- Royalty revenue of $10.7
million, up 33% year-over-year, generated from 371 million
shipped units, up 25% year-over-year
- 11 license agreements concluded in the quarter, across all
key target markets, including strategic deals for next-generation
Wi-Fi 7 and Bluetooth 6 IPs
ROCKVILLE, Md., May 9, 2024
/PRNewswire/ -- Ceva, Inc. (NASDAQ: CEVA), the leading
licensor of silicon and software IP that enables Smart Edge devices
to connect, sense and infer data more reliably and efficiently,
today announced its financial results for the first quarter ended
March 31, 2024. Financial results for
the first quarter ended March 31,
2023, reflect Ceva's continuing operations only, with the
Intrinsix business reflected as a discontinued operation, unless
otherwise noted.
Operational Highlights:
- Introduced new Wi-Fi 7 platform for high-end consumer and
industrial IoT
- Introduced new low power Ultra-Wideband (UWB) IP for consumer
and industrial IoT
- Expanded Ceva-NeuPro-M NPU AI ecosystem with new partnerships
for automotive and edge AI
- Announced strategic partnership with India's No. 1 audio and wearable brand, boAt
for wireless audio
- Partnered with THX to bring premium spatial audio to hearables,
consumer and mobile products
- Collaborated with Arm through Arm Total Design to accelerate
development of end-to-end 5G SoCs for Infrastructure and NTN
Satellites
Total revenue for the first quarter of 2024 was $22.1 million, compared to $26.3 million reported for the first quarter of
2023. Licensing and related revenue for the first quarter of 2024
was $11.4 million, compared to
$18.2 million reported for the same
quarter a year ago. Royalty revenue for the first quarter of 2024
was $10.7 million, compared to
$8.0 million reported for the first
quarter of 2023.
Amir Panush, Chief Executive
Officer of Ceva, commented: "Our first quarter results reflect
solid trends across our business. We achieved year-over-year growth
of 33% in royalty revenue and 25% in volume shipments, which
increased across every end market we serve. Licensing revenue for
the first quarter included strategic early-adopter deals with lead
customers for our Bluetooth 6 and Wi-Fi 7 IPs, but overall was
lower than anticipated as some deals expected to close in the first
quarter were delayed. We have already concluded one of these deals
early in the second quarter, a significant agreement with a
strategic customer for a next-generation IP in development, and
expect others to be executed in the remainder of the year. Overall,
I am very encouraged by our diversified licensing pipeline and
demand for our next-generation IPs, and I am confident we can reach
our total revenue target for the year."
During the quarter, eleven IP licensing agreements were
concluded, targeting a wide range of end markets and applications,
including Bluetooth 5 connectivity for wearables and industrial
IoT, Bluetooth 6 for wireless audio, Wi-Fi 6, Wi-Fi 7 and UWB for
smart edge consumer devices, 5G RedCap for consumer and industrial
devices, 5G V2X modems for automotive, and audio for smartphones.
Two of the deals signed were with first-time customers.
GAAP gross margin for the first quarter of 2024 was 89%, as
compared to 87% in the first quarter of 2023. GAAP operating loss
for the first quarter of 2024 was $5.0
million, as compared to a GAAP operating loss of
$2.6 million for the same period in
2023. GAAP net loss for the first quarter of 2024 was $5.4 million, as compared to a GAAP net loss of
$2.7 million reported for the same
period in 2023. GAAP diluted loss per share for the first quarter
of 2024 was $0.23, as compared to
GAAP diluted loss per share of $0.12
for the same period in 2023.
GAAP net loss with the discontinued operation for the first
quarter of 2023 was $4.9 million.
GAAP diluted loss per share with the discontinued operation for the
first quarter of 2023 was $0.21.
Non-GAAP gross margin for the first quarter of 2024 was 90%, as
compared to 88% for the same period in 2023. Non-GAAP operating
loss for the first quarter of 2024 was $0.8
million, as compared to non-GAAP operating income of
$1.2 million reported for the first
quarter of 2023. Non-GAAP net loss and diluted loss per share for
the first quarter of 2024 were $1.3
million and $0.05,
respectively, compared with non-GAAP net income and diluted income
per share of $1.2 million and
$0.05, respectively, reported for the
first quarter of 2023.
Non-GAAP net income including the discontinued operation for the
first quarter of 2023 was $0.1
million. Non-GAAP diluted income per share including the
discontinued operation for the first quarter of 2023 was
$0.00.
