San Jose, Calif. - May 09, 2005 - CEVA, Inc. (NASDAQ: CEVA; LSE:
CVA) a leading licensor of digital signal processors (DSP), communications
and multimedia solutions to the semiconductor industry, today announced
that in order to streamline operations and increase profit potential it
has decided to restructure its corporate management, reduce overhead and
consolidate its activities.
In light of this move, San Jose based Chairman and Chief Executive
Officer Chet Silvestri has resigned as an officer and director and has
been replaced as Chairman by board member Peter McManamon and as CEO by
Gideon Wertheizer, who previously served as Executive Vice President and
General Manager of the DSP Cores Division of the Company. In addition, the
Company's Chief Financial Officer, Christine Russell, has resigned and has
been replaced by Yaniv Arieli, who most recently served as President of US
Operations and Investor Relations of DSP Group, Inc.(NASDAQ: DSPG).
"Chet and Christine have made important contributions to the Company
and we appreciate the time and effort they devoted to the Company during
their tenure", stated Peter McManamon, Chairman of the Company.
"I have been pleased with the progress the Company has made in
integrating the organization and product lines of CEVA. The Company has
now become the industry leader in providing DSP-centric IP solutions for
the cellular handset and multimedia markets and I am confident that the
new management can continue to fulfill the promise of the combined
organization," commented Chet Silvestri.
Regarding the appointments of Gideon Wertheizer and Yaniv Arieli, Mr.
McManamon added that "Gideon has played a major role in the development of
CEVA over the years and brings a sharply focused vision to his new office
based on his broad business background and experience in the semiconductor
industry. Yaniv's financial background including his role as controller of
DSP Group, Inc. and experience in maintaining excellent communication with
the investor community will reinforce our relations with the Company's
The Board expects the transition to be seamless and to be completed by
end of the second quarter of 2005. In connection with the reorganization,
the Company expects to take a charge currently estimated to be between
$1.2 million to $1.8 million in the second quarter of 2005. The Company
currently expects that the reorganization, once completed, will reduce its
operating expenses, primarily those related to general and administrative
functions, by an estimated amount of $2.0 million to $3.0 million on an
About CEVA, Inc.
Headquartered in San Jose, Calif., CEVA is the leading licensor of digital signal processor (DSP) cores, multimedia, GPS and storage platforms to the semiconductor industry. CEVA licenses a family of programmable DSP cores, associated SoC system platforms and a portfolio of application platforms including multimedia, audio, Voice over Packet (VoP), GPS location, Bluetooth, Serial Attached SCSI and Serial ATA (SATA). In 2005 CEVA's IP was shipped in over 115 million devices. CEVA was created through the merger of the DSP licensing division of DSP Group and Parthus Technologies. For more information, visit www.ceva-dsp.com.
A PDF copy of this press release is also available here
This press release contains forward-looking statements
concerning the impact of the Company's reorganization and the associated
costs and the potential for increased profitability and operational cost
savings that involve risks and uncertainties, as well as assumptions that
if they ever 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. The risks, uncertainties and
assumptions referred to above include macroeconomic and geopolitical
trends and events; intense competition within our industry; the industries
in which we license our technology have experienced a challenging period
of slow growth; that the market for the sale of our technology may not
develop as expected, especially in the case of newly introduced or planned
to be introduced technologies; our ability to timely and successfully
develop and introduce new technologies; that we rely significantly on
revenue derived from a limited number of licensees; the possible loss of
key employees and/or senior management; and the challenges of managing a
geographically dispersed operation, as well as our ability to timely and
successfully complete the reorganization. CEVA assumes no obligation to
update any forward-looking statements or information, which speak as of
their respective dates.