Ceva jumps on better than expected results

Gideon Wertheizer  photo: Eyal Izhar

Non-GAAP third quarter earnings per share were $0.03 ahead of the consensus estimate.

Israeli signal processing platforms and artificial intelligence processors company <a target=new href=http://www.ceva-dsp.com/>Ceva Inc.</a> (Nasdaq:<a href=Javascript:viewInstrument('CEVA',11,'EN')>CEVA</a>); LSE:<a href=Javascript:viewInstrument('CVA',1,'EN')>CVA</a>) has reported $21.4 million revenue for the third quarter of 2018, representing a decrease of 11% decrease in comparison with the $24.0 million reported for the third quarter of 2017.

<p>Third quarter 2018 and 2017 licensing and related revenue were $9.8 million and $14.0 million, respectively. Royalty revenue for the third quarter of 2018 was $11.6 million, an increase of 16% in comparison with the $10.0 million reported for the third quarter of 2017.

<p>Non-GAAP net profit and diluted earnings per share for the third quarter of 2018 were $5.2 million and $0.23, respectively, which compares with $8.3 million non-GAAP net profit and $0.36 diluted earnings per share reported for the third quarter of 2017. Third quarter 2918 earnings per share were $0.03 ahead of the consensus analysts' estimate.

<p>The better than expected results have sent Ceva's share price up more than 10% in New York,after a 45% decline since the beginning of the year.

<p>Ceva CEO Gideon Wertheizer said, "We are pleased to report a solid third quarter, reflecting a healthy licensing environment, in particular in China, and strong royalty revenue recovery. In licensing, the demand for our short range connectivity and cellular technologies result from our leadership and comprehensive offerings for Bluetooth, Wi-Fi, 5G and NB-IoT. We are strategically positioned to exploit all market segments and usage models, as wireless IP is complex, scarce and mandatory for all IoT-related products.

<p>"On royalties, the wide deployment of our advanced DSP technologies within the latest generation of the world's most successful smartphone, and the continued growth of shipments from our non-handset baseband customers were the main catalysts for 56% sequential growth."

<p>GAAP net profit and diluted earnings per share for the third quarter of 2018 were $2.5 million and $0.11, respectively, and compare with $5.9 million and $0.26 reported for the same period in 2017.

<p><i>Published by Globes, Israel business news - <a href=http://en.globes.co.il>en.globes.co.il</a> - on November 8, 2018</i>

<p><i>© Copyright of Globes Publisher Itonut (1983) Ltd. 2018</i>

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Gideon Wertheizer  photo: Eyal Izhar
Gideon Wertheizer photo: Eyal Izhar
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