CEVA, Inc. Announces Second Quarter 2013 Financial Results

          CEVA, Inc. Announces Second Quarter 2013 Financial Results

-- Key OEMs in mobile markets license CEVA-MM3101 imaging & vision platform

-- Strategic customer extends use of DSP for 3G & LTE basebands

-- Expansion of existing stock repurchase program with additional two million
shares

PR Newswire

MOUNTAIN VIEW, Calif., July 31, 2013

MOUNTAIN VIEW, Calif., July 31, 2013 /PRNewswire/ -- CEVA, Inc. (NASDAQ:
CEVA), the leading licensor of silicon intellectual property (SIP) platform
solutions and DSP cores for the mobile, digital home and networking markets,
today announced its financial results for the second quarter ended June 30,
2013.

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

Total revenue for the second quarter of 2013 was $12.8 million, a decrease of
6% compared to $13.6 million for the second quarter of 2012. Licensing and
related revenue for the second quarter of 2013 was $6.1 million, an increase
of 2% compared to $6.0 million reported for the second quarter of 2012.
Royalty revenue for the second quarter of 2013 was $6.7 million, a decrease of
12% compared to $7.6 million reported for the second quarter of 2012.

Gideon Wertheizer, Chief Executive Officer, stated: "Our strong performance in
licensing activities for the second quarter was a direct result of our
strategy to expand beyond the cellular baseband market. During the quarter, we
successfully completed two comprehensive agreements for our CEVA-MM3101
multimedia platforms with key OEMs in the mobile space who are expected to
utilize our technology to develop their own proprietary multimedia processing
chips. These agreements illustrate our ability to successfully capitalize on
emerging technology trends in photography, vision and audio, and build the
foundations for our future royalty growth. In addition, we extended our
relationship with a key customer in the cellular baseband market, reinforcing
our position in the 3G and LTE markets."

U.S. GAAP net income for the second quarter of 2013 was $2.2 million, a
decrease of 37% from $3.5 million reported for the same period in 2012. U.S.
GAAP diluted earnings per share for the second quarter of 2013 were $0.10, a
decrease of 33% compared to $0.15 for the second quarter of 2012.

Non-GAAP net income and diluted earnings per share for the second quarter of
2013 was $3.4 million and $0.15, respectively, representing a decrease of 24%
and 21%, respectively, over the $4.4 million and $0.19 reported for the second
quarter of 2012. Non-GAAP net income and diluted earnings per share for the
second quarter of 2013 and 2012 excluded equity-based compensation expense,
net of taxes, of $1.2 million and $1.0 million, respectively.

During the second quarter of 2013, the Company concluded six new license
agreements. Four of the agreements were for CEVA DSP cores, platforms and
software, one for SATA/SAS technology and one for Bluetooth technology. Target
applications for customer deployment are 3G and LTE cellular handsets,
imaging, and embedded vision and audio for mobile devices. Geographically, one
of the license agreements was in the U.S. and the other five were in Asia,
including Japan.

Yaniv Arieli, Chief Financial Officer, stated, "During the second quarter, our
royalty revenue from 3G shipments surpassed the 2G royalty revenue for the
first time. This is an important milestone that reflects our strong foothold
in the growing adoption of low-cost smartphones in China. During the quarter,
we bought back approximately 176,000 shares of our common stock for an
aggregate consideration of approximately $2.8 million. Furthermore, the Board
of Directors has authorized the expansion of our share repurchase program with
an additional two million shares of common stock available for repurchase. In
total, there are 2,179,000 shares available for repurchase under our 10b-18
plan program, illustrating our confidence in the long-term growth
opportunities for CEVA, the Company's robust fundamentals and considerable
earnings leverage. Our financial position remains strong with our cash
balance, marketable securities and bank deposits totaling $154 million at the
end of the quarter."

CEVA Conference Call
On July 31, 2013, CEVA management will conduct a conference call at 8:30 a.m.
Eastern Time, to discuss the operating performance for the second quarter
ended June 30, 2013.

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=94830. 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: 10030920) from one
hour after the end of the call until 9:00 a.m. (Eastern Time) on August 7,
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 over 1.1 billion devices, powering
smartphones from many of the world's leading OEMs, including HTC, Huawei, 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.

