CEVA INC - FORM 8-K - EX-99.1 - EXHIBIT 99.1

Attached files

file	filename
8-K - FORM 8-K - CEVA INC	c20339e8vk.htm

Exhibit 99.1

CEVA, Inc. Announces Second Quarter 2011 Financial Results

	•		Quarterly revenues of $14.4 million, up 36% year-over-year

	•		Healthy licensing environment with good short-term visibility

	•		Strong financial performance — both operating income and net income approximately double year-over-year

MOUNTAIN VIEW, Calif. — July 26, 2011 — 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 second quarter ended June 30, 2011.

Total revenue for the second quarter of 2011 was $14.4 million, an increase of 36% compared to $10.6 million reported for the second quarter of 2010. Second quarter 2011 licensing revenue was $5.2 million, representing an increase of 13% when compared to $4.6 million reported for the same quarter a year ago. Royalty revenue for the second quarter 2011 was $8.3 million, an increase of 60% compared to $5.2 million reported for the second quarter of 2010. Revenue from services for both the second quarters of 2011 and 2010 was $0.9 million.

Gideon Wertheizer, Chief Executive Officer of CEVA, stated, “The second quarter demonstrated strong financial and business achievements. We are particularly pleased with the dynamics of our licensing business, where we concluded strategic CEVA-XC agreements with partners in the LTE handset and smart grid markets. We also experienced higher sequential shipment volumes of CEVA-powered products, resulting from continued expansion in the lucrative 3G smartphone and TD-SCDMA market segments. Overall, we continue to make exceptional progress in both the licensing and market deployment of our technology, reaffirming the key trends that drive growth and profitability for our company.”

Of the eight new license agreements concluded during the second quarter of 2011, seven agreements were for CEVA DSP cores, platforms and software, and one agreement was for CEVA SATA/SAS product lines. Target applications for customer deployment are 4G and 3G baseband processors for handsets, infrastructure, smart grid, portable game consoles and SSD drives. Geographically, four of the agreements signed were in the U.S. and four were in Asia.

U.S. GAAP net income for the second quarter of 2011 was $4.1 million, an increase of 94% over $2.1 million reported for the same period in 2010. U.S. GAAP diluted earnings per share for the second quarter of 2011 were $0.17, an increase of 70% compared to $0.10 for the second quarter of 2010.

Non-GAAP net income and diluted earnings per share for the second quarter of 2011 were $5.4 million and $0.22 respectively, representing an increase of 102% and 83%, respectively, over the $2.7 million and $0.12 reported for the second quarter of 2010. Non-GAAP net income and diluted earnings per share for the second quarter of 2011 and 2010 excluded an aggregate equity-based compensation expense, net of taxes, of $1.2 million and $0.5 million, respectively.

Yaniv Arieli, Chief Financial Officer of CEVA, stated, “We continued to demonstrate considerable progress during the second quarter, delivering significant year-over-year growth in every aspect of our business. Total revenue increase was driven by exceptional year-over-year royalty revenue growth and progress in our licensing business. As a result, our operating income and net income approximately doubled compared to the second quarter of 2010. Finally, we continued to strengthen our balance sheet with the addition of approximately $9 million in positive cash flow. At the end of the quarter, our cash balance, marketable securities and bank deposits totaled approximately $153 million.”

CEVA Conference Call
On July 26, 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 second quarter ended June 30, 2011.

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

	•		US Participants: Dial 1-877-493-9121 (Access Code: CEVA or 81159859)

	•		UK/Rest of World: Dial +44-800-051-3806 (Access Code: CEVA or 81159859)

The conference call will also be available live via the Internet at the following link: http://www.videonewswire.com/event.asp?id=80733. 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 1-800-642-1687 (passcode: 81159859) for US domestic callers and +44-800-917-2646 (passcode: 81159859) for international callers from two hours after the end of the call until 11:59 p.m. (Eastern Time) on August 02, 2011. The replay will also be available at CEVA’s web site www.ceva-dsp.com.

