CEVA, Inc. Announces First Quarter 2020 Financial Results

MOUNTAIN VIEW, Calif. - May 11, 2020 - CEVA, Inc. (NASDAQ: CEVA), the leading licensor of wireless connectivity and smart sensing technologies, today announced its financial results for the first quarter ended March 31, 2020.

Total revenue for the first quarter of 2020 was $23.6 million, a 39% increase compared to $17.0 million reported for the first quarter of 2019. First quarter 2020 licensing and related revenue was $14.5 million, an increase of 32% when compared to $11.0 million reported for the same quarter a year ago. Royalty revenue for the first quarter of 2020 was $9.1 million, an increase of 53% when compared to $6.0 million reported for the first quarter of 2019.

Thirteen license agreements were completed during the quarter, of which three were for smart sensing products and ten were for connectivity products. Three of the agreements were with first time customers. Customers’ target markets include 5G for base station RAN, 5G fixed wireless access and 5G backhaul, Wi-Fi 6 for IoT devices, true wireless stereo earbuds, vision and AI for drones, and voice assistants for a range of smart home and IoT devices. Geographically, four of the deals signed were in China, four were in Europe, three were in the U.S. and two were in the APAC region, including Japan.

Gideon Wertheizer, CEO of CEVA, stated: “We are extremely proud of our performance during the first quarter, despite the wide scale lockdowns and disruptions our customers are facing as a result of COVID-19. Our licensing activities continue to expand, and we are experiencing strong interest in particular for our 5G, Wi-Fi 6 and sensing technologies. Our royalty revenue performance demonstrates the strength of an increasingly diversified customer base, with IoT products and the introduction of a new low cost flagship smartphone offsetting the impact of supply chain disruptions in China during the first quarter. We continue to execute on our strategy and drive new product developments as we believe that these investments present further growth opportunities as the industry recovers from the pandemic.”

Net loss for the first quarter of 2020 was $1.2 million, as compared to a net loss of $2.3 million reported for the same period in 2019. GAAP diluted loss per share for the first quarter of 2020 was ($0.05), as compared to a GAAP diluted loss per share of ($0.10) for the same period in 2019.

Non-GAAP net income and diluted earnings per share for the first quarter of 2020 increased to $2.6 million and $0.11, respectively, from $0.3 million and $0.01 reported for the first quarter of 2019. Non-GAAP net income and diluted earnings per share for the first quarter of 2020 excluded: (a) equity-based compensation expense, net of taxes, of $3.1 million, (b) the impact of the amortization of acquired intangibles, net of taxes, of $0.7 million associated with the acquisition of the Hillcrest Labs business and investments in NB-IoT and Immervision technologies. Non-GAAP net income and diluted earnings per share for the first quarter of 2019 excluded: (a) equity-based compensation expense, net of taxes, of $2.3 million, and (b) the impact of the amortization of acquired intangibles of $0.3 million associated with the acquisition of RivieraWaves and an investment in NB-IoT technologies.

Yaniv Arieli, Chief Financial Officer of CEVA, stated: “We will continue to act responsibly and adapt to the dynamics of the COVID-19 impact, while maintaining our customer focus, and research and development roadmaps. During the quarter, the company repurchased approximately $4.8 million of its common stock. Our cash and cash equivalent balances, marketable securities and bank deposits were approximately $151 million at the end of the first quarter, with no debt.”