Royalty Revenue Increased by Double Digits for Second Consecutive Quarter
SAN JOSE, Calif. -- May 1, 2007 -- CEVA, Inc. (NASDAQ: CEVA)(LSE: CVA), a leading licensor of innovative intellectual property (IP) platform solutions and DSP cores for wireless, consumer and multimedia applications, today announced its financial results for the quarter ended March 31, 2007.
Total revenue for the first quarter of 2007 was $7.7 million, a decrease of 5% compared to $8.1 million reported for the first quarter of 2006. First quarter of 2007 licensing revenue was $4.6 million, a decrease of 13% from the first quarter of 2006. Royalty revenue for the first quarter of 2007 was $2.0 million, an increase of 8% over the first quarter of 2006 and 18% sequentially higher than the fourth quarter of 2006. Revenue from services for the first quarter of 2007 was $1.1 million, an increase of 16% compared to the first quarter of 2006.
Net income for the first quarter of 2007 was $0.0 million, compared to a net loss of $0.8 million for the first quarter of 2006. Net income per share for the first quarter of 2007 was $0.00 per share, compared to net loss of $0.04 per share for the first quarter of 2006.
In the first quarter of 2007, the Company recognized an equity-based compensation charge of $0.5 million pursuant to the adoption of SFAS 123R, compared to a charge of $0.6 million in the first quarter of 2006. Pro forma non-GAAP net income and net income per share for the first quarter of 2007, excluding the equity-based compensation expense, was $0.5 million and $0.02, respectively. Pro forma non-GAAP net loss and net loss per share for the first quarter of 2006, excluding the equity-based compensation expense, was $0.2 million and $0.01, respectively.
During the first quarter of 2007, the Company signed nine new license agreements. Six agreements were for CEVA DSP cores and platforms and three agreements were for CEVA SATA technology. Target applications for customer deployment are next generation 3G cellular phones, smart phones, personal video recorder, Voice over IP and networking equipment. Geographically, four of the nine deals signed were in the U.S., two were in Europe and three were in the Asia Pacific region.
During the quarter, CEVA also concluded a strategic licensing agreement for its newest DSP Core, the CEVA-TeakLite-III, with a first tier Asian fabless company. This is the second major design win for the CEVA-TeakLite-III core. This design win expands CEVA's DSP core reach beyond the mobile market into the large home entertainment audio market composing of DVDs, set-top boxes, game consoles, digital TVs, IP TVs and the emerging HD DVD and Blu-ray applications.
Also earlier during the first quarter of 2007, Infineon Technologies and Nokia announced that Nokia would begin to use Infineon's ULC2 reference platform (incorporating the CEVA-TeakLite DSP) in their low cost handsets targeted for the emerging economies of India and China.
Gideon Wertheizer, Chief Executive Officer of CEVA, stated: "The first quarter of 2007 marked a number of important achievements in licensing revenue for the Company -- we entered into the home entertainment audio market and continued our expansion in the VoIP space. We also are pleased to report two quarters of double digit sequential growth in our royalty revenue since the third quarter of 2006 as a result of the successful deployment of consumer electronics and cellular products incorporating CEVA's technologies."
Yaniv Arieli, Chief Financial Officer of CEVA, stated: "Our revenue for the first quarter of 2007 was at the low range of our guidance due to the delay in execution of a license agreement that we now anticipate will be executed in the second quarter. During the first quarter of 2007, we generated positive cash flow and as of March 31, 2007, CEVA's cash balances and marketable securities were $64.4 million. We are encouraged by a strong pipeline of companies with interest in licensing our newer technologies targeting traditional markets as well as new market segments and applications."
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CEVA Conference Call
On May 1, 2007 CEVA, management will conduct a conference call at 8:30 a.m. Eastern Time / 1:30 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 1-877-493-9121 (CEVA reference number # 8685671)
- UK/Rest of World: Dial +44-800-032-3836 (CEVA reference number # 8685671)
The conference call will also be available live via the Internet at the following link: http://www.videonewswire.com/event.asp?id=39165. 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: 8685671) for US domestic callers and +44- 800-169-3875 (passcode: 8685671) for international callers from two hours after the end of the call until 11:59 p.m. (Eastern Time) on May 8, 2007. The replay will also be available at CEVA's web site http://www.ceva-dsp.com/.
About CEVA, Inc.
Headquartered in San Jose, Calif., CEVA is a leading licensor of innovative intellectual property (IP) platform solutions and DSP cores for wireless, consumer and multimedia applications. CEVA's IP portfolio includes comprehensive platform solutions for multimedia, audio, voice over packet (VoP), Bluetooth, Serial Attached SCSI (SAS) and Serial ATA (SATA), and a wide range of programmable DSP cores and subsystems with different price/performance metrics serving multiple markets. In 2006, CEVA's IP was shipped in over 190 million devices. For more information, visit http://www.ceva-dsp.com/.