CEVA, Inc. Announces Third Quarter 2015 Financial Results

MOUNTAIN VIEW, Calif. -- Nov. 2, 2015 -- CEVA, Inc. (NASDAQ: CEVA), the leading licensor of DSP and IP platforms for cellular, multimedia and connectivity, today announced its financial results for the third quarter ended September 30, 2015.

Total revenue for the third quarter of 2015 was $16.2 million, an increase of 15% compared to $14.1 million for the third quarter of 2014. Licensing and related revenue for the third quarter of 2015 was $8.6 million, a slight decrease of 1% compared to $8.7 million reported for the third quarter of 2014. Royalty revenue for the third quarter of 2015 was $7.6 million, an increase of 42% compared to $5.4 million reported for the third quarter of 2014.

Gideon Wertheizer, Chief Executive Officer, stated: "Our outstanding third quarter financial performance delivered record high revenues for the Company. This milestone achievement is a direct consequence of our LTE market share gain strategy and the continued expansion of our licensee base into new and lucrative markets. CEVA has evolved into a diversified company with strong competencies to leverage the major opportunities existing in an increasingly smart and connected world."

U.S. GAAP net income and diluted net income per share for the third quarter of 2015 were $3.3 million and $0.16, respectively, representing an increase of 404% and 433%, respectively.

Non-GAAP net income and diluted net income per share for the third quarter of 2015 were $4.7 million and $0.22, respectively, representing an increase of 98% and 83%, respectively, over the $2.4 million and $0.12 reported for the third quarter of 2014. Non-GAAP net income and diluted earnings per share for the third quarter of 2015 excluded: (a) equity-based compensation expense, net of taxes, of $1.2 million, and (b) the impact of the amortization of acquired intangibles, net of taxes, of $0.2 million associated with the acquisition of RiveraWaves. Non-GAAP net income and diluted earnings per share for the third quarter of 2014 excluded: (a) equity-based compensation expense, net of taxes, of $1.0 million, (b) the impact of the amortization of acquired intangibles, net of taxes, of $0.2 million associated with the acquisition of RiveraWaves, (c) a loss of approximately $0.4 million from the sale of our minority equity holdings in Antcor, which was sold to u-blox during the quarter, and (d) $0.1 million of costs associated with the RivieraWaves acquisition.

During the third quarter of 2015, the Company concluded eight new license agreements. Three of the agreements were for CEVA DSP cores, platforms and software, and five were for CEVA connectivity IPs. Target end products include: smartphones, tablets, small cell base stations and varieties of connected devices. Geographically, three deals were signed in the US, one was in Europe and four were in Asia.

Yaniv Arieli, Chief Financial Officer, stated, "We are delighted with our overall performance for the third quarter, producing all-time high revenues, which yielded our strongest GAAP and non-GAAP results in more than three years. Significantly, LTE shipments increased to a record twenty seven million units, driving royalty revenue growth of 42% year-over-year. We continued to buy back our shares during the quarter, repurchasing approximately 159,000 shares of CEVA common stock for an aggregate consideration of $2.8 million. At the end of the quarter, our cash balance, marketable securities and bank deposits totaled approximately $129 million."

Financial Tables

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CEVA Conference Call
On November 2, 2015, 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 1-866-364-3869 (Access Code: CEVA)
• International Participants: Dial +1-412-902-4215 (Access Code: CEVA)

The conference call will also be available live via the Internet at the following link: https://www.webcaster4.com/Webcast/Page/984/10882. 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: 10073703) from one hour after the end of the call until 9:30 a.m. (Eastern Time) on November 15, 2015. The replay will also be available at CEVA's web site www.ceva-dsp.com.

About CEVA, Inc.
CEVA is the leading licensor of cellular, multimedia and connectivity technologies to semiconductor companies and OEMs serving the mobile, consumer, automotive and IoT markets. Our DSP IP portfolio includes comprehensive platforms for multimode 2G/3G/LTE/LTE-A baseband processing in terminals and infrastructure, computer vision and computational photography 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 (Smart and Smart Ready), Wi-Fi (802.11 a/b/g/n/ac up to 4x4) and serial storage (SATA and SAS). One in every three phones sold worldwide is powered by CEVA, from many of the world's leading OEMs including Samsung, Huawei, Xiaomi, Lenovo, HTC, LG, Coolpad, ZTE, Micromax and Meizu. Visit us at www.ceva-dsp.com.