CEVA, Inc. Announces Third Quarter 2023 Financial Results
[ Back ]   [ More News ]   [ Home ]
CEVA, Inc. Announces Third Quarter 2023 Financial Results

ROCKVILLE, Md., Nov. 8, 2023 — (PRNewswire) —  CEVA, Inc. (NASDAQ: CEVA), the leading licensor of wireless connectivity and smart sensing technologies which have powered more than 16 billion devices, today announced its financial results for the third quarter ended September 30, 2023. Financial results for the third quarter and all periods presented reflect CEVA's continuing operations only, with the Intrinsix business reflected as a discontinued operation, unless otherwise noted.

The CEVA team delivered solid third quarter results, with sequential improvements in both licensing and royalty revenues

Total revenue for the third quarter of 2023 was $24.1 million, a 20% decrease compared to $30.0 million reported for the third quarter of 2022. Third quarter of 2023 licensing and related revenue was $13.9 million compared to $18.7 million reported for the same quarter a year ago but up 3% sequentially. Royalty revenue for the third quarter of 2023 was $10.1 million, a decrease of 11% when compared to $11.4 million reported for the third quarter of 2022, but up 8% sequentially.

Amir Panush, Chief Executive Officer of CEVA, remarked: "The CEVA team delivered solid third quarter results, with sequential improvements in both licensing and royalty revenues as we refocused all our efforts on driving the IP business following the sale of Intrinsix. In licensing, our wireless communications IPs continue to be in strong demand, underpinned by three more Wi-Fi & Bluetooth combo deals, including a customer for our new Wi-Fi 7 IP for Access Points. In royalties, we reported our second highest CEVA-powered device shipments in a quarter, totaling half a billion units. These results reflect robust restocking demand for consumer devices and illustrative of the strength of our customer base."

During the quarter, thirteen IP license agreements were concluded, targeting a wide variety of end markets and applications, including Wi-Fi 7, Wi-Fi 6 and Bluetooth 5 for connectivity chips targeting access points, smart home automation, smart wearables and single board computers, Bluetooth audio for a global leader in hearing care, and a communications DSP license targeting high-volume satellite communications. Four agreements were with first-time customers and two were with OEM customers.

GAAP gross margin for the third quarter of 2023 was 90% as compared to 81% in the third quarter of 2022. GAAP operating loss for the third quarter of 2023 was $2.7 million, as compared to a GAAP operating loss of $2.4 million for the same period in 2022. GAAP net loss for the third quarter of 2023 was $2.7 million, as compared to a GAAP net loss of $20.6 million reported for the same period in 2022. GAAP diluted losses per share for the third quarter of 2023 was $0.12, as compared to GAAP diluted losses per share of $0.89 for the same period in 2022.

GAAP net loss with the discontinued operations for the third quarter was $5.0 million, as compared to GAAP net loss with the discontinued operations of $22.3 million for the same quarter last year. GAAP diluted losses per share with the discontinued operations for the third quarter of 2023 was $0.21, as compared to GAAP diluted losses per share with the discontinued operations of $0.96 for the same period in 2022.

Non-GAAP gross margin for the third quarter of 2023 was 92%, as compared to 89% for the same period in 2022. Non-GAAP operating income for the third quarter of 2023 was $1.6 million, as compared to Non-GAAP operating income of $7.3 million reported for the third quarter of 2022. Non-GAAP net income and diluted income per share for the third quarter of 2023 were $1.4 million and $0.06, respectively, compared with Non-GAAP net income and diluted income per share of $5.2 million and $0.22, respectively, reported for the third quarter of 2022. 

Non-GAAP net income with the discontinued operations for the third quarter of 2023 was $0.4 million, as compared to non-GAAP net income with the discontinued operations of $4.7 million for the same quarter last year. Non-GAAP diluted income per share with the discontinued operations for the third quarter of 2023 was $0.02, as compared to Non-GAAP diluted income per share of $0.20 for the same period in 2022.

Non-GAAP gross margin for the third quarter of 2023 excluded: (a) equity-based compensation expenses of $0.2 million and (b) amortization of acquired intangibles of $0.1 million. Non-GAAP gross margin for the third quarter of 2022 excluded: (a) equity-based compensation expenses of $0.2 million,  (b) amortization of acquired intangibles of $0.2 million and (c) impairment charges of $2.0 million relating to discontinued Immervision technology and non-performing assets of certain NB-IoT technology.

