San Jose, Calif. - April 20, 2004 - CEVA (NASDAQ: CEVA; LSE: CVA), the leading licensor of Digital Signal Processor (DSP) cores and communications solutions to the semiconductor industry, today announced financial results for the first quarter of 2004, ended March 31, 2004.
The first quarter 2004 results were in line with company guidance. Total revenues were $9.2 million, compared with $9.6 million in the fourth quarter of 2003. Licensing revenues were $6.6 million, approximately the same as in the fourth quarter. Royalty revenues were $1.2 million, compared with $1.4 million in the fourth quarter.
Net income in the first quarter of 2004 was $409,000 or $0.02 per share, compared with a loss of $9.6 million, or a loss of $0.53 per share in the fourth quarter of 2003.
Gross margins in the first quarter of 2004 were 84 percent, compared with 85 percent in the fourth quarter of 2003. Total cash was $58.6 million at March 31, 2004, compared with $59.1 million at the end of the fourth quarter of 2003.
"We are pleased with our continued progress on both the customer and financial fronts, especially our achievement of profitability in the quarter," said Chet Silvestri, president and CEO.
In the quarter, CEVA completed five new licensing agreements with leaders from the wireless and semiconductor industry. In addition, CEVA announced that Samsung, the world's third largest manufacturer of mobile phones, and EoNex, one of Asia's most progressive wireless players, have licensed the new CEVA-X DSP architecture to power their next generation 3G multimedia phones. Further industry adoption behind CEVA was evidenced with the licensing announcements that technology leaders including Kawasaki, Oki, Stepmind and National Semiconductor have licensed CEVA technologies.
CEVA continued its aggressive new product programs in the first quarter with the launch of two new platforms: Xpert-Media, for audio and video applications, and Xpert-Blue, for Bluetooth applications.
"The DSP industry is enjoying vibrant growth and with our enhanced portfolio of DSP technologies, we believe we are well positioned to achieve our corporate objectives of growth, profitability and extended DSP leadership in 2004," Silvestri said.
"Our achievement of profitability in the first quarter demonstrates the benefits of our re-alignment actions in the fourth quarter," said Christine Russell, CFO. "We were able to lower our costs substantially while retaining our revenue levels, resulting in a more efficient operation and a profitable business."
CEVA Conference Call
CEVA will broadcast its conference call discussion of first quarter 2004 financial results on Tuesday, April 20, 2004 at 8:30 a.m. PT (4:30 p.m. London Time). The conference call will be available via the following dial-in numbers:
- US Participants Telephone: 877-951-7311 (password: CEVA)
- UK/European Participants Telephone: +44-20-7019-0810 (Password: CEVA)
A recording will be available approximately one hour after the call for five working days at the following dial-in numbers:
- US Participants Telephone: 877-814-5621 (Access code: CEVA)
- UK/European Participants Telephone: +44-20-7970-8460 (Access code: CEVA)
The CEVA financial results conference call will be available via a live webcast on the CEVA website at http://www.ceva-dsp.com. Please access the website fifteen (15) minutes prior to the start of the call to download and install any necessary audio software. An archived webcast replay of the call will be available at the web site for one year.
Condensed Consolidated Statements of Operations & Condensed Consolidated Balance Sheets are available for download here (pdf 23KB )
For more information about CEVA, Inc, visit the about section of our website.
Safe Harbour Statement
Safe Harbor Statement Any statements contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements, including statements with respect to CEVA's anticipated financial results for the second quarter of fiscal 2004 and future quarters. Words such as "expected," "believes," "anticipates," "plans," "expects," "will" and similar expressions are intended to identify forward-looking statements. There are a number of important factors that could cause the results of CEVA to differ materially from those indicated by these forward-looking statements, including, among others, risks detailed from time to time in the Company's SEC reports, including its Annual Report on Form 10-K for the year ended December 31, 2003. CEVA does not undertake any obligation to update forward-looking statements.