DSP core for mobile devices developer Ceva Inc. (Nasdaq:CEVA); LSE:CVA) reported lower revenue and profits for the second quarter of 2013, but beat the analysts' consensus. Revenue fell 6% to $12.8 million for the second quarter from $13.6 million for the corresponding quarter of 2012, as higher licensing revenue failed to offset lower royalties.
GAAP-based net profit fell 37% to $2.2 million ($0.10 per share) for the second quarter from $3.5 million for the corresponding quarter, and non-GAAP net profit fell 24% to $3.4 million ($0.15 per share) from $4.4 million.
The analysts' consensus was earnings per share of $0.13 on $12 million revenue.
"Our strong performance in licensing activities for the second quarter was a direct result of our strategy to expand beyond the cellular baseband market, said Ceva CEO Gideon Wertheizer. "During the quarter, we successfully completed two comprehensive agreements for our CEVA-MM3101 multimedia platforms with key OEMs in the mobile space who are expected to utilize our technology to develop their own proprietary multimedia processing chips. These agreements illustrate our ability to successfully capitalize on emerging technology trends in photography, vision and audio, and build the foundations for our future royalty growth. In addition, we extended our relationship with a key customer in the cellular baseband market, reinforcing our position in the 3G and LTE markets."
"During the second quarter, our royalty revenue from 3G shipments surpassed the 2G royalty revenue for the first time. This is an important milestone that reflects our strong foothold in the growing adoption of low-cost smartphones in China," said Ceva CFO Yaniv Arieli. He added that the company had $154 million in cash, marketable securities and bank deposits at the end of June.
Published by Globes [online], Israel business news - www.globes-online.com - on August 1, 2013
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