Non-GAAP operating income for the third quarter of 2023 excluded: (a) equity-based compensation expenses of $4.0 million, (b) the impact of the amortization of acquired intangibles of $0.3 million, (c) $0.1 million of costs associated with business acquisitions. Non-GAAP operating income for the third quarter of 2022 excluded: (a) equity-based compensation expenses of $3.4 million, (b) the impact of the amortization of acquired intangibles of $0.8 million and (c) impairment charges of $5.5 million relating to discontinued Immervision technology and non-performing assets of certain NB-IoT technology.

Non-GAAP net income and diluted income per share for the third quarter of 2023 excluded: (a) equity-based compensation expenses of $4.0 million, (b) the impact of the amortization of acquired intangibles of $0.3 million, (c) $0.1 million of costs associated with business acquisitions and (d) $0.2 million income associated with the reevaluation of an investment in another company. Non-GAAP net income and diluted earnings per share for the third quarter of 2022 excluded: (a) equity-based compensation expenses of $3.4 million, (b) the impact of the amortization of acquired intangibles of $0.8 million, (c) $0.5 million loss associated with the remeasurement of marketable equity securities, (d) impairment charges of $5.5 million relating to discontinued Immervision technology and non-performing assets of certain NB-IoT technology and (e) a $15.7 million write-off of a deferred tax asset, including withholding tax assets that we will not be able to utilize as a tax credit.

Yaniv Arieli, Chief Financial Officer of CEVA, stated: "Following the sale of Intrinsix, our gross margins have returned to our historic levels. Reaching 90% and 92% on a GAAP and non-GAAP basis, respectively, in the quarter. We have also recorded lower OPEX for the quarter, which we'll continue to monitor and manage closely. In addition, proceeds from the sale of the Intrinsix business have increased our cash and cash equivalent balances to $160 million in early October, some of which will be used to execute on our expanded share repurchase plan announced today."

CEVA Conference Call

On November 8, 2023, CEVA management will conduct a conference call at 8:30 a.m. Eastern Time to discuss the operating performance for the quarter.

The conference call will be available via the following dial in numbers:

The conference call will also be available live via webcast at the following link: https://app.webinar.net/BOnmpeNLrwY. 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 or +1-412-317-0088 (conference replay code: 5006273) from one hour after the end of the call until 9:00 a.m. (Eastern Time) on November 15, 2023. The replay will also be available at CEVA's web site www.ceva-dsp.com.

CEVA Investor Day

CEVA management will host an Investor Day at the Nasdaq MarketSite in New York City on Wednesday, December 6, 2023,

This event will highlight CEVA's growth strategy with a presentation by CEVA CEO Amir Panush, followed by market and technology overviews and a longer-term financial outlook. Presentations will be followed by a Q&A session.

A live webcast of the event will be available through the CEVA Investor Relations website beginning at approximately 9:00 a.m. Eastern Time. A replay of the webcast and supporting materials will be available after the conclusion of the event.

For more information, contact Email Contact.

About CEVA, Inc.
CEVA is the leading licensor of wireless connectivity and smart sensing technologies for a smarter, safer, connected world. We provide Digital Signal Processors, AI engines, wireless platforms and complementary embedded software for sensor fusion, image enhancement, computer vision, spatial audio, voice input and artificial intelligence. Leveraging our technologies, many of the world's leading semiconductors, system companies and OEMs create power-efficient, intelligent, secure and connected devices for a range of end markets, including mobile, consumer, automotive, robotics, industrial and IoT.

Our DSP and AI based solutions include platforms for 5G baseband processing in mobile, IoT and infrastructure, advanced imaging and computer vision for any camera-enabled device, audio/voice/speech and ultra-low-power always-on/sensing applications for multiple IoT markets. For motion sensing solutions, our Hillcrest Labs sensor processing technologies provide a broad range of sensor fusion software and inertial measurement unit ("IMU") solutions for markets including hearables, wearables, AR/VR, PC, robotics, remote controls and IoT. For wireless IoT, our platforms for Bluetooth connectivity (low energy and dual mode), Wi-Fi 4/5/6 (802.11n/ac/ax), Ultra-wideband ( UWB), NB-IoT and GNSS are the most broadly licensed connectivity platforms in the industry.

CEVA is a sustainable and environmentally conscious company, adhering to our Code of Business Conduct and Ethics. As such, we emphasize and focus on environmental preservation, recycling, the welfare of our employees and privacy – which we promote on a corporate level. At CEVA, we are committed to social responsibility, values of preservation and consciousness towards these purposes.

Visit us at www.ceva-dsp.com and follow us on Twitter, YouTube, Facebook,, LinkedIn and Instagram.

