2014

CEVA, Inc. Announces Third Quarter 2012 Financial Results - New strategic licensee for flagship CEVA-XC4000 DSP targeting LTE-Advanced products

- Design wins for audio and gesture recognition platforms continue CEVA's expansion into new markets

MOUNTAIN VIEW, Calif., Nov. 1, 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 electronic markets, today announced its financial results for the third quarter ended September 30, 2012.

(Logo: http://photos.prnewswire.com/prnh/20120808/SF53702LOGO)

Total revenue for the third quarter of 2012 was $12 million, a decrease of 19% compared to $14.8 million reported for the third quarter of 2011. Third quarter 2012 licensing revenue was $4.2 million, representing a decrease of 19% when compared to $5.2 million reported for the same quarter a year ago. Royalty revenue for the third quarter 2012 was $7.0 million, a decrease of 20% compared to $8.8 million reported for the third quarter of 2011. Revenue from services for the third quarter of 2012 was $0.7 million, a decrease of 13% compared to $0.9 million reported for the third quarter of 2011.

Of the seven new license agreements concluded during the third quarter, five agreements were for CEVA DSP cores, platforms and software, including new licensees for the CEVA-XC4000 DSP targeting LTE-Advanced products and the CEVA-MM3101 platform targeting gesture recognition products. Additionally, one agreement was for CEVA SATA/SAS product lines and one agreement was for CEVA Bluetooth technology. Target applications for customer deployment are 3G and 4G baseband processors, digital cameras, next-generation vision products, connectivity and SATA interface chips for enterprise applications. Geographically, one of the agreements signed was in Europe and six were in Asia Pacific, including Japan.

Gideon Wertheizer, Chief Executive Officer of CEVA, stated, "While general macro-economic concerns adversely impacted our licensing revenue, we continue to see robust demand for our best-of-breed DSP technologies from customers targeting next-generation products. Despite some headwinds in our royalty growth, our wireless customer base made significant inroads into the 3G smartphone space during the quarter with a 7% sequential unit growth, key design wins and third quarter production ramp-ups from OEMs, including Huawei, Lenovo, Samsung and ZTE."

U.S. GAAP net income for the third quarter of 2012 was $2.6 million, a 47% decrease from $4.9 million reported for the same period in 2011. U.S. GAAP diluted earnings per share for the third quarter of 2012 were $0.11, a decrease of 45% compared to $0.20 for the third quarter of 2011.

Non-GAAP net income and diluted earnings per share for the third quarter of 2012 were $3.8 million and $0.16, respectively, representing a 40% and 38% decrease, respectively, over the $6.3 million and $0.26 reported for the third quarter of 2011. Non-GAAP net income and diluted earnings per share for the third quarter of 2012 and 2011 excluded an aggregate equity-based compensation expense, net of taxes, of $1.2 million and $1.3 million, respectively.

Yaniv Arieli, Chief Financial Officer of CEVA, stated, "Notwithstanding the current challenging environment, we are encouraged by trends in our long term royalty growth as our key customers are rolling out new 3G and 4G products to the market. Our confidence in the company's future prospects and strong fundamentals is demonstrated through our share buyback program, whereby we purchased approximately 170,000 shares of our common stock during the quarter for approximately $2.9 million. We currently have approximately 730,000 remaining shares available for repurchase under our existing buyback program. We are focused on maintaining a strong balance sheet that includes no debt and at the end of the quarter, our overall cash balance, marketable securities and bank deposits totaled approximately $156 million."

CEVA Conference Call
On November 1, 2012, CEVA management will conduct a conference call at 8:30 a.m. Eastern Time to discuss the operating performance for the quarter.

