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Growing to a third of the market from $10 million in 2005 will be high-speed NPUs.
Linley Group sees NPU sales reaching $700 million in 2008, including both internal and merchant products.
One of the things that has always struck me as strange about EZchip was its small relative investment in R&D, only $16.7M total expenditures shown in 2011's income statement, although the total is closer to $22M after including grants from the Israeli Office of the Chief Scientist.
After all, the multiple should partially vary with market size, and EZCH addresses a tiny niche market where, as the market leader, the company only generated $63.5M in 2011 sales.
Source: Archived Wall St research reports and Thomson One, December 2012.
Broadcom, known as perhaps the toughest competitor in semiconductors, specifically mentioned design traction with its new BCM 88030 family of network processors in its Q2 2012 conference call transcript, and claims that the 88030 will be available ahead of EZCH's NP-5 with similar capabilities.
In July 2014, EZchip acquired Tilera, a company that develops high-performance multi-core processors, intelligent network interface cards and white-box appliances for data-center networking equipment, $130 million in cash.
EZCH has also tried to deflect attention from its revenue disappointments over the last couple of years by pre-announcing a new product that is not expected to generate material revenue until 2015.
In January 2016, a shareholder vote passed that approved the merger of Mellanox Technologies and EZchip.
The acquisition was completed on 23 February 2016.
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EZChip may also be known as or be related to EZCHIP SEMICONDUCTOR LTD, EZChip, EZchip and Ezchip.