CEVA, Inc. Announces First Quarter 2013 Financial Results -- Strategic license agreement signed with tier-one player in mobile infrastructure -- Total of 3 new licensees for flagship CEVA-XC4000 DSP family signed during the quarter PR Newswire MOUNTAIN VIEW, Calif., May 2, 2013 MOUNTAIN VIEW, Calif., May 2, 2013 /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 first quarter ended March 31, 2013. (Logo: http://photos.prnewswire.com/prnh/20120808/SF53702LOGO) Total revenue for the first quarter of 2013 was $12.1 million, a decrease of 20% compared to $15.1 million reported for the first quarter of 2012. First quarter 2013 licensing and related revenue was $5.0 million, representing a decrease of 16% when compared to $6.0 million reported for the same quarter a year ago. Royalty revenue for the first quarter 2013 was $7.1 million, a decrease of 22% compared to $9.1 million reported for the first quarter of 2012. During the quarter, CEVA concluded eight new license agreements. Five of the agreements were for CEVA DSP cores, platforms and software, including three new licensees for the CEVA-XC4000 DSP family targeting advanced communications. In addition, two agreements were signed for CEVA SATA/SAS product lines and one agreement for CEVA Bluetooth technology. Target applications for customer deployment are mobile infrastructure, advanced Wi-Fi access points, broadband satellite communications, enterprise storage and Bluetooth low energy connectivity. Geographically, one of the agreements signed was in the U.S., two were in Europe and five were in Asia Pacific, including Japan. Gideon Wertheizer, Chief Executive Officer of CEVA, stated, "We concluded a number of important licensing deals during the quarter, with the highlight being a strategic and comprehensive agreement with a tier-one customer in the mobile infrastructure space, which intends to deploy our CEVA-XC4000 DSP architecture in its next generation products. It is a noteworthy milestone: represents a key new customer win, expansion and diversification of our customer portfolio and a testament to our technology in a market that is known for its high barriers to entry. We are encouraged by the licensing dynamics for our best-of-breed CEVA-XC4000 DSP, of which we signed three agreements during the quarter, all with new customers." U.S. GAAP net income for the first quarter of 2013 was $1.7 million, a 65% decrease from $4.9 million reported for the same period in 2012. U.S. GAAP diluted earnings per share for the first quarter of 2013 were $0.08, a decrease of 60% compared to $0.20 for the first quarter of 2012. Non-GAAP net income and diluted earnings per share for the first quarter of 2013 were $2.9 million and $0.13, respectively, representing a 51% and 46% decrease, respectively, over the $5.9 million and $0.24 reported for the first quarter of 2012. Non-GAAP net income and diluted earnings per share for the first quarter of 2013 and 2012 excluded an aggregate equity-based compensation expense, net of taxes, of $1.2 million and $1 million, respectively. Yaniv Arieli, Chief Financial Officer of CEVA, stated: "Our licensing and related revenue was slightly below what we forecasted primarily due to recognizing partial revenue in the quarter of an important agreement we signed with a tier-one customer in the mobile infrastructure space. We anticipate recognizing the remaining revenues to be generated from this agreement during future periods. Our royalty revenue was primarily impacted by softness in the consumer electronics space while 3G smartphones powered by our DSPs outpaced the seasonal trend. During the first quarter we repurchased approximately 130,000 shares of our common stock for an aggregate consideration of approximately $2million. At the end of the quarter, our cash balance, marketable securities and bank deposits totaled $157 million." CEVA Conference Call On May 02, 2013, 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: 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=93239. 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: 10027202) from one hour after the end of the call until 9:00 a.m. (Eastern Time) on May 10, 2013. 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, imaging and HD audio), voice processing, Bluetooth, Serial Attached SCSI (SAS) and Serial ATA (SATA). In 2012, CEVA's IP was shipped in more than 1 billion devices, powering smartphones from many of the world's leading OEMs, including HTC, Huawei, Lenovo, LG, Nokia, Motorola, Samsung, Sony, TCL 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. 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, 2013 2012 Unaudited Unaudited Revenues: Licensing and related revenues $ 5,034 $ 6,006 Royalties 7,082 9,106 Total revenues 12,116 15,112 Cost of revenues 1,575 870 Gross profit 10,541 14,242 Operating expenses: Research and development, net 5,039 5,486 Sales and marketing 2,355 2,289 General and administrative 1,838 1,869 Total operating expenses 9,232 9,644 Operating income 1,309 4,598 Financial income, net 729 948 Income before taxes on income 2,038 5,546 Income taxes 333 689 Net income $ 1,705 $ 4,857 Basic net income per share $0.08 $0.21 Diluted net income per share $0.08 $0.20 Weighted-average shares used to compute net income per share (in thousands): Basic 22,197 23,507 Diluted 22,670 24,239 Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures (U.S. Dollars in thousands, except per share data) Quarter ended March 31, 2013 2012 Unaudited Unaudited GAAP net income 1,705 4,857 Equity-based compensation expense included in cost of 69 51 revenues Equity-based compensation expense included in research and 446 465 development expenses Equity-based compensation expense included in sales and 296 239 marketing expenses Equity-based compensation expense included in general and 507 490 administrative expenses Deferred tax related to equity-based compensation expenses (117) (124) Taxes on Income (1) - (102) Non-GAAP net income $ 2,906 $ 5,876 (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 22,670 24,239 computation of diluted net income per share (in thousands) Weighted-average number of shares related to outstanding 1 6 options and stock appreciation rights (in thousands) Weighted-average number of Common Stock used in computation of diluted net income per share excluding 22,671 24,245 equity-based compensation expense (in thousands) GAAP diluted net income per share $ 0.08 $ 0.20 Equity-based compensation expense, net of taxes $ 0.05 $ 0.04 Non GAAP diluted net income per share $ 0.13 $ 0.24 CEVA, INC. AND ITS SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (U.S. Dollars in thousands) March 31, December 31, 2013 2012 (*) Unaudited ASSETS Current assets: Cash and cash equivalents $ 10,000 $ 18,422 Marketable securities and short term bank 123,753 116,572 deposits Trade receivables, net 7,340 6,232 Deferred tax assets 2,294 2,065 Prepaid expenses and other current assets 3,670 2,361 Total current assets 147,057 145,652 Long-term assets: Long term bank deposits 23,180 23,050 Severance pay fund 6,606 6,130 Deferred tax assets 1,146 1,178 Property and equipment, net 1,536 1,392 Goodwill 36,498 36,498 Investment in other companies 2,733 2,433 Total assets $ 218,756 $ 216,333 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Trade payables $ 1,087 $ 1,176 Deferred revenues 483 865 Accrued expenses and other payables 2,819 3,462 Accrued payroll and related benefits 8,058 6,978 Income taxes payable, net 1,782 1,626 Total current liabilities 14,229 14,107 Accrued severance pay 6,725 6,158 Total liabilities 20,954 20,265 Stockholders' equity: Common stock: 22 22 Additional paid in-capital 199,813 198,495 Accumulated other comprehensive income 247 360 Treasury stock (26,354) (25,694) Retained earnings 24,074 22,885 Total stockholders' equity 197,802 196,068 Total liabilities and stockholders' equity $ 218,756 $ 216,333 (*) Derived from audited financial statements SOURCE CEVA, Inc. Website: http://www.ceva-dsp.com Contact: Yaniv Arieli, CEVA, Inc., CFO, +1.650.417.7941, email@example.com, or Richard Kingston, CEVA, Inc., Director of Marketing & Investor Relations, +1.650.417.7976, firstname.lastname@example.org
CEVA, Inc. Announces First Quarter 2013 Financial Results
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