Tuesday, March 31, 2009

EZchip Technologies 20F

Customer concentration: "Two major tier-1 CESR (carrier Ethernet switches/routers) vendors are building several of their CESR platforms based on EZchip Technologies network processors: Juniper Networks, which accounted for approximately 55% of our 2008 revenues, entered production with NP-2 based products in 2007 and continued to launch additional products that incorporate our NPUs during 2008..........A second major vendor has selected a customized version of NP-3, developed in collaboration with Marvell, for its principal CESR platforms. This CESR vendor accounted for a relatively minor portion of our revenues in 2008 and entered production during the first quarter of 2009 with platforms that incorporate our customized NP-3 processor developed in collaboration with Marvell."

Revenue ramp: "Our 2008 revenues increased 72% to $33.6 million, up from $19.5 million in 2007. This increase in revenues is primarily attributable to increased purchases by a limited number of large NP-2 customers who entered the production stage for networking products that incorporate our network processor chips. Combined sales of NP-2 and NP-3 products accounted for 85% of our 2008 revenues; NP-1 products contributed an additional 13%; and the remaining 2% resulted primarily from the sale of software tools and services."

Patent foundation: "We hold four United States patents, No. 6,532,457, No. 6,594,655, No. 6,625,612 and No. 6,778,534."

Employees: "As of March 30, 2009, we had 116 employees. (84 R&D, 15 Sales & Marketing, 9 Operations, 8 G&A)

Wafer foundry: "Our NP-1c network processors utilize IBM’s 0.11-micron Cu-11 ASIC template. IBM also manufactures our NP-3 line of products using the 90 nanometer process. Taiwan Semiconductor Manufacturing Co., or TSMC, manufactures our NP-2 line of products using the 0.13 micron process and the special version of our NP-3 NPU, which we developed with Marvell, and will manufacture our NPA line of products, using the 90 nanometer process......We recently entered into an agreement with Marvell pursuant to which Marvell will be the vendor for our NP-4 network processor. The NP-4 network processor will also be manufactured by TSMC using the 55 nanometer process."