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What: Shares of EZchip Semiconductor (NASDAQ:EZCH) have soared today by as much as 26% after the company reported better-than-expected earnings.
So what: Third-quarter revenue totaled $9.3 million, topping the market's expectations of $9.1 million. The same can be said of the bottom line, with non-GAAP net income of $3.1 million, or $0.10 per share. Non-GAAP gross margin came in at 84.7%.
Now what: The company now has $160.1 million in cash and equivalents. CEO Eli Fruchter said that two additional large customers entered production with their NP-4 based platforms at the end of the quarter, and that the company expects another larger customer to enter production by year's end. These customers should contribute to revenue next quarter -- and even more so next year.
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