Last10K.com

Ceva Inc (CEVA) SEC Filing 8-K Material Event for the period ending Monday, May 11, 2020

Ceva Inc

CIK: 1173489 Ticker: CEVA
 

Exhibit 99.1

 

 

 

CEVA, Inc. Announces First Quarter 2020 Financial Results

 

Total revenue of $23.6 million, up 39% year-over-year

Robust licensing environment: licensing revenue of $14.5 million, up 32% year-over-year

Growing 5G penetration: agreements signed for 5G phase II RAN, fixed wireless access and wireless backhaul

 

MOUNTAIN VIEW, Calif., May 11, 2020 CEVA, Inc. (NASDAQ: CEVA), the leading licensor of wireless connectivity and smart sensing technologies, today announced its financial results for the first quarter ended March 31, 2020.

 

Total revenue for the first quarter of 2020 was $23.6 million, a 39% increase compared to $17.0 million reported for the first quarter of 2019. First quarter 2020 licensing and related revenue was $14.5 million, an increase of 32% when compared to $11.0 million reported for the same quarter a year ago. Royalty revenue for the first quarter of 2020 was $9.1 million, an increase of 53% when compared to $6.0 million reported for the first quarter of 2019.

 

Thirteen license agreements were completed during the quarter, of which three were for smart sensing products and ten were for connectivity products. Three of the agreements were with first time customers. Customers’ target markets include 5G for base station RAN, 5G fixed wireless access and 5G backhaul, Wi-Fi 6 for IoT devices, true wireless stereo earbuds, vision and AI for drones, and voice assistants for a range of smart home and IoT devices. Geographically, four of the deals signed were in China, four were in Europe, three were in the U.S. and two were in the APAC region, including Japan.

 

Gideon Wertheizer, CEO of CEVA, stated: “We are extremely proud of our performance during the first quarter, despite the wide scale lockdowns and disruptions our customers are facing as a result of COVID-19. Our licensing activities continue to expand, and we are experiencing strong interest in particular for our 5G, Wi-Fi 6 and sensing technologies. Our royalty revenue performance demonstrates the strength of an increasingly diversified customer base, with IoT products and the introduction of a new low cost flagship smartphone offsetting the impact of supply chain disruptions in China during the first quarter. We continue to execute on our strategy and drive new product developments as we believe that these investments present further growth opportunities as the industry recovers from the pandemic.”

 

1

 

Net loss for the first quarter of 2020 was $1.2 million, as compared to a net loss of $2.3 million reported for the same period in 2019. GAAP diluted loss per share for the first quarter of 2020 was ($0.05), as compared to a GAAP diluted loss per share of ($0.10) for the same period in 2019.

 

Non-GAAP net income and diluted earnings per share for the first quarter of 2020 increased to $2.6 million and $0.11, respectively, from $0.3 million and $0.01 reported for the first quarter of 2019. Non-GAAP net income and diluted earnings per share for the first quarter of 2020 excluded: (a) equity-based compensation expense, net of taxes, of $3.1 million, (b) the impact of the amortization of acquired intangibles, net of taxes, of $0.7 million associated with the acquisition of the Hillcrest Labs business and investments in NB-IoT and Immervision technologies. Non-GAAP net income and diluted earnings per share for the first quarter of 2019 excluded: (a) equity-based compensation expense, net of taxes, of $2.3 million, and (b) the impact of the amortization of acquired intangibles of $0.3 million associated with the acquisition of RivieraWaves and an investment in NB-IoT technologies.

 

Yaniv Arieli, Chief Financial Officer of CEVA, stated: “We will continue to act responsibly and adapt to the dynamics of the COVID-19 impact, while maintaining our customer focus, and research and development roadmaps. During the quarter, the company repurchased approximately $4.8 million of its common stock. Our cash and cash equivalent balances, marketable securities and bank deposits were approximately $151 million at the end of the first quarter, with no debt.”

 

CEVA Conference Call

On May 11, 2020 CEVA management will conduct a conference call at 8:30 a.m. Eastern Time to discuss the operating performance for the quarter.

 

The conference call will be available via the following dial in numbers:

 

 

U.S. Participants: Dial 1-844-435-0316 (Access Code: CEVA)

 

International Participants: Dial +1-412-317-6365 (Access Code: CEVA)

 

The conference call will also be available live via webcast at the following link: https://www.webcaster4.com/Webcast/Page/984/33821. Please go to the web site at least fifteen minutes prior to the call to register, download and install any necessary audio software.

