Mon, Mar. 23, 9:12 AM
- EZchip's (NASDAQ:EZCH) buyback is good for repurchasing 3.3% of shares at current levels. It arrives after shares closed on Friday just $1.29 above a 52-week low of $18.19.
- The network processor vendor had $185.8M in cash (equal to 31% of its market cap) to pay for buybacks with at the end of 2014, and no debt.
- EZCH +1.5% premarket to $19.78.
Sat, Feb. 28, 3:33 PM
- Plenty of chipmakers and related IP providers have unveiled new products this week in tandem with the industry's ISSCC conference, and in advance of the Mobile World Congress (runs from Monday-Thursday).
- ARM (NASDAQ:ARMH) has furthered its embedded/IoT push by launching IFC (short for Intelligent Flexible Cloud), a hardware/software framework for creating intelligent, reliable networks of Web-connected, ARM-powered devices.
- IFC includes networking protocols for ARM-based processors, as well as support for software-defined networking (SDN - the offloading of network management to software-based controllers) and network functions virtualization (NFV - allows commodity hardware to be turned into a networking appliance). It complements ARM's mbed IoT platform for embedded/wearable devices.
- ARM server CPU vendors Cavium, Marvell, and AppliedMicro support IFC, as does network processor vendor EZchip's (NASDAQ:EZCH) Tilera unit, which just unveiled a new line of processors (the TILE-Mx family) that supports up to 100 64-bit ARM cores and 200Gbps of throughput; it begins sampling in 2H16. Benchmark is upbeat about the TILE-Mx line's potential.
- Broadcom (NASDAQ:BRCM) has launched: 1) A smartwatch platform featuring an app processor with 2G/3G modem support, a Wi-Fi/Bluetooth combo chip, a GPS SoC with an integrated sensor hub, an NFC radio, and a wireless charging IC. 2) An SoC for virtual (software-based) broadband customer premise equipment. 3) Two SoCs for wireless backhaul hardware that are declared to be the first to support 5Gbps of throughput.
- NXP (NASDAQ:NXPI) has launched: 1) Embedded microcontrollers with advanced security features meant to protect against theft/cloning. Targeted products include smart meter hubs, home/factory automation devices, and aftermarket auto hardware; SemiAccurate likes what it sees. 2) An RF transceiver that enables fully wireless earbud headphones (no wires between earbuds).
- Xilinx (NASDAQ:XLNX) has refreshed its UltraScale+ FPGA and programmable SoC lines with chips made using TSMC's next-gen 16nm FinFET+ (3D transistor) process. The chips improve performance/power draw via SRAM integration and new interconnect optimizations, begin shipping in Q4, and aim to keep Xilinx competitive on the high-end as Altera launches FPGAs using Intel's 14nm process.
- IDT (NASDAQ:IDTI), an early leader in the wireless charging IC market, has rolled out new charging transmitter and receiver ICs that can respectively handle 15W and 10W of power. The transmitter contains a low-power ARM Cortex-M0 CPU core, and is contained within a tiny 5mm x 5mm package.
Wed, Feb. 11, 8:02 AM
Tue, Feb. 10, 5:30 PM
Thu, Jan. 29, 2:32 PM
- MoSys (MOSY -6.4%) is having a rough time ahead of tomorrow morning's Q4 report. Shares are 20% below where they traded before the networking SRAM maker posted a Q3 miss and reported seeing a design win slowdown on Nov. 4.
- This week has seen MoSys announce a partnership with network processor vendor EZchip (EZCH +1%) through which the former will provide a version of its Bandwidth Engine 3 SRAM IC optimized for the latter's NPS processors (set to sample this year, aimed at carrier Ethernet switches/routers and data center hardware).
- Also: MoSys has been showing off its SRAM and transceiver (PHY) ICs this week at the chip industry's DesignCon conference (runs from Jan. 27-30).
Wed, Jan. 21, 11:57 AM| Wed, Jan. 21, 11:57 AM | Comment!
Dec. 22, 2014, 2:33 PM
- EZchip (EZCH +6.4%) declares its 200-gig NP-5 network processor "is now in full production," and is being "delivered in quantity to EZchip's customers for deployment in Tier-1 carrier and data-center networks."
- The NP-5 offers twice the throughput of the prior-gen NP-4, and carries an ASP that's 50% higher. EZchip asserts the extra horsepower will enable line cards with "multiple 40-Gigabit and 100-Gigabit ports."
- The company mentioned on its Q3 CC it's seeing "a lot of activity with ZTE" related to the NP-5, and that top customer Cisco plans to migrate its existing NP-4-based (edge router) platforms to the NP-5. However, EZchip would only say Cisco, which unveiled its nPower X1 processor last year, will "possibly" use the NP-5 in new platforms.
- EZchip's NPS processor line - it can handle deeper packet analysis, and is aimed at both carrier Ethernet and data center hardware - is expected to begin sampling next year.
Dec. 9, 2014, 1:52 PM
- Verizon CFO Fran Shammo has promised his company will continue growing wireless capex (albeit while cutting wireline capex) to keep up with data traffic growth. Small cells and smart antennas were mentioned as areas of interest.
- The remarks have been well-received by investors in telecom equipment and component/chip vendors, many of whom have been hit hard by soft North American and (to an extent) European spending. The Nasdaq is up 0.3%.
- Gainers: JDSU +3.6%. FNSR +3.1%. CYNI +10.1%. INFN +2.8%. CIEN +1.9%. AMCC +3.7%. PMCS +3.7%. ZHNE +3%. OCLR +5.4%. AFOP +2.8%. ADTN +2.5%. UBNT +2.2%. XXIA +1.7%. CALX +3.5%. EZCH +2.9%. SONS +2.4%. Sonus is also benefiting from a bullish Wedbush coverage launch.
