EX-99.1 2 ex_272087.htm EXHIBIT 99.1 ex_272087.htm
 

Exhibit 99.1

 

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CEVA, Inc. Announces Second Quarter 2021 Financial Results

 

 

All-time record high total revenue of $30.5 million, up 29% year-over-year

 

All-time record high shipments of Bluetooth, Wi-Fi and cellular IoT devices indicative of Companys continued momentum and leadership in wireless connectivity

 

Rockville, MD, August 9, 2021 CEVA, Inc. (NASDAQ: CEVA), the leading licensor of wireless connectivity and smart sensing technologies, today announced its financial results for the second quarter ended June 30, 2021.

 

Total revenue for the second quarter of 2021 was an all-time record high $30.5 million, a 29% increase compared to $23.6 million reported for the second quarter of 2020. Second quarter 2021 licensing, non-recurring engineering (NRE) and related revenue was $15.5 million, an increase of 15% when compared to $13.5 million reported for the same quarter a year ago. Royalty revenue for the second quarter of 2021 was $14.9 million, an increase of 48% when compared to $10.1 million reported for the second quarter of 2020. Royalty revenue included a payment of $3.3 million upon the resolution of a disagreement on royalties for past shipments.

 

Seventeen license agreements were concluded during the quarter, out of which six were with first time customers. Customers’ target applications and devices include True Wireless Stereo (TWS) earbuds, 5G smartphones, surveillance equipment, Wi-Fi 6 and 5G for telecom, enterprise and industrial markets, and a range of applications for IoT, consumer and medical. Geographically, nine of the deals signed were in China, two were elsewhere in the Asia-Pacific Region, five were in the U.S, and one was in Europe.

 

Gideon Wertheizer, CEO of CEVA, stated: “Our performance in the second quarter was exceptional, both in terms of financial metrics, with all-time high revenue, and in terms of market traction, where our IP portfolio continues to attract customers who rely on us to streamline and expedite their IoT and 5G strategies. With the acquisition of Intrinsix in the quarter, we are expanding our market reach to the large aerospace & defense space and enriching our business model, offering key customers optimized solutions that take advantage of our differentiated IP and competencies in RF, mixed-signal and security IP solutions. Our royalty mix continues to show strength in the base station and IoT category, with 5G base station radio access networks (RAN) returning to growth in the quarter and record shipments of Bluetooth, Wi-Fi and cellular IoT devices.”

 

GAAP net income for the second quarter of 2021 was $0.3 million, as compared to a net loss of $1.1 million reported for the same period in 2020. GAAP diluted earnings per share for the second quarter of 2021 was $0.01, as compared to a GAAP diluted loss per share of ($0.05) for the same period in 2020.

 

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Non-GAAP net income and diluted earnings per share for the second quarter of 2021 increased to $5.1 million and $0.22, respectively, from $2.9 million and $0.12 reported for the second quarter of 2020. Non-GAAP net income and diluted earnings per share for the second quarter of 2021 excluded: (a) equity-based compensation expense, net of taxes, of $2.9 million, (b) the impact of the amortization of acquired intangibles, net of taxes, of $0.9 million associated with the acquisitions of the Intrinsix and Hillcrest Labs businesses, investments in NB-IoT and Immervision technologies, and (c) $1.0 million of costs associated with the Intrinsix acquisition. Non-GAAP net income and diluted earnings per share for the second quarter of 2020 excluded: (a) equity-based compensation expenses, net of taxes, of $3.3 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: “Our outstanding second quarter financial performance generated top-line growth year-over-year of 29%, and non-GAAP EPS growth of 83%. Licensing, NRE and related revenue included NRE revenues for the first time, as we completed the acquisition of Intrinsix prior to the end of the quarter. Our blended corporate tax rate was back to its forecasted levels as our revenue deal mix was more balanced. At the end of June 2021, our cash and cash equivalent balances, marketable securities and bank deposits were approximately $137 million, with no debt.”

 

CEVA Conference Call

On August 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/984/42097. 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: 10158545) from one hour after the end of the call until 9:00 a.m. (Eastern Time) on August 16, 2021. The replay will also be available at CEVA's web site www.ceva-dsp.com.

