$ 29,578 |
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$ 25,472 |
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Non-GAAP net income per share -
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$ 0.28 |
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$ 0.36 |
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$ 0.33 |
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$ 0.96 |
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$ 0.85 |
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Non-GAAP weighted average shares
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30,784,673 |
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30,774,136 |
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30,164,874 |
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30,678,851 |
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30,032,150 |
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* 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. | ||||||||||
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EZchip Semiconductor Ltd. Condensed Consolidated Balance Sheet (U.S. Dollars in thousands) | |||||
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September 30, |
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December 31, |
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2014 |
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2013 |
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(Unaudited) |
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(Audited) |
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ASSETS |
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CURRENT ASSETS: |
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Cash, cash equivalents, marketable securities and deposits |
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$ 223,440 |
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$ 202,865 |
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Trade receivables, net |
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6,093 |
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7,416 |
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Other receivables |
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706 |
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3,153 |
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Inventories |
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4,329 |
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5,969 |
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Total current assets |
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234,568 |
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219,403 |
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NON CURRENT ASSETS: |
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Severance pay fund |
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7,257 |
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7,416 |
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Long term investment and others |
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10,302 |
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364 |
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Total non current assets |
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17,559 |
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7,780 |
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PROPERTY AND EQUIPMENT, NET |
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2,106 |
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2,114 |
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INTANGIBLE ASSETS, NET |
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5,242 |
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4,127 |
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GOODWILL |
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96,276 |
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96,276 |
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TOTAL ASSETS |
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$ 355,751 |
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$ 329,700 |
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LIABILITIES AND SHAREHOLDERS' EQUITY |
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CURRENT LIABILITIES: |
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Trade payables |
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$ 792 |
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$ 3,951 |
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Other payables and accrued expenses |
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7,708 |
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7,309 |
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Total current liabilities |
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8,500 |
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11,260 |
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ACCRUED SEVERANCE PAY |
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8,059 |
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8,164 |
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SHAREHOLDERS' EQUITY: |
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Share capital |
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167 |
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164 |
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Additional paid-in capital |
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341,001 |
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328,003 |
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Accumulated other comprehensive income (loss) |
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(147) |
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437 |
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Accumulated deficit |
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(1,829) |
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(18,328) |
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Total shareholders' equity |
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339,192 |
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310,276 |
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TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
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$ 355,751 |
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$ 329,700 |
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EZchip Semiconductor Ltd. Selected Condensed Consolidated Cash Flow Data on a Non-GAAP Basis (U.S. Dollars in thousands) (Unaudited) |
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Three Months Ended |
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Nine Months Ended | ||||||||
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|
Sept. 30, |
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June 30, |
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Sept. 30, |
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Sept. 30, |
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Sept. 30, | ||
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2014 |
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2014 |
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2013 |
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2014 |
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2013 | ||
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Cash flows from operating activities: |
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Net income |
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$ 4,199 |
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$ 6,214 |
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$ 6,528 |
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$ 16,499 |
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$ 15,185 | ||
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Adjustments to reconcile net income to net
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Depreciation |
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175 |
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166 |
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158 |
|
509 |
|
442 | ||
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Decrease (increase) in trade and other
|
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5,315 |
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(97) |
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(2,083) |
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3,747 |
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(2,224) | ||
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Decrease (increase) in inventory |
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1,645 |
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97 |
|
584 |
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1,640 |
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(768) | ||
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Increase (decrease) in trade payables and
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(1,233) |
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(266) |
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1,605 |
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(1,663) |
|
1,791 | ||
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Stock-based compensation
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4,025 |
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4,149 |
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3,542 |
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12,099 |
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10,287 | ||
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Net cash provided by operating activities |
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14,126 |
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10,263 |
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10,334 |
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32,831 |
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24,713 | ||
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Cash flows from investing activities: |
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Purchase of property and equipment |
|
(318) |
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(24) |
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(846) |
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(538) |
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(1,446) | ||
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Purchase of technology |
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-- |
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(1,067) |
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(1,163) |
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(2,415) |
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(1,294) | ||
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Long term Investment and others |
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(10,000) |
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-- |
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-- |
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(10,000) |
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-- | ||
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Net cash used in investing activities |
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(10,318) |
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(1,091) |
|
(2,009) |
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(12,953) |
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(2,740) | ||
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Cash flows from financing activities: |
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Proceeds from exercise of options
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498 |
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188 |
|
450 |
|
902 |
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1,284 | ||
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Net cash provided by financing activities |
|
498 |
|
188 |
|
450 |
|
902 |
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1,284 | ||
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Cash adjustment of marketable securities, net* |
|
(85) |
|
(113) |
|
(20) |
|
(205) |
|
(595) | ||
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Increase in cash, cash equivalents,
|
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4,221 |
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9,247 |
|
8,755 |
|
20,575 |
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22,662 | ||
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Cash, cash equivalents, marketable securities
|
|
219,219 |
|
209,972 |
|
181,875 |
|
202,865 |
|
167,968 | ||
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Cash, cash equivalents, marketable securities
|
|
$ 223,440 |
|
$ 219,219 |
|
$ 190,630 |
|
$ 223,440 |
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$ 190,630 | ||
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* Including unrealized gain (loss) on marketable securities, accumulated interest accretion and amortization of discount and premium on marketable securities. | ||||||||||||
Contact:
Ehud Helft / Kenny Green
GK Investor & Public Relations
Email Contact
Tel: (US) 1 646 201 9246
SOURCE EZchip Semiconductor Ltd.
| Contact: |
| EZchip Semiconductor Ltd.
Web: http://www.ezchip.com |
