EZchip rose 10% on the TASE today, after rising sharply on Nasdaq last week, following clarifications from Cisco about purchases of EZchip processors.
Ethernet processor developer EZchip Semiconductor Ltd. (Nasdaq: EZCH; TASE:EZCH) rose 10% to NIS 88.13 on the TASE today, after rising sharply on Nasdaq last week, following clarifications from Cisco Systems Inc. (Nasdaq: CSCO) about purchases of EZchip processors.
The gain follows a long slide in EZchip's share price. The share fell 25% in September, on fears of the company's standing as a supplier to Cisco, after it announced a switch to a new processor for its routers. However, last week, it said that the new processors would not replace the processors it buys from EZchip.
EZchip's share price has fallen 35% since the beginning of the year. The share price closed at $24.83 on Nasdaq on Friday, giving a market cap of $702 million. The company is one of Israel's largest producers of processors, and most of its revenue comes from sales to Cisco.
Published by Globes [online], Israel business news - www.globes-online.com - on September 29, 2013
© Copyright of Globes Publisher Itonut (1983) Ltd. 2013