San Jose, CA - December 17, 2002 - ParthusCeva, Inc. (NASDAQ: PCVA; LSE: PCV), the industry's leading provider of licensable Digital Signal Processor (DSP) cores and solutions, is today providing guidance regarding anticipated results for the year 2003. This guidance takes into account the current outlook for ParthusCeva's targeted markets and reflects the effects of its recent corporate restructuring and product rationalization program.
Reflecting both the rationalization of its product lines and the ongoing weakness in the semiconductor sector, ParthusCeva anticipates that year 2003 revenues will be between $40 million and $46 million, with gross margins of approximately 85% and operating profit of between 10% and 15%. ParthusCeva further estimates that licensing and royalty revenues will comprise approximately 85% of total revenues for 2003.
ParthusCeva estimates that its operating expenses for 2003 on a US GAAP basis, including $1.2 million related to amortization of intangibles arising as a result of the merger of Parthus and Ceva, will be between $30 million and $32.5 million. These non-cash charges reflect the amortization of intangibles over 5 years. Excluding amortization of intangibles, ParthusCeva expects that its operating expenses for 2003 will be between $29 million and $31 million. The company estimates that its effective tax rate for 2003 will be approximately 25% of profits before tax. ParthusCeva expects to be cash flow positive in 2003.
Kevin Fielding, CEO of ParthusCeva, commented:
"As the leading licensor of DSP technology, I believe we are uniquely positioned to capture market share, which we expect will deliver long-term strong and sustainable growth. Underpinning this strategic strength is an improved financial position, which I believe will result in profitability in 2003. Our corporate rationalization program since the completion of the merger has enabled us to enhance the strategic focus of ParthusCeva and has at the same time delivered significant cost savings.
We are taking a conservative outlook for 2003, which we believe is prudent in light of the continuing weakness in the semiconductor market and limited visibility in our sector. Regardless of the timing of the industry recovery, we believe we have the technology and financial base in place to achieve our corporate goals of market leadership in DSP technology and profitable growth."