Ethernet network processor developer EZchip Semiconductor Ltd. (Nasdaq: EZCH; TASE:EZCH) posted 34% revenue growth and more than doubled its non-GAAP net profit in the fourth quarter of 2009. The company published its financial report for the fourth quarter and full year of 2009 after the markets closed on Thursday.
EZchip posted $12.9 million revenue for the fourth quarter, 34% more than the $9.6 million revenue for the corresponding quarter of 2008, and 21% more than the $10.7 million in the third quarter of 2009.
GAAP-based net profit rose to $14.9 million ($0.58 per share) for the fourth quarter from $1 million ($0.04 per share) for the corresponding quarter. The net profit included a tax benefit of $11.7 million. Non-GAAP net profit rose 110% to $5.5 million ($0.22 per share) from $2.6 million ($0.10 per share) over the same period.
For the year as a whole, EZchip posted $40 million revenue, 19% more than $33.6 million in 2008. The company posted a GAAP-based net profit of $17.4 million ($0.66 per share), including the tax benefit in the fourth quarter, compared with a net loss of $4.6 million in 2008. Non-GAAP net profit rose to $14 million ($0.54 per share) in 2009 from $6.8 million in 2008.
EZchip CEO Eli Fruchter said, "Looking ahead, we believe we have the product roadmap, customer base and leading market position to continue to grow our business, as products based on our processors enter the market, and our next generation processors go into production with initial revenues expected already in late 2010. Furthermore, we are constantly expanding our presence in the various Carrier Ethernet segments and we believe that we will benefit from the growth in these segments in the coming years, which will enable us to further expand and diversify our customer base. "
EZchip increased its cash and cash equivalents by $19 million during 2009 to $67.2 million at the end of the year. Cash flow from operations was $5.6 million in the fourth quarter and $17 million in 2009 as a whole.
EZchip's share rose 6% on Nasdaq on Friday to $15.47, giving a market cap of $361 million. The share rose 7.3% by midday on the TASE today to NIS 57.60.
Published by Globes [online], Israel business news - www.globes-online.com - on February 14, 2010
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