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EZchip (EZCH +4.4%) rebounds a bit from yesterday's freefall after Oppenheimer upgrades shares...

EZchip (EZCH +4.4%) rebounds a bit from yesterday's freefall after Oppenheimer upgrades shares to Outperform, arguing the selloff "exaggerates the impact" of lowered guidance. Thanks to Huawei's change of heart, EZchip now sees revenue growing 3x from 2012 levels over the next several years, well below prior guidance. On its earnings call, EZchip talked up the potential of its NPS processor, whose programmability and support for application-level analysis makes it well-suited for software-defined networking. But revenue isn't expected until 2015.
Comments (2)
  • mullenjl
    , contributor
    Comments (54) | Send Message
     
    "....EZchip now sees revenue growing 3x from 2012 levels over the next several years, well below prior guidance. ...."

     

    >>>>>&g...

     

    Yes, new guidance (2.8x -3.7x) vs prior (4x -5x) is lower, **but** 3 times FY12 revenue is "nothing to sneeze at"

     

    ~32% 4 year CAGR.
    14 Feb 2013, 02:45 PM Reply Like
  • daveystewart
    , contributor
    Comment (1) | Send Message
     
    The market does not understand the product or its market. They consistently fail to reward the successes and over react to every bump in the road.
    14 Feb 2013, 08:48 PM Reply Like
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