RNS Number:7118U
Ceva Inc
28 January 2004
CEVA, Inc. announces Fourth Quarter and 2003 Year-End results
Record DSP Licensing in the Fourth Quarter
San Jose, CA - Jan. 28, 2004 - CEVA, Inc. (NASDAQ: CEVA; LSE: CVA), the leading
licensor of Digital Signal Processor (DSP) cores and communication solutions to
the semiconductor industry, today announced results for the fourth quarter and
year ended Dec. 31, 2003.
Fourth Quarter Ended Dec. 31, 2003
Total revenues in the fourth quarter increased to $9.6 million, compared with
$9.3 million in the third quarter. Licensing revenues increased to $6.6 million,
compared with $6.5 million in the third quarter. Royalty revenues increased to
$1.4 million, compared with $1.2 million in the third quarter. Gross margins
were 85 percent, unchanged from the third quarter.
In the fourth quarter, CEVA signed eight new license agreements, launched its
pioneering CEVA-X DSP architecture, which it licensed to leading cellular
handset and semiconductor companies, and announced further licensing agreements
with industry leaders including Broadcom, Spreadtrum and Via Telecom. This
industry adoption drove significant growth in DSP revenues over the third
quarter. Royalty revenues posted continued growth reflecting the success of
licensees shipping CEVA powered DSP solutions into the wireless and digital
multimedia markets.
CEVA implemented a realignment program in the fourth quarter to eliminate
non-strategic products, focus the organization on DSP technologies, and position
the company for profitability in 2004. As a result, the company incurred a
fourth quarter restructuring and impairment of assets charge of $9.1 million, of
which $3.1 million was a cash charge. Including the restructuring and
impairment of assets charge, net loss in the fourth quarter was $9.6 million or
$0.53 net loss per share, compared with a net loss of $1.1 million or $0.06 net
loss per share in the third quarter. Excluding the restructuring and impairment
of assets charge, net loss in the fourth quarter was $500,000 or $0.03 net loss
per share.
Fiscal Year 2003 Ended Dec. 31, 2003
Total revenues for 2003 were $36.8 million. Licensing revenues for the year
were $25.7 million and royalty revenues were $4.1 million. The remaining $7.0
million revenues was derived from services and consulting. The company signed a
total of 25 licensing agreements, predominantly in DSP technologies, the
company's core focus. Gross margins for 2003 were 84 percent. Including
restructuring and impairment of assets charges of $11.9 million during fiscal
year 2003, total operating expenses were $42.5 million, net loss was $12
million, and net loss per share was $0.66.
Cash and cash equivalents at the end of the fourth quarter were $59.1 million.
"The fourth quarter was very successful on many fronts. We achieved our best
ever performance in DSP licensing and again recorded good growth in royalties,
which grew 23 percent over the third quarter," said Chet Silvestri, president
and CEO of CEVA. "In the fourth quarter we also launched our industry-leading
CEVA-X DSP architecture, which we have now licensed to two industry leaders in
the wireless market. In addition, our realignment program is resulting in a
more cost-efficient company, positioned to expand our leadership in the
high-growth DSP market."
"Supported by continued industry growth in programmable DSP shipments, with a
strong portfolio of licensable DSP cores and solutions and a more cost-efficient
organization, we believe we are well positioned to achieve our corporate goals
of growth and profitability," said Christine Russell, CFO of CEVA.
CEVA Conference Call
The management of CEVA will hold a conference call for investors and analysts at
8:00 am PST, 11:00 am EST, 16:00 GMT and 17:00 CET on Wednesday Jan. 28, 2004.
The conference call will be available via the following dial-in numbers:
* US Participants Telephone: +1 866 629 0054 (password: CEVA)
* UK/European Participants Telephone: +44 1452 569 340 (Password: CEVA)
A recording will be available approximately one hour after the call for five
working days at the following dial-in numbers:
* US Participants Telephone: +1 706 645 9291 (Access code: 4884580#)
* UK/European Participants Telephone: +44 1452 55 00 00 (Access code:
4884580#)
The call can also be accessed via CEVA's website at www.ceva-dsp.com. Follow the
directions on the main page to link to the audio. Please go to the website at
least 15 minutes prior to the call to register, and to download and install any
necessary audio software. The webcast will be archived for 30 days.
About CEVA, Inc.
With its headquarters in San Jose, CA., CEVA (NASDAQ: CEVA and LSE: CVA) is the
leading licensor of DSP cores and integrated applications to the semiconductor
industry. CEVA markets a portfolio of DSP Intellectual Property in three
integrated areas: CEVA DSPs, CEVA-Xpert Open Framework Environment, and
CEVA-Xpert Applications, all supported by Xpert Integration services. CEVA's
technology is incorporated in over 50 million devices each year. The company
was formerly known as ParthusCeva, Inc. For more information, visit
www.ceva-dsp.com.
Presentation of Non-GAAP Information
Management believes that it is useful to present net income (loss) and expenses
figures above, excluding the restructuring charge, because management believes
that the figures provide a better picture of the company's historical operating
results and a more useful point of comparison for its future performance.
