CEVA Reported a Staggering 20% Revenues Growth
6 August, 2017
CEO Gideon Wertheizer: "We have initial shipments of CEVA-powered vision processors in smartphones". CEVA is traded on NASDAQ at a market value of approximately $925 million
CEVA announced last week a 20% increase in the second quarter of 2017 compared to Q2 2016. Total revenue for the second quarter of 2017 was $20.6 million, compared to $17.1 million reported for the second quarter of 2016. The licensing and related revenue were $10.4 million, an increase of 38% compared to $7.5 million reported for the same quarter a year ago. Royalty revenue for the second quarter of 2017 was $10.2 million, an increase of 6% when compared to $9.6 million reported for the second quarter of 2016.
Gideon Wertheizer, Chief Executive Officer of CEVA, stated: “Our licensing business is thriving, with key industry players committing to our IP portfolio and roadmap. On royalties, we have consistent growth in shipments of our non-baseband products, including the initial shipments of CEVA-powered vision processors in smartphones and cellular processors in base stations.”
Thirteen New Agreements
During the quarter, CEVA completed seven agreements for CEVA DSP cores, platforms and software, five for CEVA connectivity IPs and one portfolio license agreement. Eleven of the licensing agreements signed during the quarter were for non-handset baseband applications and one for a handset baseband application. Four agreements were with first-time customers. Target markets include smartphones, automotive ADAS, drones, surveillance cameras, wearables, industrial IoT and a variety of Bluetooth and Wi-Fi connected consumer and medical products. Geographically, six of the deals signed were in China, three were in the U.S., one was in Europe and three were in the APAC region.
The company’s Q2 net income increased 44% to $3.9 million, compared to $2.7 million for the same period in 2016. Yaniv Arieli, Chief Financial Officer of CEVA, said that CEVA has signed a multi-year portfolio agreement with a major customer, and reached a cash balance totaling $170 million, with no debt. CEVA from Herzliya, Israel provides licenses of signal processing IP for vision, audio, communications and connectivity systems. The company is traded in NASDAQ. Its market value is approximately $925 million.