CEVA, Inc. Announces Third Quarter 2021 Financial Results

ROCKVILLE, Md., Nov. 9, 2021 -- CEVA, Inc. (NASDAQ: CEVA), the leading licensor of wireless connectivity and smart sensing technologies and integrated IP solutions, today announced its financial results for the third quarter ended September 30, 2021.

Total revenue for the third quarter of 2021 was $32.8 million, an all-time record high and a 31% increase compared to $25.0 million reported for the third quarter of 2020. Third quarter 2021 licensing, non-recurring engineering (NRE) and related revenue was $21.6 million, an increase of 74% when compared to $12.4 million reported for the same quarter a year ago. Royalty revenue for the third quarter of 2021 was $11.2 million, a decrease of 11% when compared to $12.5 million reported for the third quarter of 2020.

Twenty-five IP license and NRE agreements were concluded during the quarter targeting a wide variety of smart and connected devices for the smart home, true wireless stereo (TWS) earbuds, medical, aerospace and defense and Industry 4.0. Thirteen agreements were with first-time customers. Geographically, fifteen of the deals signed were in China, five in the U.S., four in APAC, and one was in Europe.

Gideon Wertheizer, CEO of CEVA, stated: "Our excellent third quarter results and performance reflect CEVA's central role in the digital transformation era. Our leading-edge technology portfolio along with the chip design capabilities of Intrinsix offers a holistic proposition for incumbents and newcomers in the expanding semiconductor markets. Our IP licensing continues to be very strong, with a growing number of deals for our Bluebud wireless audio platform and Wi-Fi 6 products. It also includes a full quarter contribution from Intrinsix for the first time, with a number of important agreements signed, including with Lockheed Martin. In royalties, our base station and IoT product category continues to expand, reaching an all-time record high revenue and surpassing 400 million royalty-bearing devices in a quarter for the first time."

GAAP net loss for the third quarter of 2021 was $0.2 million, as compared to a GAAP net loss of $0.7 million reported for the same period in 2020. GAAP diluted loss per share for the third quarter of 2021 was $0.01, as compared to a GAAP diluted loss per share of $0.03 for the same period in 2020.

Non-GAAP net income and diluted earnings per share for the third quarter of 2021 increased 29% and 25%, respectively, to $4.7 million and $0.20, respectively, from $3.6 million and $0.16 reported for the third quarter of 2020. Non-GAAP net income and diluted earnings per share for the third quarter of 2021 excluded: (a) equity-based compensation expenses, net of taxes, of $3.4 million, (b) the impact of the amortization of acquired intangibles, net of taxes, of $1.0 million associated with the acquisition of the Intrinsix and Hillcrest Labs businesses and investments in NB-IoT and Immervision technologies, and (c) $0.4 million of costs associated with the Intrinsix acquisition. Non-GAAP net income and diluted earnings per share for the third quarter of 2020 excluded: (a) equity-based compensation expenses, net of taxes, of $3.7 million, and (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.

Yaniv Arieli, Chief Financial Officer of CEVA, stated: "We are pleased with our strong financial performance in the third quarter, which was the highest revenue quarter for CEVA to date. The integration of our IP business together with our new Intrinsix chip design business continues to progress smoothly, and we are excited by the opportunities ahead. We continue to invest in research and development for next generation wireless, AI and smart sensing technologies as well as to capitalize on DARPA-funded projects to develop the next wave of security and chiplet technologies. We are on track to meet our financial goals for the year while continuously working with our customers to mitigate possible implications of the supply chain constraints."

Financial Tables

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CEVA Conference Call
On November 9, 2021, 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 webcast at the following link: https://www.webcaster4.com/Webcast/Page/984/43157. 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: 10160908) from one hour after the end of the call until 9:00 a.m. (Eastern Time) on November 16, 2021. The replay will also be available at CEVA's web site www.ceva-dsp.com.

About CEVA, Inc.
CEVA is the leading licensor of wireless connectivity and smart sensing technologies and integrated IP solutions for a smarter, safer, connected world. We provide Digital Signal Processors, AI engines, wireless platforms, cryptography cores and complementary software for sensor fusion, image enhancement, computer vision, voice input and artificial intelligence. These technologies are offered in combination with our Intrinsix IP integration services, helping our customers address their most complex and time-critical integrated circuit design projects. Leveraging our technologies and chip design skills, many of the world's leading semiconductors, system companies and OEMs create power-efficient, intelligent, secure and connected devices for a range of end markets, including mobile, consumer, automotive, robotics, industrial, aerospace & defense and IoT.

Our DSP-based solutions include platforms for 5G baseband processing in mobile, IoT and infrastructure, advanced imaging and computer vision for any camera-enabled device, audio/voice/speech and ultra-low-power always-on/sensing applications for multiple IoT markets. For sensor fusion, our Hillcrest Labs sensor processing technologies provide a broad range of sensor fusion software and inertial measurement unit ("IMU") solutions for markets including hearables, wearables, AR/VR, PC, robotics, remote controls and IoT. For wireless IoT, our platforms for Bluetooth (low energy and dual mode), Wi-Fi 4/5/6 (802.11n/ac/ax), Ultra-wideband (UWB) and NB-IoT are the most broadly licensed connectivity platforms in the industry.

CEVA is a sustainable and environmentally conscious company, adhering to our Code of Business Conduct and Ethics. As such, we emphasize and focus on environmental preservation, recycling, the welfare of our employees and privacy – which we promote on a corporate level. At CEVA, we are committed to social responsibility, values of preservation and consciousness towards these purposes.

Visit us at www.ceva-dsp.com