stock rating: ezchip semiconductor · 2 investment thesis we are initiating coverage of ezchip...

Andrew Uerkwitz212 [email protected]

Oppenheimer & Co. Inc. does and seeks to do business with companies covered in its research reports. Asa result, investors should be aware that the firm may have a conflict of interest that could affect theobjectivity of this report. Investors should consider this report as only a single factor in making theirinvestment decision. See "Important Disclosures and Certifications" section at the end of this report forimportant disclosures, including potential conflicts of interest. See "Price Target Calculation" and "Key Risksto Price Target" sections at the end of this report, where applicable.

Stock Price Performance

Q1 Q2 Q3 Q120

24

28

32

36

40

2011 2012

1 Year Price History for EZCH

Created by BlueMatrix

Company Description

EZchip Semiconductor is a fabless companythat provides Ethernet network processors fornetworking equipment.

February 22, 2012 TECHNOLOGY/EMERGING TECHNOLOGIES AND SERVICES

Stock Rating:

PERFORM12-18 mo. Price Target NA

EZCH - NASDAQ $38.01

3-5 Yr. EPS Gr. Rate 12%

52-Wk Range $38.01-$26.55

Shares Outstanding 27.0M

Float 26.5M

Market Capitalization $1,025.4M

Avg. Daily Trading Volume 256,538

Dividend/Div Yield NA/NM

Fiscal Year Ends Dec

Book Value $5.08

2012E ROE 7.4%

LT Debt NA

Preferred NA

Common Equity $241M

Convertible Available No

EPS GAAP Q1 Q2 Q3 Q4 Year Mult.

2010A 0.23 0.26 0.32 0.31 1.14 33.3x

2011A 0.19 0.33 0.35 0.22 1.09 34.9x

2012E 0.24 0.27 0.34 0.41 1.25 30.4x

2013E -- -- -- -- 1.93 19.7x

Adjusted for stock-based compensation.

EZchip SemiconductorGreat Story, Fully Priced, Initiate with Perform

SUMMARY

We are initating coverage of EZchip Semiconductor with a Perform Rating. While

there is a lot to like—excellent product in a fast-growing market—we believe the

company is fully valued after 34% stock appreciation in the past 6 weeks vs. a

NASDAQ gain of 13%. This network processor company is poised to grow revenue

and earnings rapidly as its next generation product ramps up in the next 2-3 years.

The higher ASP product with a larger customer base should double revenues in 2-3

years. Moreover, market opportunities remain robust, driven by a fierce appettite for

data across networks. With EZCH trading at 19x 2013E adjusted EPS, the stock

looks fairly valued vs. its peer group changing hands at 14x.

KEY POINTS

■ What EZchip Does: A fabless semiconductor company, EZchip designs

high-speed network processors for carrier Ethernet switches and routers. It

supplies 6 of the 7 largest carrier equipment manufacturers. As customers move

to newer generation products, the company is poised to grow faster than the

market.

■ Market Opportunities: Driven by a transition from copper line to

Ethernet-based IP networks, EZchip estimates its addressable market should

nearly double from 2010 to 2015. In high-speed networks, where EZchip leads,

the company estimates this segment will grow from $116M to $450M.

■ Long Term: With an expanding product portfolio, high switching costs for

customers, and a fast-growing addressable market, EZchip is positioned to

accelerate its growth in the long term. Management has estimated it could grow

revenue fourfold by 2015. This could be conservative considering NPU volumes

should triple while the ASP is higher.

■ Strong Financials: EZchip's fabless business model, incorporation in Israel,

and a royalty payment agreement with its largest customer have created a

strong financial position. With gross margins expected to be 81% in 2012,

operating margins of 49%, and net margins higher (based on lower tax and

interest income), EZchip generates lots of cash.

■ Fairly Valued: While there is a lot to like, we see the upside limited as the stock

approaches 52-week highs. It currently trades at 19x 2013E EPS, near the high

end of peers. The 34% appreciation over the last 6 weeks makes us initially

cautious, and we begin coverage on the sidelines.

EQUITY RESEARCH

INITIATION OF COVERAGE

Oppenheimer & Co Inc. 300 Madison Avenue New York, NY 10017 Tel: 800-221-5588 Fax: 212-667-8229

2

Investment Thesis We are initiating coverage of EZchip Semiconductor with a Perform rating. We

believe that EZchip:

1. will continue to be the leading provider of Ethernet network processors;

2. confronts an addressable market that has tremendous growth potential as the

proliferation of connected devices demand expanding networks;

3. has a business model and product that give it distinctive advantages such as

high margins and product longevity.

4. has a current valuation that we feel rightly values the stock, especially after year-

to-date 34% appreciation vs. 13% from the NASDAQ.

We like a lot... EZCH has a lot to like. Since 2008, revenue has nearly doubled while

adjusted net income has quintupled. Looking to 2015, based on market opportunity,

pricing and technology dynamics, it is very possible the next four years could see even

better success. First, with its NP-4 processor ramping in 2012 and 2013 and offering four

times the possible revenue streams as NP-3 due to higher ASP and additional customers,

the medium term looks promising. Additionally, we expect the addressable market—the

carrier Ethernet equipment market—to triple from 2010 to 2015. And last, the

programmability of EZchip’s NPU, the cost savings and quickness to market afforded

customers mean product ―stickiness‖ (i.e., loyalty or reluctance to switch) is high.

…however, recent stock appreciation makes us initiate on the sideline. The stock

has appreciated 34% over the last six weeks compared with a 12% gain for the NASDAQ.

And looking at valuation, the stock looks adequately priced. We would look to be

opportunistic if any weakness presented itself.

Exhibit 1: Relative Stock Price Performance

0.70

0.80

0.90

1.00

1.10

1.20

1.30

EZCH S&P Semi Index S&P 500

Source: FactSet Note: These results cannot and should not be viewed as an indicator of future performance.

3

Addressable Market Potential: Management believes its addressable NPU market will

grow from approximately $400 million in 2010 to $800 million by 2015. More important,

nearly all of this growth is in the high speed segment, in which EZchip is the clear leader.

Growth in high-speed processors is driven by several factors including increasing

outsourcing of NPU design and continued transition to an IP based network from a copper

wire infrastructure. An IP based network is more dynamic and allows carriers to handle

the explosion in growth of voice, video, and data traffic being driven by a proliferation of

connected devices as well as the use of video across them. The move toward high speed

Ethernet routers and switches allows carriers to have a more dynamic network with high

capacity and speeds.