Yaniv Arieli, Chief Financial
Officer of Ceva, stated: "While we saw a shortfall in licensing
revenue in the first quarter, we have managed to build a healthy
backlog which will benefit us in the second quarter. We continue to
monitor our expenses closely and look for ways to further improve
our operating efficiency. At the end of the quarter, our cash and
cash equivalent balances, marketable securities and bank deposits
were approximately $159 million, and
we remain well positioned to pursue opportunities to enhance our
product offerings, expand our addressable markets and accelerate
our growth."
Ceva Conference Call
On May 9, 2024, 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 1-844-435-0316 (Access
Code : Ceva)
- International Participants: Dial +1-412-317-6365 (Access Code:
Ceva)
The conference call will also be available live via webcast at
the following link: https://app.webinar.net/L8QP0XRjm5A. Please go
to the web site at least fifteen minutes prior to the call to
register.
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: 9691632) from one hour after the end of the call until
9:00 a.m. (Eastern Time) on
May 16, 2024. The replay will also be
available at Ceva's web site www.ceva-ip.com.
Forward Looking Statements
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 statements regarding the benefits of Ceva's deal
backlog for the second quarter and potential execution of license
deals later in the year, Ceva's ability to reach total revenue
target for the remainder of the year, and Ceva's positioning to
pursue opportunities to enhance our product offerings, expand our
addressable markets and accelerate our growth. The risks,
uncertainties and assumptions that could cause differing Ceva
results include: the effect of intense industry competition; the
ability of Ceva's technologies and products incorporating Ceva's
technologies to achieve market acceptance; Ceva's ability to meet
changing needs of end-users and evolving market demands; the
cyclical nature of and general economic conditions in the
semiconductor industry; Ceva's ability to diversify its royalty
streams and license revenues; Ceva's ability to continue to
generate significant revenues from the handset baseband market and
to penetrate new markets; instability and disruptions related to
the ongoing Israel-Gaza conflict; and general market conditions
and other risks relating to Ceva's 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.
Non-GAAP Financial Measures
Non-GAAP gross margin for the first quarter of 2024 excluded:
(a) equity-based compensation expenses of $0.2 million and (b) amortization of acquired
intangibles of $0.1 million. Non-GAAP
gross margin for the first quarter of 2023 excluded: (a)
equity-based compensation expenses of $0.2
million and (b) amortization of acquired intangibles of
$0.1 million.
Non-GAAP operating loss for the first quarter of 2024 excluded:
(a) equity-based compensation expenses of $3.6 million, (b) the impact of the amortization
of acquired intangibles of $0.3
million, and (c) $0.3 million
of costs associated with business acquisitions. Non-GAAP operating
income for the first quarter of 2023 excluded: (a) equity-based
compensation expenses of $3.6 million
and (b) the impact of the amortization of acquired intangibles of
$0.2 million.
Non-GAAP net loss and diluted loss per share for the first
quarter of 2024 excluded: (a) equity-based compensation expenses of
$3.6 million, (b) the impact of the
amortization of acquired intangibles of $0.3
million, (c) $0.3 million of
costs associated with business acquisitions and (d) $0.1 million loss associated with the
remeasurement of marketable equity securities. Non-GAAP net income
and diluted earnings per share for the first quarter of 2023
excluded: (a) equity-based compensation expenses of $3.6 million, (b) the impact of the amortization
of acquired intangibles of $0.2
million, and (c) $0.1 million
loss associated with the remeasurement of marketable equity
securities.
Non-GAAP net loss including the discontinued operation and
diluted earnings per share including the discontinued operation for
the first quarter of 2023 excluded: (a) equity-based compensation
expenses of $3.6 million, (b) the
impact of the amortization of acquired intangibles of $0.2 million, (c) $0.1 million loss associated
with the remeasurement of marketable equity securities and (d) $1.1
million loss associated with discontinued operations.
About Ceva, Inc.
At Ceva, we are passionate about bringing new levels of
innovation to the smart edge. Our wireless communications, sensing
and Edge AI technologies are at the heart of some of today's most
advanced smart edge products. From Bluetooth connectivity, Wi-Fi,
UWB and 5G platform IP for ubiquitous, robust communications, to
scalable Edge AI NPU IPs, sensor
fusion processors and embedded application software that make
devices smarter, we have the broadest portfolio of IP to connect,
sense and infer data more reliably and efficiently. We deliver
differentiated solutions that combine outstanding performance at
ultra-low power within a very small silicon footprint. Our goal is
simple – to deliver the silicon and software IP to enable a
smarter, safer, and more interconnected world. This philosophy is
in practice today, with Ceva powering more than 17 billion of the
world's most innovative smart edge products from AI-infused
smartwatches, IoT devices and wearables to autonomous vehicles and
5G mobile networks.
