A Goodwill is an intangible asset that arises as a result of the acquisition of one company by another for a premium value. The value of a company's brand name, solid customer base, good customer relations, good employee relations and any patents or proprietary technology represent goodwill. EZChip Semiconductor's goodwill for the quarter that ended in Sep. 2015 was $127.7 Mil.
EZChip Semiconductor Goodwill Historical Data
The historical data trend for EZChip Semiconductor's Goodwill can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A Goodwill is an intangible asset that arises as a result of the acquisition of one company by another for a premium value. The value of a company's brand name, solid customer base, good customer relations, good employee relations and any patents or proprietary technology represent goodwill. Goodwill is considered an intangible asset because it is not a physical asset like buildings or equipment. The goodwill account can be found in the assets portion of a company's balance sheet.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
If the goodwill-to-asset ratio increases, it can mean that the company is recording a proportionately higher amount of goodwill, assuming total assets are remaining constant. It is generally good to see a company increasing its assets regularly; however, if these increases are coming from intangible assets, such as goodwill, the increases may not be as good.
Increases in the goodwill-to-asset ratio might suggest that a company has been aggressively acquiring other firms or has seen its tangible assets decrease in value. When a large portion of total assets are attributable to intangible assets (such as goodwill), the company may be at risk of having that portion of its asset base wiped out quickly if it must record any goodwill impairments. Decreases in the goodwill-to-assets ratio suggest that the company has either written down some goodwill or increased its tangible assets.
Asset needs vary from industry to industry. This is why comparing goodwill-to-assets ratios is generally most meaningful among companies within the same industry. By comparing a company's goodwill to assets ratio to those of other companies within the same industry, investors can get a feel for how a company is managing its goodwill.
EZChip Semiconductor Goodwill Related Terms
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EZChip Semiconductor (EZChip Semiconductor) Business Description
EZChip Semiconductor Ltd, formerly known as Dan-Serb Ltd., was incorporated as a limited liability company under the laws of the State of Israel in 1989. The Company along with its subsidiary is engaged in the development and marketing of Ethernet network processors for networking equipment. It provides its customers with solutions that scale from a few Gigabits per second to hundreds of Gigabits per second. Its network processors provide flexibility and performance coupled with superior integration and power efficiency for applications in carrier, data center, cloud and enterprise networking equipment. The Company designs and produces network processors for high-speed networking equipment, integrating several key functions into a single chip. Its products include: Network Processor Chips and Evaluation Boards and Network-processor Based Systems. The NP-2 is a single-chip, full-duplex, 10-Gigabit network processor. In addition to the integration of packet processing, classification search engines and MACs provided in the previous generation NP-1c, the NP-2 also includes traffic managers for improved QoS. Evaluation Boards and Network-processor Based Systems - Evaluation systems are usually required by customers to enable them to test their NPU-based systems. These systems also serve customers to differentiate themselves through software applications and are in need of high-performance packet processing hardware platforms for their software applications. Development Software Toolkits - EZdriver is a software development toolset with a graphical user interface for writing, testing and debugging programs for network processors to implement a range of applications and reduce time to market of next-generation networking products. It includes a hardware-software simulator, a compiler, debugger and other utilities. The Company's marketing communications activities include: seminar programs, guest speaker invitations and technical conferences; public relations activities and customer events; technical articles in industry publications and marketing collateral materials; and information exchange on the Internet. The Company also works with vendors of complementary technologies to provide its customers with interoperable solutions. It provides interoperability with devices from numerous semiconductor companies, including Broadcom, Marvell, PMC-Sierra and Zarlink. It holds four U.S. registered patents. The Company competes with all these vendors as well as with multi-core processors that target networking equipment from vendors, such as Broadcom, Cavium Networks and other smaller vendors.
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