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8-K - FORM 8-K - CEVA INC | f59017e8vk.htm |
Exhibit 99.1
CEVA, Inc. Announces First Quarter 2011 Financial Results
| Record quarterly total revenues of $15.1 million, record royalty revenue of $9.2 million, up 42% and 85% year-over-year, respectively | ||
| Record GAAP and non-GAAP operating margins of 32% and 39%, respectively | ||
| Three licensing deals concluded for flagship CEVA-XC DSP |
MOUNTAIN VIEW, Calif. April 27, 2011 CEVA, Inc. (NASDAQ: CEVA); (LSE: CVA), the leading
licensor of silicon intellectual property (SIP) platform solutions and DSP cores for the mobile
handset, portable and consumer electronics markets, today announced its financial results for the
first quarter ended March 31, 2011.
Total revenue for the first quarter of 2011 was a record $15.1 million, an increase of 42% compared
to $10.6 million reported for the first quarter of 2010. First quarter 2011 licensing revenue was
$5.1 million, representing an increase of 8% when compared to $4.7 million reported for the same
quarter a year ago. Royalty revenue for the first quarter 2011 was a record $9.2 million, an
increase of 85% compared to $5.0 million reported for the first quarter of 2010. Revenue from
services for the first quarter was $0.7 million, a decrease of 18% compared to $0.9 million
reported for the first quarter of 2010.
Gideon Wertheizer, Chief Executive Officer of CEVA, stated, We are very pleased with the level of
earnings growth recorded during the first quarter, which reflects the strong licensing and royalty
revenue generating capabilities of our business model. Our rapid market share expansion in cellular
baseband for both handsets and non-handsets continues, with more than 210 million CEVA-powered
wireless chipsets shipped during the quarter. On licensing, our best of breed DSP, the CEVA-XC, was
selected by new key players in the wireless infrastructure and smart
grid markets, thereby continuing our
expansion beyond handsets to new, strategic and high volume markets.
U.S. GAAP net income for the first quarter of 2011 was $4.7 million, an increase of 126% over $2.1
million reported for the same period in 2010. U.S. GAAP diluted earnings per share for the first
quarter of 2011 were $0.19, an increase of 111% compared to $0.09 for the first quarter of 2010.
Non-GAAP net income and diluted earnings per share for the first quarter of 2011 was $5.5 million
and $0.23, respectively, representing an increase of 109% and 92%, respectively, over the $2.6
million and
$0.12 reported for the first quarter of 2010. Non-GAAP net income and diluted earnings
per share for the first quarter of 2011 and 2010 excluded an aggregate equity-based compensation expense, net of
taxes, of $0.9 million and $0.6 million, respectively.
During the first quarter of 2011, the Company concluded seven new license agreements. Four
agreements were for CEVA DSP cores, platforms and software, and three agreements were for CEVA
SATA/SAS product lines. Target applications for customer deployment are 3G and 4G baseband
processors for handsets, infrastructure, smart grid and SSD drives. Geographically, three of the
agreements signed were in the U.S., three were in Asia and one in Europe.
Yaniv Arieli, Chief Financial Officer of CEVA, stated, Our first quarter 2011 financial
performance exceeded our expectations and produced the sixth sequential quarter of record royalty
revenue. We achieved strong financial results in all aspects of our business, including GAAP and
non-GAAP gross margins of 94%, as well as GAAP and non-GAAP operating margins of 32% and 39%,
respectively, excluding, for purposes of non-GAAP operating margins, an aggregate equity-based compensation expense of $1 million. We also
bolstered our strong balance sheet with the addition of approximately $12 million in positive cash
flow. At the end of the quarter, our cash balance, marketable securities and bank deposits totaled
$143 million.
CEVA Conference Call
On April 27, 2011, 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 first quarter ended March 31, 2011.
The conference call will be available via the following dial in numbers:
| US Participants: Dial 1-877-493-9121 (Access Code: CEVA or 57912042) | ||
| UK/Rest of World: Dial +44-800-051-3806 (Access Code: CEVA or 57912042) |
The conference call will also be available live via the Internet at the following link:
http://www.videonewswire.com/event.asp?id=78173. 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
1-800-642-1687 (passcode: 57912042) for US domestic callers and +44-800-917-2646 (passcode:
57912042) for international callers from two hours after the end of the call until 11:59 p.m.
(Eastern Time) on May 04, 2011. The replay will also be available at CEVAs web site
www.ceva-dsp.com.
For More Information Contact:
Yaniv Arieli
|
Richard Kingston | |
CEVA, Inc.
|
CEVA, Inc. | |
CFO
|
Director of Marketing & Investor Relations | |
+1.650.417.7941
|
+1.650.417.7976 | |
yaniv.arieli@ceva-dsp.com
|
richard.kingston@ceva-dsp.com |
About CEVA, Inc.
CEVA is the worlds leading licensor of silicon intellectual property (SIP) DSP cores and platform
solutions for the mobile handset, portable and consumer electronics markets. CEVAs IP portfolio
includes comprehensive technologies for cellular baseband (2G / 3G / 4G), multimedia, HD video and
audio, voice over packet (VoP), Bluetooth, Serial Attached SCSI (SAS) and Serial ATA (SATA). In
2010, CEVAs IP was shipped in over 600 million devices, powering handsets from 7 out of the top 8
handset OEMs, including Nokia, Samsung, LG, Motorola, Sony Ericsson and ZTE. Today, more than one
in every three handsets shipped worldwide is powered by a CEVA DSP core. For more information,
visit www.ceva-dsp.com. Follow CEVA on twitter at www.twitter.com/cevadsp.