Exhibit 2: IP Traffic Growing Quickly

-

20,000

40,000

60,000

80,000

100,000

2010 2011 2012 2013 2014 2015

Fixed Internet Managed IP Mobile Data

Source: Cisco VPI

Leading Customer Base With Stickiness: Cisco, the largest carrier Ethernet (CE)

equipment maker, is the primary customer for EZchip. In the high speed segment, Cisco

has a market share of about 70%. Further, the CE equipment market can be broken up

into 5 segments. The largest—carrier Ethernet switches and routers—is primarily

controlled by 7 players. Here EZchip supplies NPUs to 6 of them. Customers rarely

switch NPU vendors. Because EZchip’s NPUs are programmable and often customized,

customers can save on R&D and time to market by moving to the next-generation EZCH

NPU. Additionally, to switch NPU vendors or to develop in-house is a multi-year decision.

For example, Juniper made the decision to design its next generation NPU in-house

several years ago, yet it is still purchasing from EZCH due to the long cycle time. So while

EZCH has customer concentration risk, we don’t view it as a near-term concern.

Cisco Not Only One Driving Growth: Cisco has been (and will continue to) growing its

share of EZchip’s revenue. In 2009, it was 8%; in 2011, Cisco’s share was 27%. With the

ramp of NP-4, this percentage of revenue is expected to grow even more. Cisco is the

leading edge router provider. In the 10Gbe space, its market share is 70%+. However,

EZchip is more than a Cisco supplier story. We expect the NP-4 rollout to greatly expand

EZchip’s market share, not only as Cisco rolls out additional products using this

technology, but also as the NP-4 is being used by a broader base of customers. We

expect 3 additional customers to become 10% revenue share owners once this product is

fully ramped.

4

Strong Financials. EZchip is a fabless semiconductor company. Because of this, it has

a low cost structure. The company currently employs 170 people–mostly in R&D.

Additionally, under its agreement with Cisco, the networking behemoth pays a royalty

comparable to the gross margin had EZchip sold the chips directly to Cisco. This leads to

80%+ gross margins. With the low employee count, EZchip has operating margins around

45%. As the company is incorporated in Israel, it also has a low tax rate. Put together,

the net margins are also north of 40%. The company currently has $130 million in cash

and no debt.

Exhibit 3: Strong Ability to Grow Cash

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

Source: Company Presentations; Oppenheimer & Co. Inc.

Technology has built-in growth: One of the issues with networks is that the proliferation

of different types of connected devices has caused the complexity of processing data to

greatly increase. One way to alleviate this pressure is to upgrade to Ethernet switches

and routers, i.e., products based on EZCH technology. And as needs arise, to stay ahead

of the pace of technology, carrier suppliers continue to introduce newer, faster, and more

integrated products. Due to the programmability of EZCH NPUs, customers are finding it

cost–effective, due to the reduction in time to market, to move to EZCH’s next chip. For

example, the NP-5, the latest product (entering testing in 2012), has enhanced video

support and an embedded search engine—two options the previous iteration doesn’t

have. This added functionality typically pushes customers to the next generation. We

believe most, if not all, customers that have committed to the NP-4 will commit to the NP-

5. For EZCH, this means increased revenue as the next generation has higher ASPs

(pricing). And as EZchip becomes more embedded at its customers, more products will

be offered with EZchip NPUs. For example, the NP-3 addresses 40% of the market while

the NP-4 is expected to address 60%. We expect the NP-5 will push this percentage even

higher.

Comparables Show Little Near-term Upside: To find comparables, we look to the

fabless semiconductor space as well as the IP space. We think a good list includes

companies in fast -growing market segments. For example, we include Broadcom and

Qualcomm, two companies with exposure to the fast-growing smart phone segment. We

include CEVA as it has high gross/operating margins as well as having corporate offices

located in Israel. Looking at Exhibit 4, we see that EZCH’s P/E ratio based on 2013 EPS

forecast is at the top of the range. While we think the stock deserves a premium due to

5

the growth profile over the next 2-4 years, we aren’t convinced that more multiple

expansion is justified. Thus, we think the upside is limited.

Exhibit 4: EZCH Comparables

Mkt EPS Growth

Price 02/13/12 Cap EV Ev/Rev P/E Ratio

Company TKR Rating Target Price (M) ($M) CY10 CY11 CY12 2010 2011E 2012E 2013E 2011E 2012E 2013E CY10 CY11 CY12 CY13

Broadcom BRCM O $55 $36.82 21,392 $18,059 2.6x 2.4x 2.3x $2.72 $2.89 $2.77 $3.07 6% (4%) 11% 13.5x 12.7x 13.3x 12.0x

Cavium Networks CAVM P $33.07 1,740 $1,678 8.1x 6.5x 6.4x $0.88 $1.10 $0.66 $1.23 25% (40%) 86% 37.6x 30.1x NM 26.9x

CEVA CEVA O $36 $26.66 648 $508 13.2x 8.4x 7.9x $0.56 $0.97 $1.03 $1.25 73% 6% 21% 47.6x 27.5x 25.9x 21.3x

Integrated Device Tech IDTI NR $6.72 953 $639 1.0x 1.1x 1.3x $0.57 $0.42 $0.25 $0.45 (26%) (40%) 80% 11.8x 16.0x 26.9x 14.9x

LSI LSI NR $8.39 4,726 $3,791 12.4x 1.9x 1.6x $0.52 $0.50 $0.58 $0.73 (4%) 16% 26% 16.1x 16.8x 14.5x 11.5x

Marvell Technologies MRVL P $15.94 9,805 $7,380 37.0x 2.2x 2.1x $1.63 $1.25 $1.17 $1.45 (23%) (6%) 24% 9.8x 12.8x 13.6x 11.0x

PMC-Sierra PMCS NR $6.86 1,585 $1,298 6.5x 2.0x 2.1x $0.72 $0.60 $0.45 $0.61 (17%) (25%) 36% 9.5x 11.4x 15.2x 11.2x

Qualcomm QCOM O $70 $61.74 104,155 $92,764 96.9x 5.7x 4.6x $2.66 $3.36 $3.82 $4.23 26% 14% 11% 23.2x 18.4x 16.2x 14.6x

ST Micro STM NR $6.78 6,000 $4,498 4.7x 0.5x 0.5x $0.74 $0.42 $0.28 $0.69 (43%) (33%) 146% 9.2x 16.1x 24.2x 9.8x

Peer Group 4.4x 3.2x 2% -13% 49% 19.8x 18.0x 18.7x 14.8x

Ezchip Semiconductor EZCH P $37.36 1,009 $883 1.0x 13.9x 12.2x $0.70 1.09 1.23 1.93 56% 13% 57% NM 34.3x 30.4x 19.4x

EPS

Source: Factset; Oppenheimer & Co. Inc. O Outperform; P Perform; NR Not Rated. Estimates for Not Rated companies from FactSet

O

Looking at historical P/E ratios, the company is currently trading above the average of

about 18.5x. We would not be surprised if the multiple moves higher, but to get adequate

return from the current trading price would require multiples approaching the peak of 24x.

