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%.
Aug. 28, 2014, 11:33 AM
- EZchip (NASDAQ:EZCH) has soared over the last 30 minutes of trading. Volume is already over 2x the daily average.
- A rumor that the network processor vendor has cancelled a Roth conference presentation (set for Sep. 3) could be playing a role. Shares have rallied on M&A hopes in the past - a long list of chipmakers have been acquired over the last 9 months.
Aug. 14, 2014, 12:40 PM
- Six firms have hiked their Cisco (CSCO -2.8%) targets after the company beat FQ4 estimates, issued mixed FQ1 guidance, and announced plans to cut another 6K jobs. But that isn't stopping shares from selling off due to worries about weak demand from carriers (orders -11% Y/Y) and emerging markets (orders -9%).
- "Notwithstanding the fact that capex will be fairly weak in [2H14], Cisco's [carrier] order performance in the first calendar half of 2014 demonstrates meaningful share loss in addition to soft carrier spending," says MKM (Neutral).
- Nonetheless, the firm thinks Cisco's total orders will rise at or near a low double-digit % in FQ1 (favorable comps will help). "We still believe it is profitable to own Cisco when orders and revenue growth are accelerating."
- Bulls are focusing on healthy enterprise orders and strong early uptake for the Nexus 9000/ACI SDN and networking virtualization platform. John Chambers mentioned on the CC (transcript) the platform's customer count more than tripled in FQ4 to 580+, and that there are over 60 customers for the related APIC software controller (just launched).
- Several peers and suppliers with strong carrier exposure are selling off. Cisco's numbers follow a soft outlook from JDS Uniphase, and coincide with light guidance from Oclaro. ALU -1.6%. JNPR -1.8%. FN -7.4%. ZHNE -2.1%. EZCH -3.8%.
- Prior Cisco earnings coverage
Aug. 13, 2014, 8:01 AM
Aug. 12, 2014, 5:30 PM
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