CEVA, Inc. Announces Second Quarter 2017 Financial Results

MOUNTAIN VIEW, Calif. -- Aug. 3, 2017 -- CEVA, Inc. (NASDAQ: CEVA), the leading licensor of signal processing IP for smarter, connected devices, today announced its financial results for the second quarter ended June 30, 2017.

Total revenue for the second quarter of 2017 was $20.6 million, a 20% increase compared to $17.1 million reported for the second quarter of 2016. Second quarter 2017 licensing and related revenue was $10.4 million, an increase of 38% when compared to $7.5 million reported for the same quarter a year ago. Royalty revenue for the second quarter of 2017 was $10.2 million, an increase of 6% when compared to $9.6 million reported for the second quarter of 2016.

Gideon Wertheizer, Chief Executive Officer of CEVA, stated: "We are pleased to have delivered strong financial results that exceeded the high end of our guidance range. Our licensing business is thriving, with key industry players committing to our IP portfolio and roadmap. On royalties, we are encouraged by the consistent growth in shipments of our non-baseband products, including the initial shipments of CEVA-powered vision processors in smartphones and cellular processors in base stations. Overall, the strong demand for our technologies reaffirms the unique value of our broad product portfolio for the 'smart and connected' world."

GAAP net income for the second quarter of 2017 increased 44% to $3.9 million, compared to $2.7 million reported for the same period in 2016. GAAP diluted earnings per share for the second quarter of 2017 increased 31% to $0.17 from $0.13 a year ago. GAAP net income and diluted earnings per share for the second quarter of 2017 included a tax benefit of approximately $1.8 million as a result of the conclusion of a tax audit.

Non-GAAP net income and diluted earnings per share for the second quarter of 2017 were $6.3 million and $0.28, respectively, representing a 38% and 33% increase, respectively, over the $4.6 million and $0.21 reported for the second quarter of 2016. Non-GAAP net income and diluted earnings per share for the second quarter of 2017 excluded: (a) equity-based compensation expense, net of taxes, of $2.1 million, and (b) the impact of the amortization of acquired intangibles of $0.3 million associated with the acquisition of RivieraWaves. Net income and diluted earnings per share for the second quarter of 2016 excluded: (a) equity-based compensation expense, net of taxes, of $1.6 million, and (b) the impact of the amortization of acquired intangibles of $0.3 million associated with the acquisition of RivieraWaves.

During the quarter, CEVA completed thirteen license agreements. Seven of the agreements were for CEVA DSP cores, platforms and software, five were for CEVA connectivity IPs and one was a portfolio license agreement. Eleven of the licensing agreements signed during the quarter were for non-handset baseband applications and one was for a handset baseband application. Four were with first-time customers of CEVA. Customers' target markets for the licenses include smartphones, automotive ADAS, drones, surveillance cameras, wearables, industrial IoT and a variety of Bluetooth and Wi-Fi connected consumer and medical products. Geographically, six of the deals signed were in China, three were in the U.S., one was in Europe and three were in the APAC region.

Yaniv Arieli, Chief Financial Officer of CEVA, stated: "Our licensing business continues to go from strength to strength, resulting in both all-time record high licensing revenue for the second quarter and backlog for the third quarter, as well as a stellar sales pipeline. Notably, we signed a multi-year portfolio agreement with a major customer, further adding to our backlog. We also managed to further strengthen our balance sheet during the quarter, with our cash balance, marketable securities and bank deposits totaling $170 million, with no debt."

CEVA Conference Call
On August 03, 2017 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/984/21746. 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: 10110214) from one hour after the end of the call until 9:00 a.m. (Eastern Time) on August 10, 2017. The replay will also be available at CEVA's web site www.ceva-dsp.com.

About CEVA, Inc.
CEVA is the leading licensor of signal processing IP for a smarter, connected world. We partner with semiconductor companies and OEMs worldwide to create power-efficient, intelligent and connected devices for a range of end markets, including mobile, consumer, automotive, industrial and IoT. Our ultra-low-power IPs for vision, audio, communications and connectivity include comprehensive DSP-based platforms for LTE/LTE-A/5G baseband processing in handsets, infrastructure and machine-to-machine devices, advanced imaging, computer vision and deep learning 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 (low energy and dual mode), Wi-Fi (802.11 a/b/g/n/ac up to 4x4) and serial storage (SATA and SAS). Visit us at www.ceva-dsp.com