SAN JOSE, Calif., May 1 /PRNewswire-FirstCall/ -- CEVA, Inc. (NASDAQ: CEVA)(LSE: CVA), a leading licensor of innovative intellectual property (IP) platform solutions and DSP cores for wireless, consumer and multimedia applications, today announced its financial results for the quarter ended March 31, 2007.
Total revenue for the first quarter of 2007 was $7.7 million, a decrease of 5% compared to $8.1 million reported for the first quarter of 2006. First quarter of 2007 licensing revenue was $4.6 million, a decrease of 13% from the first quarter of 2006. Royalty revenue for the first quarter of 2007 was $2.0 million, an increase of 8% over the first quarter of 2006 and 18% sequentially higher than the fourth quarter of 2006. Revenue from services for the first quarter of 2007 was $1.1 million, an increase of 16% compared to the first quarter of 2006.
Net income for the first quarter of 2007 was $0.0 million, compared to a net loss of $0.8 million for the first quarter of 2006. Net income per share for the first quarter of 2007 was $0.00 per share, compared to net loss of $0.04 per share for the first quarter of 2006.
In the first quarter of 2007, the Company recognized an equity-based compensation charge of $0.5 million pursuant to the adoption of SFAS 123R, compared to a charge of $0.6 million in the first quarter of 2006. Pro forma non-GAAP net income and net income per share for the first quarter of 2007, excluding the equity-based compensation expense, was $0.5 million and $0.02, respectively. Pro forma non-GAAP net loss and net loss per share for the first quarter of 2006, excluding the equity-based compensation expense, was $0.2 million and $0.01, respectively.
During the first quarter of 2007, the Company signed nine new license agreements. Six agreements were for CEVA DSP cores and platforms and three agreements were for CEVA SATA technology. Target applications for customer deployment are next generation 3G cellular phones, smart phones, personal video recorder, Voice over IP and networking equipment. Geographically, four of the nine deals signed were in the U.S., two were in Europe and three were in the Asia Pacific region.
During the quarter, CEVA also concluded a strategic licensing agreement for its newest DSP Core, the CEVA-TeakLite-III, with a first tier Asian fabless company. This is the second major design win for the CEVA-TeakLite-III core. This design win expands CEVA's DSP core reach beyond the mobile market into the large home entertainment audio market composing of DVDs, set-top boxes, game consoles, digital TVs, IP TVs and the emerging HD DVD and Blu-ray applications.
Also earlier during the first quarter of 2007, Infineon Technologies and Nokia announced that Nokia would begin to use Infineon's ULC2 reference platform (incorporating the CEVA-TeakLite DSP) in their low cost handsets targeted for the emerging economies of India and China.
Gideon Wertheizer, Chief Executive Officer of CEVA, stated: "The first quarter of 2007 marked a number of important achievements in licensing revenue for the Company -- we entered into the home entertainment audio market and continued our expansion in the VoIP space. We also are pleased to report two quarters of double digit sequential growth in our royalty revenue since the third quarter of 2006 as a result of the successful deployment of consumer electronics and cellular products incorporating CEVA's technologies."
Yaniv Arieli, Chief Financial Officer of CEVA, stated: "Our revenue for the first quarter of 2007 was at the low range of our guidance due to the delay in execution of a license agreement that we now anticipate will be executed in the second quarter. During the first quarter of 2007, we generated positive cash flow and as of March 31, 2007, CEVA's cash balances and marketable securities were $64.4 million. We are encouraged by a strong pipeline of companies with interest in licensing our newer technologies targeting traditional markets as well as new market segments and applications."
CEVA Conference Call
On May 1, 2007 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 quarter.
The conference call will be available via the following dial-in numbers: -- US Participants: Dial 1-877-493-9121 (CEVA reference number # 8685671)
-- UK/Rest of World: Dial +44-800-032-3836 (CEVA reference number # 8685671)
The conference call will also be available live via the Internet at the following link: http://www.videonewswire.com/event.asp?id=39165. 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 1-877-519-4471 (passcode: 8685671) for US domestic callers and +44- 800-169-3875 (passcode: 8685671) for international callers from two hours after the end of the call until 11:59 p.m. (Eastern Time) on May 8, 2007. The replay will also be available at CEVA's web site http://www.ceva-dsp.com/.
About CEVA, Inc.
