CEVA, Inc. Announces First Quarter 2013 Financial Results

          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,
yaniv.arieli@ceva-dsp.com, or Richard Kingston, CEVA, Inc., Director of
Marketing & Investor Relations, +1.650.417.7976, richard.kingston@ceva-dsp.com
 
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