Ceva reports Q2 shipments up 25%

Ceva CFO Yaniv Arieli   credit: Tamar Matsafi
Ceva CFO Yaniv Arieli credit: Tamar Matsafi

The chip designer says that 2024 revenue growth will be at the uppper end of its guidance.

Chip designer Ceva, Inc. (Nasdq: CEVA) has reported second quarter 2024 revenue of $28.4 million, which compares with $22.9 million for the corresponding quarter of 2023. Non-GAAP diluted earnings per share were $0.17. Royalty revenue was $11.2 million, up 19% year-over-year and Ceva-powered shipments were 461 million units, up 25% year-over-year. The company provides silicon and software IP solutions to semiconductor and original equipment manufacturer companies.

The GAAP gross margin for the second quarter of 2024 was 90%, which compares with 85% in the second quarter of 2023. On a GAAP basis, Ceva posted a net loss for the quarter of 2024 $0.3 million, which compares with a net loss of $4.9 million reported in the second quarter of 2023.

The GAAP net loss with the discontinued Intrinsix operation for the second quarter of 2023 was $5.8 million. GAAP diluted loss per share with the discontinued operation for the second quarter of 2023 was $0.25.

The non-GAAP net loss including the discontinued operation for the second quarter of 2023 was $0.5 million. The non-GAAP diluted loss per share including the discontinued operation was $0.02.

Ceva CEO Amir Panush,said, "We are pleased to report strong execution and results for the second quarter that exceeded our estimates, with licensing revenue and royalty revenue growing 28% and 19%, respectively, year over-year. In licensing, customer demand for our IP portfolio is being driven by the growing adoption of AI across every industry and every device."

CFO Yaniv Arieli said, "We are encouraged by the strength of our licensing pipeline and royalty growth potential from our broad and diversified customer base and reflecting this, we continued to buy back the company's stock during the quarter, repurchasing approximately 100,000 shares for approximately $2 million under our stock repurchase program. At the end of the quarter, our cash and cash equivalent balances, marketable securities and bank deposits were approximately $158 million, which we can leverage to grow our share in edge AI and other high-growth markets."

Ceva has not changed its revenue guidance of 4-8% year-on-year growth, but says that growth in 2024 is expected to be at the upper end of the guidance. The company expects to more than double its non-GAAP operating profit, and almost to double its adjusted earnings per share in comparison with 2023. It says that it expects earnings per share to be higher than current market estimates.

Ceva's share price is currently up 5.38% at $20.49, giving the company a market cap of $483 million.

Published by Globes, Israel business news - en.globes.co.il - on August 8, 2024.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2024.

Ceva CFO Yaniv Arieli   credit: Tamar Matsafi
Ceva CFO Yaniv Arieli credit: Tamar Matsafi
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