CEVA, Inc. Announces First Quarter 2012 Financial Results

MOUNTAIN VIEW, Calif., May 2, 2012 /PRNewswire/ -- CEVA, Inc. (NASDAQ: CEVA), 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 first quarter ended March 31, 2012.

Total revenue for the first quarter of 2012 was $15.1 million, flat compared to $15.1 million for the first quarter of 2011. Licensing revenue for the first quarter of 2012 was $5.1 million, flat compared to $5.1 million reported for the same quarter a year ago. Royalty revenue for the first quarter of 2012 was $9.1 million compared to $9.2 million reported for the first quarter of 2011. Revenue from services for the first quarter of 2012 was $0.9 million, an increase of 21% compared to $0.7 million reported for the first quarter of 2011.

Gideon Wertheizer, Chief Executive Officer, stated, "Driven by strong licensing activities, we generated revenue and earnings results at the high-end of our expectations. We are particularly happy to augment our already strong customer base in baseband with new licensees who will use our DSPs for advanced audio processing in smartphones."

U.S. GAAP net income for the first quarter of 2012 was $4.9 million, an increase of 4% over $4.7 million reported for the same period in 2011. U.S. GAAP diluted earnings per share for the first quarter of 2012 was $0.20, an increase of 5% compared to $0.19 for the first quarter of 2011.

Non-GAAP net income and diluted earnings per share for the first quarter of 2012 was $5.9 million and $0.24, respectively, representing an increase of 6% and 4%, respectively, over the $5.5 million and $0.23 reported for the first quarter of 2011. Non-GAAP net income and diluted earnings per share for the first quarter of 2012 and 2011 excluded an aggregate equity-based compensation expense, net of taxes, of $1.1 million and $0.9 million, respectively.

During the first quarter of 2012, the Company concluded eight new license agreements. Six agreements were for CEVA DSP cores, platforms and software, and two agreements were for CEVA SATA/SAS product lines. Target applications for customer deployment are 3G and 4G basebands, audio and voice processing for mass market smartphones and SSD drives. Geographically, three of the agreements signed were in the U.S., four were in Asia and one was in Europe.

Yaniv Arieli, Chief Financial Officer stated, "Our first quarter financial performance demonstrates our consistent execution in growing our customer base and diversifying our revenue sources. During the first quarter, we bought back approximately 400,000 shares of our common stock for an aggregate consideration of approximately $9.5 million. The recent buyback activity demonstrates our confidence in CEVA's strong fundamentals. At the end of the quarter, our cash balance, marketable securities and bank deposits totaled $163 million."

CEVA Conference Call

On May 2, 2012, CEVA management will conduct a conference call at 8:30 a.m. Eastern Time, to discuss the operating performance for the first quarter ended March 31, 2012.

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

  • U.S. Participants: Dial 1-800-860-2442 (Access Code: CEVA)
  • International Participants: Dial +1-412-858-4600 (Access Code: CEVA)

The conference call will also be available live via the Internet at the following link:  http://www.videonewswire.com/event.asp?id=86152.  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 (access code:10012367) from one hour after the end of the call until 9:00 a.m. (Eastern Time) on May 10, 2012. 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, Image Signal Processing (ISP) and HD audio), voice over packet (VoP), Bluetooth, Serial Attached SCSI (SAS) and Serial ATA (SATA). In 2011, CEVA's IP was shipped in over 1 billion devices and powers handsets from every top handset OEM, including HTC, Huawei, LG, Motorola, Nokia, Samsung, Sony and ZTE. Today, more than 40% of handsets shipped worldwide are powered by a CEVA DSP core. For more information, visit www.ceva-dsp.com. Follow CEVA on twitter at www.twitter.com/cevadsp.

