MOUNTAIN VIEW, Calif.,
Jan. 31, 2012 /PRNewswire/ -- CEVA,
Inc. (NASDAQ: CEVA); (LSE: CVA), the leading licensor of silicon
intellectual property (SIP) platform solutions and DSP cores for
the mobile handset, portable and consumer electronics markets,
today announced its financial results for the fourth quarter and
year ended December 31, 2011.
Fourth Quarter 2011
Total revenue for the fourth quarter of 2011 was $16.0 million, which represents an increase of
22% compared to $13.0 million
reported for the fourth quarter of 2010. Fourth quarter 2011
licensing revenue was $4.7 million, a
2% increase when compared to $4.6
million reported for the fourth quarter of 2010. Royalty
revenue for the fourth quarter of 2011 was a record $10.2 million, an increase of 36% compared to
$7.5 million reported for the fourth
quarter of 2010. Revenue from services for the fourth quarter of
2011 was $1.1 million, an increase of
19% compared to $0.9 million reported
for the fourth quarter of 2010.
U.S. GAAP net income for the fourth quarter of 2011 was
$4.9 million, an increase of 15% over
$4.2 million reported for the same
period in 2010. U.S. GAAP diluted earnings per share for the fourth
quarter of 2011 were $0.20, an
increase of 11% compared to $0.18 for
the fourth quarter of 2010.
Non-GAAP net income and diluted earnings per share for the
fourth quarter of 2011 were $6.4
million and $0.26,
respectively, representing an increase of 47% and 37%,
respectively, over the $4.3 million
and $0.19 reported for the fourth
quarter of 2010. Non-GAAP net income and diluted earnings per share
for the fourth quarter of 2011 and 2010 exclude an aggregate
equity-based compensation expense, net of taxes, of $1.5 million and $0.1
million, respectively.
Gideon Wertheizer, Chief Executive Officer of CEVA, stated,
"During the fourth quarter we were able to drive meaningful growth
and generate significant momentum throughout our operations,
producing record-setting results. CEVA-powered cellular baseband
processor shipments increased for the twelfth consecutive quarter
and continued to drive growth for us in every segment of the
wireless market, from low cost feature phones through to 4G LTE
smartphones and tablets. We also continued our strategic expansion
into new markets during the quarter with customer wins for smart TV
and connectivity applications."
Mr. Wertheizer continued, "Looking back at a very successful
2011, we delivered on our two main strategic goals: driving strong
growth of CEVA-powered baseband chipsets and extending our
technology leadership in the DSP space. Our customers shipped more
than 927 million CEVA-powered basebands during the year, and more
than 1 billion CEVA-based chipsets overall. We introduced new DSP
products for audio and imaging aimed to diversify our revenue
beyond baseband. We remain ideally positioned to further
benefit from ongoing market trends, specifically the evolution in
cellular networks in both developed and emerging economies, the
expansion of wireless connectivity in devices beyond handsets, as
well as mass adoption and feature set enhancement of smartphones
and other smart devices."
During the fourth quarter of 2011, the Company concluded seven
new license agreements. Four of the agreements were for CEVA DSP
cores, platforms, and software, two agreements were for
CEVA SATA/SAS technology and one
agreement was for CEVA Bluetooth technology. Target applications
for customer deployment are TD-SCDMA baseband processors for
handsets, smart TV for emerging markets, connectivity for
smartphones and solid state drives. Geographically, two of the
agreements signed were in the U.S. and five were in Asia.
Full Year 2011 Review
Total revenue for 2011 was $60.2
million, an increase of 34% compared to $44.9 million reported for 2010. Royalty revenue
for 2011 was a record high $36.4
million, representing an increase of 59% compared to
$22.9 million reported for 2010.
Licensing revenue for 2011 was $20.2
million, an increase of 10% compared to $18.4 million reported for 2010.
U.S. GAAP net income and diluted earnings per share for 2011
were $18.6 million and $0.77, respectively, an increase of 63% and 51%,
respectively, compared to $11.4
million and $0.51 reported for
2010.
Non-GAAP net income and diluted earnings per share for 2011 were
$23.5 million and $0.97, respectively, representing an increase of
86% and 73%, respectively, over the $12.7
million and $0.56 reported for
2010. Non-GAAP net income and diluted earnings per share for 2011
exclude an aggregate equity-based compensation expense, net of
taxes, of $5.0 million. Non-GAAP net
income and diluted earnings per share for 2010 excluded an
aggregate equity-based compensation expense, net of taxes, of
$1.3 million.
Yaniv Arieli, Chief Financial
Officer of CEVA, stated, "We delivered another exceptionally strong
set of earnings in the fourth quarter, underpinned by record high
royalty revenues, which yielded strong GAAP and non-GAAP results.
