MOUNTAIN VIEW, Calif.,
Oct. 27, 2011 /PRNewswire/ -- CEVA,
Inc. (NASDAQ: CEVA); (LSE: CVA), the leading licensor of silicon
intellectual property (SIP) platform solutions and DSP cores for
the mobile handset, portable and consumer electronics markets,
today announced its financial results for the third quarter ended
September 30, 2011.
Total revenue for the third quarter of 2011 was $14.8 million, an increase of 39% compared to
$10.7 million reported for the third
quarter of 2010. Third quarter 2011 licensing revenue was
$5.2 million, representing an
increase of 17% when compared to $4.5
million reported for the same quarter a year ago. Royalty
revenue for the third quarter 2011 was $8.8
million, an increase of 67% compared to $5.2 million reported for the third quarter of
2010. Revenue from services for the third quarter of 2011 was
$0.9 million, a decrease of 12%
compared to $1 million reported for
the third quarter of 2010.
Gideon Wertheizer, Chief Executive Officer of CEVA, stated,
"CEVA's strong third quarter performance reflects the continued
strength of our cellular baseband presence, as shipment volumes of
CEVA-powered products increased for the eleventh consecutive
quarter, reaching 250 million units during the quarter. We continue
to see considerable interest in our diverse technology portfolio
from both existing and new customers, as evidenced by strategic
licensing agreements with a high volume semiconductor vendor for
our new CEVA-MM3000 platform to be used for smartphones and smart
TVs and with a tier one handset and tablet OEM for our audio
platform."
Of the eight new license agreements concluded during the third
quarter of 2011, six agreements were for CEVA DSP cores, platforms
and software, one agreement was for CEVA
SATA/SAS product lines and one agreement was for CEVA
Bluetooth technology. Target applications for customer deployment
are 4G baseband processors, video, imaging and audio in application
processors, power line communications (PLC), connectivity and solid
state drives (SSDs). Geographically, two of the agreements signed
were in the U.S. and six were in Asia
Pacific, including Japan.
U.S. GAAP net income for the third quarter of 2011 was
$4.9 million, an increase of 65% over
$3.0 million reported for the same
period in 2010. U.S. GAAP diluted earnings per share for the third
quarter of 2011 were $0.20, an
increase of 54% compared to $0.13 for
the third quarter of 2010.
Non-GAAP net income and diluted earnings per share for the third
quarter of 2011 were $6.3 million and
$0.26 respectively, representing an
increase of 107% and 86%, respectively, over the $3.0 million and $0.14 reported for the third quarter of 2010.
Non-GAAP net income and diluted earnings per share for the third
quarter of 2011 and 2010 excluded an aggregate equity-based
compensation expense, net of taxes, of $1.4
million and $0.5 million,
respectively.
Yaniv Arieli, Chief Financial
Officer of CEVA, stated, "Our third quarter financial performance
achieved a number of significant milestones and maintained the
momentum generated during the first half of the year. We produced
record high gross margins, operating margins, non-GAAP net income
and earnings per share through a combination of solid licensing
pipeline, reflecting our excellent product portfolio, continued
strength in our royalty business and a company-wide commitment to
conservative financial management. At the end of the third quarter,
our cash balance, marketable securities and bank deposits totaled
approximately $156 million."
CEVA Conference Call
On October 27, 2011, CEVA
management will conduct a conference call at 8:30 a.m. Eastern Time / 1:30 p.m. London
time, to discuss the operating performance for the third quarter
ended September 30, 2011.
The conference call will be available via the following dial in
numbers:
- U.S. Participants: Dial 1-800-860-2442 (Access Code: CEVA or
10005147)
- International Participants: Dial +1-412-858-4600 (Access Code:
CEVA or 10005147)
The conference call will also be available live via the Internet
at the following link:
http://www.videonewswire.com/event.asp?id=82668. Please
go to the web site at least fifteen minutes prior to the call to
register, download and install any necessary audio software. For
those who cannot access the live broadcast, a replay will be
available by dialing +1-877-344-7529 (passcode: 10005147) from one
hour after the end of the call until 9:00
a.m. (Eastern Time) on November 03,
2011. The replay will also be available at CEVA's web site
www.ceva-dsp.com.