For More Information Contact:


Yaniv Arieli		Richard Kingston
CEVA, Inc.		CEVA, Inc.
CFO		Director of Marketing & Investor Relations
+1.650.417.7941		+1.650.417.7976
yaniv.arieli@ceva-dsp.com		richard.kingston@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				Six months ended
	June 30,				June 30,
	2011		2010		2011		2010
	Unaudited		Unaudited		Unaudited		Unaudited
Revenues:
Licensing	$	5,195	$	4,593	$	10,303	$	9,315
Royalties		8,272		5,154		17,478		10,134
Other revenues		921		862		1,659		1,761


Total revenues		14,388		10,609		29,440		21,210


Cost of revenues		876		863		1,824		1,577


Gross profit		13,512		9,746		27,616		19,633


Operating expenses:
Research and development, net		5,405		4,505		10,655		9,114
Sales and marketing		2,327		1,776		4,551		3,584
General and administrative		1,742		1,570		3,496		3,116

Total operating expenses		9,474		7,851		18,702		15,814


Operating income		4,038		1,895		8,914		3,819
Interest and other income, net		717		541		1,262		1,098


Income before taxes on income		4,755		2,436		10,176		4,917

Taxes on income		632		313		1,402		735


Net income		4,123		2,123		8,774		4,182


Basic net income per share	$	0.18	$	0.10	$	0.38	$	0.20
Diluted net income per share	$	0.17	$	0.10	$	0.37	$	0.19

Weighted-average number of Common Stock used in computation of net income per share (in thousands):
Basic		23,107		21,061		22,900		20,859
Diluted		24,165		22,069		24,028		21,991

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


	Quarter ended				Six months ended
	June 30				June 30
	2011		2010		2011		2010
	Unaudited		Unaudited		Unaudited		Unaudited
GAAP net income		4,123		2,123		8,774		4,182
Equity-based compensation expense included in cost of revenue		61		15		110		33
Equity-based compensation expense included in research and development expenses		484		139		862		306
Equity-based compensation expense included in sales and marketing expenses		255		96		456		208
Equity-based compensation expense included in general and administrative expenses		371		290		697		577
Deferred tax related to equity-based compensation expenses		85		—		1		—

Non-GAAP net income		5,379		2,663		10,900		5,306


GAAP weighted-average number of Common Stock used in computation of diluted net income per share (in thousands)		24,165		22,069		24,028		21,991

Weighted-average number of shares related to outstanding options		15		57		23		75


Weighted-average number of Common Stock used in computation of diluted net income per share excluding equity-based compensation expense (in thousands)		24,180		22,126		24,051		22,066

GAAP diluted net income per share	$	0.17	$	0.10	$	0.37	$	0.19

Equity-based compensation expense	$	0.05	$	0.02	$	0.08	$	0.05

Non-GAAP diluted net income per share	$	0.22	$	0.12	$	0.45	$	0.24

CEVA, INC. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
U.S. Dollars in Thousands


	June 30,		December 31,
	2011		2010
	Unaudited		Audited
ASSETS
Current assets:
Cash and cash equivalents	$	14,379	$	17,098
Marketable securities and short term bank deposits		123,112		98,681
Trade receivables, net		3,622		5,906
Deferred tax assets		2,355		1,288
Prepaid expenses and other accounts receivables		5,186		4,609

Total current assets		148,654		127,582


Long-term investments:
Long term bank deposits		15,277		15,173
Severance pay fund		5,858		5,433
Deferred tax assets		839		574
Property and equipment, net		1,308		1,348
Goodwill		36,498		36,498

Total assets	$	208,434	$	186,608


LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:
Trade payables	$	850	$	616
Deferred revenues		3,646		616
Accrued expenses and other payables		9,535		10,521
Deferred tax liabilities		597		901

Total current liabilities		14,628		12,654

Accrued severance pay		5,902		5,486


Total liabilities		20,530		18,140


Stockholders’ equity:
Common Stock		23		23
Additional paid in-capital		187,378		176,838
Accumulated other comprehensive income		439		317
Accumulated income (deficit)		64		(8,710	)

Total stockholders’ equity		187,904		168,468

Total liabilities and stockholders’ equity	$	208,434	$	186,608

Attached files

Stock widget

Investing forum

CEVA INC Reports