Semiconductor company Ceva Inc. (Nasdaq:CEVA); LSE:CVA) has beaten analysts' predictions and reported stronger than expected second quarter growth. Revenue for the second quarter of 2015 was $13.4 million, up 45% from $9.2 million in the corresponding quarter of 2014 and at the top end of the company's guidance range. Second quarter 2015 licensing and related revenue was $7.7 million, up 76% from $4.4 million in the corresponding quarter. Royalty revenue for the second quarter of 2015 was $5.7 million, up 17% from $4.9 million in the second quarter of 2014.
Ceva CEO Gideon Wertheizer said, "Our solid second quarter performance is the result of a continuing strong licensing environment for our products and our customers' progress in LTE shipments. We concluded a record fourteen licensing deals in the quarter, further expanding our addressable markets and customer base. Market demand for connected devices and our high-value IP portfolio for such devices are driving our licensing business. Our growing share in both the 3G and LTE smartphone segments resulted in year-over-year royalty revenue growth for the second consecutive quarter. We anticipate this momentum will accelerate in the coming quarters."
US GAAP net profit for the second quarter of 2015 was $0.2 million, compared with a $1.5 million net loss for the corresponding period of 2014. US GAAP diluted earnings per share for the second quarter of 2015 were $0.01, compared with $0.07 net loss per share reported for the second quarter of 2014.
Non-GAAP net income and diluted earnings per share for the second quarter of 2015 were $1.3 million and $0.06, respectively, compared to a non-GAAP net loss and diluted loss per share of $0.1 million and $0.00, respectively, in the second quarter of 2014. RivieraWaves acquisition.
Ceva CFO Yaniv Arieli said, "LTE smartphones and tablets powered by our DSPs reached a record high eleven million units in the quarter, as our customers continue to execute on their product ramp ups. This is our sixth consecutive quarter of LTE unit growth and we expect this to continue. During the quarter, we repurchased approximately 176,000 shares of our common stock for an aggregate consideration of approximately $3.4 million. At the end of the quarter, our cash balance, marketable securities and bank deposits totaled $126 million."
Ceva sees 40% growth in royalty income and revenue of up to $16 million in the third quarter and EPS of $0.16 per share.
Barclays keeps Ceva's Overweight recommendation with a target price of $25 per share, while Cannacord gives a Buy recommendation and target price of $26 per share. Ceva's share price rose 0.66% on Nasdaq on Friday to $18.73, giving the company a market cap of $386 million.
Published by Globes [online], Israel business news - www.globes-online.com - on August 2, 2015
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