Forward Looking Statements

This press release contains forward-looking statements that involve risks and uncertainties, as well as assumptions that if they materialize or prove incorrect, could cause the results of CEVA to differ materially from those expressed or implied by such forward-looking statements and assumptions. Forward-looking statements include statements regarding demand for CEVA's portfolio of technologies,  CEVA's refocusing of efforts on its IP business following the sale of Intrinsix and potential use of cash balances to expand on the CEVA's share repurchase program. The risks, uncertainties and assumptions that could cause differing CEVA results include: the effect of intense industry competition; the ability of CEVA's technologies and products incorporating CEVA's technologies to achieve market acceptance; CEVA's ability to meet changing needs of end-users and evolving market demands; the cyclical nature of and general economic conditions in the semiconductor industry; CEVA's ability to diversify its royalty streams and license revenues; CEVA's ability to continue to generate significant revenues from the handset baseband market and to penetrate new markets; instability and disruptions related to the ongoing Israel-Gaza conflict; and general market conditions and other risks relating to CEVA's business, including, but not limited to, those that are described from time to time in our SEC filings. CEVA assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates.

 

CEVA, INC. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF LOSS – U.S. GAAP
U.S. dollars in thousands, except per share data



Three months ended

Nine months ended


Sept 30,

Sept 30,


2023

2022

2023

2022


Unaudited

Unaudited

Unaudited

Unaudited

Revenues:





Licensing and related revenues

$  13,940

$  18,658

$  45,739

$  55,771

Royalties

10,133

11,392

27,518

34,462






Total revenues

24,073

30,050

73,257

90,233






Cost of revenues

2,357

5,661

9,389

11,837






Gross profit

21,716

24,389

63,868

78,396






Operating expenses:





Research and development, net

17,814

16,488

54,544

52,270

Sales and marketing

2,862

2,876

8,213

8,014

General and administrative

3,608

3,253

11,346

9,943

Amortization of intangible assets

149

575

445

1,726

Impairment of assets

-

3,556

-

3,556

Total operating expenses

24,433

26,748

74,548

75,509






Operating income (loss)

(2,717)

(2,359)

(10,680)

2,887

Financial income, net

924

108

3,497

803

Remeasurement of marketable equity securities

160

(455)

(76)

(2,271)






Income (loss) before taxes on income

(1,633)

(2,706)

(7,259)

1,419

Income tax expense

1,117

17,926

3,080

19,816






Net loss from continuing operations

(2,750)

(20,632)

(10,339)

(18,397)

Net loss from discontinued operations

(2,207)

(1,672)

(5,308)

(6,726)

Net loss

$  (4,957)

$  (22,304)

$  (15,647)

$  (25,123)






Basic and diluted net loss per share:





Continuing operations

(0.12)

(0.89)

(0.44)

(0.79)

Discontinued operations

(0.09)

(0.07)

(0.23)

(0.29)

Basic and diluted net loss per share

$  (0.21)

$  (0.96)

$  (0.67)

$  (1.08)

Weighted-average shares used to compute net loss per
share (in thousands):





Basic and diluted

23,605

23,211

23,473

23,163

 

Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures
U.S. Dollars in thousands, except per share amounts



Three months ended

Nine months ended


Sept 30,

Sept 30,


2023

2022

2023

2022


Unaudited

Unaudited

Unaudited

Unaudited

GAAP net loss

$  (4,957)

$  (22,304)

$  (15,647)

$  (25,123)

Equity-based compensation expense included in cost of
revenues

216

187

636

511

Equity-based compensation expense included in research
and development expenses

2,257

2,105

6,703

5,988

Equity-based compensation expense included in sales
and marketing expenses

478

380

1,305

1,030

Equity-based compensation expense included in general
and administrative expenses

1,018

699

2,787

2,004

Amortization, Impairment and Write-off of intangible
assets

278

6,273

753

7,793

Costs associated with business acquisitions

100

-

195

-

Income (loss)  associated with the remeasurement of
marketable equity securities.

(160)

455

76

2,271

Income tax expense as a result of a write off of a
deferred tax asset and withholding tax that can't be utilized

-

15,741

-

15,323

Non-GAAP from discontinued operations

1,184

1,169

3,233

3,436

Non-GAAP net income

$414

$  4,705

$  41

$  13,233

GAAP weighted-average number of Common Stock
used in computation of diluted net loss and loss per share
(in thousands)

23,605

23,211

23,473

23,163

Weighted-average number of shares related to
outstanding stock-based awards (in thousands)

1,304

872

1,172

821

Weighted-average number of Common Stock used in
computation of diluted earnings per share, excluding the
above (in thousands)

24,909

24,083

24,645

23,984






GAAP diluted loss per share

$  (0.21)

$  (0.96)

$  (0.67)

$  (1.08)

Equity-based compensation expense

$  0.17

$  0.15

$  0.49

$  0.40

Amortization, Impairment and Write-off of intangible
assets, net of taxes

$  0.01

$  0.27

$  0.03

$  0.33

Costs associated with business acquisitions

-

-

$  0.01

-

Loss associated with the remeasurement of marketable
equity securities.