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. All statements other than statements of historical fact are statements that could be
deemed forward-looking statements, including Mr. Wertheizers statements about CEVAs ability to
expand into new, strategic and high volume markets. The risks, uncertainties and assumptions
include: the ability of the CEVA DSP cores and other technologies to continue to be strong growth
drivers; the ability of products incorporating CEVAs technologies to achieve market acceptance;
CEVAs success in penetrating new markets and maintaining its market position in existing markets;
the effect of intense industry competition and consolidation; the possibility that the markets for
CEVAs technologies may not develop as expected; CEVAs ability to timely and successfully develop
and introduce new technologies; and general market conditions and other risks relating to CEVAs
business, including, but not limited to, those that are described from time to time in its SEC
filings. 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
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS U.S. GAAP
U.S. dollars in thousands, except per share data
Quarter ended | ||||||||
March 31, | ||||||||
2011 | 2010 | |||||||
Unaudited | Unaudited | |||||||
Revenues: |
||||||||
Licensing |
$ | 5,108 | $ | 4,722 | ||||
Royalties |
9,206 | 4,980 | ||||||
Other revenues |
738 | 899 | ||||||
Total revenues |
15,052 | 10,601 | ||||||
Cost of revenues |
948 | 714 | ||||||
Gross profit |
14,104 | 9,887 | ||||||
Operating expenses: |
||||||||
Research and development, net |
5,250 | 4,609 | ||||||
Sales and marketing |
2,224 | 1,808 | ||||||
General and administrative |
1,754 | 1,546 | ||||||
Total operating expenses |
9,228 | 7,963 | ||||||
Operating income |
4,876 | 1,924 | ||||||
Financial income, net |
545 | 557 | ||||||
Income before taxes on income |
5,421 | 2,481 | ||||||
Income tax expenses |
770 | 422 | ||||||
Net income |
$ | 4,651 | $ | 2,059 | ||||
Basic net income per share |
$ | 0.20 | $ | 0.10 | ||||
Diluted net income per share |
$ | 0.19 | $ | 0.09 | ||||
Weighted-average number of Common Stock used in
computation of net income per share (in
thousands): |
||||||||
Basic |
22,692 | 20,654 | ||||||
Diluted |
23,888 | 21,911 | ||||||
Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures
(U.S. Dollars in thousands, except per share amounts)
(U.S. Dollars in thousands, except per share amounts)
Quarter ended | ||||||||
March 31, | ||||||||
2011 | 2010 | |||||||
Unaudited | Unaudited | |||||||
GAAP net income |
$ | 4,651 | $ | 2,059 | ||||
Equity-based compensation expense included in cost of revenues |
49 | 18 | ||||||
Equity-based
compensation expense included in research and development expenses |
378 | 167 | ||||||
Equity-based
compensation expense included in sales and marketing expenses |
201 | 112 | ||||||
Equity-based
compensation expense included in general and administrative expenses |
326 | 287 | ||||||
Deferred tax related to equity-based compensation expenses |
(84 | ) | | |||||
Non-GAAP net income |
$ | 5,521 | $ | 2,643 | ||||
GAAP weighted-average number of Common Stock used in
computation of diluted net income per share (in thousands) |
23,888 | 21,911 | ||||||
Weighted-average number of shares related to outstanding options |
31 | 92 | ||||||
Weighted-average number of Common Stock used in computation of
diluted net income per share excluding equity-based
compensation expense (in thousands) |
23,919 | 22,003 | ||||||
GAAP diluted net income per share |
$ | 0.19 | $ | 0.09 | ||||
Equity-based compensation expense |
$ | 0.04 | $ | 0.03 | ||||
Non GAAP diluted net income per share |
$ | 0.23 | $ | 0.12 | ||||
CEVA, INC. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(U.S. Dollars in thousands)
CONDENSED CONSOLIDATED BALANCE SHEETS
(U.S. Dollars in thousands)
March 31, | December 31, | |||||||
2011 | 2010 | |||||||
Unaudited | Audited | |||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 15,058 | $ | 17,098 | ||||
Marketable securities and short term bank deposits |
113,003 | 98,681 | ||||||
Trade receivables, net |
1,172 | 5,906 | ||||||
Deferred tax assets |
1,240 | 1,288 | ||||||
Prepaid expenses and other accounts receivables |
5,120 | 4,609 | ||||||
Total current assets |
135,593 | 127,582 | ||||||
Long term assets: |
||||||||
Long term bank deposits |
15,259 | 15,173 | ||||||
Severance pay fund |
5,682 | 5,433 | ||||||
Deferred tax assets |
831 | 574 | ||||||
Property and equipment, net |
1,296 | 1,348 | ||||||
Goodwill |
36,498 | 36,498 | ||||||
Total assets |
$ | 195,159 | $ | 186,608 | ||||
LIABILITIES AND STOCKHOLDERS EQUITY |
||||||||
Current liabilities: |
||||||||
Trade payables |
$ | 398 | $ | 616 | ||||
Deferred revenues |
376 | 616 | ||||||
Accrued expenses and other payables |
11,088 | 10,521 | ||||||
Deferred tax liabilities |
888 | 901 | ||||||
Total current liabilities |
12,750 | 12,654 | ||||||
Accrued severance pay |
5,735 | 5,486 | ||||||
Total liabilities |
18,485 | 18,140 | ||||||
Stockholders equity: |
||||||||
Common Stock: |
23 | 23 | ||||||
Additional paid in-capital |
180,281 | 176,838 | ||||||
Accumulated other comprehensive income |
429 | 317 | ||||||
Accumulated deficit |
(4,059 | ) | (8,710 | ) | ||||
Total stockholders equity |
176,674 | 168,468 | ||||||
Total liabilities and stockholders equity |
$ | 195,159 | $ | 186,608 | ||||