Ceva, Inc. Announces Second Quarter 2024 Financial Results

ROCKVILLE, MD, August 7, 2024 – Ceva, Inc. (NASDAQ: CEVA), a leading licensor of silicon and software IP that enables Smart Edge devices to connect, discover and infer data more reliably and efficiently, today announced its financial results for the second quarter ended June 30, 2024. Financial results for the second quarter ended June 30, 2023 reflect only Ceva’s continuing operations, with the Intrinsix business included as a discontinued operation unless otherwise noted.

Operational Highlights:

Total revenue for the second quarter of 2024 was $28.4 million, an increase of 24% compared to $22.9 million in the second quarter of 2023. License and related revenue for the second quarter of 2024 was $17.3 million, an increase of 28%, compared to $13.6 million in the same quarter a year earlier. Royalties revenue for the second quarter of 2024 was $11.2 million, an increase of 19%, compared to $9.4 million in the same quarter a year earlier.

Amir Panush, CEO of Ceva, commented: “We are pleased to report solid execution and Q2 results that exceeded our estimates, with licensing revenue and royalty revenue up 28% and 19% year-over-year, respectively. On the licensing side, customer demand for our IP portfolio is driven by the growing adoption of AI across every industry and device. We signed a number of strategic agreements during the quarter, including one with a leading US analog semiconductor company for our Bluetooth portfolio and two with our large wireless infrastructure OEM customers for their development of next-generation ASICs to address the incredible growth in network traffic and performance improvements required to support generative AI and hybrid AI systems. Our royalty business grew on broad market strength and market share gains in IoT and strong growth in the smartphone market.”

Eleven IP licensing deals were signed during the quarter, targeting a broad range of end markets and applications, including AI solutions for industrial and consumer AI edge devices, next-generation wireless infrastructure enabling ubiquitous AI, 5G satellite, 5G RedCap, and Bluetooth connectivity for wearables and hearables. Five deals signed during the quarter were with OEMs, and one deal was with a first-time customer.

GAAP gross margin for the second quarter of 2024 was 90% compared to 85% in the second quarter of 2023. GAAP operating loss for the second quarter of 2024 was $0.04 million compared to a GAAP operating loss of $5.3 million for the same period in 2023. GAAP net loss for the second quarter of 2024 was $0.3 million compared to a GAAP net loss of $4.9 million recorded for the same period in 2023. Diluted GAAP loss per share for the second quarter of 2024 was $0.01 compared to a diluted GAAP loss per share of $0.21 for the same period in 2023.

GAAP net loss including discontinued operations for the second quarter of 2023 was $5.8 million. Diluted GAAP loss per share including discontinued operations for the second quarter of 2023 was $0.25.

Non-GAAP gross margin for the second quarter of 2024 was 91% compared to 86% for the same period in 2023. Non-GAAP operating income for the second quarter of 2024 was $4.4 million compared to a non-GAAP operating loss of $1.1 million recorded for the second quarter of 2023. Non-GAAP net income and diluted earnings per share for the second quarter of 2024 were $4.2 million and $0.17, respectively, compared to a non-GAAP net loss and diluted loss per share of $0.5 million and $0.02, respectively, recorded for the second quarter of 2023.

Non-GAAP net loss, including discontinued operations, for the second quarter of 2023 was $0.5 million. Diluted Non-GAAP loss per share, including discontinued operations, for the second quarter of 2023 was $0.02.

Yaniv Arieli, Ceva’s Chief Financial Officer, said: “Our excellent second quarter performance generated revenue growth of 24% year-over-year and, combined with our expense control discipline, enabled us to increase our adjusted operating margin to 15%. We are encouraged by the strength of our licensing capabilities and the growth in royalties from our broad and diverse customer base, and in reflection of this, we continued to repurchase shares of the company during the quarter, repurchasing approximately 100,000 shares for approximately $2 million under our share repurchase program. At the end of the quarter, our cash and cash equivalents, marketable securities and bank deposits stood at approximately $158 million, which we can use to grow our share in Edge AI and other high-growth markets.”

Ceva telephone conference

On August 7, 2024, at 8:30 a.m. Eastern Time, Ceva management will hold a conference call to discuss quarterly operating results.

The telephone conference will be available at the following numbers:

• US Participants: Call 1-844-435-0316 (Access Code: Ceva)
• International participants: call +1-412-317-6365 (access code: Ceva)

The conference call will also be available live via webcast at the following link: https://app.webinar.net/8mGNyBxXMLR. Please go to the website at least fifteen minutes before the start of the call to register.

Those unable to attend the live broadcast can watch a replay by dialing +1-877-344-7529 or +1-412-317-0088 (access code: 2162644) from one hour after the call ends until 9:00 a.m. (ET) on August 14, 2024. The replay will also be available on the Ceva website www.ceva-ip.com.