- Royalty revenue of $10.7 million, up 33% year-over-year, generated from 371 million shipped units, up 25% year-over-year

- 11 license agreements concluded in the quarter, across all key target markets, including strategic deals for next-generation Wi-Fi 7 and Bluetooth 6 IPs

ROCKVILLE, Md., May 9, 2024 /PRNewswire/ -- Ceva, Inc. (NASDAQ: CEVA), the leading licensor of silicon and software IP that enables Smart Edge devices to connect, sense and infer data more reliably and efficiently, today announced its financial results for the first quarter ended March 31, 2024. Financial results for the first quarter ended March 31, 2023, reflect Ceva's continuing operations only, with the Intrinsix business reflected as a discontinued operation, unless otherwise noted.

Ceva, Inc. reported Q1 2024 revenue of $22.1 million and non-GAAP diluted loss per share of $0.05. 11 new agreements were signed in the quarter, including lead customers for next generation Bluetooth 6 and Wi-Fi 7 IPs. Royalty revenue was $10.7 million, up 33% year-over-year and Ceva-powered shipments were 371 million units, up 25% year-over-year. For more information and highlights, view the infographic.

Operational Highlights:

  • Introduced new Wi-Fi 7 platform for high-end consumer and industrial IoT
  • Introduced new low power Ultra-Wideband (UWB) IP for consumer and industrial IoT
  • Expanded Ceva-NeuPro-M NPU AI ecosystem with new partnerships for automotive and edge AI
  • Announced strategic partnership with India's No. 1 audio and wearable brand, boAt for wireless audio
  • Partnered with THX to bring premium spatial audio to hearables, consumer and mobile products
  • Collaborated with Arm through Arm Total Design to accelerate development of end-to-end 5G SoCs for Infrastructure and NTN Satellites

Total revenue for the first quarter of 2024 was $22.1 million, compared to $26.3 million reported for the first quarter of 2023. Licensing and related revenue for the first quarter of 2024 was $11.4 million, compared to $18.2 million reported for the same quarter a year ago. Royalty revenue for the first quarter of 2024 was $10.7 million, compared to $8.0 million reported for the first quarter of 2023.

Amir Panush, Chief Executive Officer of Ceva, commented: "Our first quarter results reflect solid trends across our business. We achieved year-over-year growth of 33% in royalty revenue and 25% in volume shipments, which increased across every end market we serve. Licensing revenue for the first quarter included strategic early-adopter deals with lead customers for our Bluetooth 6 and Wi-Fi 7 IPs, but overall was lower than anticipated as some deals expected to close in the first quarter were delayed. We have already concluded one of these deals early in the second quarter, a significant agreement with a strategic customer for a next-generation IP in development, and expect others to be executed in the remainder of the year. Overall, I am very encouraged by our diversified licensing pipeline and demand for our next-generation IPs, and I am confident we can reach our total revenue target for the year."

During the quarter, eleven IP licensing agreements were concluded, targeting a wide range of end markets and applications, including Bluetooth 5 connectivity for wearables and industrial IoT, Bluetooth 6 for wireless audio, Wi-Fi 6, Wi-Fi 7 and UWB for smart edge consumer devices, 5G RedCap for consumer and industrial devices, 5G V2X modems for automotive, and audio for smartphones. Two of the deals signed were with first-time customers.

GAAP gross margin for the first quarter of 2024 was 89%, as compared to 87% in the first quarter of 2023. GAAP operating loss for the first quarter of 2024 was $5.0 million, as compared to a GAAP operating loss of $2.6 million for the same period in 2023. GAAP net loss for the first quarter of 2024 was $5.4 million, as compared to a GAAP net loss of $2.7 million reported for the same period in 2023. GAAP diluted loss per share for the first quarter of 2024 was $0.23, as compared to GAAP diluted loss per share of $0.12 for the same period in 2023.

GAAP net loss with the discontinued operation for the first quarter of 2023 was $4.9 million. GAAP diluted loss per share with the discontinued operation for the first quarter of 2023 was $0.21.

