Sat, Aug 23, 2014, 1:49 AM EDT - U.S. Markets closed


% | $
Quotes you view appear here for quick access.

EZchip Semiconductor Ltd. Message Board

  • steady.gains steady.gains Mar 25, 2013 10:22 AM Flag

    Kerrisdale's response to analysts

    New seeking alpha piece responding to the analysts. A key takeaway that could have been elaborated on more is that even if EZCH keeps its customers, the company just doesn't have much room to negotiate high prices and get itself respectable margins. Cisco is half of its sales, and if Cisco decided to take NPU chips in-house, EZCH would be done. So what's EZCH going to do - play hardball with Cisco on pricing? In fact, the only reason Cisco is sticking with EZCH may be because it doesn't want to give too much business to BRCM and give BRCM more leverage in future product negotiations.

    Here's a relevant quote from the article:

    "Equally as important, even if EZCH is successful in retaining its current customers, we expect that the presence of alternatives such as BRCM will allow Cisco and other customers to pressure EZCH on pricing and other terms. Given its high customer concentration, the ability for customers to produce NPU chips in-house if they desired to allocate the requisite internal resources, and the presence of competitors like Broadcom, we think that EZCH will perpetually have limited pricing power for its products."

    Sentiment: Sell

    SortNewest  |  Oldest  |  Most Replied Expand all replies
24.97+0.24(+0.97%)Aug 22 4:00 PMEDT

Trending Tickers

Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.
Keurig Green Mountain, Inc.
NasdaqGSFri, Aug 22, 2014 4:00 PM EDT, Inc
NYSEFri, Aug 22, 2014 4:00 PM EDT