This is why we would be opportunistic on any weakness.

Exhibit 5: Two-year History of EZCH Forward P/E Multiple


6

Modeling Assumptions

Exhibit 6: Modeling Highlights (in $’000, except EPS)

2011A 1Q12E 2012E 2013E

Current Estimates

Revenue $63,457 $14,126 $69,088 $95,904

YoY % Change 2.4% 7.2% 8.9% 38.8%

Gross Margin 77.9% 83.0% 81.6% 81.0%

Operating Margin 46.1% 44.5% 49.2% 55.0%

Pro-Forma EPS $1.09 $0.24 $1.25 $1.93

YoY % Change 95.5% 123.8% 115.0% 153.9%


Revenue and Gross Margin. Based on management commentary and what we are

seeing in the market, we believe 2012 revenue will grow by 9% over 2011’s. This would

be up from 3% in 2011 versus 2010. The real story is the 39% growth we model in 2013,

driven by the market opportunity and higher ASPs of the NP-4 which should be nearly fully

ramped by 2013. Gross margin is expected to expand from the mid-70%’s to the low

80%’s as Cisco becomes a larger portion of revenues. Cisco is on a royalty model that

pays a high margin. Additionally, the company is no longer paying a royalty to the Israeli

Office of Chief Scientist. We believe gross margins will settle in at around 81% long term,

which is in line with management commentary.

Exhibit 7: Revenue and Gross Margin

66%

68%

70%

72%

74%

76%

78%

80%

82%

84%

$0

$5,000

$10,000

$15,000

$20,000

$25,000

1Q

09A

2Q

09A

3Q

09A

4Q

09A

1Q

10A

2Q

10A

3Q

10A

4Q

10A

1Q

11A

2Q

11A

3Q

11A

4Q

11A

1Q

12E

2Q

12E

3Q

12E

4Q

12E

Revenue Gross Margin


7

Research and Development: EZchip’s biggest expense is R&D. Of the 170 employees,

132 are R&D related. We believe R&D spending will remain high as the company

continues to develop the next generation NPU. The company is also developing a new

product—as yet unannounced—to expand into other markets. We model R&D spending

growth in 2012 of 14% off a base of $12.2 million (in 2011). This represents a range of

18% to 24% of revenue.

Operating Margins: Due to the nature of being a fabless semiconductor company

(EZchip doesn’t own factories or the distribution infrastructure), the company has high

operating margins. We expect these to expand as revenue continues to grow. We

believe on an adjusted basis (not including stock-based compensation), operating margins

can approach 55% in 2013. In 2011, the company had adjusted operating margins of

46%. We do not believe the company needs to greatly expand its staff to support the

ramp-up of the NP-4 or NP-5.

Net Income and EPS: Due to various tax rules in different jurisdictions, the company

expects the tax rate in 2012 to be 12%. We expect low tax rates to continue. On the

bottom line, net income margins should grow relatively similar to operating income. As

such, we estimate 2012-2013 EPS of $1.25 and $1.93, respectively.

Company Overview

EZchip Semiconductor is a fabless semiconductor company that develops and markets

Ethernet network processors (NPUs) for networking equipment in the carrier Ethernet

(CE) market. EZchip’s processors, with scale from 1-Gigabit to 100-Gigabits per second,

offer a common architecture and software across all platforms. The products enable data,

voice, and video services as one in metro and edge systems that make up the carrier

Ethernet networks. There is a transition to Ethernet in the carrier market due to strong

growth in services such as video. EZchip supplies its technology to the largest CE

vendors in what are typically long product cycles.

EZchip designs network processors for high-speed networking equipment and has

recently introduced solutions for the low-speed access market. Networking equipment

vendors use EZCH network processors to form the core of networking equipment, such as

switches and routers, for voice, video, and data integration. Because EZchip is a fabless

company, it does not do its own manufacturing. The outsourcing of this function keeps

head count low–170 employees.

Company History: The company was incorporated in 1989 as Dan-Serb Ltd. It has

since changed its name twice–first to LanOptics in 1990 and later to EZchip

Semiconductor in 2008. From 1989 to 1999, the company was engaged in developing and

manufacturing solutions for local area networks and wide area networks to improve

connectivity and performance. In 1999, the company ceased R&D efforts for LANs and

moved its efforts to developing next generation application-specific integrated circuits

(ASICs) for network processors. This new initiative was incorporated as a subsidiary

EZchip Technologies in 1999.

Network Processors: Network processors are programmable integrated circuits that are

similar to fixed-function application-specific integrated circuits, but have the flexibility that

microprocessors enjoy—programmability. By downloading software, NPUs can be

upgraded or can accommodate new applications and protocols. The functions in data

communication that are performed by the NPU are packet classification, packet

modification, policy/queue management, and packet forwarding. An NPU is required to

simultaneously perform these tasks.

8

To do so, EZCH’s NPUs integrate several high-speed task optimized processors (TOPs)

with each specifically designed to perform a certain task. To perform the packet

processing, EZCH NPU employs four types of TOPs—parse, search, resolve, and modify.

Each TOP uses a unique architecture that is customized, function-specific path and

instruction set.

EZCH offers its customers an NPU on a single chip solution so that customers can design

high-density, multi-port line cards. Solutions include processing and classification

engines, traffic managers, media access controllers, and a variety of function accelerators

that reduces the number of complementary chips. This reduces complexity, space, and

price for its customers.

Product History

About every three years, EZchip introduces a newer version of its network processor

chips. The life span is approximately 7 years with revenues ramping for the first two years

with maximized revenue lasting 3 years before winding down.

EZchip introduced NP-1 in the spring of 2002. It was a single-chip, full-duplex seven layer

network processor with integrated classifiers. It had fully programmable packet

management. It was replaced 18 months later by the NP-1c. Final shipments were made

in 2010.

