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."
Kerrisdale is a made up 'firm'. It's nothing but a short using Seeking Alpha, making it try to look like it's legitimate.
For all newbies, please ignore everything on Seeking Alpha, it is a worthless site, nothing more than a forum to try and manipulate stock prices.