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Monday, May 13
A downgrade to Equalweight from Barclays leads EZchip (EZCH -1.4%) to slide a bit. Shares took...
A downgrade to Equalweight from Barclays leads EZchip (EZCH -1.4%) to slide a bit. Shares took off last Thursday after the network processor vendor delivered roughly in-line Q1 results, but provided an upbeat earnings call. CEO Eli Fruchter stated sales to Juniper, which have been slumping for some time, grew 27% Q/Q and could rise Y/Y in 2013. Moreover, Ericsson, Tellabs, and Huawei have begun placing production orders for EZchip's NP-4 processor (Huawei has been a concern), and that while sales to top customer Cisco (32% of revenue) fell 30% Y/Y in Q1 due to "lumpiness," they're still expected to grow significantly Y/Y in 2013.