Non-GAAP gross margin for the first quarter of 2024 was 90%, as compared to 88% for the same period in 2023. Non-GAAP operating loss for the first quarter of 2024 was $0.8 million, as compared to non-GAAP operating income of $1.2 million reported for the first quarter of 2023. Non-GAAP net loss and diluted loss per share for the first quarter of 2024 were $1.3 million and $0.05, respectively, compared with non-GAAP net income and diluted income per share of $1.2 million and $0.05, respectively, reported for the first quarter of 2023. 

Non-GAAP net income including the discontinued operation for the first quarter of 2023 was $0.1 million. Non-GAAP diluted income per share including the discontinued operation for the first quarter of 2023 was $0.00.

Yaniv Arieli, Chief Financial Officer of Ceva, stated: "While we saw a shortfall in licensing revenue in the first quarter, we have managed to build a healthy backlog which will benefit us in the second quarter. We continue to monitor our expenses closely and look for ways to further improve our operating efficiency. At the end of the quarter, our cash and cash equivalent balances, marketable securities and bank deposits were approximately $159 million, and we remain well positioned to pursue opportunities to enhance our product offerings, expand our addressable markets and accelerate our growth."

Ceva Conference Call

On May 9, 2024, Ceva management will conduct a conference call at 8:30 a.m. Eastern Time to discuss the operating performance for the quarter.

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

  • U.S. Participants : Dial 1-844-435-0316 (Access Code : Ceva)
  • International Participants: Dial +1-412-317-6365 (Access Code: Ceva)

The conference call will also be available live via webcast at the following link: https://app.webinar.net/L8QP0XRjm5A. Please go to the web site at least fifteen minutes prior to the call to register.

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: 9691632) from one hour after the end of the call until 9:00 a.m. (Eastern Time) on May 16, 2024. The replay will also be available at Ceva's web site www.ceva-ip.com.

Forward Looking Statements

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 statements regarding the benefits of Ceva's deal backlog for the second quarter and potential execution of license deals later in the year, Ceva's ability to reach total revenue target for the remainder of the year, and Ceva's positioning to pursue opportunities to enhance our product offerings, expand our addressable markets and accelerate our growth. The risks, uncertainties and assumptions that could cause differing Ceva results include: the effect of intense industry competition; the ability of Ceva's technologies and products incorporating Ceva's technologies to achieve market acceptance; Ceva's ability to meet changing needs of end-users and evolving market demands; the cyclical nature of and general economic conditions in the semiconductor industry; Ceva's ability to diversify its royalty streams and license revenues; Ceva's ability to continue to generate significant revenues from the handset baseband market and to penetrate new markets; instability and disruptions related to the ongoing Israel-Gaza conflict; and general market conditions and other risks relating to Ceva's 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.

Non-GAAP Financial Measures

Non-GAAP gross margin for the first quarter of 2024 excluded: (a) equity-based compensation expenses of $0.2 million and (b) amortization of acquired intangibles of $0.1 million. Non-GAAP gross margin for the first quarter of 2023 excluded: (a) equity-based compensation expenses of $0.2 million and (b) amortization of acquired intangibles of $0.1 million.

Non-GAAP operating loss for the first quarter of 2024 excluded: (a) equity-based compensation expenses of $3.6 million, (b) the impact of the amortization of acquired intangibles of $0.3 million, and (c) $0.3 million of costs associated with business acquisitions. Non-GAAP operating income for the first quarter of 2023 excluded: (a) equity-based compensation expenses of $3.6 million and (b) the impact of the amortization of acquired intangibles of $0.2 million.

Non-GAAP net loss and diluted loss per share for the first quarter of 2024 excluded: (a) equity-based compensation expenses of $3.6 million, (b) the impact of the amortization of acquired intangibles of $0.3 million, (c) $0.3 million of costs associated with business acquisitions and (d) $0.1 million loss associated with the remeasurement of marketable equity securities. Non-GAAP net income and diluted earnings per share for the first quarter of 2023 excluded: (a) equity-based compensation expenses of $3.6 million, (b) the impact of the amortization of acquired intangibles of $0.2 million, and (c) $0.1 million loss associated with the remeasurement of marketable equity securities.

