- Key OEMs in mobile markets license CEVA-MM3101 imaging & vision platform
- Strategic customer extends use of DSP for 3G & LTE basebands
- Expansion of existing stock repurchase program with additional two million shares
MOUNTAIN VIEW, Calif., July 31, 2013 /PRNewswire/ — CEVA, Inc. (NASDAQ: CEVA), the leading licensor of silicon intellectual property (SIP) platform solutions and DSP cores for the mobile, digital home and networking markets, today announced its financial results for the second quarter ended June 30, 2013.
Total revenue for the second quarter of 2013 was $12.8 million, a decrease of 6% compared to $13.6 million for the second quarter of 2012. Licensing and related revenue for the second quarter of 2013 was $6.1 million, an increase of 2% compared to $6.0 million reported for the second quarter of 2012. Royalty revenue for the second quarter of 2013 was $6.7 million, a decrease of 12% compared to $7.6 million reported for the second quarter of 2012.
Gideon Wertheizer, Chief Executive Officer, stated: "Our strong performance in licensing activities for the second quarter was a direct result of our strategy to expand beyond the cellular baseband market. During the quarter, we successfully completed two comprehensive agreements for our CEVA-MM3101 multimedia platforms with key OEMs in the mobile space who are expected to utilize our technology to develop their own proprietary multimedia processing chips. These agreements illustrate our ability to successfully capitalize on emerging technology trends in photography, vision and audio, and build the foundations for our future royalty growth. In addition, we extended our relationship with a key customer in the cellular baseband market, reinforcing our position in the 3G and LTE markets."
U.S. GAAP net income for the second quarter of 2013 was $2.2 million, a decrease of 37% from $3.5 million reported for the same period in 2012. U.S. GAAP diluted earnings per share for the second quarter of 2013 were $0.10, a decrease of 33% compared to $0.15 for the second quarter of 2012.
Non-GAAP net income and diluted earnings per share for the second quarter of 2013 was $3.4 million and $0.15, respectively, representing a decrease of 24% and 21%, respectively, over the $4.4 million and $0.19 reported for the second quarter of 2012. Non-GAAP net income and diluted earnings per share for the second quarter of 2013 and 2012 excluded equity-based compensation expense, net of taxes, of $1.2 million and $1.0 million, respectively.
During the second quarter of 2013, the Company concluded six new license agreements. Four of the agreements were for CEVA DSP cores, platforms and software, one for SATA/SAS technology and one for Bluetooth technology. Target applications for customer deployment are 3G and LTE cellular handsets, imaging, and embedded vision and audio for mobile devices. Geographically, one of the license agreements was in the U.S. and the other five were in Asia, including Japan.
Yaniv Arieli, Chief Financial Officer, stated, "During the second quarter, our royalty revenue from 3G shipments surpassed the 2G royalty revenue for the first time. This is an important milestone that reflects our strong foothold in the growing adoption of low-cost smartphones in China. During the quarter, we bought back approximately 176,000 shares of our common stock for an aggregate consideration of approximately $2.8 million. Furthermore, the Board of Directors has authorized the expansion of our share repurchase program with an additional two million shares of common stock available for repurchase. In total, there are 2,179,000 shares available for repurchase under our 10b-18 plan program, illustrating our confidence in the long-term growth opportunities for CEVA, the Company's robust fundamentals and considerable earnings leverage. Our financial position remains strong with our cash balance, marketable securities and bank deposits totaling $154 million at the end of the quarter."
About CEVA, Inc.
CEVA is the world's leading licensor of silicon intellectual property (SIP) DSP cores and platform solutions for the mobile, portable and consumer electronics markets. CEVA's IP portfolio includes comprehensive technologies for cellular baseband (2G / 3G / 4G), multimedia (vision, imaging and HD audio), voice processing, Bluetooth, Serial Attached SCSI (SAS) and Serial ATA (SATA). In 2012, CEVA's IP was shipped in over 1.1 billion devices, powering smartphones from many of the world's leading OEMs, including HTC, Huawei, LG, Nokia, Motorola, Samsung, Sony, TCL and ZTE. Today, more than 40% of handsets shipped worldwide are 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 Statement
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 Mr. Wertheizer's statements about the agreements entered into during the second quarter of 2013 illustrating CEVA's ability to successfully capitalize on emerging technology trends in photography, vision and audio, and build the foundations for its' future royalty growth, Forward-looking statements also include Mr. Arieli's statements about CEVA's stock buyback program reflecting CEVA's confidence in its long-term growth opportunities, robust fundamentals and considerable earnings leverage. The risks, uncertainties and assumptions include: the ability of the CEVA DSP cores and other technologies to continue to be strong growth drivers for us; our success in penetrating new markets and maintaining our market position in existing markets; the ability of products incorporating our technologies to achieve market acceptance, the effect of intense industry competition and consolidation, global chip market trends, the possibility that markets for our technologies may not develop as expected or that products incorporating our technologies do not achieve market acceptance; our ability to timely and successfully develop and introduce new technologies; and general market conditions and other risks relating to our 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.