CEVA Announces Second Quarter 2004 Financial Results

CEVA licensees ship record 23 million units in the second quarter

San Jose, Calif. - July 22, 2004 - CEVA (NASDAQ: CEVA; LSE: CVA), the leading licensor of digital signal processor (DSP) cores and communications solutions to the semiconductor industry, today announced financial results for the second quarter of 2004, ended June 30, 2004.

The second quarter results were in line with company guidance given on April 20, 2004. Total revenues were $9.6 million, up four percent from the $9.2 million reported in the first quarter. Licensing revenues were $6.9 million, up five percent from first quarter licensing revenues of $6.6 million. Royalty revenues were $1.3 million, up from $1.2 million reported in the first quarter.

Net income in the second quarter was $494,000 or $.03 per share, compared with first quarter net income of $409,000 or $0.02 per share.

Gross margin in the second quarter of 2004 was 85 percent, compared with 84 percent in the first quarter. Total cash was $56.8 million at June 30, 2004, compared with $58.6 million at the end of the first quarter, principally reflecting capital investment in EDA tools in the quarter.

"We are very pleased with our continued progress this year," said Chet Silvestri, president and CEO of CEVA. "We signed six new licensing agreements across the portfolio of our technologies in the quarter including a major new license for our CEVA-X DSP technology with one of the world's leaders in the wireless industry."

The six new licensing customers in the second quarter included leaders in the high-growth wireless and multimedia markets and spanned a portfolio of DSP, framework and solution technologies from CEVA. Three of the six customers in the quarter are new licensees of CEVA.

"CEVA licensees shipped a record 23 million units in the second quarter, up 25% over first quarter shipments, further reinforcing our position as the number one licensor of DSP technology," continued Chet Silvestri. "With our expanding customer relationships, strong balance sheet and solid financial performance, we are well positioned to achieve our corporate objectives in 2004."

CEVA Conference Call

CEVA will broadcast its conference call discussion of second quarter 2004 financial results on Thursday, July 22, 2004 at 7:00 a.m. PT (3:00 p.m. London Time).

• US Participants Telephone: 877-951-7311 (password: CEVA)
• UK/European Participants Telephone: +44-20-7019-0810 (Password: CEVA)

A recording will be available approximately one hour after the call for five working days at the following dial-in numbers:

• US Participants Telephone: 877-814-5621 (Access code: CEVA)
  
• UK/European Participants Telephone: +44-20-7970-8460 (Access code: CEVA)

The CEVA financial results conference call will be available via a live webcast on the CEVA website at http://www.ceva-dsp.com. Please access the website 15 minutes prior to the start of the call to download and install any necessary audio software. An archived webcast replay of the call will be available at the web site for one year.

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Condensed Consolidated Statements Of Operations & Condensed Consolidated Balance Sheets

Condensed Consolidated Statements of Operations & Condensed Consolidated Balance Sheets are available for download here (pdf 29KB)

About CEVA, Inc.

For more information about CEVA, Inc, visit the about section of our website.

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Forward-Looking Statements

This press release contains forward-looking statements that involve risks and uncertainties, as well as assumptions that if they ever 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. The forward looking statements in this press release include statements concerning CEVA achieving its corporate objectives and extending its position as the number one licensor of DSP solutions for the semiconductor industry. The risks, uncertainties and assumptions referred to above include macroeconomic and geopolitical trends and events; intense competition within our industry; that the market for the sale of our technology may not develop as expected; that we rely significantly on revenue derived from a limited number of licensees; the possible loss of key employees and/or senior management; the challenges of managing a geographically dispersed operation and other risks that are described from time to time in the Company's Securities and Exchange Commission reports, including but not limited to the Annual Report on Form 10-K for the fiscal year ended December 31, 2003, and reports filed after the Form 10-K. CEVA assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates.