CEVA, Inc. Announces First Quarter 2012 Financial Results

          CEVA, Inc. Announces First Quarter 2012 Financial Results

Strong licensing driven by demand for baseband and multimedia DSPs in mass
market smartphones

PR Newswire

MOUNTAIN VIEW, Calif., May 2, 2012

MOUNTAIN VIEW, Calif., May 2, 2012 /PRNewswire/ -- CEVA, Inc. (NASDAQ: CEVA),
the leading licensor of silicon intellectual property (SIP) platform solutions
and DSP cores for the mobile handset, portable and consumer electronics
markets, today announced its financial results for the first quarter ended
March 31, 2012.

Total revenue for the first quarter of 2012 was $15.1 million, flat compared
to $15.1 million for the first quarter of 2011. Licensing revenue for the
first quarter of 2012 was $5.1 million, flat compared to $5.1 million reported
for the same quarter a year ago. Royalty revenue for the first quarter of 2012
was $9.1 million compared to $9.2 million reported for the first quarter of
2011. Revenue from services for the first quarter of 2012 was $0.9 million, an
increase of 21% compared to $0.7 million reported for the first quarter of
2011.

Gideon Wertheizer, Chief Executive Officer, stated, "Driven by strong
licensing activities, we generated revenue and earnings results at the
high-end of our expectations. We are particularly happy to augment our already
strong customer base in baseband with new licensees who will use our DSPs for
advanced audio processing in smartphones."

U.S. GAAP net income for the first quarter of 2012 was $4.9 million, an
increase of 4% over $4.7 million reported for the same period in 2011. U.S.
GAAP diluted earnings per share for the first quarter of 2012 was $0.20, an
increase of 5% compared to $0.19 for the first quarter of 2011.

Non-GAAP net income and diluted earnings per share for the first quarter of
2012 was $5.9 million and $0.24, respectively, representing an increase of 6%
and 4%, respectively, over the $5.5 million and $0.23 reported for the first
quarter of 2011. Non-GAAP net income and diluted earnings per share for the
first quarter of 2012 and 2011 excluded an aggregate equity-based compensation
expense, net of taxes, of $1.1 million and $0.9 million, respectively.

During the first quarter of 2012, the Company concluded eight new license
agreements. Six agreements were for CEVA DSP cores, platforms and software,
and two agreements were for CEVA SATA/SAS product lines. Target applications
for customer deployment are 3G and 4G basebands, audio and voice processing
for mass market smartphones and SSD drives. Geographically, three of the
agreements signed were in the U.S., four were in Asia and one was in Europe.

Yaniv Arieli, Chief Financial Officer stated, "Our first quarter financial
performance demonstrates our consistent execution in growing our customer base
and diversifying our revenue sources. During the first quarter, we bought back
approximately 400,000 shares of our common stock for an aggregate
consideration of approximately $9.5 million. The recent buyback activity
demonstrates our confidence in CEVA's strong fundamentals. At the end of the
quarter, our cash balance, marketable securities and bank deposits totaled
$163 million."

CEVA Conference Call

On May 2, 2012, CEVA management will conduct a conference call at 8:30 a.m.
Eastern Time, to discuss the operating performance for the first quarter ended
March 31, 2012.

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

  oU.S. Participants: Dial 1-800-860-2442 (Access Code: CEVA)
  oInternational 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=86152. 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:10012367) from one
hour after the end of the call until 9:00 a.m. (Eastern Time) on May 10, 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 handset, 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 with new licensees of its DSPs, and Mr. Arieli's statements about
CEVA'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)
                                                           Quarter ended
                                                           March 31,
                                                           2012      2011
                                                           Unaudited Unaudited
Revenues:
Licensing                                                  $ 5,116  $ 5,108
Royalties                                                  9,106     9,206
Other revenues                                             890       738
Total revenues                                             15,112    15,052
Cost of revenues                                           870       948
Gross profit                                               14,242    14,104
Operating expenses:
Research and development, net                              5,486     5,250
Sales and marketing                                        2,289     2,224
General and administrative                                 1,869     1,754
Total operating expenses                                   9,644     9,228
Operating income                                           4,598     4,876
Financial income, net                                      948       545
Income before taxes on income                              5,546     5,421
Income tax expenses                                        689       770
Net income                                                 $ 4,857  $ 4,651
Basic net income per share                                 $0.21     $0.20
Diluted net income per share                               $0.20     $0.19
Weighted-average number of Common Stock used in
computation of net income per share (in thousands):
Basic                                                      23,507    22,692
Diluted                                                    24,239    23,888



Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures
(U.S. Dollars in thousands, except per share amounts)
                                                           Quarter ended
                                                           March 31,
                                                           2012      2011
                                                           Unaudited Unaudited
GAAP net income                                            4,857     $ 4,651
Equity-based compensation expense included in cost of      51        49
revenues
Equity-based compensation expense included in research and 465       378
development expenses
Equity-based compensation expense included in sales and    239       201
marketing expenses
Equity-based compensation expense included in general and  490       326
administrative expenses
Deferred tax related to equity-based compensation expenses (124)     (84)
Taxes on Income (1)                                        (102)     --
Non-GAAP net income                                        $ 5,876  $ 5,521




(1) Results for the three months ended March 31, 2012
include the
 utilization of expenses on a previously booked
capital gain




GAAP weighted-average number of Common Stock used in
computation                                                24,239    23,888
 of diluted net income per share (in thousands)
Weighted-average number of shares related to outstanding   6         31
options

                                                                    
Weighted-average number of Common Stock used in
computation of                                                      
 diluted net income per share excluding equity-based
compensation                                               24,245    23,919
 expense (in thousands)
GAAP diluted net income per share                          $ 0.20   $ 0.19
Equity-based compensation expense, net of taxes            $ 0.04   $ 0.04
Non GAAP diluted net income per share                     $ 0.24   $ 0.23



CEVA, INC. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(U.S. Dollars in thousands)
                                             March 31,        December 31,
                                             2012             2011
                                             Unaudited        Audited
ASSETS
Current assets:
Cash and cash equivalents                    $    6,322   $    14,954
Marketable securities and short term bank    131,331          124,458
deposits
Trade receivables, net                       5,479            5,116
Deferred tax assets                          1,703            2,248
Prepaid expenses and other accounts          2,819            2,320
receivables
Total current assets                         147,654          149,096
Long-term investments:
Long term bank deposits                      25,252           25,106
Severance pay fund                           5,802            5,473
Deferred tax assets                          1,147            832
Property and equipment, net                  1,193            1,235
Goodwill                                     36,498           36,498
Investment in other company                  900              900
Total assets                                 $    218,446 $    219,140
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Trade payables                               $      831  $      580
Deferred revenues                            602              1,074
Accrued expenses and other payables          11,313           10,669
Deferred tax liabilities                     138              290
Total current liabilities                    12,884           12,613
Accrued severance pay                        5,957            5,607
Total liabilities                            18,841           18,220
Stockholders' equity:
Common stock:                                23               24
Additional paid in-capital                   194,285          191,945
Other comprehensive income (loss)            103              (901)
Treasury stock                               (9,463)          -
Retained earnings                            14,657           9,852
Total stockholders' equity                   199,605          200,920
Total liabilities and stockholders' equity   $  218,446      $  219,140



SOURCE CEVA, Inc.
 
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