Some info about NP1 and NP2 and a brief story about LNOP
NP1 is the first NP produced by EZchips - a fully duplex universal network processor. The core tech behind NP1 is the integration of Processing and Classification function on one single chip including memories. It uses relatively low clock speed processors and high integration to reduce the power consumption and therefore heat dissipation. In addition, it employs parallel technologies to reach the high speed. Presently, NP1 is designed for 10G wirespeed. Another advanctage is its design for unversal applications to networks from level 2 to level 7. The end result is 80% redution in cost and heat dissipation comparing to current solutions.
NP1-c is an advanced version of NP1, which further reduces the manufacturing costs through a higher degree of integration (both hardware and software). NP1-c can also be readily upgraded from 10G to 40G.
NP2 (to be sampled Q1 or Q2 next year) will add traffic manager into the integration.
Since the sampling of NP1, EZchip recorded for the first time a revenue of about $100k a year ago. A year later, this kind of sampling revenue increased to about $1M (most recent Q). This is a good indicator that many potential customers (system vendors) have requested samples from EZchip. No one single sale has been announced to date. After the CEO, volume manufacturing will begin by the year end (orders already received? I have no idea)
I've been following LNOP for years and years. This is not a very succefull company by history. It once was a tech leader in its field but failed in making their products in time and missed the market play. This time, on the contrary, they are running ahead of everyone else (as Mr. Gilder quoted "at least two generations more advanced than its peers") and the market, too. Are they too early for the market? Will the market miss them if the demand continues to slump for another 5 to 10 years?
I'm always optimistic. I guess the demand in high speed network, especially in metro and entreprise sectors will see some improvement from now.
EZchip is not yet a public company, the only way to play it is to play LNOP (51% owner), who founded EZchip with many other financial institutions. IBM also holds a small portion (5%).
LNOP has no other operation than EZchip (the only asset and operation). It stopped all of the other businesses last year and relies today 100% on EZchip. In fact, LNOP becomes merely a holding company. The fully diluted number of shares of LNOP stands today at about 8M.
From its current estimate, no further financing is required before receiving volume incomes and positive cash flow. However, there is no garranty that the R&D and manufacturing activities will not require more funding. Any new product line R&D and expanded manufacturing activities may lead to higher levels of funding (is this for good?). Certainly, this won't happen unless the demand is there for real.
For details, please check their onw website:
http://www.ezchip.com/