About CEVA, Inc.
CEVA is the world's leading licensor of silicon intellectual
property (SIP) DSP cores and platform solutions for the mobile
handset, portable and consumer electronics markets. CEVA's IP
portfolio includes comprehensive technologies for cellular baseband
(2G / 3G / 4G), multimedia, HD video and audio, voice over packet
(VoP), Bluetooth, Serial Attached SCSI (SAS) and Serial ATA (SATA).
In 2010, CEVA's IP was shipped in over 600 million devices,
powering handsets from 7 out of the top 8 handset OEMs, including
Nokia, Samsung, LG, Motorola, Sony Ericsson and ZTE. Today, more
than one in every three handsets shipped worldwide is powered by a
CEVA DSP core. For more information, visit www.ceva-dsp.com. Follow
CEVA on twitter at www.twitter.com/cevadsp.
CEVA, INC.
AND ITS SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS – U.S. GAAP
U.S. dollars in thousands,
except per share data
|
|
|
Quarter ended
|
Nine months ended
|
|
|
September 30,
|
September 30,
|
|
|
2011
|
2010
|
2011
|
2010
|
|
|
Unaudited
|
Unaudited
|
Unaudited
|
Unaudited
|
|
Revenues:
|
|
|
|
|
|
Licensing
|
$ 5,225
|
$ 4,459
|
$ 15,528
|
$ 13,774
|
|
Royalties
|
8,766
|
5,238
|
26,244
|
15,372
|
|
Other
revenues
|
856
|
978
|
2,515
|
2,739
|
|
|
|
|
|
|
|
Total revenues
|
14,847
|
10,675
|
44,287
|
31,885
|
|
|
|
|
|
|
|
Cost of
revenues
|
811
|
1,001
|
2,635
|
2,578
|
|
|
|
|
|
|
|
Gross profit
|
14,036
|
9,674
|
41,652
|
29,307
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
Research and development,
net
|
5,158
|
4,129
|
15,813
|
13,243
|
|
Sales and
marketing
|
2,099
|
1,664
|
6,650
|
5,248
|
|
General and
administrative
|
2,057
|
1,593
|
5,553
|
4,709
|
|
|
|
|
|
|
|
Total operating
expenses
|
9,314
|
7,386
|
28,016
|
23,200
|
|
|
|
|
|
|
|
Operating
income
|
4,722
|
2,288
|
13,636
|
6,107
|
|
Interest and other income,
net
|
784
|
493
|
2,046
|
1,591
|
|
|
|
|
|
|
|
Income before income
tax
|
5,506
|
2,781
|
15,682
|
7,698
|
|
Income tax expense
(income)
|
571
|
(208)
|
1,973
|
527
|
|
|
|
|
|
|
|
Net income
|
4,935
|
2,989
|
13,709
|
7,171
|
|
|
|
|
|
|
|
Basic net income per
share
|
$0.21
|
$0.14
|
$0.59
|
$0.34
|
|
Diluted net income per
share
|
$0.20
|
$0.13
|
$0.57
|
$0.32
|
|
Weighted-average number of
Common Stock used in computation of net income
per share (in
thousands):
|
|
|
|
|
|
Basic
|
23,390
|
21,244
|
23,065
|
20,989
|
|
Diluted
|
24,253
|
22,356
|
24,105
|
22,114
|
|
|
|
|
|
|
|
|
|
Unaudited
Reconciliation of GAAP to Non-GAAP Financial
Measures
(U.S.