Headquartered in San Jose, Calif., CEVA is a leading licensor of innovative intellectual property (IP) platform solutions and DSP cores for wireless, consumer and multimedia applications. CEVA's IP portfolio includes comprehensive platform solutions for multimedia, audio, voice over packet (VoP), Bluetooth, Serial Attached SCSI (SAS) and Serial ATA (SATA), and a wide range of programmable DSP cores and subsystems with different price/performance metrics serving multiple markets. In 2006, CEVA's IP was shipped in over 190 million devices. For more information, visit http://www.ceva-dsp.com/.
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 CEVA's results to differ materially from those expressed or implied by such forward-looking statements and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including statements about the anticipated execution of a license agreement originally planned for the first quarter of 2007 and the pipeline of companies with interest in CEVA's technologies. The risks, uncertainties and assumptions include: the ability of the CEVA TeakLite-III DSP Core and VoIP solution to continue to be a strong growth driver for the Company; intense competition within our industry; the industries in which we license our technology have experienced a challenging period of growth; the market for 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; our reliance on revenue derived from a limited number of licensees; our ability to improve our royalty revenue in 2007 and other risks relating to our business and the strong pipeline of companies interested in our technologies, including, but not limited to, those that are described from time to time in the Company's Securities and Exchange Commission filings, including but not limited to its Annual Report on Form 10-K for the fiscal year ended December 31, 2006. CEVA assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates.
CEVA, INC. AND ITS SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - U.S. GAAP U.S. DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA Quarter ended March 31, 2007 2006 Unaudited Unaudited Revenues: Licensing and royalties $6,596 $7,160 Other revenue 1,130 974 Total revenues 7,726 8,134 Cost of revenue 1,007 895 Gross profit 6,719 7,239 Operating expenses: Research and development, net 4,700 5,016 Sales and marketing 1,555 1,771 General and administrative 1,246 1,484 Amortization of intangible assets 42 190 Total operating expenses 7,543 8,461 Operating loss (824) (1,222) Interest and other income, net 824 541 Income (loss) before taxes on income - (681) Taxes on income - 120 Net income (loss) - (801) Basic and diluted net income (loss) per share $0.00 $(0.04) Weighted-average number of common stock used in computation of net income (loss) per share (in thousands): Basic and Diluted 19,420 19,061 Unaudited Reconciliation of GAAP to Pro Forma Non-GAAP Financial Measures (U.S. Dollars in thousands, except per share amounts) Quarter ended March 31, 2007 2006 Unaudited Unaudited GAAP net income (loss) $- $(801) Equity-based compensation expense included in cost of revenue 18 15 Equity-based compensation expense included in research and development 196 219 Equity-based compensation expense included in sales and marketing 82 102 Equity-based compensation expense included in general and administration 176 309 Pro forma non-GAAP net income (loss) 472 (156) Pro forma non-GAAP basic and diluted net income (loss) per share $0.02 $(0.01) Weighted-average number of common stock used in computation of pro forma non-GAAP net income (loss) per share (in thousands): Basic and Diluted 19,628 19,061 CEVA, INC. AND ITS SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS U.S. Dollars in Thousands March 31, December 31, 2007 2006 Unaudited Audited ASSETS Current assets: Cash and cash equivalents $37,177 $37,968 Marketable securities and bank deposits 27,251 26,266 Trade receivables, net 8,663 8,421 Deferred tax assets 537 613 Prepaid expenses 727 564 Other current assets 2,116 1,890 Total current assets 76,471 75,722 Long-term investments: Severance pay fund 2,220 2,338 Deferred tax assets 624 382 Property and equipment, net 1,941 1,706 Investment in other company, net 4,233 4,233 Goodwill 36,498 36,498 Other intangible assets, net 159 201 Total assets $122,146 $121,080 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Trade payables $838 $718 Accrued expenses and other payables 9,575 9,462 Taxes payable 140 135 Deferred revenues 385 406 Total current liabilities 10,938 10,721 Accrued severance pay 2,402 2,519 Accrued liabilities 1,536 1,697 Total liabilities 14,876 14,937 Stockholders' equity: Common stock: 19 19 Additional paid in-capital 143,956 142,826 Other comprehensive loss (3) - Accumulated deficit (36,702) (36,702) Total stockholders' equity 107,270 106,143 Total liabilities and stockholders' equity $122,146 $121,080
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SOURCE: CEVA, Inc.
CONTACT: Yaniv Arieli, CFO, +1-408-514-2941, or
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Web site: http://www.ceva-dsp.com/