In 2005, the NP-2 was introduced. It was an upgrade to the NP-1 as it included traffic

managers which allowed for a more cost-effective network solution that also reduced

power and design costs—competitor chips at the time used a complementary chip for the

traffic management functions. The NP-2 is expected to produce revenue to 2014.

An upgraded version of NP-2 called NP-3 was introduced in 2007 and a second version in

2008. It upgraded the functionality while increasing the throughput. It uses 90 nanometer

silicon process. The first NP-3 was developed for Cisco jointly with Marvell. Marvell

manufactures and sells directly to Cisco while paying EZCH a royalty equivalent of the

gross margin had EZCH sold directly to the customer.

Production of the NP-4 started in 2011. It’s a 100-gigabit NPU. It targets 40-gigabit, 100-

gigabit, and 400-gigabit line card and carrier Ethernet applications. Aside from being an

upgrade over the NP-3, it includes Ethernet physical functions which save additional

space and cost while also lessening complexity. Marvell is the sole producer of the NP-4.

EZchip is currently developing NP-5 and targeting 2014 as the production year. It will be

based on 28nm and 200 Gbps. The ASP is expected to be 50% more than NP-4’s.

Other products include the NPA series which targets the access market. These

processors are based on the NP series. In 2011, this series accounted for one-third of

revenue.

Market Discussion

We believe society is in a shift toward more connectivity. In its simplest form, it means a

radical increase in the amount of data flowing across networks. For network operators,

this means networks have to expand, become more efficient, and lessen the complexity.

Exhibit 8 shows Cisco’s global forecast for just monthly mobile data traffic. This traffic is

9

being driven by the increased usage of and adoption of smart phones, tablets, and other

connected devices. It’s also being driven by increased demand for ―triple play‖ services—

delivering voice, video, and broadband from a carrier. We are seeing not only an

expansion of data traffic, but also an increase in the complexity of the network.

Exhibit 8: Exabytes per month, Mobile Data Traffic

0

2

4

6

8

10

12

2011 2012 2013 2014 2015 2016


One way carriers are dealing with the increased traffic and complexity is to move toward

an IP based network (and away from a traditional copper wire network). Traditionally,

data would occupy the entire capacity of a circuit while it traveled across the network. In

an IP based network, multiple streams can travel across the circuit as data is packaged as

packets. This approach allows voice, data, and video to co-exist on the same route but

requires more complex and faster routers and switches. How does EZchip benefit? It has

become the leader in high speed network processors, an essential chip in high speed

switches and routers. Exhibit 9 shows the growth of the Ethernet switching market. The

edge space that EZchip is most dominant in is roughly 10% of this market. Within just the

edge router market that EZchip addresses, the number of ports is expected to grow from

600K to 2,200K, or 3.7x from 2010 to 2015.

10

Exhibit 9: Ethernet Switching Market Forecast (in 000s)

2009 2010 2011E 2012E 2013E 2014E

T ota l Ports 126,630 176,535 204,926 236,123 265,395 303,264

1 GbE 124,510 171,360 196,522 221,038 241,221 266,877

10 GbE 2,120 5,175 8,401 15,022 23,844 35,032

40 GbE 3 62 321 1,326

100GbE 1 9 29

2009 2010 2011E 2012E 2013E 2014E

T ota l Ports 39% 16% 15% 12% 14%

1 GbE 38% 15% 12% 9% 11%

10 GbE 144% 62% 79% 59% 47%

40 GbE 1967% 418% 313%

100GbE 800% 222%

Source:IDC, Oppenheimer & Co. Inc., Company Data

Customers

EZchip sells most of its product to networking equipment vendors. There are about 13

vendors who have significant market share in the five Ethernet segments. Of these 13, 11

use EZchip NPUs in their products. In 2011, Cisco, the largest switch and router vendor,

represented 27% of EZCH sales. This figure is expected to increase as NP-4 continues to

ramp. Juniper’s share is expected to decrease as it phases out its use of EZCH

technology. ZTE has 11% share of EZCH revenue. As NP-4 ramps into full production,

several customers including Huawei, Ericsson, and Tellabs could become 10%-of-revenue

customers.

Exhibit 10: Target Customers by Ethernet Verticals

CESR T ransport Microwave PON Others

Alcatel-Lucent Alcatel-Lucent Alcatel-Lucent Alcatel-Lucent Alcatel-Lucent

- - - - Arris

- Ciena - - Ciena

Cisco Cisco - - Cisco

- ECI - - ECI

Ericsson Ericsson Ericsson Ericsson Ericsson

- Fujitsu - Fujitsu -

Huawei Huawei Huawei Huawei Huawei

Juniper - - - -

- - - Motorola Motorola

- NEC NEC - -

-

Nokia Siemens

Networks

Nokia Siemens

Networks

Tellabs Tellabs - - Tellabs

ZTE ZTE - ZTE -

Carrie r Etherne t Vertica ls


Competitors

There are two competing pressures—NPU design and competing technologies. Within

NPU design, there are two competing factors as well. First, the main competitive threat is

internally developed technologies. The trend is currently moving away from this model.

11

While Juniper made the decision to internally develop its NPU several years ago, several

others have moved to outsource this function. The long lead times, the high R&D

expense, and the benefits of EZCH’s programmability which allows customers to

customize the NPU are the primary factors for outsourcing. Second, there are competing

companies—mainly in lower speed NPUs. Here the competition—companies such as

Broadcom and Marvell (with its recent purchase of Xelerated) —compete on price where

EZchip doesn’t fare as well. EZchip differentiates on quality and performance.

A second competitive threat is technology. Fixed ASICs can be faster and designed for

specific processes. They are also typically cheaper. The risk of using ASIC solutions is

their lack of flexibility and less integration. This is why, again, this technology is often

used in lower speeds and less critical processes.

We believe EZchip differentiates itself from competitors based on integration and flexibility

from programmability. This speeds up its customers’ products to market while also saving

on costs. This is why we expect EZchip to continue growing its market share even while

losing Juniper as a customer.

Management

EZchip has a highly capable and experienced management team starting with CEO Eli

Fruchter. Since he founded the company in 1990, the company has had his steady

guidance.