-

$  0.01

-

$  0.10

Income tax expense as a result of a write off of a
deferred tax asset and withholding tax that can't be
utilized

-

$  0.68

-

$  0.66

Non-GAAP from discontinued operations

$  0.05

$  0.05

$  0.14

$  0.14

Non-GAAP diluted earnings per share

$  0.02

$  0.20

$  0.00

$  0.55




Three months ended

Nine months ended


Sept 30,

Sept 30,


2023

2022

2023

2022


Unaudited

Unaudited

Unaudited

Unaudited

GAAP Operating Income (loss)

$  (2,717)

$  (2,359)

$  (10,680)

$  2,887

Equity-based compensation expense included in cost of
revenues

216

187

636

511

Equity-based compensation expense included in
research and development expenses

2,257

2,105

6,703

5,988

Equity-based compensation expense included in sales
and marketing expenses

478

380

1,305

1,030

Equity-based compensation expense included in
general and administrative expenses

1,018

699

2,787

2,004

Amortization, Impairment and Write-off of intangible
assets

278

6,273

753

7,793

Costs associated with business acquisitions

100


195


Total non-GAAP Operating Income

$  1,630

$  7,285

$  1,699

$  20,213




Three months ended

Nine months ended


Sept 30,

Sept 30,


2023

2022

2023

2022


Unaudited

Unaudited

Unaudited

Unaudited






GAAP Gross Profit

$  21,716

$  24,389

$  63,868

$  78,396

GAAP Gross Margin

90 %

81 %

87 %

87 %






Equity-based compensation expense included in cost of
revenues

216

187

636

511

Amortization, Impairment and Write-off of intangible
assets    

129

2,142

308

2,511

Total Non-GAAP Gross profit

22,061

26,718

64,812

81,418

Non-GAAP Gross Margin

92 %

89 %

88 %

90 %

 

CEVA, INC. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(U.S. Dollars in thousands)




September 30,

December 31,



2023

2022 (*)



Unaudited

Unaudited

ASSETS




Current assets:




Cash and cash equivalents


$  17,082

$  20,116

Marketable securities and short-term bank deposits


114,630

118,194

Trade receivables, net


7,997

11,136

Unbilled receivables


23,066

18,694

Prepaid expenses and other current assets


6,828

6,789

Current assets held for sale


1,659

2,696

                         Total current assets


171,262

177,625

Long-term assets:




Bank deposits


-

8,205

Severance pay fund


6,411

8,475

Deferred tax assets, net


9,989

8,484

Property and equipment, net


6,733

6,624

Operating lease right-of-use assets


7,973

8,485

Investment in marketable equity securities


332

408

Goodwill


58,308

56,794

Intangible assets, net


3,245

2,392

Other long-term assets


7,993

6,291

Long-term assets held for sale


23,741

24,659

                         Total assets


$  295,987

$  308,442





LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities:




Trade payables


$  1,221

$  1,859

Deferred revenues


3,994

3,098

Accrued expenses and other payables


17,247

24,049

Operating lease liabilities


2,569

2,680

Current liabilities held for sale


655

1,592

Total current liabilities


25,686

33,278

Long-term liabilities:




Accrued severance pay


7,131

9,064

Operating lease liabilities


4,590

5,207

Other accrued liabilities


575

526

Long-term liabilities held for sale


1,305

1,496

Total liabilities


39,287

49,571

Stockholders' equity:




Common stock


24

23

Additional paid in-capital


248,743

242,841

Treasury stock


(2,996)

(9,904)

Accumulated other comprehensive loss


(5,469)

(6,249)

Retained earnings


16,398

32,160

Total stockholders' equity


256,700

258,871

Total liabilities and stockholders' equity


$  295,987

$  308,442


(*) Derived from audited financial statements.

 

Cision View original content to download multimedia: https://www.prnewswire.com/news-releases/ceva-inc-announces-third-quarter-2023-financial-results-301980876.html

SOURCE CEVA, Inc.

Contact:
Company Name: CEVA, Inc.
Yaniv Arieli, CEVA, Inc., CFO
Phone: +1.650.417.7941, yaniv.arieli@ceva-dsp.com; Richard Kingston, CEVA, Inc., VP Market Intelligence, Investor & Public Relations
Phone: +1.650.417.7976, richard.kingston@ceva-dsp.com
Financial data for CEVA, Inc.