Non-GAAP net loss including the discontinued operation and diluted earnings per share including the discontinued operation for the first quarter of 2023 excluded: (a) equity-based compensation expenses of $3.6 million, (b) the impact of the amortization of acquired intangibles of $0.2 million, (c) $0.1 million loss associated with the remeasurement of marketable equity securities and (d) $1.1 million loss associated with discontinued operations.

About Ceva, Inc.

At Ceva, we are passionate about bringing new levels of innovation to the smart edge. Our wireless communications, sensing and Edge AI technologies are at the heart of some of today's most advanced smart edge products. From Bluetooth connectivity, Wi-Fi, UWB and 5G platform IP for ubiquitous, robust communications, to scalable Edge AI NPU IPs, sensor fusion processors and embedded application software that make devices smarter, we have the broadest portfolio of IP to connect, sense and infer data more reliably and efficiently. We deliver differentiated solutions that combine outstanding performance at ultra-low power within a very small silicon footprint. Our goal is simple – to deliver the silicon and software IP to enable a smarter, safer, and more interconnected world. This philosophy is in practice today, with Ceva powering more than 17 billion of the world's most innovative smart edge products from AI-infused smartwatches, IoT devices and wearables to autonomous vehicles and 5G mobile networks.

Our headquarters are in Rockville, Maryland with a global customer base supported by operations worldwide. Our employees are among the leading experts in their areas of specialty, consistently solving the most complex design challenges, enabling our customers to bring innovative smart edge products to market.

Ceva is a sustainability- and environmentally-conscious company, adhering to our Code of Business Conduct and Ethics. As such, we emphasize and focus on environmental preservation, recycling, the welfare of our employees and privacy – which we promote on a corporate level. At Ceva, we are committed to social responsibility, values of preservation and consciousness towards these purposes.

Ceva: Powering the Smart Edge™

Visit us at www.ceva-ip.com and follow us on LinkedIn, X, YouTube, Facebook, and Instagram.

 

Ceva, Inc. AND ITS SUBSIDIARIES

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF LOSS – U.S. GAAP

U.S. dollars in thousands, except per share data



Three months ended


March 31,


2024

2023


Unaudited

Unaudited

Revenues:



Licensing and related revenues

$  11,414

$  18,248

Royalties

10,658

8,014




Total revenues

22,072

26,262




Cost of revenues

2,503

3,508




Gross profit

19,569

22,754




Operating expenses:



Research and development, net

17,991

18,674

Sales and marketing

2,816

2,719

General and administrative

3,572

3,827

Amortization of intangible assets

150

154

Total operating expenses

24,529

25,374




Operating loss

(4,960)

(2,620)

Financial income, net

1,257

1,455

Remeasurement of marketable equity securities

(60)

(117)




Loss before taxes on income

(3,763)

(1,282)

Taxes on Income

1,685

1,417




Net loss from continuing operation

(5,448)

(2,699)

Discontinued operation

 

-

(2,173)

Net loss

$  (5,448)

$  )4,872)




Basic and diluted net loss per share:



Continuing operation

(0.23)

(0.12)

Discontinued operation

-

(0.09)

Basic and diluted net loss per share

$  (0.23)

$  (0.21)

Weighted-average shares used to compute net loss per share (in thousands):



Basic

23,508

23,334

Diluted

23,508

23,334

 

Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures

U.S. Dollars in thousands, except per share amounts



Three months ended


March 31,


2024

2023


Unaudited

Unaudited

GAAP net loss

$  (5,448)

$  (4,872)

Equity-based compensation expense included in cost of revenues

203

206

Equity-based compensation expense included in research and development expenses

2,007

2,102

Equity-based compensation expense included in sales and marketing expenses

365

378

Equity-based compensation expense included in general and administrative expenses

996

866

Amortization of intangible assets

278

224

Costs associated with business acquisition

280

-

loss associated with the remeasurement of marketable equity securities.