Eli Fruchter, president and CEO Eli Fruchter serves as president and chief executive

officer of EZchip Technologies, a position that he has held since EZchip’s inception in May

1999, and has served as a director of the company since its inception and chairman of the

board of directors from December 2006 until December 2007. Mr. Fruchter co-founded the

company and from 1990 to 1999 he served as general manager and the board chairman.

Prior to that, he was also among the founders of Adacom Technologies Ltd., a

manufacturer of data communications products. Mr. Fruchter holds a B.Sc. degree in

electrical engineering from the Technion - Israel Institute of Technology.

Dror Israel, CFO Dror Israel has served as chief financial officer since July 2001. Prior to

that, he was financial controller from January 2000 through May 2001 and a financial

analyst of the company from August 1997 through December 1999. Prior to joining

LanOptics (as EZchip was called at the time), Mr. Israel was employed by Hi Group, a

holdings company, as a financial analyst. Mr. Israel holds a B.A. degree in economics

from Haifa University and a MBA cum laude from the Technion-Israel Institute of

Technology.

Guy Koren, VP Technology and CTO Since 2001, Guy Koren has held several positions

in EZchip; he has been in charge of traffic manager development, headed chip

development activities and led the NP-2 project. From 1998 until 2001, he was in charge

of chip design for the consumer electronics market at Zoran Microelectronics, and

specialized in full custom VLSI chip design. For the preceding 6 years, he specialized in

microprocessor design and processor architectures at Intel Corporation. He was also

involved in the design of the Intel Pentium MMX and Pentium 4 architectures. Mr. Koren

holds a B.Sc. with honors in electrical engineering from the Technion-Israel Institute of

Technology.

12

Investment Risks

Customer Concentration: The carrier equipment market is dominated by a few very

large companies. We see several issues with this: 1) revenue lumpiness is prevalent due

to large orders from few customers; 2) a single customer could leave EZchip, which could

negatively impact revenue; 3) if a customer does leave, it is difficult to replace revenue as

there are few other vendors for EZchip to sell to; and 4) we believe pricing power lies with

the customer.

Competition Could Move Away from EZCH: Technology change could make EZchip’s

solutions obsolete. As we saw with Juniper, if this company finds success with its

internally developed NPU, we could see more companies looking to the NPU for

differentiating purposes. Additionally, competitors could develop a next generation chip

that could revolutionize the use of the NPU. And because of long life cycles, being

designed out of a customer product could mean years without getting the chance to

recapture the customer.

Company Headquartered in Israel: The majority of the company’s employees are

located in Israel. The political volatility and instability in the region could adversely affect

the company. Additionally, attitudes toward the region could make customers hesitate to

do business in the region. There are also currency risks associated with revenue

collected in US dollars and majority of operating expenses paid in New Israeli Shekels.

13

Stock prices of other companies mentioned in this report (as of 2/22/12):

Integrated Device Technologies (IDTI – NASDAQ, $6.98, Not Rated)

LSI (LSI – NYSE, $8.28, Not Rated)

PMC Sierra (PMCS – NASDAQ, $7.02, Not Rated)

ST Micro (STM – NYSE, $6.95, Not Rated)

ZTE Corp (763-HK – Hong Kong $22.65, Not Rated)

Huawei (002502-SHE – Shenghai, $20.06, Not Rated)

Tellabs (TLAB – NASDAQ, $4.07, Not Rated)

14

EZChip

Quarterly Consolidated Statement of Income Statement

FY FY FY FY 1Q12E 2Q12E 3Q12E 4Q12E FY FY

2008A 2009A 2010A 2011A Mar-12E Jun-12E Sep-12E Dec-12E 2012E 2013E

Total Revenue $33,566 $40,046 $61,998 $63,457 $14,126 $15,539 $18,336 $21,086 $69,088 $95,904

Cost of Revenues 11,227 10,985 15,366 14,050 2,401 2,797 3,484 4,006 12,689 18,222

Amortization of Purchased Tech 2,723 2,010 1,915 597 0 0 0 0 0 0

Stock-based Compensation 116 214 302 359 75 75 75 75 300 300

Total Cost of Revenue $14,066 $13,209 $17,583 $15,006 $2,476 $2,872 $3,559 $4,081 $12,989 $18,522

Gross profit $19,500 $26,837 $44,415 $48,451 $11,650 $12,667 $14,777 $17,005 $56,099 $77,383

Research & Development 11,353 10,335 10,724 12,249 3,390 3,419 3,576 3,585 13,969 15,345

Selling, General, & Administrative 5,574 5,634 6,641 7,878 2,048 2,098 2,109 2,172 8,427 9,590

Amortization of Purchased Tech 475 840 773 380 95 95 95 95 380 380

Stock-based Compensation 3,018 5,131 5,528 8,247 2,100 2,100 2,100 2,100 8,400 8,800

Operating Income ($920) $4,897 $20,749 $19,697 $4,016 $4,956 $6,898 $9,053 $24,923 $43,267

Interest Income (Expense) 1,408 902 1,130 1,713 511 543 563 585 2,201 1,954

Other Income (Expense) (5,088) (92) 0 0 0 0 0 0 0 0

Pre-tax income ($4,600) $5,707 $21,879 $21,410 $4,527 $5,498 $7,461 $9,638 $27,125 $45,221

Taxes on Income 0 11,675 (8,236) (3,530) (679) (825) (1,119) (1,446) (4,069) (6,783)

Net Income ($4,600) $17,382 $13,643 $17,880 $3,848 $4,674 $6,342 $8,192 $23,056 $38,438

Diluted EPS ($0.20) $0.74 $0.52 $0.65 $0.14 $0.16 $0.22 $0.28 $0.81 $1.38

Non-GAAP Adjustments $11,420 ($3,363) $16,754 $13,113 $2,949 $3,095 $3,389 $3,716 $13,149 $16,263

Adjusted Net Income $6,820 $14,019 $30,397 $30,993 $6,797 $7,768 $9,731 $11,908 $36,205 $54,701

Adjusted Diluted EPS $0.30 $0.59 $1.14 $1.09 $0.24 $0.27 $0.34 $0.41 $1.25 $1.93

Basic WA Shares Outstanding 23,049 23,376 25,282 26,679 26,900 27,000 27,300 27,500 27,175 26,650

Diluted WA Shares Outstanding 23,049 23,516 26,110 27,617 28,200 28,400 28,600 28,800 28,500 27,875

Adj. Diluted WA Shares Outstanding 23,075 23,608 26,616 28,411 28,600 28,800 29,000 29,200 28,900 28,346

Source: Company Data, Oppenheimer & Co. Inc. Estimates.