 

For those who cannot access the live broadcast, a replay will be available by dialing +1-877-344-7529 or +1-412-317-0088 (access code: 10141056) from one hour after the end of the call until 9:00 a.m. (Eastern Time) on May 25, 2020. The replay will also be available at CEVA's web site www.ceva-dsp.com.

 

2

 

Forward Looking Statement

 

This press release contains forward-looking statements that involve risks and uncertainties, as well as assumptions that if they materialize or prove incorrect, could cause the results of CEVA to differ materially from those expressed or implied by such forward-looking statements and assumptions.  Forward-looking statements include Mr. Wertheizer’s statement that the company’s investments present further growth opportunities as the industry recovers from the pandemic, as well as Mr. Arieli’s statement that the company will continue to act responsibly and adapt to the dynamics of the COVID-19 impact, while maintaining customer focus, and research and development roadmaps. The risks, uncertainties and assumptions that could cause differing CEVA results include: the duration of the COVID-19 pandemic; the extent and length of the shelter-in-place and other restrictions associated with the COVID-19 pandemic and the impact on customers, consumer demand and the global economy generally; the ability of the CEVA DSP cores and other technologies to continue to be strong growth drivers for us; our continued success in penetrating new markets and maintaining our market position in existing markets; our ability to diversify the company’s royalty streams, the ability of products incorporating our technologies to achieve market acceptance, the speed and extent of the expansion of 5G RAN and Wi-Fi 6, the maturation of the autonomous driving and IoT markets, the effect of intense industry competition and consolidation, global chip market trends, the possibility that markets for CEVA’s technologies may not develop as expected or that products incorporating our technologies do not achieve market acceptance; our ability to timely and successfully develop and introduce new technologies; and general market conditions and other risks relating to our business, including, but not limited to, those that are described from time to time in our SEC filings.  CEVA assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates.

 

About CEVA, Inc.

 

CEVA is the leading licensor of signal processing platforms and artificial intelligence processors for a smarter, connected world. We partner with semiconductor companies and OEMs worldwide to create power-efficient, intelligent and connected devices for a range of end markets, including mobile, consumer, automotive, industrial and IoT. Our ultra-low-power IPs for vision, audio, communications and connectivity include comprehensive DSP-based platforms for LTE/LTE-A/5G baseband processing in handsets, infrastructure and cellular IoT (NB-IoT and Cat-M) enabled devices, advanced imaging and computer vision for any camera-enabled device, audio/voice/speech and ultra-low power always-on/sensing applications for multiple IoT markets. For artificial intelligence, we offer a family of AI processors capable of handling the complete gamut of neural network workloads, on-device. For connectivity, we offer the industry’s most widely adopted IPs for Bluetooth (low energy and dual mode) and Wi-Fi (Wi-Fi 4 (802.11n), Wi-Fi 5 (802.11ac) and Wi-Fi 6 (802.11ax) up to 4x4). Visit us at www.ceva-dsp.com and follow us on Twitter, YouTube, Facebook, LinkedIn and Instagram.

 

3

 

For More Information Contact:

 

Yaniv Arieli

CEVA, Inc.

CFO

+1.650.417.7941

yaniv.arieli@ceva-dsp.com

Richard Kingston

CEVA, Inc.

VP Market Intelligence, Investor & Public Relations

+1.650.417.7976

richard.kingston@ceva-dsp.com

 

4

 

CEVA, INC. AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME – U.S. GAAP

U.S. dollars in thousands, except per share data

 

 



   

Quarter ended

 
   

March 31,

 
   

2020

   

2019

 
   

Unaudited

   

Unaudited

 

Revenues:

               

Licensing and related revenues

  $ 14,495     $ 11,011  

Royalties

    9,120       5,958  
                 

Total revenues

    23,615       16,969  
                 

Cost of revenues

    2,751       2,023  
                 

Gross profit

    20,864       14,946  
                 

Operating expenses:

               

Research and development, net

    15,113       12,330  

Sales and marketing

    3,168       3,021  

General and administrative

    3,664       2,317  

Amortization of intangible assets

    582       210  
                 

Total operating expenses

    22,527       17,878  
                 

Operating loss

    (1,663 )     (2,932 )

Financial income, net

    831       800  
                 

Loss before taxes on income

    (832 )     (2,132 )

