2014

CEVA, Inc. Announces Second Quarter 2012 Financial Results -- Strategic licensing agreement signed with Tier 1 handset OEM for LTE products

-- First license agreement for CEVA-XC4000 DSP for LTE- Advanced

-- Repurchased 670,000 shares for approximately $11.3 million during the quarter

MOUNTAIN VIEW, Calif., July 31, 2012 /PRNewswire/ -- CEVA, Inc. (NASDAQ: CEVA), the leading licensor of silicon intellectual property (SIP) platform solutions and DSP cores for the mobile, portable and consumer electronics markets, today announced its financial results for the second quarter ended June 30, 2012.

Total revenue for the second quarter of 2012 was $13.6 million, a decrease of 6% compared to $14.4 million for the second quarter of 2011. Licensing revenue for the second quarter of 2012 was $5.4 million, an increase of 3% compared to $5.2 million reported for the second quarter of 2011. Royalty revenue for the second quarter of 2012 was $7.6 million, compared to $8.3 million reported for the second quarter of 2011. Revenue from services for the second quarter of 2012 was $0.6 million, compared to $0.9 million reported for the second quarter of 2011.

Gideon Wertheizer, Chief Executive Officer, stated: "The second quarter was the strongest licensing quarter in more than three and a half years, driven by a strategic licensing agreement with a tier 1 handset OEM for a range of LTE handsets and the first agreement for our newest DSP, the CEVA-XC4000 for LTE- Advanced. These latest agreements bring the total LTE design wins for CEVA DSPs to date to more than 20, and form the foundation for future royalty growth. Finally, while the competitive 2G market is experiencing pricing pressure, our volume growth in the lucrative 3G market during the quarter significantly outpaced that of the overall 3G space, as low and mid-range 3G smartphones gain traction."

U.S. GAAP net income for the second quarter of 2012 was $3.5 million, a decrease of 16% from $4.1 million reported for the same period in 2011. U.S. GAAP diluted earnings per share for the second quarter of 2012 were $0.15, a decrease of 12% compared to $0.17 for the second quarter of 2011.

Non-GAAP net income and diluted earnings per share for the second quarter of 2012 was $4.4 million and $0.19, respectively, representing a decrease of 17% and 14%, respectively, over the $5.4 million and $0.22 reported for the second quarter of 2011. Non-GAAP net income and diluted earnings per share for the second quarter of 2012 and 2011 excluded equity-based compensation expense, net of taxes, of $1.0 million and $1.2 million, respectively.

During the second quarter of 2012, the Company secured eight new license agreements. Six of the agreements were for CEVA DSP cores, platforms and software, and two agreements were for the CEVA Bluetooth product line. Target applications for customer deployment are LTE smartphones, microcells, broadband communications and connectivity. Geographically, three of the agreements signed were in the U.S and five were in the Asia Pacific region.

Yaniv Arieli, Chief Financial Officer, stated, "During the quarter, we bought back approximately 670,000 shares of our common stock for an aggregate consideration of approximately $11.3 million. The recent buyback activity continues to demonstrate our confidence in CEVA's strong fundamentals. At the end of the quarter, our cash balance, marketable securities and bank deposits totaled $156 million. We have approximately 900,000 shares available for repurchase remaining under our existing buyback program."

CEVA Conference Call

On July 31, 2012, CEVA management will conduct a conference call at 8:30 a.m. Eastern Time, to discuss the operating performance for the second quarter ended June 30, 2012.

The conference call will be available via the following dial-in numbers:

  • U.S. Participants: Dial 1-800-860-2442 (Access Code: CEVA)
  • International Participants: Dial +1-412-858-4600 (Access Code: CEVA)

The conference call will also be available live via the Internet at the following link:  http://www.videonewswire.com/event.asp?id=88094.  Please go to the web site at least fifteen minutes prior to the call to register, download and install any necessary audio software.

For those who cannot access the live broadcast, a replay will be available by dialing +1-877-344-7529 or +1-412-317-0088 (access code:10016016) from one hour after the end of the call until 9:00 a.m. (Eastern Time) on August 08, 2012. The replay will also be available at CEVA's web site www.ceva-dsp.com.

About CEVA, Inc.

CEVA is the world's leading licensor of silicon intellectual property (SIP) DSP cores and platform solutions for the mobile, portable and consumer electronics markets. CEVA's IP portfolio includes comprehensive technologies for cellular baseband (2G / 3G / 4G), multimedia (HD video, Image Signal Processing (ISP) and HD audio), voice over packet (VoP), Bluetooth, Serial Attached SCSI (SAS) and Serial ATA (SATA). In 2011, CEVA's IP was shipped in over 1 billion devices and powers handsets from every top handset OEM, including HTC, Huawei, LG, Motorola, Nokia, Samsung, Sony and ZTE. Today, more than 40% of handsets shipped worldwide are powered by a CEVA DSP core. For more information, visit www.ceva-dsp.com. Follow CEVA on twitter at www.twitter.com/cevadsp.