On an annual basis, 2011 was a record-breaking year for CEVA across
every financial metric and delivered earnings far in excess of our
initial annual guidance. We concluded the year with a very strong
balance sheet, which included cash and cash equivalent balances,
marketable securities and long term bank deposits of approximately
$165 million, up from $131
million at the end of 2010."
CEVA Conference Call
On January 31, 2012, CEVA
management will conduct a conference call at 8:30 a.m. Eastern Time / 1:30 p.m. London
time, to discuss the operating performance for the fourth quarter
and year ended December 31, 2011.
The conference call will be available via the following dial in
numbers:
- U.S. Participants: Dial 1-800-860-2442 (Access Code: CEVA)
- International Participants: Dial +1-412-858-4600 (Access Code:
CEVA)
The conference call will also be available live via the Internet
at the following link:
http://www.videonewswire.com/event.asp?id=84399. 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:10008472) from one hour after the end of the call until
9:00 a.m. (Eastern Time) on
February 08, 2012. The replay will
also be available at CEVA's web site www.ceva-dsp.com.
About CEVA, Inc.
CEVA is the world's leading licensor of silicon intellectual
property (SIP) DSP cores and platform solutions for the mobile
handset, portable and consumer electronics markets. CEVA's IP
portfolio includes comprehensive technologies for cellular baseband
(2G / 3G / 4G), multimedia (HD video, Image Signal Processing (ISP)
and HD audio), voice over packet (VoP), Bluetooth, Serial Attached
SCSI (SAS) and Serial ATA (SATA). In 2011, CEVA's IP was shipped in
over 1 billion devices, powering handsets from 7 out of the top 8
handset OEMs, including Nokia, Samsung, LG, Motorola, Sony and ZTE.
Today, more than 40% of handsets shipped worldwide are powered by a
CEVA DSP core. For more information, visit www.ceva-dsp.com. Follow
CEVA on twitter at www.twitter.com/cevadsp.
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 that CEVA is ideally
positioned to further benefit from ongoing market trends. The
risks, uncertainties and assumptions include: the ability of the
CEVA DSP cores and other technologies to continue to be strong
growth drivers for us; our success in penetrating new markets and
maintaining our market position in existing markets; the ability of
products incorporating our technologies to achieve market
acceptance, the effect of intense industry competition and
consolidation, global chip market trends, the possibility that
markets for our 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; 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.
CEVA, INC.
AND ITS SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME – U.S. GAAP
U.S. dollars
in thousands, except per share data
|
|
|
Quarter ended
|
Year ended
|
|
|
December 31,
|
December 31,
|
|
|
2011
|
2010
|
2011
|
2010
|
|
|
Unaudited
|
Unaudited
|
Unaudited
|
Audited
|
|
Revenues:
|
|
|
|
|
|
Licensing
|
$ 4,711
|
$ 4,621
|
$ 20,239
|
$ 18,395
|
|
Royalties
|
10,159
|
7,494
|
36,403
|
22,866
|
|
Other
revenues
|
1,082
|
911
|
3,597
|
3,650
|
|
|
|
|
|
|
|
Total revenues
|
15,952
|
13,026
|
60,239
|
44,911
|
|
|
|
|
|
|
|
Cost of
revenues
|
924
|
1,134
|
3,559
|
3,712
|
|
|
|
|
|
|
|
Gross profit
|
15,028
|
11,892
|
56,680
|
41,199
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
Research and development,
net
|
5,730
|
4,666
|
21,543
|
17,909
|
|
Sales and
marketing
|
2,287
|
2,060
|
8,937
|
7,308
|
|
General and
administrative
|
2,096
|
1,399
|
7,649
|
6,108
|
|
|
|
|
|
|
|
Total operating
expenses
|
10,113
|
8,125
|
38,129
|
31,325
|
|
|
|
|
|
|
|
Operating
income
|
4,915
|
3,767
|
18,551
|
9,874
|
|
Interest and other income,
net
|
873
|
504
|
2,919
|
2,095
|
|
|
|
|
|
|
|
Income before taxes on
income
|
5,788
|
4,271
|
21,470
|
11,969
|
|
Taxes on income
|
935
|
64
|
2,908
|
591
|
|
|
|
|
|
|
|
Net income
|
$4,853
|
$4,207
|
$18,562
|
$11,378
|
|
|
|
|
|
|
|
Basic earnings per
share
|
$0.21
|
$0.19
|
$0.80
|
$0.54
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
$0.20
|
$0.18
|
$0.77
|
$0.51
|
|
Weighted-average number of
Common Stock
used in computation of
earnings per share
(in
thousands):
|
|
|
|
|
|
Basic
|
23,491
|
22,029
|
23,173
|
21,251
|
|
Diluted
|
24,293
|
23,367
|
24,153
|
22,430
|
|
|
|
|
|
|
|
|
Unaudited
Reconciliation of GAAP to Non-GAAP Financial
Measures
(U.S.
