CEVA, Inc. Announces Third Quarter 2013 Financial Results Four first-time CEVA licensees signed in quarter - further illustrating company's expansion into new growth markets, including smart meters, satellite communications, automotive and connectivity PR Newswire MOUNTAIN VIEW, Calif., Oct. 30, 2013 MOUNTAIN VIEW, Calif., Oct. 30, 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 third quarter ended September 30, 2013. (Logo: http://photos.prnewswire.com/prnh/20120808/SF53702LOGO) Total revenue for the third quarter of 2013 was $10.0 million, a decrease of 17% compared to $12.0 million for the third quarter of 2012. Licensing and related revenue for the third quarter of 2013 was approximately $4.0 million, a decrease of 20% compared to $5.0 million reported for the third quarter of 2012. Royalty revenue for the third quarter of 2013 was approximately $6 million, a decrease of 14% compared to $7.0 million reported for the third quarter of 2012. Gideon Wertheizer, Chief Executive Officer, stated: "We continue to successfully expand our customer and market reach, adding four first-time licensees to our comprehensive customer base. In total, we have signed more than twenty DSP license agreements in the past two years with customers who are targeting new markets and applications, including communication, audio, digital photography and embedded vision. Despite the revenue shortfall for the third quarter, these agreements are indicative of the continued successful execution of our long-term growth strategy to diversify beyond our traditional cellular markets and customer base, which will serve to expand our market presence and future royalty base." U.S. GAAP net loss for the third quarter of 2013 was $0.3 million, compared to net income of $2.6 million reported for the same period in 2012. U.S. GAAP diluted loss per share for the third quarter of 2013 was $0.01, compared to earnings per share of $0.11 for the third quarter of 2012. Non-GAAP net income and diluted earnings per share for the third quarter of 2013 were $1.3 million and $0.06, respectively, representing a decrease of 66% and 63%, respectively, over the $3.8 million and $0.16 reported for the third quarter of 2012. Non-GAAP net income and diluted earnings per share for the third quarter of 2013 and 2012 excluded equity-based compensation expense, net of taxes, of $1.6 million and $1.2 million, respectively. During the third quarter of 2013, the Company concluded five new license agreements. Four of the agreements were for CEVA DSP cores, platforms and software and one for CEVA Bluetooth technology. Target applications for customer deployment are LTE base stations, satellite communications, smart meters, automotive and connectivity. Geographically, two of the license agreements were in Europe and three were in Asia. Yaniv Arieli, Chief Financial Officer, stated, "We remain confident in our licensing prospects going forward and continue to focus on maintaining a strong, debt free balance sheet with cash, marketable securities and bank deposits totaling approximately $154 million at the end of the third quarter. Our share repurchase program continued during the quarter with buyback of 138,000 shares at an average price of $16.90 per share for a total consideration of approximately $2.3 million. Year-to-date, we have repurchased 443,000 shares of common stock at an average price of $16.20 per share for a total consideration of approximately $7.2 million." CEVA Conference Call On October 30, 2013, CEVA management will conduct a conference call at 8:30 a.m. Eastern Time to discuss the company's operating performance for the quarter. The conference call will be available via the following dial in numbers: oU.S. Participants: Dial 1-877-870-4263 (Access Code: CEVA) oInternational Participants: Dial +1-412-317-0790 (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=96235. 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: 10034620) from one hour after the end of the call until 9:00 a.m. (Eastern Time) on November 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 CEVA's continued successful execution of its long-term growth strategy to diversify beyond the company's traditional cellular markets and customer base, as well as Mr. Arieli's statement about CEVA's licensing prospects going forward. 