15

EZChip

Margin and Growth Metrics



Margin Analysis

Adj. Gross Margin 66.6% 72.6% 75.2% 77.9% 83.0% 82.0% 81.0% 81.0% 81.6% 81.0%

GAAP Gross Margin 58.1% 67.0% 71.6% 76.4% 82.5% 81.5% 80.6% 80.6% 81.2% 80.7%

Research & Development 33.8% 25.8% 17.3% 19.3% 24.0% 22.0% 19.5% 17.0% 0.4% 0.4%

Sales & Marketing 16.6% 14.1% 10.7% 12.4% 14.5% 13.5% 11.5% 10.3% 5.2% 5.2%

Stock Comp 9.0% 12.8% 8.9% 13.0% 15.0% 12.0% 12.0% 12.0% 22.0% 22.0%

Adj. Operating Margin 16.1% 32.7% 47.2% 46.1% 44.5% 46.5% 50.0% 53.7% 49.2% 55.0%

GAAP Operating Margin -2.7% 12.2% 33.5% 31.0% 28.4% 31.9% 37.6% 42.9% 36.1% 45.1%

Pre-Tax Margin -13.7% 14.3% 35.3% 33.7% 32.0% 35.4% 40.7% 45.7% 39.3% 47.2%

Effective Tax Rate 0.0% -204.6% 37.6% 16.5% 15.0% 15.0% 15.0% 15.0% 27.0% 27.0%

Adj. Net Income Margin 20.3% 35.0% 49.0% 48.8% 48.1% 50.0% 53.1% 56.5% 52.4% 57.0%

Net Income Margin -13.7% 43.4% 22.0% 28.2% 27.2% 30.1% 34.6% 38.9% 33.4% 40.1%

Sequential Growth Rates

Revenue -1.0% 10.0% 18.0% 15.0%

Operating Expenses

Research & Development 4.1% 0.8% 4.6% 0.3%

Sales & Marketing 5.0% 2.4% 0.5% 3.0%

Stock Compensation -2.1% 0.0% 0.0% 0.0%

WA Shares Outstanding 39.4% 2.0% 0.3% 0.3% 4.4% 0.0% 0.0% 0.0% 0.3% 0.3%

Year-on-Year Growth Rates

Revenue 72.2% 19.3% 54.8% 2.4% 7.2% -10.2% -2.0% 47.8% 8.9% 38.8%

Operating Expenses

Research & Development 55.1% -9.0% 3.8% 14.2% 3.6% 23.3% 21.4% 10.0% 14.0% 9.8%

Sales & Marketing 19.4% 1.1% 17.9% 18.6% 1.5% 1.9% 14.0% 11.3% 7.0% 13.8%

Stock Compensation 49.6% 70.0% 7.7% 49.2% 7.4% 3.6% -0.9% -2.1% 1.9% 4.8%

Adj. Net Income 1631.0% 105.6% 116.8% 2.0% 26.5% -17.2% -2.1% 89.1% 16.8% 51.1%

WA Shares Outstanding 39.6% 2.3% 12.7% 6.7% 2.1% 1.2% 1.5% 2.1% 3.2% -0.9%

Adjusted Diluted EPS 1240.2% 200.9% 192.3% 95.5% 123.8% 81.8% 96.5% 185.2% 114.8% 154.0%

Source: Company data, Oppenheimer & Co. Inc. estimates

16

EZChip

Balance Sheet



Assets

Cash & Cash Equivalents $48,115 $67,238 $101,310 $136,172 $144,741 $150,223 $155,906 $163,901 $163,901 $207,186

Account Receivables 5,040 6,340 8,988 7,888 5,085 4,972 8,068 9,278 9,278 11,373

Other Receivables 623 6,065 1,178 961 1,130 2,486 1,467 1,687 1,687 1,386

Inventories 3,884 1,533 4,522 4,613 3,955 4,351 5,134 5,904 5,904 6,652

Deferred Tax Assets, net 6,038 3,443

Total Current Assets $57,662 $87,214 $119,441 $149,635 $154,912 $162,032 $170,575 $180,770 $180,770 $226,596

Severence Pay Fund $3,198 $4,099 $5,209 $5,185 $5,185 $5,185 $5,185 $5,185 $5,185 $5,185

Long-term Investment & Other 0 5,571 335 343 343 343 343 343 343 343

Property & Equipment, Net 273 394 419 609 698 778 850 915 915 400

Goodwill & Intangibles 102,970 100,145 97,457 96,576 96,576 96,576 96,576 96,576 96,576 96,576

Total Assets $164,103 $197,423 $222,861 $252,348 $257,714 $264,914 $273,529 $283,789 $283,789 $329,101

Liabilities and Equity

Accounts Payable $888 $1,963 $1,289 $538 $396 $460 $569 $653 $653 $786

Other Payables and Accrued Expenses 4,220 10,218 6,569 4,320 3,955 4,351 4,401 5,061 5,061 6,229

Total Current Liabilities $5,108 $12,181 $7,858 $4,858 $4,352 $4,810 $4,970 $5,714 $5,714 $7,016

Accrued Severance Pay 4,081 4,779 5,974 6,569 7,094 7,662 8,274 8,936 8,936 6,508

Total Liabilities $9,189 $16,960 $13,832 $11,427 $11,446 $12,472 $13,245 $14,650 $14,650 $13,524

Stockholders Equity 154,914 180,463 209,029 240,921 246,269 252,442 260,285 269,139 269,139 315,577

Total Liabilities and Equity $164,103 $197,423 $222,861 $252,348 $257,714 $264,914 $273,529 $283,789 $283,789 $329,101

==> Check


Balance Sheet Stats (Annualized)

Number of Quarters 1.00 1.00 1.00 1.00 4.0 4.0 4.0 4.0 1.00 1.00

Assets

Account Receivables as a % of Revenues 15.0% 15.8% 14.5% 12.4% 9.0% 8.0% 11.0% 11.0% 12.4% 12.4%

Other CA as a % of Revenues 1.9% 15.1% 1.9% 1.5% 2.0% 4.0% 2.0% 2.0% 1.5% 1.5%

Inventory as a % of Revenues 11.6% 3.8% 7.3% 7.3% 7.0% 7.0% 7.0% 7.0% 7.3% 7.3%

Liabilities

Accounts Payable as a % of Cost of Revenue 6.3% 14.9% 7.3% 3.6% 4.0% 4.0% 4.0% 4.0% 3.6% 3.6%

