Why EZchip Shares Jumped
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of EZchip have jumped today by as much as 13% after the company reported first-quarter earnings.
So what: Revenue in the first quarter totaled $15.3 million, topping the Street's forecast of $15.1 million. Non-GAAP net income per share came in at $0.23, which was right on target with expectations.
Now what: CEO Eli Fruchter said that all NP-4 customers were now in production and are placing orders and additional platforms are in final development stages. After two years of development, the NP-5 platform has taped out and is ready for mass production, which Fruchter called a "major milestone." EZchip is shifting from a royalty-based model and will sell network processors directly to customers.
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The article Why EZchip Shares Jumped originally appeared on Fool.com.Fool contributor Evan Niu, CFA, has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.