CEVA, Inc. Announces Third Quarter 2013 Financial Results

          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,
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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