Other Current Liabilities as % of Total Revenues 12.6% 25.5% 10.6% 6.8% 7.0% 7.0% 6.0% 6.0% 6.8% 6.8%

Accrued Severance as % of Total Revenues 12.2% 11.9% 9.6% 10.4% 8.0% 8.0% 8.0% 8.0% 12.9% 6.8%

Growth Rate of Retirement Fund 24.7% 17.1% 25.0% 10.0% 8.0% 8.0% 8.0% 8.0% 0.0% 0.0%

D&A as % of PPE 1057.5% 780.2% 689.0% 183.1% 10.0% 10.0% 10.0% 10.0% 40.0% 40.0%

17

EZChip

Cash Flow Statement



Cash Flow from Operations

Net Income ($4,637) $17,382 $13,643 $17,880 $3,848 $4,674 $6,342 $8,192 $23,056 $38,438

Plus: Depreciation & Amortization 2,887 3,074 2,887 1,115 61 70 78 85 294 1,115

Funds Flow from Operations (1,750) 20,456 16,530 18,995 3,909 4,743 6,420 8,277 23,349 39,553

(Inc) Dec in Accounts Receivable (2,163) (6,484) 2,133 717 2,802 113 (3,095) (1,210) (1,390) (2,095)

(Inc) Dec in Other Current Assets 557 - - 299 (169) (1,356) 1,019 (220) (726) 301

(Inc) Dec in Inventories (250) 2,351 (2,989) (91) 658 (396) (783) (770) (1,291) (748)

(Inc) Dec in Deferred Income Taxes - (11,675) 8,162 4,000 525 568 613 1,706 (2,854)

Inc (Dec) in Account Payables 634 6,634 (4,077) (1,885) (141) 63 110 84 115 133

Inc (Dec) in Deferred Revenues - - - - - -

Stock Based Compensation 3,133 5,345 5,830 6,388 -

Inc (Dec) in Other Current Liabilities 673 49 - (1,343) (365) 396 50 1,322 1,402 1,169

Other 5,408 41 - - - 426

(Inc) Dec in Working Capital 7,992 (3,739) 9,059 8,084 3,311 (612) (2,087) (795) (183) (3,668)

Net CF from Operations 6,242 16,717 25,589 27,079 7,219 4,131 4,333 7,483 23,166 35,885

Cash Flow from Investing Activities

(Inc) Dec in Funds for Employees Retirement - - - - - - -

Capital Expenditure (110) (110) (385) (464) (150) (150) (150) (150) (600) (600)

Proceeds from sale of PPE - - - - - - - -

Loan - - - - - - - -

Purchase of Ingtangible Assets - - - - - - - -

Proceeds from sale of subsidiary - - - -

Investment in affiliated company - - (200) -

Investment in Marketable Securities - - - - - - - -

Unrealized Gain/(Loss) on Marketable Securities (653) 999 8 (624) - - - -

Net CF from Investing (763) 889 (577) (1,088) (150) (150) (150) (150) (600) (600)

Cash Flow from Financing Activities

ST credits, net - - - -

Long-Term Loans - - - -

Proceeds from Exercise of Options 8 1,517 7,988 8,871 1,500 1,500 1,500 662 5,162 8,000

Equity Financing/Issuance - - 1,072 - - - - -

Other - - - - - - -

Net Cash Flow from Financing Activities 8 1,517 9,060 8,871 1,500 1,500 1,500 662 5,162 8,000

Free Cash Flow 6,132 16,607 25,204 26,615 7,069 3,981 4,183 7,333 22,566 35,285

Effect of Exchange Rate on Cash & Equiv. - - - - - - - - - -

Net (decr.) incr. in cash $5,487 $19,123 $34,072 $34,862 $8,569 $5,481 $5,683 $7,995 $27,728 $43,285

Beginning Cash Balance $42,628 48,115 67,238 101,310 $136,172 $144,741 $150,223 155,906 136,172 163,901

Ending Cash Balance $48,115 67,238 101,310 136,172 $144,741 $150,223 $155,906 $163,901 163,901 207,186


18

Investment Thesis

EZchip is poised to continue its leadership position in the high-speed network processors for the ethernet switching and routing market.

There is a lot to like as we expect EZCh will outpace the industry's low-teens growth rate over the next several years as the company

expands is customer base with its new network processor, the NP-4 as well as being focused on the fastest growing segments, the

10GbE and 40GbE space. However, we believe the stock is fairly valued after its recent run-up as it is currently trading above its

historical forward P/E multiple.

Important Disclosures and CertificationsAnalyst Certification - The author certifies that this research report accurately states his/her personal views about the

subject securities, which are reflected in the ratings as well as in the substance of this report.The author certifies that no

part of his/her compensation was, is, or will be directly or indirectly related to the specific recommendations or views

contained in this research report.

Potential Conflicts of Interest:

Equity research analysts employed by Oppenheimer & Co. Inc. are compensated from revenues generated by the firm

including the Oppenheimer & Co. Inc. Investment Banking Department. Research analysts do not receive compensation

based upon revenues from specific investment banking transactions. Oppenheimer & Co. Inc. generally prohibits any

research analyst and any member of his or her household from executing trades in the securities of a company that such

research analyst covers. Additionally, Oppenheimer & Co. Inc. generally prohibits any research analyst from serving as an

officer, director or advisory board member of a company that such analyst covers. In addition to 1% ownership positions in

covered companies that are required to be specifically disclosed in this report, Oppenheimer & Co. Inc. may have a long

position of less than 1% or a short position or deal as principal in the securities discussed herein, related securities or in

options, futures or other derivative instruments based thereon. Recipients of this report are advised that any or all of the

foregoing arrangements, as well as more specific disclosures set forth below, may at times give rise to potential conflicts of

interest.

Important Disclosure Footnotes for Companies Mentioned in this Report that Are Covered byOppenheimer & Co. Inc:

Stock Prices as of February 22, 2012

Broadcom Corporation (BRCM - Nasdaq, 37.97, OUTPERFORM)Cavium Networks (CAVM - Nasdaq, 35.79, PERFORM)CEVA Inc. (CEVA - Nasdaq, 25.85, OUTPERFORM)Marvell Technology Group (MRVL - Nasdaq, 16.00, PERFORM)QUALCOMM Incorporated (QCOM - Nasdaq, 62.78, OUTPERFORM)

19

0

8

16

24

32

40

2009 2010 2011 2012

Rating and Price Target History for: EZchip Semiconductor (EZCH) as of 02-21-2012

Created by BlueMatrix

All price targets displayed in the chart above are for a 12- to- 18-month period. Prior to March 30, 2004, Oppenheimer &

Co. Inc. used 6-, 12-, 12- to 18-, and 12- to 24-month price targets and ranges. For more information about target price

histories, please write to Oppenheimer & Co. Inc., 300 Madison Avenue, New York, NY 10017, Attention: Equity Research

Department, Business Manager.

