Ceva Inc. (Nasdaq:CEVA); LSE:CVA), which licenses silicon intellectual property (SIP) platform solutions and DSP cores for the mobile handsets, portable and consumer electronics markets, saw its share jump on the London Stock Exchange today after reporting that profits soared 71% in its financial results for the third quarter of 2010.
Revenue for the third quarter of 2010 was a record $10.7 million, up 11% from $9.7 million in the corresponding quarter of 2009.
GAAP net profit in the third quarter of 2010 was $3 million ($0.13 per share), up 71% from $1.8 million in the corresponding quarter of 2009.
Non-GAAP net profit was $3 million ($0.14 per share) in the third quarter of 2010 up 24% from $2.4 million in the corresponding quarter of 2009.
Ceva CEO Gideon Wertheizer said, "We are pleased with our solid performance in the third quarter, including a strategic agreement for the CEVA-XC DSP with a leading semiconductor company, a new power house in the wireless space. Our royalty revenue continues to grow, and we reached a new record high market share of 33% for the worldwide handset cellular baseband market."
During the quarter, Ceva concluded six new licensing agreements. Five agreements were for CEVA DSP cores, platforms and software, and one agreement was for CEVA Bluetooth technology. Target applications for customer deployment are 3G/4G handset and mobile broadband processors, smart metering systems, and Android-based application processors for smartphones, tablets and ereaders. Geographically, two of the agreements signed were in the US, three were in Asia and one was in Europe. Ceva CFO Yaniv Arieli said, "Our third quarter financial performance demonstrated continued progress towards our long term profitability milestones."
As of September 30, 2010, Ceva's cash balance, marketable securities and bank deposits were $117.2 million, a rise of 8% from the second quarter of 2010.
Ceva's share closed at $16.45 on Nasdaq yesterday, giving a market cap of $349.45 million. The share was up 9.5% on the London Stock Exchange this afternoon to ₤11.50.
Published by Globes, Israel business news - www.globes-online.com - on October 26, 2010
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