Signal processing IP company Ceva Inc. (Nasdaq:CEVA); LSE:CVA) reported revenue for the fourth quarter of 2016 of $21.2 million in its financials released today, a 32% increase compared with $16.1 million reported for the fourth quarter of 2015. Fourth quarter 2016 licensing and related revenue was $8.3 million, an increase of 3% compared with $8.0 million in the corresponding quarter. Royalty revenue for the fourth quarter of 2016 was $12.9 million, an increase of 60% compared with $8 million in the corresponding quarter.
US GAAP-based net profit for the fourth quarter of 2016 increased 126% to $5.2 million, compared with $2.3 million reported for the same period in 2015. GAAP-based diluted earnings per share for the fourth quarter of 2016 increased 118% to $0.24 from $0.11 a year previously.
Non-GAAP net profit and diluted earnings per share for the fourth quarter of 2016 were $7.0 million and $0.32, respectively, representing a 98% and 88% increase, respectively, over the $3.6 million and $0.17 reported for the fourth quarter of 2015.
For 2016 as a whole, revenue was $72.7 million, an increase of 22% compared with $59.5 million reported for 2015. Royalty revenue for 2016 was $40.8 million, representing an increase of 49% compared with $27.4 million reported for 2015. Licensing and related revenue for 2016 was $31.9 million, which compares with $32.1 million for 2015.
US GAAP-based net profit and diluted net income per share for 2016 were $13.1 million and $0.61, respectively, an increase of 109% and 103%, respectively, compared with $6.3 million and $0.30, respectively reported for 2015.
Non-GAAP net profit and diluted earnings per share for 2016 were $20.4 million and $0.93, respectively, also representing an increase of 82% and 75%, respectively, over $11.2 million and $0.53 reported for 2015.
Ceva sees revenue of $20.5-21.5 million for the first quarter of 2017, which compares with $16.5 million in the first quarter of 2016. The company expects a gross profit margin of 92% of sales. Non-GAAP earnings per share for the quarter are forecast at $0.27-0.29, which compares with $0.17 in the first quarter of 2016.
Ceva CEO Gideon Wertheizer said, "Ceva had a strong fourth quarter, posting record revenues for the fourth quarter in succession. Licensing strength was underpinned by eight agreements for our imaging and vision technologies, further entrenching Ceva as a de-facto industry standard for intelligent vision processing. In royalties, we achieved record revenue and shipments driven by smartphones and Bluetooth-enabled devices. 2016 was an extraordinary year for Ceva where we exceeded our financial and strategic goals and delivered all-time high revenues."
Ceva CFO Yaniv Arieli added, "We are extremely proud of our financial performance in 2016. We delivered annual revenue growth of 22% and non-GAAP diluted EPS growth of 75% year-over-year. We continued to strengthen our balance sheet in 2016 with our cash balance, marketable securities and bank deposits growing annually by $17 million to reach $156 million at the end of the year, after buyback activity of $3.4 million and the final payments relating to the acquisition of RivieraWaves of $2.2 million."
Published by Globes [online], Israel business news - www.globes-online.com - on February 1, 2017
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