 

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Forward Looking Statement

This press release contains forward-looking statements that involve risks and uncertainties, as well as assumptions that if they 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.  Forward-looking statements include Mr. Wertheizer’s statements regarding the impact of the Intrinsix acquisition on the Company’s market reach and business model and demand for the Company’s products. The risks, uncertainties and assumptions that could cause differing CEVA results include: the scope and duration of the COVID-19 pandemic; the extent and length of the restrictions associated with the COVID-19 pandemic and the impact on customers, consumer demand and the global economy generally; the ability of CEVA DSP cores and other technologies to continue to be strong growth drivers for us; our success in penetrating new markets, including in the base station and IoT markets, and maintaining our market position in existing markets; our ability to diversify the company's royalty streams, the ability of products incorporating our technologies to achieve market acceptance, the maturation of the connectivity, IoT and 5G markets, the effect of intense industry competition and consolidation, global chip market trends, including supply chain issues as a result of COVID-19 and other factors, the possibility that markets for CEVA's technologies may not develop as expected or that products incorporating our technologies do not achieve market acceptance; our ability to timely and successfully develop and introduce new technologies; our ability to successfully integrate Intrinsix into our business; and general market conditions and other risks relating to our business, including, but not limited to, those that are described from time to time in our SEC filings. CEVA assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates.

 

About CEVA, Inc.

CEVA is the leading licensor of wireless connectivity and smart sensing technologies for a smarter, safer, connected world. We offer Digital Signal Processors, AI processors, cryptography cores, wireless platforms and complementary software for sensor fusion, image enhancement, computer vision, voice input and artificial intelligence, all of which are offered in conjunction with our Intrinsix chip design capabilities for complete IP solutions. We partner with semiconductor companies and OEMs worldwide to create power-efficient, intelligent, secure and connected devices for a range of end markets, including mobile, PC, consumer, automotive, robotics, industrial, aerospace & defense, medical 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.

 

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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 and follow us on Twitter, YouTube, Facebook, LinkedIn and Instagram.

 

 

 

 

 

For More Information Contact:

Yaniv Arieli

CEVA, Inc.

CFO

+1.650.417.7941

yaniv.arieli@ceva-dsp.com

Richard Kingston

CEVA, Inc.

VP Market Intelligence, Investor & Public Relations

+1.650.417.7976

richard.kingston@ceva-dsp.com

 

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CEVA, INC. AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME – U.S. GAAP

U.S. dollars in thousands, except per share data

 



   

Three months ended

   

Six months ended

 
   

June 30,

   

June 30,

 
   

2021

   

2020

   

2021

   

2020

 
   

Unaudited

   

Unaudited

   

Unaudited

   

Unaudited

 

Revenues:

                               

Licensing, NRE and related revenues

  $ 15,535     $ 13,530     $ 29,932     $ 28,025  

Royalties

    14,922       10,076       25,927       19,196  
                                 

Total revenues

    30,457       23,606       55,859       47,221  
                                 

Cost of revenues

    3,693       3,005       6,074       5,756  
                                 

Gross profit

    26,764       20,601       49,785       41,465  
                                 

Operating expenses:

                               

Research and development, net

    17,457       14,979       35,050       30,092  

Sales and marketing

    2,893       2,893       6,195       6,061  

General and administrative

    4,159       3,663       7,039       7,327  

Amortization of intangible assets

    667       575       1,243       1,157  
                                 

Total operating expenses

    25,176       22,110       49,527       44,637  
                                 

Operating income (loss)

    1,588       (1,509 )     258       (3,172 )

Financial income, net

    356       838       392       1,669  
                                 

Income (loss) before taxes on income

    1,944       (671 )     650       (1,503 )

Taxes on income

    1,629       419       3,965       772  
                                 

Net income (loss)

  $ 315     $ (1,090 )   $ (3,315 )   $ (2,275 )
                                 

Basic and diluted net income (loss) per share

  $ 0.01     $ (0.05 )   $ (0.15 )   $ (0.10 )

Weighted-average shares used to compute net income (loss) per share (in thousands):

                               

Basic

    22,823       22,017       22,685       22,006  

Diluted

    23,140       22,017       22,685       22,006  

 

 

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Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures

U.S. Dollars in thousands, except per share amounts

 

   

Three months ended

   

Six months ended

 
   

