San Jose, CA - January 06, 2003 - ParthusCeva, Inc. (NASDAQ: PCVA; LSE: PCV), the industry's leading provider of licensable Digital Signal Processor (DSP) cores and solutions, today announced preliminary results for the fourth quarter ended December 31, 2002.
ParthusCeva was formed through the combination of ParthusCeva, Inc. (formerly known as Ceva, Inc.) and Parthus Technologies plc, on November 1, 2002. The combination has been accounted for as the acquisition of Parthus Technologies by ParthusCeva; accordingly, the results below include the results of the Parthus business for only the last two months of the quarter ended December 31, 2002.
ParthusCeva expects total revenues on a U.S. GAAP basis to be in the range of approximately $5.0 million to $5.6 million for the fourth quarter. Based on these estimated revenues, the company anticipates that it will report a net loss of approximately $24.7 million to $25.2 million for the fourth quarter. This net loss includes (1) a one-time restructuring charge of approximately $6.6 million to $6.8 million in association with the restructuring program implemented in November 2002, (2) a one-time, non-cash charge for in-process research and development expenses arising as a result of the combination of ParthusCeva and Parthus of approximately $15.8 million, (3) amortization of intangibles arising as a result of the combination of approximately $200,000, and (4) unrealized foreign exchange losses of approximately $500,000 arising as a result of the appreciation of the Euro against the US dollar.
The company anticipates that it will report a pro forma net loss of approximately $2.3 million to $2.8 million for the fourth quarter, excluding the one-time restructuring charge of approximately $6.6 million to $6.8 million and the one-time, non-cash charge for in-process research and development expenses of approximately $15.8 million described above.
"As a result of the persistent downturn and challenging market conditions in the semiconductor industry, we have experienced delays in licensing decisions on several significant deals, although our overall sales pipeline has not materially diminished," said Kevin Fielding, Chief Executive Officer of ParthusCeva. "We continue to make progress on the execution of our strategy, and plan to launch an extensive range of integrated DSP and application platform new products in 2003. We are confident that this focus and our strong financial position will help ensure ParthusCeva's success in implementing its business plan for 2003, as described in the company's last conference call."
ParthusCeva will report its full results for the fourth quarter and year ended December 31, 2002 on Wednesday, January 22, 2003. Further details about this upcoming release and the associated conference call will be communicated in advance of this event.