CEVA, Inc. Announces Third Quarter 2013 Financial Results

Four first-time CEVA licensees signed in quarter - further illustrating company's expansion into new growth markets, including smart meters, satellite communications, automotive and connectivity

MOUNTAIN VIEW, Calif., Oct. 30, 2013 -- 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 third quarter ended September 30, 2013.

Total revenue for the third quarter of 2013 was $10.0 million, a decrease of 17% compared to $12.0 million for the third quarter of 2012. Licensing and related revenue for the third quarter of 2013 was approximately $4.0 million, a decrease of 20% compared to $5.0 million reported for the third quarter of 2012. Royalty revenue for the third quarter of 2013 was approximately $6 million, a decrease of 14% compared to $7.0 million reported for the third quarter of 2012.

Gideon Wertheizer, Chief Executive Officer, stated: "We continue to successfully expand our customer and market reach, adding four first-time licensees to our comprehensive customer base. In total, we have signed more than twenty DSP license agreements in the past two years with customers who are targeting new markets and applications, including communication, audio, digital photography and embedded vision. Despite the revenue shortfall for the third quarter, these agreements are indicative of the continued successful execution of our long-term growth strategy to diversify beyond our traditional cellular markets and customer base, which will serve to expand our market presence and future royalty base."

U.S. GAAP net loss for the third quarter of 2013 was $0.3 million, compared to net income of $2.6 million reported for the same period in 2012. U.S. GAAP diluted loss per share for the third quarter of 2013 was $0.01, compared to earnings per share of $0.11 for the third quarter of 2012.

Non-GAAP net income and diluted earnings per share for the third quarter of 2013 were $1.3 million and $0.06, respectively, representing a decrease of 66% and 63%, respectively, over the $3.8 million and $0.16 reported for the third quarter of 2012. Non-GAAP net income and diluted earnings per share for the third quarter of 2013 and 2012 excluded equity-based compensation expense, net of taxes, of $1.6 million and $1.2 million, respectively.

During the third quarter of 2013, the Company concluded five new license agreements. Four of the agreements were for CEVA DSP cores, platforms and software and one for CEVA Bluetooth technology. Target applications for customer deployment are LTE base stations, satellite communications, smart meters, automotive and connectivity. Geographically, two of the license agreements were in Europe and three were in Asia.

Yaniv Arieli, Chief Financial Officer, stated, "We remain confident in our licensing prospects going forward and continue to focus on maintaining a strong, debt free balance sheet with cash, marketable securities and bank deposits totaling approximately $154 million at the end of the third quarter. Our share repurchase program continued during the quarter with buyback of 138,000 shares at an average price of $16.90 per share for a total consideration of approximately $2.3 million. Year-to-date, we have repurchased 443,000 shares of common stock at an average price of $16.20 per share for a total consideration of approximately $7.2 million."

Financial Tables

To read financial tables, click here

CEVA Conference Call

On October 30, 2013, CEVA management will conduct a conference call at 8:30 a.m. Eastern Time to discuss the company's operating performance for the quarter.

The conference call will be available via the following dial in numbers:

• U.S. Participants: Dial 1-877-870-4263 (Access Code: CEVA)
• International Participants: Dial +1-412-317-0790 (Access Code: CEVA)

The conference call will also be available live via the Internet at the following link: http://www.videonewswire.com/event.asp?id=96235. 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: 10034620) from one hour after the end of the call until 9:00 a.m. (Eastern Time) on November 7, 2013. The replay will also be available at CEVA's web site www.ceva-dsp.com.