Company Delivers Strong Results Despite Challenging Market Environment
SAN JOSE, Calif. -- July 29, 2009 -- CEVA, Inc. (NASDAQ: CEVA); (LSE: CVA), a leading licensor of silicon intellectual property (SIP) platform solutions and DSP cores for the mobile handset, consumer electronics and portable device markets, today announced its financial results for the second quarter ended June 30, 2009.
Total revenue for the second quarter of 2009 was $9.1 million, a decrease of 10% compared to $10.1 million reported for the second quarter of 2008. Second quarter 2009 licensing revenue was $4.3 million, a decrease of 29% from the five year record high of $6.0 million reported for the second quarter of 2008. Royalty revenue for the second quarter of 2009 was $4.0 million, an increase of 30% over $3.0 million reported for the second quarter of 2008. Revenue from services for the second quarter of 2009 was $0.9 million, a decrease of 13% from $1.0 million reported for the second quarter of 2008.
Gideon Wertheizer, Chief Executive Officer of CEVA, stated, "We are pleased with the strong results this quarter. Our worldwide market share in the handset space reached a record high of 18% in the second quarter from 12% market share in the first quarter of 2009, driven primarily by the expansion in emerging markets. Also, we are encouraged by the increased interest in our newest DSP technologies for next generation wireless products. Nonetheless, while the global economic environment seems to show signs of recovery, companies are maintaining a cautious outlook on new technology investments."
During the second quarter of 2009, the Company recorded a pre-tax capital gain of $1.9 million from the equity divestment of GloNav Inc. to NXP Semiconductors. Including this pre-tax capital gain, U.S. GAAP net income for the second quarter of 2009 was $2.3 million, an increase of 235% over $691,000 reported for the same period of last year. U.S. GAAP diluted net income per share for the second quarter of 2009 was $0.12 per share, an increase of 300% compared to $0.03 for the second quarter of 2008.
Non-GAAP net income and diluted net income per share for the second quarter of 2009, excluding an equity-based compensation expense of approximately $0.7 million and $1.9 million of pre-tax capital gain, was $1.7 million or $0.08 per share, an increase of 13% and 14%, respectively, over the $1.5 million or $0.07 per share reported for the second quarter of 2008.
During the quarter, the Company concluded ten new license agreements. Eight agreements were for CEVA DSP cores and platforms and one each were for CEVA SATA and PLL technologies. Target applications for customer deployment are 4G handsets, 3G & 4G femtocells, Passive Optical Networks and Media Phones. Geographically, four of the ten deals signed were in Europe, four were in the Asia Pacific region, including Japan, and two were in the U.S.
Yaniv Arieli, Chief Financial Officer of CEVA, stated, "Notwithstanding the challenging conditions during the second quarter, CEVA achieved strong financial performance: U.S. GAAP operating margins increased significantly from less than 1% to 8% and non-GAAP operating margins doubled to 16%, both as compared to the same period in 2008. We continued to strengthen the Company's already substantial cash position during the quarter, generating positive cash flow of approximately $2.7 million. As of June 30, 2009, CEVA's cash balances and marketable securities were $87.7 million."
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CEVA Conference Call
On July 29, 2009, 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 +44-800-051-3806 (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=60166. 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: 18612633) for US domestic callers and +44-800-917-2646 (passcode: 18612633) for international callers from two hours after the end of the call until 11:59 p.m. (Eastern Time) on August 5, 2009. 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 a leading licensor of silicon intellectual property (SIP) DSP Cores and platform solutions for the mobile handset, portable and consumer electronics markets. 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 2008, CEVA's IP was shipped in over 300 million devices. For more information, visit www.ceva-dsp.com.