Dollars in thousands, except per share amounts)
|
|
|
Quarter
ended
|
Year
ended
|
|
|
December
31,
|
December
31,
|
|
|
2011
|
2010
|
2011
|
2010
|
|
|
Unaudited
|
Unaudited
|
Unaudited
|
Unaudited
|
|
GAAP net income
|
4,853
|
4,207
|
18,562
|
11,378
|
|
Equity-based
compensation expense included in cost of revenue
|
68
|
21
|
239
|
77
|
|
Equity-based
compensation expense included in research and development
expenses
|
562
|
163
|
1,934
|
652
|
|
Equity-based
compensation expense included in sales and marketing
expenses
|
347
|
80
|
1,094
|
380
|
|
Equity-based
compensation expense included in general and administrative
expenses
|
641
|
207
|
1,891
|
1,023
|
|
Taxes on
income (benefit)
|
(106) (1)
|
(342) (1)
|
(204) (1)
|
(842) (1)
|
|
Non-GAAP net
income
|
6,365
|
4,336
|
23,516
|
12,668
|
|
|
|
|
|
|
|
GAAP
weighted-average number of Common Stock used in
computation of diluted earnings per share (in thousands)
|
24,293
|
23,367
|
24,153
|
22,430
|
|
|
|
|
|
|
|
Weighted-average number of
shares related to outstanding options
|
9
|
49
|
16
|
60
|
|
Weighted-average number of
Common Stock used in computation
of
diluted earnings per share, excluding equity-based
compensation expense and tax (in thousands)
|
24,302
|
23,416
|
24,169
|
22,490
|
|
|
|
|
|
|
|
GAAP diluted
earnings per share
|
$0.20
|
$0.18
|
$0.77
|
$0.51
|
|
Equity-based
compensation expense
|
$0.07
|
$0.02
|
$0.21
|
$0.09
|
|
Taxes on
income (benefit)
|
($0.01)
|
($0.01)
|
($0.01)
|
($0.04)
|
|
Non-GAAP
diluted earnings per share
|
$0.26
|
$0.19
|
$0.97
|
$0.56
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Results for the three months and
for the year ended December 31, 2011 included tax gains of $0.1 and
$0.2 million, respectively, reported in taxes on income, mainly
related to tax benefits associated with equity-based compensation.
Results for the three months and for the year ended December
31, 2010 included tax gains of $0.3 and $0.8 million, respectively,
reported in taxes on income, mainly related to tax benefits
associated with equity-based compensation.
|
|
|
|
CEVA, INC.
AND ITS SUBSIDIARIES
CONDENSED
CONSOLIDATED BALANCE SHEETS
(U.S.
Dollars in thousands)
|
|
|
December 31,
|
December 31,
|
|
|
2011
|
2010
|
|
|
Unaudited
|
Audited
|
|
ASSETS
|
|
|
|
Current assets:
|
|
|
|
Cash and cash
equivalents
|
$ 14,954
|
$ 17,098
|
|
Marketable securities and
short term bank deposits
|
124,458
|
98,681
|
|
Trade receivables,
net
|
5,116
|
5,906
|
|
Deferred tax
assets
|
2,248
|
1,288
|
|
Prepaid
expenses and other accounts receivables
|
2,320
|
4,609
|
|
Total current
assets
|
149,096
|
127,582
|
|
Long-term
investments:
|
|
|
|
Long term bank
deposits
|
25,106
|
15,173
|
|
Severance pay
fund
|
5,473
|
5,433
|
|
Property and equipment,
net
|
1,235
|
1,348
|
|
Goodwill
|
36,498
|
36,498
|
|
Other long term
assets
|
1,732
|
574
|
|
Total assets
|
$ 219,140
|
$ 186,608
|
|
|
|
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|
Current
liabilities:
|
|
|
|
Trade payables
|
$ 580
|
$ 616
|
|
Deferred
revenues
|
1,074
|
616
|
|
Accrued
expenses and other payables
|
10,669
|
10,521
|
|
Deferred tax
liabilities
|
290
|
901
|
|
Total current
liabilities
|
12,613
|
12,654
|
|
|
|
|
|
Accrued severance
pay
|
5,607
|
5,486
|
|
|
|
|
|
Total
liabilities
|
18,220
|
18,140
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
Common Stock:
|
24
|
23
|
|
Additional paid
in-capital
|
191,945
|
176,838
|
|
Other comprehensive income
(loss)
|
(901)
|
317
|
|
Retained earnings
(accumulated deficit)
|
9,852
|
(8,710)
|
|
Total stockholders'
equity
|
200,920
|
168,468
|
|
Total liabilities and
stockholders' equity
|
$ 219,140
|
$ 186,608
|
|
|
|
|
|
|
SOURCE CEVA, Inc.