Taxes on income

    353       165  
                 

Net loss

  $ (1,185 )   $ (2,297 )
                 

Basic and diluted net loss per share

  $ (0.05 )   $ (0.10 )

Weighted-average shares used to compute net loss per share (in thousands):

               

Basic

    22,421       21,917  

Diluted

    22,421       21,917  

 

5

 

Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures

U.S. Dollars in thousands, except per share amounts

 

   

Quarter ended

 
   

March 31,

 
   

2020

   

2019

 
   

Unaudited

   

Unaudited

 

GAAP net loss

    (1,185 )     (2,297 )

Equity-based compensation expense included in cost of revenues

    158       136  

Equity-based compensation expense included in research and development expenses

    1,623       1,362  

Equity-based compensation expense included in sales and marketing expenses

    451       356  

Equity-based compensation expense included in general and administrative expenses

    875       562  

Income tax benefit related to equity-based compensation expenses

    (49 )     (137 )

Amortization of intangible assets, net of taxes, related to acquisitions of RivieraWaves and Hillcrest Labs business, investments in NB-IoT and Immervision technologies

    693       289  

Non-GAAP net income

  $ 2,566     $ 271  
                 

GAAP weighted-average number of Common Stock used in computation of diluted net loss per share (in thousands)

    22,421       21,917  

Weighted-average number of shares related to outstanding stock-based awards (in thousands)

    506       775  
                 

Weighted-average number of Common Stock used in computation of diluted earnings per share, excluding the above (in thousands)

    22,927       22,692  
                 
                 

GAAP diluted loss per share

  $ ( 0.05 )   $ ( 0.10 )

Equity-based compensation expense, net of taxes

  $ 0.13     $ 0.10  

Amortization of intangible assets, net of taxes, related to acquisitions of RivieraWaves and Hillcrest Labs business, investments in NB-IoT and Immervision technologies

  $ 0.03     $ 0.01  
                 

Non-GAAP diluted earnings per share

  $ 0.11     $ 0.01  

 

6

 

CEVA, INC. AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

 

(U.S. Dollars in thousands)

 



   

March 31,

   

December 31,

 
   

2020

    2019 (*)  
   

Unaudited

   

Unaudited

 

ASSETS

               

Current assets:

               

Cash and cash equivalents

  $ 22,903     $ 22,803  

Marketable securities and short-term bank deposits

    126,390       121,782  

Trade receivables, net

    16,426       11,066  

Unbilled receivables

    8,499       17,241  

Prepaid expenses and other current assets

    6,981       5,660  

Total current assets

    181,199       178,552  

Long-term assets:

               

Bank deposits

    1,296       5,368  

Severance pay fund

    9,827       9,881  

Deferred tax assets, net

    11,753       10,605  

Property and equipment, net

    7,944       7,879  

Operating lease right-of-use assets

    10,608       11,066  

Goodwill

    51,070       51,070  

Intangible assets, net

    12,771       13,424  

Other long-term assets

    9,449       9,176  

Total assets

  $ 295,917     $ 297,021  
                 
LIABILITIES AND STOCKHOLDERS’ EQUITY                
                 

Current liabilities:

               

Trade payables

  $ 925     $ 701  

Deferred revenues

    4,034       3,642  

Accrued expenses and other payables

    20,279       19,642  

Operating lease liabilities

    2,375       2,393  

Total current liabilities

    27,613       26,378  
                 

Long-term liabilities:

               

Accrued severance pay

    10,607       10,551  

Operating lease liabilities

    7,788       8,273  

Other accrued liabilities

    637       662  

Total liabilities

    46,645       45,864  
                 

Stockholders’ equity:

               

Common stock

    22       22  

Additional paid in-capital

    225,583       228,005  

Treasury stock

    (36,033 )     (39,390 )

Accumulated other comprehensive income (loss)

    (349 )     94  

Retained earnings

    60,049       62,426  

Total stockholders’ equity

    249,272       251,157  

Total liabilities and stockholders’ equity

  $ 295,917     $ 297,021  

 

(*) Derived from audited financial statements

 

7

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

 

Date of report (Date of earliest event reported): May 11, 2020

 

CEVA, INC.
(Exact Name of Registrant as Specified in Its Charter)

 

 

Delaware
(State or Other Jurisdiction of Incorporation)

 

 

000-49842
(Commission File Number)

77-0556376
(I.R.S. Employer Identification No.)

