San Jose, CA - July 22, 2003 - ParthusCeva, Inc. (NASDAQ: PCVA; LSE: PCV), the industry's leading licensor of Digital Signal Processor (DSP) cores and platform-level IP solutions, today announced results for the second quarter ended June 30, 2003.
Total revenues for the second quarter of 2003 were $9.1 million, compared with $8.8 million for the first quarter of 2003, an increase of 3%. Royalty revenues for the second quarter were $854,000, compared with $606,000 for the first quarter, an increase of 41%. Gross margins in the second quarter were 82%, compared with 81% in the first quarter. ParthusCeva signed six license agreements in the second quarter, principally involving its DSP technologies, and achieved its first licensing win in 802.11 wireless-LAN technology. Two of the top five semiconductor companies worldwide licensed ParthusCeva's DSP cores in the second quarter.
In addition, ParthusCeva achieved a number of strategic wireless and cellular design wins in Asia, resulting in strong sales growth in the region in the second quarter. Operating expenses for the second quarter of 2003 were $7.3 million, compared with $8.6 million (including a restructuring charge of $1.4 million) for the first quarter. Operating income for the second quarter was $216,000, compared with an operating loss of $1.4 million in the first quarter. Due to the weakening of the U.S. dollar, principally against the euro, ParthusCeva incurred a currency translation loss of $389,000 in the second quarter of 2003, compared with a translation loss of $199,000 in the first quarter.
Net income for the second quarter of 2003 amounted to $32,000, compared with a net loss of $1.3 million for the first quarter. Net income per share for the second quarter amounted to $0.002, compared with a net loss per share of ($0.073) for the first quarter.
Cash and cash equivalents at the end of the second quarter of 2003 amounted to $65.3 million.
As previously announced, with the assumption by Chet Silvestri of his duties of Chief Executive Officer, Eli Ayalon and Brian Long will no longer perform executive functions at the company, but will remain on the Board of Directors as Chairman and Vice Chairman, respectively.
Chet Silvestri, Chief Executive Officer of ParthusCeva, commented:
"I am pleased that ParthusCeva has achieved operating profitability and positive net income in the second quarter, driven by robust licensing performance with six licensing agreements signed. We achieved continued strong adoption of our open-standard DSPs, including two with semiconductor companies ranked in the top five worldwide. I am also delighted with 41% quarter-on-quarter growth in royalty revenues, as our licensees successfully ship products containing ParthusCeva technology.
We have sustained our licensing momentum in the first weeks of the third quarter. This momentum, underpinned by a portfolio of new DSP and platform products we plan to launch in the next couple of quarters, gives us confidence that we can achieve our corporate goals of profitable growth and technology leadership." All results are presented in accordance with US GAAP
Consolidated Statement Of Operations & Consolidated Balance Sheet are available for download here
Further information about ParthusCeva
Safe Harbour Statement
Various statements in this press release concerning ParthusCeva's future expectations, plans and prospects are "forward-looking statements", which are subject to certain risks and uncertainties that could cause actual results to differ materially from those stated. Any statements that are not statements of historical fact (including, without limitation, statements to the effect that the company or its management "believes", "expects", "anticipates", "plans" and similar expressions) should be considered forward-looking statements. These statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described, including the following:
- the industries in which we license our technology are experiencing a challenging period of slow growth that has negatively impacted and could continue to negatively impact our business and operating results;
- the markets in which we operate are highly competitive, and as a result we could experience a loss of sales, lower prices and lower revenue;
- our operating results fluctuate from quarter to quarter due to a variety of factors including our lengthy sales cycle, and are not a meaningful indicator for future performance
- we rely significantly on revenue derived from a limited number of licensees; and
- other risks discussed in "Management's Discussion and Analysis of Financial Condition and Results of Operations--Factors that Could Affect Our Operating Results," in our quarterly report on Form 10-Q for the first quarter of 2003, filed with the U.S. Securities and Exchange Commission on May 14, 2003.