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 the
agreements entered into during the second quarter of 2013 illustrating CEVA's
ability to successfully capitalize on emerging technology trends in
photography, vision and audio, and build the foundations for its' future
royalty growth, Forward-looking statements also include Mr. Arieli's
statements about CEVA's stock buyback program reflecting CEVA's confidence in
its long-term growth opportunities, robust fundamentals and considerable
earnings leverage. 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
                                      Three months ended  Six months ended
                                      June 30,            June 30,
                                      2013      2012      2013         2012
                                      Unaudited
Revenues:
Licensing and related revenues        $  6,129 $  5,997 $   11,163 $  
                                                                       12,003
Royalties                             6,684     7,595     13,766       16,701
Total revenues                        12,813    13,592    24,929       28,704
Cost of revenues                      1,093     1,011     2,668        1,881
Gross profit                          11,720    12,581    22,261       26,823
Operating expenses:
Research and development, net         5,621     5,425     10,660       10,911
Sales and marketing                   2,540     2,104     4,895        4,393
General and administrative            1,744     1,849     3,582        3,718
Total operating expenses              9,905     9,378     19,137       19,022
Operating income                      1,815     3,203     3,124        7,801
Financial income, net                 707       974       1,436        1,922
Income before taxes on income         2,522     4,177     4,560        9,723
Taxes on income                      347       698       680          1,387
Net income                            2,175     3,479     3,880        8,336
Basic net income per share            $0.10     $0.15     $0.18        $0.36
Diluted net income per share          $0.10     $0.15     $0.17        $0.35
Weighted-average number of Common
Stock used in computation of net
incomeper share (in thousands):
Basic                                 22,087    22,873    22,142       23,188
Diluted                               22,546    23,449    22,608       23,842



Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures
(U.S. Dollars in thousands, except per share amounts)
                                          Three months ended Six months ended
                                          June 30             June 30
                                          2013      2012      2013    2012
                                          Unaudited
GAAP net income                           $2,175    $3,479    $3,880  $8,336
Equity-based compensation expense         81        53        150     104
included in cost of revenue
Equity-based compensation expense
included in research and development      409       394       855     859
expenses
Equity-based compensation expense         332       200       628     439
included in sales and marketing expenses
Equity-based compensation expense
included in general and administrative    524       430       1031    920
expenses
Deferred tax related to equity-based      (135)     (118)     (252)   (242)
compensation expenses
Taxes on income (1)                       --        --        --      (102)
Non-GAAP net income                       $3,386    $4,438    $6,292  $10,314
(1)Results for the six months ended
June 30, 2012 include the utilization of
expenses on a previously booked capital
gain
GAAP weighted-average number of Common                              
Stock used in computation of diluted net  22,546
income per share (in thousands)                     23,449    22,608  23,842
Weighted-average number of shares related 1         5         1       6
to outstanding options (in thousands)
Weighted-average number of Common Stock
used in computation of diluted net income 22,547    23,454    22,609  23,848
per share excluding equity-based
compensation expense (in thousands)
GAAP diluted net income per share         $0.10     $0.15     $0.17   $0.35
Equity-based compensation expense, net of $0.05     $0.04     $0.11   $0.08
taxes
Non-GAAP diluted net income per share     $0.15     $0.19     $0.28   $0.43





CEVA, INC. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(U.S. Dollars in thousands)
                                             June 30,         December 31,
                                             2013             2012 (*)
                                             Unaudited
ASSETS
Current assets:
Cash and cash equivalents                    $    7,539   $    18,422
Marketable securities and short term bank    118,627          116,572
deposits
Trade receivables, net                       9,186            6,232
Deferred tax assets                          2,565            2,065
Prepaid expenses and other current assets    3,071            2,361
 Total current assets          140,988          145,652
Long-term assets:
Long term bank deposits                      28,226           23,050
Severance pay fund                           6,615            6,130
Deferred tax assets                          1,305            1,178
Property and equipment, net                  1,707            1,392
Goodwill                                     36,498           36,498
Investment in other companies                2,733            2,433
 Total assets                  $    218,072 $    216,333



LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Trade payables                             $      1,198 $      1,176
Deferred revenues                          539               865
Accrued expenses and other payables        2,595             3,462
Accrued payroll and related benefits       6,411             6,978
Income taxes payable, net                  2,127             1,626
 Total current liabilities   12,870            14,107
Accrued severance pay                      6,722             6,158
 Total liabilities           19,592            20,265
Stockholders' equity:
Common stock:                              22                22
Additional paid in-capital                 201,159           198,495
Accumulated other comprehensive income     (367)             360
(loss)
Treasury stock                             (27,737)          (25,694)
Retained earnings                          25,403            22,885
 Total stockholders' equity  198,480           196,068
 Total liabilities and       $  218,072      $  216,333
stockholders' equity
(*) 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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