   
   

1174 Castro Street, Suite 210, Mountain View, CA
(Address of Principal Executive Offices)

94040
(Zip Code)

 

 

650/417-7900
(Registrant’s Telephone Number, Including Area Code)

 

 


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

☐     Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

☐     Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

☐     Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

☐     Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, $.001 per share

CEVA

The NASDAQ Stock Market LLC

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Security Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company ☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

 

ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION

 

On May 11, 2020, CEVA, Inc. (the “Company”) announced its financial results for the quarter ended March 31, 2020. A copy of the press release, dated May 11, 2020, is attached and filed herewith as Exhibit 99.1. On the same day, the Company will hold a conference call to discuss its financial results for the first quarter of 2020. A copy of the script of the conference call is attached hereto as Exhibit 99.2. This information, including Exhibits 99.1 and 99.2 attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Act of 1934, nor shall they be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference to such filing.

 

In addition to the disclosure of financial results for the quarters ended March 31, 2020 and 2019 in accordance with generally accepted accounting principles in the United States (“GAAP”), the press release and script also included non-GAAP net income and diluted earnings per share (EPS) figures for the referenced periods.

 

Non-GAAP net income and diluted earnings per share for the first quarter of 2020 excluded (a) equity-based compensation expense, net of taxes, and (b) the impact of the amortization of acquired intangibles associated with the acquisition of the Hillcrest Labs business and investments in NB-IoT and Immervision technologies. Non-GAAP net income and diluted earnings per share for the first quarter of 2019 excluded (a) equity-based compensation expense, net of taxes, and (b) the impact of the amortization of acquired intangibles associated with the acquisition of RivieraWaves and an investment in NB-IoT technologies.

 

The Company believes that the reconciliation of financial measures in the press release and script is useful to investors in analyzing the results for the quarters ended March 31, 2020 and 2019 because the exclusion of such expenses may provide a more meaningful analysis of the Company’s core operating results and comparison of quarterly results. Further, the Company believes it is useful for investors to understand how the expenses associated with the application of FASB ASC No. 718 are reflected on its statements of income. The reconciliation of financial measures should be reviewed in addition to and in conjunction with results presented in accordance with GAAP, and are intended to provide additional insight into the Company’s operations that, when viewed with its GAAP results and the accompanying reconciliation, offer a more complete understanding of factors and trends affecting the Company’s business. The reconciliation of financial measures should not be viewed as a substitute for the Company’s reported GAAP results.

 

 

ITEM 9.01. Financial Statements and Exhibits.

 

(d) Exhibits.

 

99.1     Press release of CEVA, Inc., dated May 11, 2020.

 

99.2     Script of the conference call of CEVA, Inc., dated May 11, 2020.

 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

 

CEVA, INC.

 

 

 

 

 

Date:    May 11, 2020 

By:

/s/ Yaniv Arieli

 

 

 

Yaniv Arieli

 

 

 

Chief Financial Officer

 

 

 

View differences made from one to another to evaluate Ceva Inc's financial trajectory

Compare SEC Filings Year-over-Year (YoY) and Quarter-over-Quarter (QoQ)
Sample 10-K Year-over-Year (YoY) Comparison

Compare this 8-K Corporate News to its predecessor by reading our highlights to see what text and tables were  removed  ,   added    and   changed   by Ceva Inc.

Continue

Assess how Ceva Inc's management team is paid from their Annual Proxy

Definitive Proxy Statement (Form DEF 14A)
Screenshot example of actual Proxy Statement

Ceva Inc's Definitive Proxy Statement (Form DEF 14A) filed after their 2020 10-K Annual Report includes:

  • Voting Procedures
  • Board Members
  • Executive Team
  • Salaries, Bonuses, Perks
  • Peers / Competitors

Continue

Tools

Material Contracts, Statements, Certifications & more

Ceva Inc provided additional information to their SEC Filing as exhibits

Ticker: CEVA
CIK: 1173489
Form Type: 8-K Corporate News
Accession Number: 0001437749-20-010178
Submitted to the SEC: Mon May 11 2020 9:25:24 AM EST
Accepted by the SEC: Mon May 11 2020
Period: Monday, May 11, 2020
Industry: Semiconductors And Related Devices
Events:
  1. Earnings Release
  2. Financial Exhibit

External Resources:
Stock Quote
Social Media

Bookmark the Permalink:
https://last10k.com/sec-filings/ceva/0001437749-20-010178.htm