San Jose, CA - January 06, 2003 - ParthusCeva, Inc. (NASDAQ:
PCVA; LSE: PCV), the industry's leading provider of licensable Digital
Signal Processor (DSP) cores and solutions, today announced preliminary
results for the fourth quarter ended December 31, 2002.
ParthusCeva was formed through the combination of ParthusCeva, Inc.
(formerly known as Ceva, Inc.) and Parthus Technologies plc, on November
1, 2002. The combination has been accounted for as the acquisition of
Parthus Technologies by ParthusCeva; accordingly, the results below
include the results of the Parthus business for only the last two months
of the quarter ended December 31, 2002.
ParthusCeva expects total revenues on a U.S. GAAP basis to be in the
range of approximately $5.0 million to $5.6 million for the fourth
quarter. Based on these estimated revenues, the company anticipates that
it will report a net loss of approximately $24.7 million to $25.2 million
for the fourth quarter. This net loss includes (1) a one-time
restructuring charge of approximately $6.6 million to $6.8 million in
association with the restructuring program implemented in November 2002,
(2) a one-time, non-cash charge for in-process research and development
expenses arising as a result of the combination of ParthusCeva and Parthus
of approximately $15.8 million, (3) amortization of intangibles arising as
a result of the combination of approximately $200,000, and (4) unrealized
foreign exchange losses of approximately $500,000 arising as a result of
the appreciation of the Euro against the US dollar.
The company anticipates that it will report a pro forma net loss of
approximately $2.3 million to $2.8 million for the fourth quarter,
excluding the one-time restructuring charge of approximately $6.6 million
to $6.8 million and the one-time, non-cash charge for in-process research
and development expenses of approximately $15.8 million described above.
"As a result of the persistent downturn and challenging market
conditions in the semiconductor industry, we have experienced delays in
licensing decisions on several significant deals, although our overall
sales pipeline has not materially diminished," said Kevin Fielding, Chief
Executive Officer of ParthusCeva. "We continue to make progress on the
execution of our strategy, and plan to launch an extensive range of
integrated DSP and application platform new products in 2003. We are
confident that this focus and our strong financial position will help
ensure ParthusCeva's success in implementing its business plan for 2003,
as described in the company's last conference call."
ParthusCeva will report its full results for the fourth quarter and
year ended December 31, 2002 on Wednesday, January 22, 2003. Further
details about this upcoming release and the associated conference call
will be communicated in advance of this event.
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Safe Harbour Statement
This document contains "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. Important factors that could cause
actual results to differ from those indicated by such forward-looking
statements, include uncertainties relating to the ability of management to
successfully integrate the operations of Parthus and Ceva, uncertainties
relating to the acceptance of our DSP cores and semiconductor intellectual
property offerings, continuing or worsening weakness in our markets and
those of our customers, quarterly variations in our results, and other
uncertainties that are discussed in the registration statement on Form S-1
and the most recent quarterly report on Form 10-Q of ParthusCeva, on file
with the U.S. Securities and Exchange Commission.