Record high total revenue and royalty revenue; Key license agreements for mobile multimedia, femtocells and solid state drive applications
SAN JOSE, Calif. -- April 29, 2008 -- CEVA, Inc. [(NASDAQ: CEVA); (LSE: CVA)], a leading licensor of silicon intellectual property (SIP) platform solutions and DSP cores for mobile handsets, consumer electronics and storage applications, today announced its financial results for the first quarter ended March 31, 2008.
Total revenue for the first quarter of 2008 was $10.1 million, an increase of 30% compared to $7.7 million reported for the first quarter of 2007. First quarter of 2008 licensing revenue was $5.1 million, an increase of 10% from $4.6 million reported for the first quarter of 2007. Royalty revenue for the first quarter of 2008 was an all-time record high of $3.7 million, an increase of 91% over $2.0 million for the first quarter of 2007 and a sequential increase of 23% over $3.0 million for the fourth quarter of 2007. Revenue from services for the first quarter of 2008 was $1.2 million, an increase of 10% compared to $1.1 million reported for the first quarter of 2007.
Net income for the first quarter of 2008 was $5.5 million, compared to net income of $0 for the first quarter of 2007. Diluted net income per share for the first quarter of 2008 was $0.27 per share, compared to diluted net income per share of $0 for the first quarter of 2007.
The financial results for the first quarter of 2008 include a capital gain of $10.9 million from the divestment of the Company's equity investment in GloNav Inc. to NXP Semiconductors; a tax expense of $3.1 million related to such divestment; a reorganization expense associated with the termination of the long-term Harcourt lease in Ireland of $3.5 million; and equity-based compensation expense of $0.6 million. The contribution to the diluted net income per share for the first quarter of 2008 of the capital gain, net of taxes and the reorganization expenses were $0.37 and $(0.17), respectively.
During the quarter, the Company concluded ten new license agreements. Eight agreements were for CEVA DSP cores and platforms and two were for CEVA SATA technology. Target applications for customer deployment are 3G smart phones, cellular femtocells, portable multimedia players and solid state drive (SSD) devices. Geographically, three of the ten deals signed were in the U.S., six were in Europe and one was in the Asia Pacific region.
In the first quarter of 2008, CEVA signed three new agreements for its multimedia technologies. These key customer wins reflect the Company's strategy to develop portable multimedia technology solutions exploiting the growing use of Internet video, including movies trailers, music videos and user-generated content sites such as YouTube. CEVA's unique DSP software-based solution supports both present and future video and audio formats without the need for dedicated hardware in the system or costly silicon respin each time a new video or audio format gains popularity on the Internet.
Gideon Wertheizer, Chief Executive Officer of CEVA, stated: "The first quarter of 2008 represented the most successful quarter in CEVA's five year history, with record total revenue, royalty revenue, net income and earnings per share. Record royalties of $3.7 million reflect the Company's growing market share expansion in the cellular handset market. Our strong presence across all the key handset segments, comprising of ultra low-cost, mid-range and high-end 3.5G phones, continues to grow as many of the leading handset manufacturers transitioning to multi-source strategies favor CEVA's DSP technology."
Yaniv Arieli, Chief Financial Officer of CEVA, stated: "In the first quarter, we set new standards for both the Company's financial performance and the industry's adoption of CEVA's technologies. Royalties came in at a record high, as has been the case for each of the last three quarters. CEVA also generated record high net income and earnings per share. The Company also managed to generate overall positive cash flow of approximately $9.1 million during the quarter, mainly due to the divestment of our equity investment in GloNav to NXP Semiconductors, off-set by the one-time payment of approximately $5.8 million associated with the termination of the Harcourt lease. As of March 31, 2008, CEVA's cash balances and marketable securities were $85.5 million."
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CEVA Conference Call
On April 29, 2008, 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 (Access Code: CEVA)
- UK/Rest of World: Dial +44-800-032-3836 (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=47253. 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 1-800-642-1687 (passcode: 42226593) for US domestic callers and +44-800-917-2646 (passcode: 42226593) for international callers from two hours after the end of the call until 11:59 p.m. (Eastern Time) on May 6, 2008. 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 silicon intellectual property (SIP) platform solutions and DSP cores for mobile, consumer electronics and storage applications. CEVA's IP portfolio includes comprehensive solutions for multimedia, audio, voice over packet (VoP), Bluetooth and Serial ATA (SATA), and a wide range of programmable DSP cores and subsystems with different price/performance metrics serving multiple markets. In 2007, CEVA's IP was shipped in over 225 million devices. For more information, visit http://www.ceva-dsp.com/