- The group was pummeled in November after AT&T set a 2015 capex budget of $18B, down from 2014's $21B.
Dec. 1, 2014, 6:47 PM
- During a talk with Chris Dedicoat, the president of Cisco's (NASDAQ:CSCO) EMEA ops, UBS' Amitabh Passi sensed "increasing confidence and momentum in switching (Nexus 9k, 10g-40g), software-defined networking (ACI), data center, mobility, and edge routing (ASR 9k)."
- Passi has hiked his target by $2.50 to $30.50, and predicts Cisco will narrow its valuation gap relative to large-cap tech peers such as Microsoft and Intel. He admits Russia and Asia remain "challenging" regions for the company, but doesn't expect them to get any worse.
- Cisco's Asia-Pac orders fell 12% Y/Y in FQ1, thanks in part to a 33% drop in Chinese orders. The Nexus 9000 line, which plays a key role in Cisco's ACI/APIC SDN and networking virtualization platform, was an area of strength, with paid customers rising to 900+ from 580 at the end of FQ4.
- Strong ASR 9000 demand is a positive for network processor supplier EZchip (NASDAQ:EZCH). The edge router line saw double-digit order growth in FQ1, even as broader carrier router demand continued falling.
Nov. 26, 2014, 2:52 PM
- Chip stocks are outperforming after Analog Devices (ADI +5.2%) beat FQ4 estimates and offered in-line FQ1 guidance. The Philadelphia Semi Index (SOXX +1.9%) has made new highs.
- Notable gainers include many analog/mixed-signal and telecom IC firms: TXN +3%. LLTC +2.7%. SMTC +3.1%. ISIL +3.3%. SWKS +3.7%. AVGO +2.9%. OVTI +3.2%. FSL +3.1%. EZCH +2.5%. XLNX +2.3%. ALTR +2.1%. MX +4.3%. PMCS +2.7%. BRCM +2%.
- On its CC (transcript), ADI noted its telecom equipment chip sales are holding up well in spite of weak capex, aided by the fact its dollar content for 4G base stations is "at least 20% to 30% better" than for 3G base stations. The company also mentioned its lead times were stable in FQ4.
- Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
Nov. 12, 2014, 11:45 AM
- With weak carrier spending continuing to take a toll, EZchip (NASDAQ:EZCH) guided on its Q3 CC (webcast) for Q4 revenue of $22M-$24M, below a $25.3M consensus. The guidance includes nearly two quarters of revenue from Tilera; EZchip doesn't plan to separately break out Tilera's revenue going forward.
- Sales to top customer Cisco (43% of Q3 revenue) fell Q/Q, as the networking giant (reports after the bell) contends with soft carrier orders. Nonetheless, EZchip expects its full-year Cisco sales to be up Y/Y.
- EZchip expects Cisco to use its next-gen NP-5 processor for its existing edge router platforms, and says it could possibly do so for new platforms. Shares plunged a year ago after Cisco unveiled its nPower X1 processor.
- ZTE sales (8% of revenue) fell sharply Q/Q. EZchip expects sales to bounce as ZTE begins using the NP-5. Juniper sales (7% of revenue) are expected to continue declining. Revenue from all other customers (42% of revenue) rose 87% Y/Y, and reached a new record.
- The first design win has been obtained for EZchip's NPS processor line (features more programmability). EZchip claims strong NPS interest from both equipment vendors and data center owners.
- EZchip issued a Q3 warning back on Oct. 6.
Nov. 12, 2014, 8:01 AM
Nov. 11, 2014, 5:30 PM
Oct. 29, 2014, 10:08 AM| Oct. 29, 2014, 10:08 AM | Comment!
Oct. 27, 2014, 11:46 AM
- Citing the implications of Juniper's Q4 guidance and industry commentary, Chardan Capital's Jay Srivasta has downgraded EZchip (EZCH -2.8%) to Neutral ahead of its Nov. 12 Q3 report, and cut his target by $8 to $22.
- Srivasta notes Juniper stated U.S. carrier spending remains weak, and that demand from enterprises and European carriers is also softening. Juniper also said its "planning assumption" is for growth to resume in 2H15.
- Though admitting Juniper only accounts for 6% of EZchip's revenue, Srivasta thinks Cisco (39% of revenue) and ZTE (20%) could be dealing with similar issues, something that puts EZchip's Q4 consensus estimates at risk.
- Cisco's service provider orders were down 11% Y/Y in the July quarter. Sales of its ASR 9000 edge routers (feature EZchip's network processors) still rose at a double-digit clip.
Oct. 6, 2014, 11:30 AM
- EZchip (EZCH -12.5%), a top supplier of network processors for edge/access routers, now expects Q3 revenue of $19M, below prior guidance of $22M and a $22.6M consensus.
- CEO Eli Fruchter: "We have seen weakness in orders as well as inventory adjustments across most of our key customers that are serving the carrier networking equipment space. We believe this is a temporary slowdown, caused primarily by a weaker carrier spending environment that the market is currently going through." Like others, he's optimistic growth will soon pick up.
- Fruchter's remarks echo those from Cisco (EZchip's top customer), Juniper, Ciena, Finisar, JDS Uniphase, and several other firms. Soft North American wireline capex (led by AT&T) has especially been taking a toll on the industry.
- Several telecom equipment and component/chip suppliers are following EZchip lower. CIEN -2.8%. CAVM -2.8%. OCLR -2.7%. ZHNE -2.7%. CYNI -3.1%. AFOP -2.1%. NPTN -2.4%. OPLK -1.7%.
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