Our headquarters are in Rockville,
Maryland with a global customer base supported by operations
worldwide. Our employees are among the leading experts in their
areas of specialty, consistently solving the most complex design
challenges, enabling our customers to bring innovative smart edge
products to market.
Ceva is a sustainability- and environmentally-conscious company,
adhering to our Code of Business Conduct and Ethics. As such, we
emphasize and focus on environmental preservation, recycling, the
welfare of our employees and privacy – which we promote on a
corporate level. At Ceva, we are committed to social
responsibility, values of preservation and consciousness towards
these purposes.
Ceva: Powering the Smart Edge™
Visit us at www.ceva-ip.com and follow us on LinkedIn, X,
YouTube, Facebook, and Instagram.
Ceva, Inc. AND ITS
SUBSIDIARIES
INTERIM
CONDENSED CONSOLIDATED STATEMENTS OF LOSS – U.S.
GAAP
U.S. dollars in
thousands, except per share data
|
|
|
Three months
ended
|
|
March
31,
|
|
2024
|
2023
|
|
Unaudited
|
Unaudited
|
Revenues:
|
|
|
Licensing and related
revenues
|
$
11,414
|
$
18,248
|
Royalties
|
10,658
|
8,014
|
|
|
|
Total
revenues
|
22,072
|
26,262
|
|
|
|
Cost of
revenues
|
2,503
|
3,508
|
|
|
|
Gross profit
|
19,569
|
22,754
|
|
|
|
Operating
expenses:
|
|
|
Research and
development, net
|
17,991
|
18,674
|
Sales and
marketing
|
2,816
|
2,719
|
General and
administrative
|
3,572
|
3,827
|
Amortization of
intangible assets
|
150
|
154
|
Total operating
expenses
|
24,529
|
25,374
|
|
|
|
Operating
loss
|
(4,960)
|
(2,620)
|
Financial income,
net
|
1,257
|
1,455
|
Remeasurement of
marketable equity securities
|
(60)
|
(117)
|
|
|
|
Loss before taxes on
income
|
(3,763)
|
(1,282)
|
Taxes on
Income
|
1,685
|
1,417
|
|
|
|
Net loss from
continuing operation
|
(5,448)
|
(2,699)
|
Discontinued
operation
|
-
|
(2,173)
|
Net loss
|
$
(5,448)
|
$
)4,872)
|
|
|
|
Basic and diluted net
loss per share:
|
|
|
Continuing
operation
|
(0.23)
|
(0.12)
|
Discontinued
operation
|
-
|
(0.09)
|
Basic and diluted net
loss per share
|
$
(0.23)
|
$
(0.21)
|
Weighted-average shares
used to compute net loss per share (in thousands):
|
|
|
Basic
|
23,508
|
23,334
|
Diluted
|
23,508
|
23,334
|
Unaudited
Reconciliation of GAAP to Non-GAAP Financial
Measures
U.S. Dollars in
thousands, except per share amounts
|
|
|
Three months
ended
|
|
March
31,
|
|
2024
|
2023
|
|
Unaudited
|
Unaudited
|
GAAP net
loss
|
$
(5,448)
|
$
(4,872)
|
Equity-based
compensation expense included in cost of revenues
|
203
|
206
|
Equity-based
compensation expense included in research and development
expenses
|
2,007
|
2,102
|
Equity-based
compensation expense included in sales and marketing
expenses
|
365
|
378
|
Equity-based
compensation expense included in general and administrative
expenses
|
996
|
866
|
Amortization of
intangible assets
|
278
|
224
|
Costs associated with
business acquisition
|
280
|
-
|
loss associated with
the remeasurement of marketable equity securities.
|
60
|
117
|
Non-GAAP from
discontinued operation
|
-
|
1,086
|
Non-GAAP net income
(loss)
|
$
(1,259)
|
$
107
|
GAAP weighted-average
number of Common Stock used in computation of diluted net
loss
and loss per share (in
thousands)
|
23,508
|
23,334
|
Weighted-average number
of shares related to outstanding stock-based awards (in
thousands)
|
-
|
1,021
|
Weighted-average number
of Common Stock used in computation of diluted net income
(loss)
per share, excluding
the above (in thousands)
|
23,508
|
24,355
|
|
|
|
GAAP diluted loss
per share
|
$
(0.23)
|
$
(0.21)
|
Equity-based
compensation expense
|
$ 0.15
|
$ 0.15
|
Amortization of
intangible assets
|
$ 0.01
|
$ 0.01
|
Costs associated with
business acquisition
|
$ 0.01
|
-
|
Income associated with
the remeasurement of marketable equity securities.