Dollars in thousands, except per share amounts)
|
|
|
Quarter
ended
|
Nine months
ended
|
|
|
September
30,
|
September
30,
|
|
|
2011
|
2010
|
2011
|
2010
|
|
|
Unaudited
|
Unaudited
|
Unaudited
|
Unaudited
|
|
GAAP net income
|
4,935
|
2,989
|
13,709
|
7,171
|
|
Equity-based compensation
expense included in cost of revenue
|
61
|
23
|
171
|
56
|
|
Equity-based compensation
expense included in research and development expenses
|
510
|
183
|
1,372
|
489
|
|
Equity-based compensation
expense included in sales and marketing expenses
|
291
|
92
|
747
|
300
|
|
Equity-based compensation
expense included in general and administrative expenses
|
553
|
239
|
1,250
|
816
|
|
Income tax expense
(income)
|
(99)(2)
|
(500)(1)
|
(98)(2)
|
(500)(1)
|
|
Non-GAAP net
income
|
6,251
|
3,026
|
17,151
|
8,332
|
|
|
|
|
|
|
|
GAAP weighted-average
number of Common Stock used in computation of diluted net income
per share (in thousands)
|
24,253
|
22,356
|
24,105
|
22,114
|
|
Weighted-average number of
shares related to outstanding options
|
11
|
41
|
19
|
64
|
|
Weighted-average number of
Common Stock used in computation of diluted net income per share,
excluding equity-based compensation expense and tax income (in
thousands)
|
24,264
|
22,397
|
24,124
|
22,178
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted
net income per share
|
$0.20
|
$0.13
|
$0.57
|
$0.32
|
|
Equity-based compensation
expense
|
$0.06
|
$0.03
|
$0.14
|
$0.08
|
|
Income tax expense
(income)
|
-
|
$(0.02)(1)
|
-
|
$(0.02)(1)
|
|
Non-GAAP
diluted net income per share
|
$0.26
|
$0.14
|
$0.71
|
$0.38
|
|
|
|
|
|
|
|
(1) Results for the
three months and the nine months ended September 30, 2010 included
$0.5 million of tax income associated with adjustments related to
international cost allocations, as well as tax planning strategies
to utilize certain deferred tax assets.
(2) Results for the
three months and the nine months ended September 30, 2011 included
$0.1 million of tax income related to equity-based compensation
expenses.
|
|
|
|
|
|
|
CEVA, INC.
AND ITS SUBSIDIARIES
CONDENSED
CONSOLIDATED BALANCE SHEETS
U.S. Dollars
in Thousands
|
|
|
September 30,
|
December 31,
|
|
|
2011
|
2010
|
|
|
Unaudited
|
Audited
|
|
ASSETS
|
|
|
|
Current assets:
|
|
|
|
Cash and cash
equivalents
|
$ 22,695
|
$ 17,098
|
|
Marketable securities and
short term bank deposits
|
114,537
|
98,681
|
|
Trade receivables,
net
|
4,485
|
5,906
|
|
Deferred tax
assets
|
1,973
|
1,288
|
|
Prepaid
expenses and other accounts receivables
|
4,508
|
4,609
|
|
Total current
assets
|
148,198
|
127,582
|
|
|
|
|
|
Long-term
investments:
Long-term bank deposits
|
18,369
|
15,173
|
|
Severance pay fund
|
5,525
|
5,433
|
|
Deferred tax assets
|
893
|
574
|
|
Property and equipment,
net
|
1,192
|
1,348
|
|
Goodwill
|
36,498
|
36,498
|
|
Total assets
|
$ 210,675
|
$ 186,608
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Trade payables
|
$ 562
|
$ 616
|
|
Deferred
revenues
|
1,450
|
616
|
|
Accrued
expenses and other payables
|
9,353
|
10,521
|
|
Deferred tax
liabilities
|
136
|
901
|
|
Total current
liabilities
|
11,501
|
12,654
|
|
|
|
|
|
Accrued severance
pay
|
5,782
|
5,486
|
|
|
|
|
|
Total
liabilities
|
17,283
|
18,140
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
Common Stock
|
23
|
23
|
|
Additional paid
in-capital
|
189,256
|
176,838
|
|
Accumulated other
comprehensive income (loss)
|
(886)
|
317
|
|
Accumulated income
(deficit)
|
4,999
|
(8,710)
|
|
Total stockholders'
equity
|
193,392
|
168,468
|
|
Total liabilities and
stockholders' equity
|
$ 210,675
|
$ 186,608
|
|
|
|
|
|
|
SOURCE CEVA, Inc.