Ceva Inc. (Nasdaq:CEVA); LSE:CVA), which provides DSP-based IP platforms, has reported revenue for the second quarter of 2014 of $9.2 million, a decrease of 28% compared with $12.8 million for the second quarter of 2013. Licensing and related revenue for the second quarter of 2014 was $4.4 million, a decrease of 29% compared with $6.1 million reported for the second quarter of 2013. Royalty revenue for the second quarter of 2014 was $4.9 million, a decrease of 27% compared with $6.7 million reported for the second quarter of 2013.
The company made a GAAP-based net loss for the second quarter of 2014 of $1.5 million ($0.07 per share), which compares with a net profit for the second quarter of 2013 of $2.2 million ($.10 per share).
On a non-GAAP basis, the net loss for the second quarter of 2014 was $0.1 million ($0.00 per share), compared with a net profit of $3.4 million ($0.15 per share) in the second quarter of 2013.
Revenue and non-GAAP earnings were below the consensus analysts' estimate of $10.55 million revenue and $0.04 per share.
Ceva CEO Gideon Wertheizer said, "We continued to execute on our market expansion strategy during the quarter, signing eleven licensing deals in total, ten of which are for non-baseband applications. In addition, a twelfth licensing agreement of approximately $1 million that we originally anticipated executing in the second quarter, executed in July. Looking ahead, we are seeing a good licensing pipeline and improved visibility for the upcoming quarter, which will be reflected in our guidance. In addition, we are expecting sequential royalty revenue growth driven by an increase in baseband shipments."
During the second quarter, the company bought back approximately 694,000 shares of Ceva common stock for an aggregate consideration of $10.1 million. In total, there are approximately 300,000 shares that remain available for repurchase under the Ceva plan.
For the third quarter, Ceva sees revenue of $13.3-14.3 million, which compares with $10 million in the third quarter of 2013, and non-GAAP earnings per share of $0.08-0.12, which compares with $0.06 in the third quarter of 2013.
Published by Globes [online], Israel business news - www.globes-online.com - on July 31, 2014
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