Contacts:
CEVA, Inc.
Christine Russell
Tel: +1 408 514 2924
CEVA, Inc.
Barry Nolan
Tel: +1-408-514-2900
+353-1-4025700
Deborah Stapleton
Stapleton Communications
Tel: +1 650 470 0200
deb@stapleton.com
James Melville Ross / Ben Way
Financial Dynamics
Tel: +44 207 831 3113
Safe Harbor Statement
Various statements in this press release concerning CEVA's future expectations,
plans and prospects are ''forward-looking statements'', which are subject to
certain risks and uncertainties that could cause actual results to differ
materially from those stated. Any statements that are not statements of
historical fact (including, without limitation, statements to the effect that
the company or its management ''believes'', ''expects'', ''anticipates'',
''plans'' and similar expressions) should be considered forward-looking
statements. These statements are subject to a number of risks and uncertainties
that could cause actual results to differ materially from those described,
including the following:
* The industries in which we license our technology are experiencing a
challenging period of slow growth that has negatively impacted and
could continue to negatively impact our business and operating
results;
* The markets in which we operate are highly competitive, and as a
result we could experience a loss of sales, lower prices and lower
revenue;
* Our operating results fluctuate from quarter to quarter due to a
variety of factors including our lengthy sales cycle, and are not a
meaningful indicator for future performance
* We rely significantly on revenue derived from a limited number of
licensees; and
* Other risks discussed in "Management's Discussion and Analysis of
Financial Condition and Results of Operations--Factors that Could
Affect Our Operating Results," in our quarterly report on Form 10-Q
for the third quarter of 2003, filed with the U.S. Securities and
Exchange Commission on November 13, 2003.
CEVA, INC. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands, except per share data
Quarter ended Year ended Quarter ended
December 31, December 31, September 30,
2003 2002 2003 20021 2003
Unaudited Unaudited Unaudited Unaudited
Revenues:
Licensing and royalties $ 7,993 $ 3,823 $ 29,795 $ 14,739 $ 7,651
Other revenue 1,611 1,840 7,041 4,457 1,651
Total revenues 9,604 5,663 36,836 19,196 9,302
Cost of revenues 1,407 1,230 6,061 2,168 1,415
Gross profit 8,197 4,433 30,775 17,028 7,887
Operating expenses:
Research and development, net 4,791 3,790 17,382 8,414 4,490
Sales and marketing 1,800 1,129 6,058 3,356 1,436
General and administrative 1,691 1,159 6,109 3,557 1,455
Amortization of intangible assets 271 226 1,127 189 288
In-process research and development - 15,771 - 15,771 -
Reorganization, restructuring and
severance charge 5,838 6,442 8,620 6,442 1,402
Impairment of assets 3,233 - 3,233 - -
Total operating expenses 17,624 28,517 42,529 37,729 9,071
Operating income (loss) (9,427) (24,084) (11,754) (20,701) (1,184)
Other income, net 56 (285) 63 (207) 150
Income (loss) before taxes on income (9,371) (24,369) (11,691) (20,908) (1,034)
Taxes on income 200 52 300 1,014 100
Net income (loss) (9,571) (24,421) (11,991) (21,922) (1,134)
Basic and diluted loss per share $(0.527) $(1.803) $(0.662) $(2.15) $(0.063)
Weighted average number of Common Stock
used in computation of net loss per
share:
Basic 18,167 13,544 18,106 10,177 18,108
Diluted 18,167 13,544 18,106 10,177 18,108
CEVA, INC. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands
December 31, December 31, September 30,
2003 20021 2003
Unaudited Unaudited
ASSETS
Current assets:
Cash and cash equivalents $ 59,130 $ 73,810 $ 63,515
Trade receivables, net 10,226 6,471 7,894
Other accounts receivable and prepaid expenses 1,945 1,748 1,956
Inventories, net - 168 220
Total current assets 71,301 82,197 73,585
Long-term investments:
Severance pay fund 1,487 1,152 1,418
Investment in other company - 1,350 1,350
1,487 2,502 2,768
Property and equipment, net 4,792 6,593 6,356
Goodwill 38,398 38,398 38,398
Other intangible assets, net 3,455 5,492 4,863
Total assets $ 119,433 $ 135,182 $ 125,970
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Trade payables $ 3,030 $ 2,491 $ 3,223
Accrued expenses and other payables 12,876 18,982 11,260
Taxes payable 891 1,291 1,030
Deferred revenues 1,064 1,115 984
Total current liabilities 17,861 23,879 16,497
Long-term liabilities:
Accrued severance pay 1,510 1,231 1,427
Accrued liabilities 1,583 - -
3,093 1,231 1,427
Stockholders' equity:
Common Stock: 18 18 18
Additional paid in capital 134,449 134,051 134,445
Accumulated deficit (35,988) (23,997) (26,417)
Total stockholders' equity 98,479 110,072 108,046
Total liabilities and stockholders' equity $ 119,433 $ 135,182 $ 125,970
1The year ended December 31, 2002 statement of operations and balance sheet
information has been derived from the December 31, 2002 audited consolidated
financial statements of the Company.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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