60

117

Non-GAAP from discontinued operation

-

1,086

Non-GAAP net income (loss)

$  (1,259)

$  107

GAAP weighted-average number of Common Stock used in computation of diluted net loss

and loss per share (in thousands)

23,508

23,334

Weighted-average number of shares related to outstanding stock-based awards (in thousands)

-

1,021

Weighted-average number of Common Stock used in computation of diluted net income (loss)

per share, excluding the above (in thousands)

23,508

24,355




GAAP diluted loss per share

$  (0.23)

$  (0.21)

Equity-based compensation expense

$  0.15

$  0.15

Amortization of intangible assets

$  0.01

$  0.01

Costs associated with business acquisition

$  0.01

-

Income associated with the remeasurement of marketable equity securities.

$  0.01

$  0.01

Non-GAAP from discontinued operation

-

$  0.04

Non-GAAP diluted income (loss) per share

$  (0.05)

$  0.00








Three months ended


March 31,


2024

2023


Unaudited

Unaudited

GAAP Operating loss

$  (4,960)

$  (2,620)

Equity-based compensation expense included in cost of revenues

203

206

Equity-based compensation expense included in research and development expenses

2,007

2,102

Equity-based compensation expense included in sales and marketing expenses

365

378

Equity-based compensation expense included in general and administrative expenses

996

866

Amortization of intangible assets

278

224

Costs associated with business acquisition

280

-

Total non-GAAP Operating Income (loss)

$  (831)

$  1,156




Three months ended


March 31,


2024

2023


Unaudited

Unaudited




GAAP Gross Profit

$  19,569

$  22,754

GAAP Gross Margin

89 %

87 %




Equity-based compensation expense included in cost of revenues

203

206

Amortization of intangible assets    

128

70

Total Non-GAAP Gross profit

19,900

23,030

Non-GAAP Gross Margin

90 %

88 %

 

Ceva, Inc. AND ITS SUBSIDIARIES

INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS

(U.S. Dollars in thousands)




March 31,

December 31,



2024

2023 (*)



Unaudited

Unaudited

ASSETS




Current assets:




Cash and cash equivalents


$  21,222

$  23,287

Marketable securities and short-term bank deposits


137,532

143,251

Trade receivables, net


14,052

8,433

Unbilled receivables


19,583

21,874

Prepaid expenses and other current assets


13,378

12,526

Total current assets


205,767

209,371

Long-term assets:




Severance pay fund


6,897

7,070

Deferred tax assets, net


1,239

1,609

Property and equipment, net


7,157

6,732

Operating lease right-of-use assets


6,704

6,978

Investment in marketable equity securities


346

406

Goodwill


58,308

58,308

Intangible assets, net


2,689

2,967

Other long-term assets


12,332

10,644

Total assets


$  301,439

$  304,085





LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities:




Trade payables


$  1,804

$  1,154

Deferred revenues


2,479

3,018

Accrued expenses and other payables


19,838

20,202

Operating lease liabilities


2,634

2,513

Total current liabilities


26,755

26,887

Long-term liabilities:




   Accrued severance pay


7,339

7,524

Operating lease liabilities


3,525

3,943

Other accrued liabilities


1,471

1,390

Total liabilities


39,090

39,744

Stockholders' equity:




Common stock


24

23

Additional paid in-capital


252,927

252,100

Treasury stock


(2,528)

(5,620)

Accumulated other comprehensive loss


(2,720)

(2,329)

Retained earnings


14,646

20,167

Total stockholders' equity


262,349

264,341

Total liabilities and stockholders' equity


$  301,439

$  304,085

(*) Derived from audited financial statements.

 

Ceva is the leader in silicon and software IP that enable smart edge devices to connect, sense and infer data more reliably and efficiently.

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SOURCE Ceva, Inc.

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