EZchip Semiconductor Cuts Q3 Revenue Outlook; Stock Down - Quick Facts

(RTTNews) - EZchip Semiconductor Ltd. (EZCH) said that it currently expects revenue for the third fiscal quarter of 2014 to be in the range of $19 million, about 14% lower than the $22 million range guidance previously provided. Analysts polled by Thomson Reuters expect the company to report revenues of $22.59 million for the third-quarter. Analysts' estimates typically exclude special items.

In the third quarter of 2014, the company has seen weakness in orders as well as inventory adjustments across most of its key customers that were serving the carrier networking equipment space. It believes this is a temporary slowdown, caused primarily by a weaker carrier spending environment that the market is currently going through, the company said.

"Looking further out, carrier spending is forecasted to resume growth and with it our corresponding sales into this market. Concurrently, we are making good progress with our NPS which expands our reach to new markets, primarily data centers, NFV and SDN. Our pending acquisition of Tilera, which is expected to close during Q4, subject to US regulatory approvals, will further diversify the market segments and customers we serve and provide additional growth opportunities," said Eli Fruchter, CEO of EZchip Semiconductor.

The company said it will report its third-quarter financial reports on November 12.

EZCH closed Friday trading at $24.73. In Monday's pre-market trading, the company's shares are down $2.23 or 9.02 percent to $22.50.