CEVA, Inc. Announces First Quarter 2017 Financial Results

MOUNTAIN VIEW, Calif. -- May 4, 2017 -- CEVA, Inc. (NASDAQ: CEVA), the leading licensor of signal processing IP for smarter, connected devices, today announced its financial results for the first quarter ended March 31, 2017.

Total revenue for the first quarter of 2017 was $21.3 million, a 29% increase compared to $16.5 million reported for the first quarter of 2016. First quarter 2017 licensing and related revenue was a record $9.5 million, an increase of 10% when compared to $8.6 million reported for the same quarter a year ago. Royalty revenue for the first quarter of 2017 was $11.8 million, an increase of 50% when compared to $7.9 million reported for the first quarter of 2016.

Gideon Wertheizer, Chief Executive Officer of CEVA, stated: "Our strongest licensing quarter in the company's history helped to deliver a fifth record revenue quarter in succession. We also significantly strengthened our backlog, reinforcing our confidence in achieving our annual licensing target. We continue to experience strong demand for our unique portfolio of specialized platforms, including 5G, computer vision, deep neural networks and connectivity, all of which are set to generate new royalty streams in the years ahead."

GAAP net income for the first quarter of 2017 increased 128% to $4.1 million, compared to $1.8 million reported for the same period in 2016. GAAP diluted earnings per share for the first quarter of 2017 increased 111% to $0.19 from $0.09 a year ago.

Non-GAAP net income and diluted earnings per share for the first quarter of 2017 were $6.3 million and $0.28, respectively, representing a 77% and 65% increase, respectively, over the $3.5 million and $0.17 reported for the first quarter of 2016. Non-GAAP net income and diluted earnings per share for the first quarter of 2017 excluded: (a) equity-based compensation expense, net of taxes, of $1.8 million, and (b) the impact of the amortization of acquired intangibles of $0.3 million associated with the acquisition of RivieraWaves. Non-GAAP net income and diluted earnings per share for the first quarter of 2016 excluded: (a) equity-based compensation expense of $1.4 million, net of taxes, and (b) the impact of the amortization of acquired intangibles of $0.3 million associated with the acquisition of RivieraWaves.

During the quarter, CEVA completed eleven license agreements. Eight of the agreements were for CEVA DSP cores, platforms and software and three were for CEVA connectivity IPs. All the licensing agreements completed during the quarter were for non-handset baseband applications. Four were with first-time customers of CEVA. Target applications for customer deployment include: 5G base stations, automotive ADAS, smart surveillance cameras, smartphones, smart home appliances, and Bluetooth 4.2 and 5 connectivity for various IoT devices. Geographically, five of the deals signed were in China, one was in the U.S., one was in Europe and four were in the APAC region.

Yaniv Arieli, Chief Financial Officer of CEVA, stated: "In addition to an all-time high licensing quarter, our customers shipped a record 352 million CEVA-powered chips, resulting in 50% year-over-year royalty revenue growth. We continued to strengthen our balance sheet during the quarter, with our cash balance, marketable securities and bank deposits totaling $164 million, with no debt."

Financial Tables

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CEVA Conference Call

On May 4, 2017 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 the Internet at the following link: https://www.webcaster4.com/Webcast/Page/984/20508. 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 1-877-344-7529 or +1-412-317-0088 (access code: 10104551) from one hour after the end of the call until 9:00 a.m. (Eastern Time) on May 11, 2017. The replay will also be available at CEVA's web site www.ceva-dsp.com.

About CEVA, Inc.

CEVA is the leading licensor of signal processing IP for a smarter, connected world. We partner with semiconductor companies and OEMs worldwide to create power-efficient, intelligent and connected devices for a range of end markets, including mobile, consumer, automotive, industrial and IoT. Our ultra-low-power IPs for vision, audio, communications and connectivity include comprehensive DSP-based platforms for LTE/LTE-A/5G baseband processing in handsets, infrastructure and machine-to-machine devices, advanced imaging, computer vision and deep learning for any camera-enabled device, audio/voice/speech and ultra-low power always-on/sensing applications for multiple IoT markets. For connectivity, we offer the industry's most widely adopted IPs for Bluetooth (low energy and dual mode), Wi-Fi (802.11 a/b/g/n/ac up to 4x4) and serial storage (SATA and SAS). Visit us at www.ceva-dsp.com

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