San Jose, CA - December 16, 2003 - CEVA, Inc. (NASDAQ: CEVA;
LSE: CVA), the leading licensor of Digital Signal Processor (DSP) cores
and integrated applications to the semiconductor industry, will host a
strategy presentation and call at 11.30am EST, 8.30am PST, and 4.30pm GMT
today, Tuesday December 16. The management of CEVA will outline the
company's business and product strategy; update fourth quarter guidance;
provide 2004 outlook; and provide an estimate of restructuring charges to
be incurred in connection with the realignment of the company's business
to support the long-term strategic goals of CEVA.
"Through an extensive strategy review, we have evaluated all our
business units in light of both their ability to enhance our DSP offerings
and to contribute to profitability. As a result, we have eliminated some
non-strategic products and realigned business structures, resulting in a
more cost-efficient organization focused on DSP, one of the semiconductor
industry's fastest growing markets," said Chet Silvestri, CEO of CEVA.
"With these changes, we are confident that we can achieve our corporate
goals of growth, profitability, and leadership in DSP."
At today's presentation, management will outline how the company plans
to capture increased share of the growing DSP market. The webcast will
highlight CEVA's unique 'DSP Total-Solution' offering; the recently
launched CEVA-X architecture; and the company's current and planned
portfolio of Xpert Open Framework and Xpert Application IP that build
around CEVA DSPs.
Fourth Quarter 2003 Guidance
In the quarter the company has completed its first CEVA-X license with
a world leading cellular handset company. In addition, CEVA has licensed
the manufacturing rights to its hard-IP business and exited this business.
The company anticipates potential upside to the previous revenue guidance
from $9.3 million to the range of $9.5 million to $9.8 million. Gross
margins are anticipated in the range of 80% to 85%. Operating expenses are
anticipated in the range of $8.5 million to $9.0 million.
As outlined on the company's third quarter conference call, CEVA has
implemented a realignment program in the current quarter to focus the
organization on DSP technologies and profitability in 2004. It is
anticipated that the company will incur a restructuring and asset
impairment charge in the fourth quarter 2003 ranging between $8 million
and $9 million; of which it is anticipated that approximately $3 million
will be a cash charge incurred in the current quarter.
"The programmable DSP market is forecast to grow strongly, driven by
growth in the high-volume, high-value cellular and digital multimedia
markets," said Christine Russell, CFO of CEVA. "For 2004, CEVA anticipates
a 20 per cent growth in our DSP licensing business. Overall CEVA
anticipates modest growth in revenues in 2004, after factoring in the loss
of revenues from discontinued standalone products. With our realignment
now complete, the company is targeting profitability in 2004."
Webcast and Conference Call Details:
The management of CEVA will host a strategy presentation at 11.30am
EST, 8.30am PST, and 4.30pm GMT today, Tuesday December 16.
The presentation will be available to view during the call via
www.ceva-dsp.com. Please log into the presentation five minutes before the
call commences and link to the slide show.
To listen to an audio of the presentation, please dial into the
conference call numbers provided below.
Live conference call dial in numbers
US Participants Telephone: 1 866 629 0054
Telephone: 44 1452 569 340
Conference call recording
If you cannot join the call, you can listen to a recording, which will
be available approximately one hour after the call and for five working
days after the call.
Conference call recording dial in numbers
US Telephone: 1 706 645 9291.
Access code: 4171327#
UK/European Telephone: 44 1452 55 00 00.
Access code: 4171327#
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
Safe Harbor Statement
Various statements in this press release
concerning CEVA's future expectations, plans and prospects are
"forward-looking statements", which are subject to certain risks and
uncertainties that could cause actual results to differ materially from
those stated. Any statements that are not statements of historical fact
(including, without limitation, statements to the effect that the company
or its management "believes", "expects", "anticipates", "plans" and
similar expressions) should be considered forward-looking statements.
These statements are subject to a number of risks and uncertainties that
could cause actual results to differ materially from those described,
including the following:
in which we license our technology are experiencing a challenging period
of slow growth that has negatively impacted and could continue to
negatively impact our business and operating results;
The markets in
which we operate are highly competitive, and as a result we could
experience a loss of sales, lower prices and lower revenue;
results fluctuate from quarter to quarter due to a variety of factors
including our lengthy sales cycle, and are not a meaningful indicator
for future performance
significantly on revenue derived from a limited number of licensees; and
discussed in "Management's Discussion and Analysis of Financial
Condition and Results of Operations--Factors that Could Affect Our
Operating Results," in our quarterly report on Form 10-Q for the third
quarter of 2003, filed with the U.S. Securities and Exchange Commission
on November 13, 2003.