The 10-second takeaway
For the quarter ended Sep. 30 (Q3), EZchip Semiconductor beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank significantly and GAAP earnings per share dropped to zero.
Gross margins increased, operating margins dropped, net margins contracted.
EZchip Semiconductor tallied revenue of $9.3 million. The 11 analysts polled by S&P Capital IQ predicted sales of $9.1 million on the same basis. GAAP reported sales were 50% lower than the prior-year quarter's $18.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.10. The 10 earnings estimates compiled by S&P Capital IQ anticipated $0.09 per share. GAAP EPS dropped to zero from the prior-year quarter's $0.27.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 83.9%, 800 basis points better than the prior-year quarter. Operating margin was -4.7%, 4,310 basis points worse than the prior-year quarter. Net margin was 1.4%, 3,950 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $11.8 million. On the bottom line, the average EPS estimate is $0.15.
Next year's average estimate for revenue is $50.7 million. The average EPS estimate is $0.80.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 241 members out of 255 rating the stock outperform, and 14 members rating it underperform. Among 42 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 40 give EZchip Semiconductor a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on EZchip Semiconductor is outperform, with an average price target of $37.88.
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