Ceva Inc. (Nasdaq:CEVA); LSE:CVA) today published its financial report for the second quarter of 2009. The developer of DSP cores for cellphones, consumer electronics, and portable devices beat the analysts' profit and revenue estimates and boosted its market share.
Ceva posted $9.1 million revenue for the second quarter, 10% less than the $10.1 million posted for the corresponding quarter of 2008. The company beat the analysts' consensus estimate of $8.7 million revenue.
Licensing revenue fell 29% to $4.3 million for the second quarter from the $6 million for the corresponding quarter, which was a five-year high. Royalty revenue, however, rose 30% to $4 million from the $3 million for the corresponding quarter.
GAAP-based net profit rose 235% to $2.3 million ($0.12 per share) for the second quarter from $691,000 for the corresponding quarter. Non-GAAP net profit rose 13% to $1.7 million ($0.08 per share) from $1.5 million for the corresponding quarter. The company beat the analysts' consensus of non-GAAP earnings per share of $0.06
Operating profit rose 89% to $754,000. Cash and cash equivalents rose by $2.7 million during the second quarter to $87.7 million at the end of June.
In its guidance for the third quarter, Ceva predicts non-GAAP earnings per share of $0.06-0.08 on $8.6-9.6 million revenue.
Ceva CEO Gideon Wertheizer said, "We are pleased with the strong results this quarter. Our worldwide market share in the handset space reached a record high of 18% in the second quarter from 12% market share in the first quarter of 2009, driven primarily by the expansion in emerging markets. Also, we are encouraged by the increased interest in our newest DSP technologies for next generation wireless products. Nonetheless, while the global economic environment seems to show signs of recovery, companies are maintaining a cautious outlook on new technology investments."
Ceva's share fell 2.8% at the opening on Nasdaq today to $9.28. The share was unchanged in London at ₤4.50.
Published by Globes [online], Israel business news - www.globes-online.com - on July 29, 2009
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