Ceva component in new Asus smartphone-tablet

Gideon Wertheizer picture: Tamar Matzapi

Asus's PadFone X will shortly be launched in the US by AT&T.

The new hybrid smartphone-tablet from Asus contains a component made by Israeli company Ceva Inc. (Nasdaq:CEVA); LSE:CVA). Managed by CEO Gideon Wertheizer, Ceva provides chip design technologies, mainly for mobile devices.

Asus announced last week the launching of PadFone X, its new device, based on an Intel communications chip and Ceva's digital signals processor. It will be launched in the US in the coming days by telecommunications provider AT&T, and will be sold for $200, although enormous sale quantities are not expected. Ceva usually receives royalties of $0.08-$0.14 for each chipset of this type.

Herzliya-based Ceva trades on Nasdaq at a $281 million market cap. The company is scheduled to publish its third quarter financial statements on October 30, and its results are expected to show an improvement over the second quarter. The company failed to meet the second quarter forecasts, due a delay of several days in signing a licensing agreement, deferring the revenue to the third quarter.

The analysts' consensus is that company revenue in the third quarter will total $13.9 million, with the company posting earnings per share of $0.10, compared with $9.2 million in revenue and breaking even in the second quarter.

Published by Globes [online], Israel business news - www.globes-online.com - on October 19, 2014

© Copyright of Globes Publisher Itonut (1983) Ltd. 2014

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Gideon Wertheizer picture: Tamar Matzapi
Gideon Wertheizer picture: Tamar Matzapi
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