San Jose, CA - October 21, 2003 - ParthusCeva, Inc. (NASDAQ: PCVA and LSE: PCV), the leading licensor of Digital Signal Processor (DSP) cores and solutions to the semiconductor industry, today announced results for the third quarter ended September 30, 2003.
Total revenues for the third quarter increased to $9.3 million, compared with $9.1 million for the second quarter. Licensing revenues for the third quarter were $6.5 million, compared with $6.3 million for the second quarter. Royalty revenues in the third quarter were $1.2 million, compared with $854,000 for the second quarter. Gross margins in the third quarter were 85%, compared with 82% in the second quarter.
Including a restructuring charge of $1.4 million, net loss for the third quarter was $1.1 million, compared with net income of $32,000 for the second quarter. Excluding the restructuring charge, net income in the third quarter was $268,000. Net loss per share for the third quarter, including the restructuring charge, was $0.06, compared with net income per share of $0.002 for the second quarter.
Chet Silvestri, Chief Executive Officer of ParthusCeva, commented: "I am very pleased that ParthusCeva has maintained good revenue growth and operating performance in the quarter. We achieved strong growth in royalty revenues, which grew 37% quarter-on-quarter. In the fourth quarter we look forward to maintaining our business momentum and launching our next-generation DSP architecture, which we believe will deliver breakthrough levels of performance and scalability to our customers."
In the third quarter, ParthusCeva signed five new license agreements covering a range of DSP and platform-IP technologies, and announced licensing agreements with semiconductor leaders including STMicroelectronics, Infineon, Renasas and Via Telecom, reflective of strong industry uptake of ParthusCeva's DSP technology. The continued strong growth in royalty revenues reflects an increased number of ParthusCeva licensees successfully shipping solutions powered by ParthusCeva technology, predominantly in the wireless sector.
Cash and cash equivalents at the end of the third quarter were $63.5 million.
Presentation of Non-GAAP Information
Management believes that it is useful to present net loss and expenses figures above, excluding the restructuring charge, because management believes that the figures provide a better picture of the company's historical operating results and a more useful point of comparison for its future performance.
Interim Condensed Consolidated Statements Of Operations & Interim Condensed Consolidated Balance Sheets
Interim Condensed Consolidated Statements of Operations & Interim Condensed Consolidated Balance Sheets are available for download here (pdf 23KB )
Further information about ParthusCeva
The management of ParthusCeva will hold a conference call for investors and analysts at 8:00 am EST, 13:00 BST and 14:00 CET on Wednesday, October 22, 2003. The conference call will be available via the following dial-in numbers:
US Participants' Telephone: +1-866-629-0054 (password: ParthusCeva)
UK/European Participants' Telephone: +44-1452-569-340 (Password: ParthusCeva)
If you cannot join the call, you can listen to a recording, which will be available approximately one hour after the call for five working days at the following dial-in numbers:
US Participants' Telephone: +1-706-645-9291 (Access code: 3129190#)
UK/European Participants' Telephone: +44-1452-55-00-00 (Access code: 3129190#)
The call can also be accessed via ParthusCeva's website at www.parthusceva.com. Follow the directions on the main page to link to the audio. Please go to the website at least 15 minutes prior to the call to register, and to download and install any necessary audio software. The webcast will be archived for 30 days. 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 second quarter of 2003, filed with the U.S. Securities and Exchange Commission on August 12 , 2003.