Down some 25% in the morning session is EZchip Semiconductor Ltd. (EZCH). This company has been a leader in Ethernet network processors, today announced its results for the fourth quarter and full year ended December 31, 2012.
Here is a short list of some of the important numbers. Total revenues in the fourth quarter of 2012 were $15.2 million, an increase of 7% compared to $14.3 million in the fourth quarter of 2011, and an increase of 64% compared to $9.3 million in the third quarter of 2012.
Net income, on a GAAP basis, for the fourth quarter of 2012 was $4.8 million, or $0.17 per share (diluted), compared to net loss of $6.0 million, which included a one-time charge due to early repayment of $9.9 million to the Israeli Office of Chief Scientist (OCS), or $0.22 per share, in the fourth quarter of 2011, and net income of $0.1 million, or $0.00 per share (diluted), in the third quarter of 2012.
Net income, on a non-GAAP basis, for the fourth quarter of 2012 was $7.8 million, or $0.26 per share, compared to non-GAAP net income of $6.3 million, or $0.22 per share, in the fourth quarter of 2011, and non-GAAP net income of $3.1 million, or $0.10 per share , in the third quarter of 2012.
Our second boat anchor today is Cliffs Natural Resources Inc., (CLF). The company is the biggest U.S. iron ore producer. Today the stock fell the most in more than three years after cutting its quarterly dividend by 76 percent and announcing a share sale to repay debt. The shares slid 18 percent lower so far today.
Cliffs reduced the payout to 15 cents a share, the Cleveland-based company said in a statement after the close of trading yesterday. That erases the increase made in March, when Cliffs raised the dividend to 62.5 cents from 28 cents and said the company would shift its strategic focus from mergers and acquisitions to organic growth while returning capital to shareholders. Since then, iron ore prices plunged and the company reported delays at a Canadian mine project.
Down 18% this morning are shares of Rackspace Hosting (RAX). after the company missed Q4 revenue estimates and got a downgrade from Stifel Nicolaus.
As IBD reported, revenue growth from cloud computing decelerated, as the company continues to rely on its legacy Web-hosting business.In its earnings release late Tuesday, the provider of cloud infrastructure services didn’t provide guidance, as usual, but Stifel analyst Todd Weller wrote in his downgrade note that the outlook was one of his concerns.
“Our perception was that Rackspace could sustain growth in the 25% area and potentially higher in 2013,” he wrote. “However, this does not appear to be the case.
Disclaimer: We have no position in any stock mentioned here