Major CEVA-X licensing deals signed with leading companies in Asia PacificSAN JOSE, Calif. - October 26, 2005
- 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 third quarter ended September 30, 2005.
Total revenue for the third quarter of 2005 was $8.4 million, a decrease of 14% compared to $9.7 million reported for the third quarter of 2004. Third quarter of 2005 licensing revenue was $5.7 million, a decrease of 18% from the third quarter of 2004.
Third quarter of 2005 royalty revenue was $1.5 million, a decrease of 5% compared to $1.6 million for the third quarter of 2004. Revenue from services was $1.2 million for the third quarters of 2005 and 2004.
Net loss for the third quarter of 2005 was $0.5 million, compared to net income of $0.6 million for the third quarter of 2004. Net loss per share for the third quarter of 2005 was $0.03 per share compared to net income of $0.03 per share for the third quarter of 2004. Results for the third quarter of 2005 included a reorganization charge of $1.7 million recorded in the operating expenses associated with leased facility requirements and a gain of $1.5 million reported in interest and other income related to the disposal of an investment. The reorganization charge is associated with the previously announced plans to reduce the Company's operating expenses, primarily those related to general and administrative functions.
Pro forma net loss and pro forma net loss per share for the third quarter of 2005, excluding the effect of the reorganization charge and the gain on investment described above would have been $0.4 million and $0.02, respectively.
The Company believes that this pro forma presentation of results and net loss per share is useful to investors in comparing the results for the third quarter of 2005 to the same quarter of 2004, because it excludes items that management does not consider meaningful for purposes of analyzing the Company's operating results and making budget-planning decisions. Specifically, the Company's management believes the exclusion of the reorganization charge and the gain from disposal of an investment is useful to investors because such charges and gains may not be indicative of the Company's core operating results when comparing the third quarters of 2004 and 2005.
"The third quarter was a good indicator of our product strategy and focus." said Gideon Wertheizer, Chief Executive Officer of CEVA. "We signed five new license agreements in the quarter, bringing our total to 17 for the first nine months of 2005. Two of the license agreements signed in the quarter were for our flagship CEVA-X DSP core. Both of these licensees are leading companies in the Asia Pacific region and both have plans to use our CEVA-X DSP core and multimedia technologies for next generation 3G phones. CEVA-X continues to be a strong growth driver for the Company, with 10 licensees to date. Our customers are benefiting from the scalability, performance and the low power which CEVA-X offers. It also powers our new mobile multimedia solution, the Mobile-Media2000."
Wertheizer added, "Recently, we expanded our serial storage platform offering with the addition of our Serial Attached SCSI (SAS) solution, the industry's first open-foundry IP core for SAS. This technology is evolving and becoming the storage interface of choice for emerging enterprise applications. The compatibility of this technology with Serial ATA provides customers the ability to develop enterprise storage systems to meet high performance and low cost specifications. We believe that Serial Attached SCSI shows strong potential for growth and we recognize CEVA-SAS as a valuable addition to our IP portfolio." Financial TablesClick here to read financial tablesCEVA Conference Call
On October 26, 2005, CEVA's management will conduct a conference call at 10:30 a.m. Eastern Time / 3.30 p.m. London time, to discuss the operating performance for the quarter.
The conference call will be available via the following dial in numbers:
US Participants: Dial 1-800-322-0079
International Participants: Dial +44-800-917-4860
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: 6588892) for US domestic callers and +44-800-917-2646 (passcode: 1394489) for international callers during the period beginning two hours after the end of the call and ending at 11:59 p.m. (Eastern Time) on November 9, 2005. The replay will also be available at CEVA's web site www.ceva-dsp.com
. About CEVA, Inc.
Headquartered in San Jose, Calif., CEVA is the leading licensor of digital signal processor (DSP) cores, multimedia, Global Positioning Systems (GPS) and storage platforms to the semiconductor industry. CEVA licenses a family of programmable DSP cores, associated SoC system platforms and a portfolio of application platforms including video processing, audio processing, speech processing, GPS location, Serial Attached SCSI (SAS) and Serial ATA (SATA). In 2004, CEVA's silicon IP was shipped in more than 100 million devices. CEVA was created through the merger of the DSP licensing division of DSP Group and Parthus Technologies. For more information visit www.ceva-dsp.com