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CEVA, Inc. Reports First Quarter 2006 Financial Results
Major design wins with two leading companies, demonstrating innovative video technology SAN JOSE, Calif. - April 25, 2006 - CEVA, Inc. (NASDAQ: CEVA; LSE: CVA), the leading licensor of digital signal processor (DSP) cores, multimedia, GPS and storage platforms to the semiconductor industry, today announced financial results for the first quarter ended March 31, 2006. Total revenue for the first quarter of 2006 was $8.1 million, a decrease of 19% compared to $10.0 million reported for the first quarter of 2005. Total revenue for the first quarter of 2006 increased 6% sequentially compared to $7.7 million reported for the fourth quarter of 2005. First quarter of 2006 licensing revenue was $5.3 million, a decrease of 25% from the first quarter of 2005 and an increase of 17% from the fourth quarter of 2005. First quarter of 2006 royalty revenue was $1.8 million, an increase of 3% compared to $1.7 million reported for the first quarter of 2005 and a decrease of 7% compared to $1.9 million reported for the fourth quarter of 2005. Revenue from services was $1.0 million for the first quarter of 2006, a decrease of 18% compared to $1.2 million for the first quarter of 2005 and a decrease of 16% compared to $1.2 million reported for the fourth quarter of 2005. Net loss for the first quarter of 2006 was $0.8 million, compared to net income of $0.6 million for the first quarter of 2005 and net loss of $0.1 million for the fourth quarter of 2005. Net loss per share for the first quarter of 2006 was $0.04 per share compared to net income of $0.03 per share for the first quarter of 2005 and net loss of $0.01 per share for the fourth quarter of 2005. The net earnings (loss) for the first and fourth quarters of 2005, respectively did not reflect the quarterly charge associated with equity based compensation which under Statement of Financial Accounting Standards No. 123R, "Share Based Payments" is required to be expensed for periods commencing after January 1, 2006. In the first quarter of 2006 the Company recognized an equity- based compensation charge of $0.6 million pursuant to the adoption of SFAS 123R. Pro-forma net loss for the first quarter of fiscal 2006 which excludes the stock option charge was $0.2 million or $0.01 net loss per share. In the first quarter of 2006, seven license agreements were signed: three for our DSP cores and derivatives, CEVA-X and Teak, two for our SATA technology, one for our PLL technology and in addition, there was a renewal of a prepaid arrangement with an existing customer. Our customers' target applications are for third generation cellular, disk drives control and SATA interface. Geographically, we signed five license agreements in the US and two in Europe. "We are encouraged by the financial results for the first quarter of 2006, which shows sequential revenue growth from the fourth quarter of 2005 derived from our strong product line" said Gideon Wertheizer, Chief Executive Officer of CEVA. "In the quarter we signed significant licensing agreements for our DSP cores with two leading companies, one in Europe and one in the United States who plan to deploy our DSP cores in their mainstream high-volume applications. We also reached a major milestone with our innovative MobileMedia2000 video technology by demonstrating during the quarter a full silicon solution of DVD quality H.264 video for mobile applications." CEVA Conference Call On April 25, 2006, CEVA's management will conduct a conference call at 08:30 a.m. Eastern Time / 1.30p.m. London time, to discuss the company's operating performance for the quarter. The conference call will be available via the following dial in numbers:
The conference call will also be available live via the Internet by accessing the CEVA web site at www.ceva-dsp.com. 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 1-877-519-4471 (passcode: 7262976) for US domestic callers and +44-800-169-3875 (passcode: 7262976) for international callers from two hours after the end of the call until 11:59 p.m. (Eastern Time) on May 9 2006. The replay will also be available at CEVA's web site www.ceva-dsp.com. Condensed Consolidated Statements Of Income & Condensed Consolidated Balance Sheets Condensed Consolidated Statements of Income & Condensed Consolidated Balance Sheets are available for download here (pdf 29KB ) About CEVA, Inc. For more information about CEVA, Inc, visit the about section of our website.
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