|
$ 0.01
|
$ 0.01
|
Non-GAAP from
discontinued operation
|
-
|
$ 0.04
|
Non-GAAP diluted
income (loss) per share
|
$
(0.05)
|
$
0.00
|
|
|
|
|
|
|
|
Three months
ended
|
|
March
31,
|
|
2024
|
2023
|
|
Unaudited
|
Unaudited
|
GAAP Operating
loss
|
$
(4,960)
|
$
(2,620)
|
Equity-based
compensation expense included in cost of revenues
|
203
|
206
|
Equity-based
compensation expense included in research and development
expenses
|
2,007
|
2,102
|
Equity-based
compensation expense included in sales and marketing
expenses
|
365
|
378
|
Equity-based
compensation expense included in general and administrative
expenses
|
996
|
866
|
Amortization of
intangible assets
|
278
|
224
|
Costs associated with
business acquisition
|
280
|
-
|
Total non-GAAP
Operating Income (loss)
|
$
(831)
|
$
1,156
|
|
|
|
Three months
ended
|
|
March
31,
|
|
2024
|
2023
|
|
Unaudited
|
Unaudited
|
|
|
|
GAAP Gross
Profit
|
$
19,569
|
$
22,754
|
GAAP Gross
Margin
|
89 %
|
87 %
|
|
|
|
Equity-based
compensation expense included in cost of revenues
|
203
|
206
|
Amortization of
intangible assets
|
128
|
70
|
Total Non-GAAP Gross
profit
|
19,900
|
23,030
|
Non-GAAP Gross
Margin
|
90 %
|
88 %
|
Ceva, Inc. AND ITS
SUBSIDIARIES
INTERIM CONDENSED
CONSOLIDATED BALANCE SHEETS
(U.S. Dollars in
thousands)
|
|
|
|
March
31,
|
December
31,
|
|
|
2024
|
2023
(*)
|
|
|
Unaudited
|
Unaudited
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
|
$
21,222
|
$
23,287
|
Marketable securities
and short-term bank deposits
|
|
137,532
|
143,251
|
Trade receivables,
net
|
|
14,052
|
8,433
|
Unbilled
receivables
|
|
19,583
|
21,874
|
Prepaid expenses and
other current assets
|
|
13,378
|
12,526
|
Total current
assets
|
|
205,767
|
209,371
|
Long-term
assets:
|
|
|
|
Severance pay
fund
|
|
6,897
|
7,070
|
Deferred tax assets,
net
|
|
1,239
|
1,609
|
Property and equipment,
net
|
|
7,157
|
6,732
|
Operating lease
right-of-use assets
|
|
6,704
|
6,978
|
Investment in
marketable equity securities
|
|
346
|
406
|
Goodwill
|
|
58,308
|
58,308
|
Intangible assets,
net
|
|
2,689
|
2,967
|
Other long-term
assets
|
|
12,332
|
10,644
|
Total assets
|
|
$
301,439
|
$
304,085
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Trade
payables
|
|
$
1,804
|
$
1,154
|
Deferred
revenues
|
|
2,479
|
3,018
|
Accrued expenses and
other payables
|
|
19,838
|
20,202
|
Operating lease
liabilities
|
|
2,634
|
2,513
|
Total current
liabilities
|
|
26,755
|
26,887
|
Long-term
liabilities:
|
|
|
|
Accrued
severance pay
|
|
7,339
|
7,524
|
Operating lease
liabilities
|
|
3,525
|
3,943
|
Other accrued
liabilities
|
|
1,471
|
1,390
|
Total
liabilities
|
|
39,090
|
39,744
|
Stockholders'
equity:
|
|
|
|
Common stock
|
|
24
|
23
|
Additional paid
in-capital
|
|
252,927
|
252,100
|
Treasury
stock
|
|
(2,528)
|
(5,620)
|
Accumulated other
comprehensive loss
|
|
(2,720)
|
(2,329)
|
Retained
earnings
|
|
14,646
|
20,167
|
Total stockholders'
equity
|
|
262,349
|
264,341
|
Total liabilities and
stockholders' equity
|
|
$
301,439
|
$
304,085
|
(*) Derived from
audited financial statements.
|
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SOURCE Ceva, Inc.