June 30,

   

June 30,

 
   

2021

   

2020

   

2021

   

2020

 
   

Unaudited

   

Unaudited

   

Unaudited

   

Unaudited

 

GAAP net income (loss)

  $ 315     $ ( 1,090 )   $ (3,315 )   $ (2,275 )

Equity-based compensation expense included in cost of revenues

    119       156       262       314  

Equity-based compensation expense included in research and development expenses

    1,743       1,722       3,428       3,345  

Equity-based compensation expense included in sales and marketing expenses

    367       512       785       963  

Equity-based compensation expense included in general and administrative expenses

    677       1,027       1,629       1,902  

Income tax benefit related to equity-based compensation expenses

          (135 )           (184 )

Amortization of intangible assets, net of taxes, related to acquisition of Intrinsix and Hillcrest Labs business, investments in NB-IoT and Immervision technologies

    851       684       1,537       1,377  

Costs associated with the Intrinsix acquisition

    1,005             1,005        

Non-GAAP net income

  $ 5,077     $ 2,876     $ 5,331     $ 5,442  
                                 

GAAP weighted-average number of Common Stock used in computation of diluted net income (loss) per share (in thousands)

    23,140       22,017       22,685       22,006  

Weighted-average number of shares related to outstanding stock-based awards (in thousands)

    343       1,015       739       973  

Weighted-average number of Common Stock used in computation of diluted earnings per share, excluding the above (in thousands)

    23,483       23,032       23,424       22,979  
                                 
                                 

GAAP diluted net income (loss) per share

  $ 0.01     $ ( 0.05 )   $ ( 0.15 )   $ ( 0.10 )

Equity-based compensation expense, net of taxes

  $ 0.13     $ 0.14     $ 0.27     $ 0.28  

Amortization of intangible assets, net of taxes, related to acquisition of Intrinsix and Hillcrest Labs business, investments in NB-IoT and Immervision technologies

  $ 0.04     $ 0.03     $ 0.07     $ 0.06  

Costs associated with the Intrinsix acquisition

  $ 0.04           $ 0.04        

Non-GAAP diluted earnings per share

  $ 0.22     $ 0.12     $ 0.23     $ 0.24  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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CEVA, INC. AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(U.S. Dollars in thousands)



 

   

June 30,

   

December 31,

 
   

2021

   

2020 (*)

 
   

Unaudited

   

Unaudited

 

ASSETS

               

Current assets:

               

Cash and cash equivalents

  $ 26,706     $ 21,143  

Marketable securities and short-term bank deposits

    100,394       108,987  

Trade receivables, net

    10,484       14,765  

Unbilled receivables

    16,213       16,459  

Prepaid expenses and other current assets

    7,451       6,205  

Total current assets

    161,248       167,559  

Long-term assets:

               

Bank deposits

    10,167       29,529  

Severance pay fund

    10,210       10,535  

Deferred tax assets, net

    13,220       10,826  

Property and equipment, net

    7,421       7,586  

Operating lease right-of-use assets

    8,211       9,052  

Goodwill

    75,979       51,070  

Intangible assets, net

    14,753       10,836  

Other long-term assets

    9,416       9,959  

Total assets

  $ 310,625     $ 306,952  
                 
LIABILITIES AND STOCKHOLDERS EQUITY                
                 

Current liabilities:

               

Trade payables

  $ 2,077     $ 894  

Deferred revenues

    4,382       2,434  

Accrued expenses and other payables

    19,759       21,883  

Operating lease liabilities

    3,063       2,969  

Total current liabilities

    29,281       28,180  
                 

Long-term liabilities:

               

Accrued severance pay

    10,606       11,226  

Operating lease liabilities

    4,718       5,772  

Other accrued liabilities

    1,004       885  

Total liabilities

    45,609       46,063  
                 

Stockholders’ equity:

               

Common stock

    23       22  

Additional paid in-capital

    230,083       233,172  

Treasury stock

    (17,210 )     (30,133 )

Accumulated other comprehensive income

    239       478  

Retained earnings

    51,881       57,350  

Total stockholders’ equity

    265,016       260,889  

Total liabilities and stockholders’ equity

  $ 310,625     $ 306,952  

 

(*) Derived from audited financial statements

 

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