San Jose, CA - January 22, 2003 - ParthusCeva, Inc. (NASDAQ:
PCVA; LSE: PCV), the industry's leading provider of licensable Digital
Signal Processor (DSP) cores and Platform-level solutions, today announced
results for the fourth quarter and year 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. ParthusCeva has accounted for the combination as the acquisition
of Parthus Technologies plc on November 1; accordingly, the results below
include the results of the Parthus business for only the last two months
of the periods ended December 31, 2002.
Fourth Quarter 2002 (U.S. GAAP) (Includes 3 months of Ceva
and 2 months of Parthus)
Total revenues for the fourth quarter of 2002 were $5.7 million.
Royalty revenues for the quarter were $673,000. Licensing and royalty
revenues represented 68% of total revenues, with five new agreements
signed in the quarter and twelve per-unit royalty customers shipping
products. Gross margins in the fourth quarter were 78%. Operating expenses
were $28.5 million (including in-process research and development charges
of $15.8 million and restructuring charges of $6.4 million). ParthusCeva
reported a net loss of approximately $24.4 million for the fourth quarter.
This net loss includes (1) a restructuring charge of $6.4 million in
association with the restructuring program implemented in November 2002,
(2) a one-time, non-cash charge for in-process research and development
arising as a result of the combination of ParthusCeva and Parthus of $15.8
million, (3) non-cash amortization of intangibles arising as a result of
the combination of $226,000, and (4) foreign exchange losses of
approximately $484,000 arising principally on Euro liabilities as a result
of the appreciation of the Euro against the US dollar. Basic and diluted
net loss per share was $1.80.
Full Year 2002 (U.S. GAAP) (Includes 12 months of Ceva and
the last two months of Parthus)
Total revenues for 2002 were $19.2 million. Licensing and royalty
revenues represented 77% of revenues, with 12 new agreements signed in the
year and 12 per-unit royalty customers shipping by year-end. Gross margins
in 2002 were 89%. Operating expenses for 2002 before in-process research
and development and restructuring charges were $15.5 million.
ParthusCeva had a net loss of $21.9 million for 2002. This net loss
includes (1) a restructuring charge of $6.4 million in association with
the restructuring program described above, (2) a one-time, non-cash charge
for in-process research and development arising as a result of the
combination of ParthusCeva and Parthus of $15.8 million, (3) amortization
of intangibles arising as a result of the combination of $226,000, and (4)
foreign exchange losses of $484,000 arising principally on Euro
liabilities as a result of the appreciation of the Euro against the US
dollar. Basic and diluted net loss per share was $2.15.
Pro Forma Combined Revenues for the Fourth Quarter and
Year Ended December 31, 2002
Including the results of the Parthus business for the full periods, the
company's pro forma combined revenues would have been $6.6 million for the
fourth quarter and $51.2 million for the full-year 2002.
Kevin Fielding, Chief Executive Officer of ParthusCeva,
"While our quarter four results reflect the weak semiconductor
environment, our sales pipeline remains strong. We were very pleased to
sign a leading wireless handset vendor in the quarter, which we see as
further evidence of acceptance of our DSP architecture, especially for
"We made significant progress in the fourth quarter in completing our
combination, defining our strategic goals and subsequently restructuring
and integrating the two companies. With this renewed product focus, we
plan to launch an extensive range of integrated DSP cores and associated
application-level products in 2003. Consequently, we believe we have the
technology and financial base in place to achieve our 2003 corporate goals
of market leadership in DSP technology and profitable growth."
Consolidated Statement Of Operations - US GAAP
& Consolidated Balance Sheet - US GAAP
Consolidated Statement Of Operations - US GAAP &
Consolidated Balance Sheet - US GAAP are available for download here
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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.