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 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS – U.S. GAAP U.S. dollars in thousands, except per share data Quarter ended Nine months ended September 30, September 30, 2013 2012 2013 2012 Unaudited Unaudited Unaudited Unaudited Revenues: Licensing and related revenues $ 3,945 $ 4,960 $ 15,108 $ 16,963 Royalties 6,060 7,046 19,826 23,747 Total revenues 10,005 12,006 34,934 40,710 Cost of revenues 1,131 1,046 3,799 2,927 Gross profit 8,874 10,960 31,135 37,783 Operating expenses: Research and development, net 5,619 4,637 16,279 15,548 Sales and marketing 2,376 2,235 7,271 6,628 General and administrative 2,006 1,940 5,588 5,658 Total operating expenses 10,001 8,812 29,138 27,834 Operating income (loss) (1,127) 2,148 1,997 9,949 Financial income, net 617 731 2,053 2,653 Income (loss) before taxes on income (510) 2,879 4,050 12,602 Income tax expense (benefit) (187) 285 493 1,672 Net income (loss) (323) 2,594 3,557 10,930 Basic net income (loss) per share ($0.01) $0.12 $0.16 $0.48 Diluted net income (loss) per share ($0.01) $0.11 $0.16 $0.46 Weighted-average number of Common Stock used in computation of net income (loss) per share (in thousands): Basic 22,072 22,526 22,118 22,965 Diluted 22,072 23,019 22,601 23,565 Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures (U.S. Dollars in thousands, except per share amounts) Quarter ended Nine months ended September 30, September 30, 2013 2012 2013 2012 Unaudited Unaudited Unaudited Unaudited GAAP net income (loss) (323) 2,594 3,557 10,930 Equity-based compensation expense 73 73 223 177 included in cost of revenue Equity-based compensation expense included in research and development 634 468 1,489 1,327 expenses Equity-based compensation expense included in sales and marketing 393 284 1,021 723 expenses Equity-based compensation expense included in general and administrative 660 541 1,691 1,461 expenses Income tax benefit (159) (206) (411) (550) Non-GAAP net income 1,278 3,754 7,570 14,068 GAAP weighted-average number of Common Stock used in computation of diluted 22,072 23,019 22,601 23,565 net income (loss) per share (in thousands) Weighted-average number of shares 569 3 18 5 related to outstanding options Non-GAAP weighted-average number of Common Stock used in computation of 22,641 23,022 22,619 23,570 diluted net income per share (in thousands) GAAP diluted net income (loss) per ($0.01) $0.11 $0.16 $0.46 share Equity-based compensation expense, net $0.07 $0.05 $0.17 $0.14 of taxes Non-GAAP diluted net income per share $0.06 $0.16 $0.33 $0.60 CEVA, INC. AND ITS SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (U.S. Dollars in thousands) September 30, December 31, 2013 2012 (*) Unaudited ASSETS Current assets: Cash and cash equivalents $ 11,607 $ 18,422 Marketable securities and short term bank 113,970 116,572 deposits Trade receivables, net 9,144 6,232 Deferred tax assets 2,810 2,065 Prepaid expenses and other current assets 2,438 2,361 Total current assets 139,969 145,652 Long-term assets: Long term bank deposits 28,370 23,050 Severance pay fund 6,940 6,130 Deferred tax assets 1,182 1,178 Property and equipment, net 1,723 1,392 Goodwill 36,498 36,498 Investment in other companies 3,367 2,433 Total assets $ 218,049 $ 216,333 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Trade payables $ 674 $ 1,176 Deferred revenues 513 865 Accrued expenses and other payables 2,570 3,462 Accrued payroll and related benefits 6,631 6,978 Income taxes payable, net 1,863 1,626 Total current liabilities 12,251 14,107 Accrued severance pay 7,034 6,158 Total liabilities 19,285 20,265 Stockholders' equity: Common stock: 22 22 Additional paid in-capital 202,919 198,495 Accumulated other comprehensive income (121) 360 (loss) Treasury stock (28,596) (25,694) Retained earnings 24,540 22,885 Total stockholders' equity 198,764 196,068 Total liabilities and stockholders' equity $ 218,049 $ 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, firstname.lastname@example.org; or Richard Kingston, CEVA, Inc., Director of Marketing & Investor Relations, +1.650.417.7976, email@example.com
CEVA, Inc. Announces Third Quarter 2013 Financial Results
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