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=89778.  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: 10019207) from one hour after the end of the call until 9:00 a.m. (Eastern Time) on November 9, 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 (vision, 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 Nokia, Samsung, HTC, LG, Motorola, Sony, Huawei 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 the 3G smartphone space and its best-of-breed DSP technologies targeting next-generation products, and Mr. Arieli's statements about CEVA's long term royalty growth and the stock buyback reflecting the company's future prospects and 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

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS – U.S. GAAP

U.S. dollars in thousands, except per share data





Quarter ended

Nine months ended


September 30,

September 30,


2012

2011

2012

2011


Unaudited

Unaudited

Unaudited

Unaudited

Revenues:





Licensing

$   4,213

$   5,225

$   14,693

$   15,528

Royalties

7,046

8,766

23,747

26,244

Other revenues

747

856

2,270

2,515






Total revenues

12,006

14,847

40,710

44,287






Cost of revenues

1,046

811

2,927

2,635






Gross profit

10,960

14,036

37,783

41,652






Operating expenses:





Research and development, net

4,637

5,158

15,548

15,813

Sales and marketing

2,235

2,099

6,628

6,650

General and administrative

1,940

2,057

5,658

5,543






Total operating expenses

8,812

9,314

27,834

28,006






Operating income

2,148

4,722

9,949

13,646

Financial income, net

731

784

2,653

2,036






Income before taxes on income

2,879

5,506

12,602

15,682

Income taxes

285

571

1,672

1,973






Net income

2,594

4,935

10,930

13,709






Basic net income per share

$0.12

$0.21

$0.48

$0.59

Diluted net income per share

$0.11

$0.20

$0.46

$0.57

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

 per share (in thousands):





Basic

22,526

23,390

22,965

23,065

Diluted

23,019

24,253

23,565

24,105









Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures

(U.S. Dollars in thousands, except per share amounts)





Quarter ended

Nine months ended


September 30,

September 30,


2012

2011

2012

2011


Unaudited

Unaudited

Unaudited

Unaudited

GAAP net income

2,594

4,935

10,930

13,709

Equity-based compensation expense included in cost of revenue

73

61

177

171

Equity-based compensation expense included in research and development expenses

468

510

1,327

1,372

Equity-based compensation expense included in sales and marketing expenses

284

291

723

747

Equity-based compensation expense included in general and administrative expenses

541

553

1,461

1,250

Income tax benefit

(206)

(99)

(550)

(98)

Non-GAAP net income

3,754

6,251

14,068

17,151






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

23,019

24,253

23,565

24,105






Weighted-average number of shares related to outstanding options

3

11

5

19

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

23,022

24,264

23,570

24,124











GAAP diluted net income per share

$0.11

$0.20

$0.46

$0.57

Equity-based compensation expense

$0.06

$0.06

$0.16

$0.14

Income tax benefit

(0.01)

-

(0.02)

-






Non-GAAP diluted net income per share

$0.16

$0.26

$0.60

$0.71








CEVA, INC. AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

U.S. Dollars in Thousands





September 30,

December 31,


2012

2011(*)


Unaudited

ASSETS



Current assets:



Cash and cash equivalents

$         21,680

$          14,954

Marketable securities and short term bank deposits

119,969

124,458

Trade receivables, net

6,015

5,116

Deferred tax assets

1,993

2,248

Prepaid expenses and other accounts  receivables

2,373

2,320

Total current assets

152,030

149,096




 Long-term investments:

 Long term bank deposits 

14,153

25,106

 Severance pay fund

5,791

5,473

 Deferred tax assets

1,106

832

Property and equipment, net

1,192

1,235

Goodwill

36,498

36,498

Investment in other companies

2,433

900

Total assets

$        213,203

$        219,140




LIABILITIES AND STOCKHOLDERS' EQUITY






Current liabilities:



Trade payables

$            1,009

$               580

Deferred revenues

867

1,074

Accrued expenses and other payables

8,261

10,124

Taxes payable

1,710

545

Deferred tax liabilities

197

290

Total current liabilities

12,044

12,613




Accrued severance pay

5,856

5,607

Total liabilities

17,900

18,220




Stockholders' equity:



Common Stock

22

24

Additional paid in-capital

197,138

191,945

Treasury stock

(22,415)

-

Accumulated other comprehensive income (loss)

280

(901)

Retained earnings

20,278

9,852

Total stockholders' equity

195,303

200,920

Total liabilities and stockholders' equity

$        213,203

$      219,140




(*) Derived from audited financial statements



SOURCE CEVA, Inc.



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

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.