Forward Looking Statement

This press release contains forward-looking statements that involve risks and uncertainties, as well as assumptions that if they materialize or prove incorrect, could cause the results of CEVA to differ materially from those expressed or implied by such forward-looking statements and assumptions.  Forward-looking statements include Mr. Wertheizer's statements about CEVA's prospects associated with LTE design wins, and Mr. Arieli's statements about CEVA's stock buyback reflecting the company's strong fundamentals. The risks, uncertainties and assumptions include: the ability of the CEVA DSP cores and other technologies to continue to be strong growth drivers for us; our success in penetrating new markets and maintaining our market position in existing markets; the ability of products incorporating our technologies to achieve market acceptance, the effect of intense industry competition and consolidation, global chip market trends, the possibility that markets for our technologies may not develop as expected or that products incorporating our technologies do not achieve market acceptance; our ability to timely and successfully develop and introduce new technologies; and general market conditions and other risks relating to our business, including, but not limited to, those that are described from time to time in our SEC filings.  CEVA assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates. 

 

CEVA, INC. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME – U.S. GAAP
U.S. dollars in thousands, except per share data





Three months ended

Six months ended


June 30,

June 30,


2012

2011

2012

2011


Unaudited

Revenues:





Licensing

$  5,364

$  5,195

$    10,480

$    10,303

Royalties

7,595

8,272

16,701

17,478

Other revenues

633

921

1,523

1,659






Total revenues

13,592

14,388

28,704

29,440






Cost of revenues

1,011

876

1,881

1,824






Gross profit

12,581

13,512

26,823

27,616






Operating expenses:





Research and development, net

5,425

5,405

10,911

10,655

Sales and marketing

2,104

2,327

4,393

4,551

General and administrative

1,849

1,732

3,718

3,486






Total operating expenses

9,378

9,464

19,022

18,692






Operating income

3,203

4,048

7,801

8,924

Financial income, net

974

707

1,922

1,252






Income before taxes on income

4,177

4,755

9,723

10,176

 Taxes on income

698

632

1,387

1,402






Net income

3,479

4,123

8,336

8,774






Basic net income per share

 

$0.15

 

$0.18

 

$0.36

 

 

$0.38

Diluted net income per share

$0.15

$0.17

$0.35

$0.37

Weighted-average number of Common Stock used in computation of net income

 per share (in thousands):





Basic

22,873

23,107

23,188

22,900

Diluted

23,449

24,165

23,842

24,028









Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures
(U.S. Dollars in thousands, except per share amounts)





Three months  ended

Six months ended


June 30

June 30


2012

2011

2012

2011


Unaudited






GAAP net income

$3,479

$4,123

$8,336

$8,774

Equity-based compensation expense included in cost of revenue

 

53

 

61

 

104

 

110

Equity-based compensation expense included in research and development expenses

 

394

 

484

 

859

 

862

Equity-based compensation expense included in sales and marketing expenses

 

200

 

255

 

439

 

456

Equity-based compensation expense included in general and administrative expenses

 

430

 

371

 

920

 

697

Deferred tax related to equity-based compensation expenses

(118)

85

(242)

1

Taxes on income (1)

--

--

(102)

--

Non-GAAP net income

$4,438

$5,379

$10,314

$10,900






(1)    Results for  the six months ended June 30, 2012 include the utilization of expenses on a previously booked capital gain






GAAP weighted-average number of Common Stock used in computation of diluted net income per share (in thousands)

23,449

24,165

23,842

24,028






Weighted-average number of shares related to outstanding options (in thousands)

5

15

6

23

Weighted-average number of Common Stock used in computation of diluted net income per share excluding equity-based compensation expense (in thousands)

 

 

 

23,454

 

 

 

24,180

 

 

 

23,848

 

 

 

24,051
















GAAP diluted net income per share

$0.15

$0.17

$0.35

$0.37

Equity-based compensation expense, net of taxes

$0.04

$0.05

$0.08

$0.08

Non-GAAP diluted net income per share

$0.19

$0.22

$0.43

$0.45


CEVA, INC. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS

(U.S. Dollars in thousands)





June 30,

December 31,


2012

2011(*)


Unaudited

ASSETS



Current assets:



    Cash and cash equivalents

$      20,507

$      14,954

    Marketable securities and short term bank deposits

116,141

124,458

    Trade receivables, net

4,702

5,116

    Deferred tax assets

2,015

2,248

    Prepaid expenses and other accounts receivables

2,468

2,320

        Total current assets

145,833

149,096




Long-term investments:



Long term bank deposits 

19,321

25,106

Severance pay fund

5,645

5,473

Deferred tax assets

1,063

832

Property and equipment, net

1,177

1,235

Goodwill

36,498

36,498

Investment in other company

900

900

        Total assets

$      210,437

$      219,140







LIABILITIES AND STOCKHOLDERS' EQUITY 



Current liabilities:



    Trade payables

$         1,006

$         580

    Deferred revenues

1,032

1,074

    Accrued expenses and other payables

8,077

10,124

    Taxes payable

1,542

545

    Deferred tax liabilities

94

290

        Total current liabilities

11,751

12,613




Accrued severance pay

5,697

5,607

        Total liabilities

17,448

18,220




Stockholders' equity:



Common Stock

23

24

Additional paid in-capital

195,814

191,945

Treasury stock

(20,556)

-

Accumulated other comprehensive loss

(324)

(901)

Retained earnings

18,032

9,852

        Total stockholders' equity

192,989

200,920

        Total liabilities and stockholders' equity

$ 210,437

$ 219,140




(*) Derived from audited financial statements



 

SOURCE CEVA, Inc.



RELATED LINKS
http://www.ceva-dsp.com

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