Oppenheimer & Co. Inc. Rating System as of January 14th, 2008:

Outperform(O) - Stock expected to outperform the S&P 500 within the next 12-18 months.

Perform (P) - Stock expected to perform in line with the S&P 500 within the next 12-18 months.

Underperform (U) - Stock expected to underperform the S&P 500 within the next 12-18 months.

Not Rated (NR) - Oppenheimer & Co. Inc. does not maintain coverage of the stock or is restricted from doing so due to a potential

conflict of interest.

Oppenheimer & Co. Inc. Rating System prior to January 14th, 2008:

Buy - anticipates appreciation of 10% or more within the next 12 months, and/or a total return of 10% including dividend payments,

and/or the ability of the shares to perform better than the leading stock market averages or stocks within its particular industry sector.

Neutral - anticipates that the shares will trade at or near their current price and generally in line with the leading market averages due to

a perceived absence of strong dynamics that would cause volatility either to the upside or downside, and/or will perform less well than

higher rated companies within its peer group. Our readers should be aware that when a rating change occurs to Neutral from Buy,

aggressive trading accounts might decide to liquidate their positions to employ the funds elsewhere.

Sell - anticipates that the shares will depreciate 10% or more in price within the next 12 months, due to fundamental weakness

perceived in the company or for valuation reasons, or are expected to perform significantly worse than equities within the peer group.

20

Distribution of Ratings/IB Services Firmwide

IB Serv/Past 12 Mos.

Rating Count Percent Count Percent

OUTPERFORM [O] 334 55.90 146 43.71

PERFORM [P] 257 43.00 87 33.85

UNDERPERFORM [U] 7 1.20 4 57.14

Although the investment recommendations within the three-tiered, relative stock rating system utilized by Oppenheimer & Co. Inc. do not

correlate to buy, hold and sell recommendations, for the purposes of complying with FINRA rules, Oppenheimer & Co. Inc. has assigned

buy ratings to securities rated Outperform, hold ratings to securities rated Perform, and sell ratings to securities rated Underperform.

Company Specific DisclosuresOppenheimer & Co. Inc. expects to receive or intends to seek compensation for investment banking services in the next 3

months from IDTI.

Oppenheimer & Co. Inc. and its affiliates, in the aggregate, beneficially own 1% or more of a class of equity securities

issued by EZCH.

Oppenheimer & Co. Inc. makes a market in the securities of EZCH, BRCM, CAVM, CEVA, IDTI, MRVL, PMCS, and

QCOM.

Additional Information Available

Please log on to http://www.opco.com or write to Oppenheimer & Co. Inc., 300 Madison Avenue, New York, NY 10017,

Attention: Equity Research Department, Business Manager.

Other DisclosuresThis report is issued and approved for distribution by Oppenheimer & Co. Inc. Oppenheimer & Co. Inc transacts Business on all Principal

Exchanges and Member SIPC. This report is provided, for informational purposes only, to institutional and retail investor clients of

Oppenheimer & Co. Inc. and does not constitute an offer or solicitation to buy or sell any securities discussed herein in any jurisdiction

where such offer or solicitation would be prohibited. The securities mentioned in this report may not be suitable for all types of investors.

This report does not take into account the investment objectives, financial situation or specific needs of any particular client of

Oppenheimer & Co. Inc. Recipients should consider this report as only a single factor in making an investment decision and should not

rely solely on investment recommendations contained herein, if any, as a substitution for the exercise of independent judgment of the

merits and risks of investments. The analyst writing the report is not a person or company with actual, implied or apparent authority to

act on behalf of any issuer mentioned in the report. Before making an investment decision with respect to any security recommended in

this report, the recipient should consider whether such recommendation is appropriate given the recipient's particular investment needs,

objectives and financial circumstances. We recommend that investors independently evaluate particular investments and strategies, and

encourage investors to seek the advice of a financial advisor.Oppenheimer & Co. Inc. will not treat non-client recipients as its clients

solely by virtue of their receiving this report.Past performance is not a guarantee of future results, and no representation or warranty,

http://www.opco.com

21

express or implied, is made regarding future performance of any security mentioned in this report. The price of the securities mentioned

in this report and the income they produce may fluctuate and/or be adversely affected by exchange rates, and investors may realize

losses on investments in such securities, including the loss of investment principal. Oppenheimer & Co. Inc. accepts no liability for any

loss arising from the use of information contained in this report, except to the extent that liability may arise under specific statutes or

regulations applicable to Oppenheimer & Co. Inc.All information, opinions and statistical data contained in this report were obtained or

derived from public sources believed to be reliable, but Oppenheimer & Co. Inc. does not represent that any such information, opinion or

statistical data is accurate or complete (with the exception of information contained in the Important Disclosures section of this report

provided by Oppenheimer & Co. Inc. or individual research analysts), and they should not be relied upon as such. All estimates, opinions

and recommendations expressed herein constitute judgments as of the date of this report and are subject to change without

notice.Nothing in this report constitutes legal, accounting or tax advice. Since the levels and bases of taxation can change, any reference

in this report to the impact of taxation should not be construed as offering tax advice on the tax consequences of investments. As with

any investment having potential tax implications, clients should consult with their own independent tax adviser.This report may provide

addresses of, or contain hyperlinks to, Internet web sites. Oppenheimer & Co. Inc. has not reviewed the linked Internet web site of any

third party and takes no responsibility for the contents thereof. Each such address or hyperlink is provided solely for the recipient's

convenience and information, and the content of linked third party web sites is not in any way incorporated into this document.

Recipients who choose to access such third-party web sites or follow such hyperlinks do so at their own risk.

This report or any portion hereof may not be reprinted, sold, or redistributed without the written consent of Oppenheimer & Co. Inc.

Copyright © Oppenheimer & Co. Inc. 2012.

stock rating: ezchip semiconductor · 2 investment thesis we are initiating coverage of ezchip...

Documents