Forward Looking Statement
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 Mr. Wertheizer's statements about CEVA's prospects with new licensees of its DSPs, and Mr. Arieli's statements about CEVA's strong fundamentals. The risks, uncertainties and assumptions include: the ability of the CEVA DSP cores and other technologies to continue to be strong growth drivers for us; our success in penetrating new markets and maintaining our market position in existing markets; the ability of products incorporating our technologies to achieve market acceptance, the effect of intense industry competition and consolidation, global chip market trends, the possibility that markets for our technologies may not develop as expected or that products incorporating our technologies do not achieve market acceptance; our ability to timely and successfully develop and introduce new technologies; and general market conditions and other risks relating to our 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 INCOME – U.S. GAAP
(U.S. Dollars in thousands, except per share data)

Quarter ended

March 31,

2012

2011

Unaudited

Unaudited

Revenues:

Licensing

$  5,116

$  5,108

Royalties

9,106

9,206

Other revenues

890

738

Total revenues

15,112

15,052

Cost of revenues

870

948

Gross profit

14,242

14,104

Operating expenses:

Research and development, net

5,486

5,250

Sales and marketing

2,289

2,224

General and administrative

1,869

1,754

Total operating expenses

9,644

9,228

Operating income

4,598

4,876

Financial income, net

948

545

Income before taxes on income

5,546

5,421

Income tax expenses

689

770

Net income

$  4,857

$  4,651

Basic net income per share

$0.21

$0.20

Diluted net income per share

$0.20

$0.19

Weighted-average number of Common Stock used in computation of net income per share (in thousands):

Basic

23,507

22,692

Diluted

24,239

23,888

 

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

Quarter ended

March 31,

2012

2011

Unaudited

Unaudited

GAAP net income

4,857

$  4,651

Equity-based compensation expense included in cost of revenues

51

49

Equity-based compensation expense included in research and development expenses

465

378

Equity-based compensation expense included in sales and marketing expenses

239

201

Equity-based compensation expense included in general and administrative expenses

490

326

Deferred tax related to equity-based compensation expenses

(124)

(84)

Taxes on Income (1)

(102)

--

Non-GAAP net income

$  5,876

$  5,521

 

 

(1)     Results for the three months ended March 31, 2012 include the
          utilization of expenses on a previously booked capital gain

 

 

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

24,239

23,888

Weighted-average number of shares related to outstanding options

6

31

 

Weighted-average number of Common Stock used in computation of
    diluted net income per share excluding equity-based compensation
    expense (in thousands)

 

 

24,245

 

 

23,919

GAAP diluted net income per share

$  0.20

$  0.19

Equity-based compensation expense, net of taxes

$  0.04

$  0.04

Non  GAAP diluted net income per share

$  0.24

$  0.23


 

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

March 31,

December 31,

2012

2011

Unaudited

Audited

ASSETS

Current assets:

Cash and cash equivalents

$        6,322

$        14,954

Marketable securities and short term bank deposits

131,331

124,458

Trade receivables, net

5,479

5,116

Deferred tax assets

1,703

2,248

Prepaid expenses and other accounts receivables

2,819

2,320

Total current assets

147,654

149,096

Long-term investments:

Long term bank deposits

25,252

25,106

Severance pay fund

5,802

5,473

Deferred tax assets

1,147

832

Property and equipment, net

1,193

1,235

Goodwill

36,498

36,498

Investment in other company

900

900

Total assets

$        218,446

$        219,140

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Trade payables

$           831

$           580

Deferred revenues

602

1,074

Accrued expenses and other payables

11,313

10,669

Deferred tax liabilities

138

290

Total current liabilities

12,884

12,613

Accrued severance pay

5,957

5,607

Total liabilities

18,841

18,220

Stockholders' equity:

Common stock:

23

24

Additional paid in-capital

194,285

191,945

Other comprehensive income (loss)

103

(901)

Treasury stock

(9,463)

-

Retained earnings

14,657

9,852

Total stockholders' equity

199,605

200,920

Total liabilities and stockholders' equity

$   218,446

$   219,140

 

SOURCE CEVA, Inc.