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 Semiconductor (UNKNOWN:EZCH.DL) 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.

Interested in more info on EZchip Semiconductor? Add it to your watchlist by clicking here.

Fool contributor Evan Niu, CFA, has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. 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.