- Strategic licensing agreement signed with Tier 1 handset OEM for LTE products
- First license agreement for CEVA-XC4000 DSP for LTE- Advanced
- Repurchased 670,000 shares for approximately $11.3 million during the quarter
MOUNTAIN VIEW, Calif., July 31, 2012 -- CEVA, Inc. (NASDAQ: CEVA), the leading licensor of silicon intellectual property (SIP) platform solutions and DSP cores for the mobile, portable and consumer electronics markets, today announced its financial results for the second quarter ended June 30, 2012.
Total revenue for the second quarter of 2012 was $13.6 million, a decrease of 6% compared to $14.4 million for the second quarter of 2011. Licensing revenue for the second quarter of 2012 was $5.4 million, an increase of 3% compared to $5.2 million reported for the second quarter of 2011. Royalty revenue for the second quarter of 2012 was $7.6 million, compared to $8.3 million reported for the second quarter of 2011. Revenue from services for the second quarter of 2012 was $0.6 million, compared to $0.9 million reported for the second quarter of 2011.
Gideon Wertheizer, Chief Executive Officer, stated: "The second quarter was the strongest licensing quarter in more than three and a half years, driven by a strategic licensing agreement with a tier 1 handset OEM for a range of LTE handsets and the first agreement for our newest DSP, the CEVA-XC4000 for LTE- Advanced. These latest agreements bring the total LTE design wins for CEVA DSPs to date to more than 20, and form the foundation for future royalty growth. Finally, while the competitive 2G market is experiencing pricing pressure, our volume growth in the lucrative 3G market during the quarter significantly outpaced that of the overall 3G space, as low and mid-range 3G smartphones gain traction."
U.S. GAAP net income for the second quarter of 2012 was $3.5 million, a decrease of 16% from $4.1 million reported for the same period in 2011. U.S. GAAP diluted earnings per share for the second quarter of 2012 were $0.15, a decrease of 12% compared to $0.17 for the second quarter of 2011.
Non-GAAP net income and diluted earnings per share for the second quarter of 2012 was $4.4 million and $0.19, respectively, representing a decrease of 17% and 14%, respectively, over the $5.4 million and $0.22 reported for the second quarter of 2011. Non-GAAP net income and diluted earnings per share for the second quarter of 2012 and 2011 excluded equity-based compensation expense, net of taxes, of $1.0 million and $1.2 million, respectively.
During the second quarter of 2012, the Company secured eight new license agreements. Six of the agreements were for CEVA DSP cores, platforms and software, and two agreements were for the CEVA Bluetooth product line. Target applications for customer deployment are LTE smartphones, microcells, broadband communications and connectivity. Geographically, three of the agreements signed were in the U.S and five were in the Asia Pacific region.
Yaniv Arieli, Chief Financial Officer, stated, "During the quarter, we bought back approximately 670,000 shares of our common stock for an aggregate consideration of approximately $11.3 million. The recent buyback activity continues to demonstrate our confidence in CEVA's strong fundamentals. At the end of the quarter, our cash balance, marketable securities and bank deposits totaled $156 million. We have approximately 900,000 shares available for repurchase remaining under our existing buyback program."
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CEVA Conference Call
On July 31, 2012, CEVA management will conduct a conference call at 8:30 a.m. Eastern Time, to discuss the operating performance for the second quarter ended June 30, 2012.
The conference call will be available via the following dial-in numbers:
- U.S. Participants: Dial 1-800-860-2442 (Access Code: CEVA)
- International Participants: Dial +1-412-858-4600 (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=88094. 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 +1-877-344-7529 or +1-412-317-0088 (access code:10016016) from one hour after the end of the call until 9:00 a.m. (Eastern Time) on August 08, 2012. The replay will also be available at CEVA's web site www.ceva-dsp.com.
About CEVA, Inc.
CEVA is the world's leading licensor of silicon intellectual property (SIP) DSP cores and platform solutions for the mobile, portable and consumer electronics markets. CEVA's IP portfolio includes comprehensive technologies for cellular baseband (2G / 3G / 4G), multimedia (HD video, Image Signal Processing (ISP) and HD audio), voice over packet (VoP), Bluetooth, Serial Attached SCSI (SAS) and Serial ATA (SATA). In 2011, CEVA's IP was shipped in over 1 billion devices and powers handsets from every top handset OEM, including HTC, Huawei, LG, Motorola, Nokia, Samsung, Sony and ZTE. Today, more than 40% of handsets shipped worldwide are powered by a CEVA DSP core. For more information, visit www.ceva-dsp.com. Follow CEVA on twitter at www.twitter.com/cevadsp.