EZchip Semiconductor (EZCH) Cuts Q3 Revenue Outlook

EZchip Semiconductor (NASDAQ: EZCH) announced that financial results for the third fiscal quarter of 2014 will be below the company's previous outlook. The company currently expects revenue in Q3 2014 to be in the range of $19 million, approximately 14% lower than the $22 million range guidance previously provided.

*** The Street sees Q3 revs of $22.6 million and EPS of $0.35.

"In the third quarter of 2014 we have seen weakness in orders as well as inventory adjustments across most of our key customers that are serving the carrier networking equipment space. We believe this is a temporary slowdown, caused primarily by a weaker carrier spending environment that the market is currently going through," said Eli Fruchter, CEO of EZchip Semiconductor. "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."

The company will report its full Q3 financials on November 12 and will hold a conference call that day in which it will discuss the results in further details.

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