Israel-based EZchip Semiconductor Ltd. reported its second quarter earnings resulting in a 33 percent increase in revenue year-over-year.
Total revenue for EZchip in the second quarter amounted to $22.1 million, up from $16.7 million in the same quarter a year ago and an increase of 9 percent compared to the $20.3 million in the first quarter of this year. The network processor company said these were record revenues for the quarter.
More specific details about EZchip’s quarterly revenue include a record $8.6 million, or 39 percent of all revenues, coming from Cisco. That’s up 26 percent from the first quarter and up 11 percent from the second quarter one year ago.
“We continue to feel very comfortable with Cisco and expect our revenues from Cisco to grow significantly year over year in 2014,” said Eli Fruchter, CEO of EZchip. He added that EZchip wants to roll out its NP-5 based platforms to be in production before the year’s end with Cisco migrating its NP-4 based chips to the NP-5 generation, and possibly add new NP-5 servers. The NP-5 chip is a 240-gigabit network processor compared to the slower NP-4 which is a 100-gigabit network processor.
EZchip also garnered $4.9 million, or 22 percent of total revenues, from another of its customers in ZTE. While these sales were down compared to the first quarter of the year, they are up sharply from the same period last year. Fruchter said that the company is seeing an expansion by ZTE to utilize more of EZchip’s products and that he believes ZTE will be in production with NP-5-based offerings by the end of the year.
For the first six months of the year, EZchip has revenues of $42.4 million, a year-over-year increase of 33 percent, compared to $31.9 million for the first six months of 2013. Net income for the company on a GAAP basis for the first half of the year was $12.3 million, or $0.42 per share, compared to a net income of $8.7 million, or $0.30 per share during the same period last year.
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