CAMPBELL, Calif., Dec. 11, 2025 (GLOBE NEWSWIRE) -- Arteris, Inc. (Nasdaq: AIP), a leading provider of system IP for accelerating semiconductor creation in the AI era, today announced it has entered into a definitive agreement to acquire Cycuity, Inc., a leading provider of semiconductor cybersecurity assurance. The addition of Cycuity’s technology and expertise strengthens Arteris’ product portfolio, enabling chip designers to understand and improve data movement security in chiplets and SoCs. This pending ...

Core Insights - Premarket trading is showing notable activity with significant price movements indicating potential trading opportunities before the market opens [1] Premarket Gainers - Cemtrex, Inc. (CETX) has increased by 284% to $11.79 - Treasure Global Inc. (TGL) has risen by 135% to $59.83 - Top Wealth Group Holding Limited (TWG) is up 95% at $11.73 - Fulcrum Therapeutics, Inc. (FULC) has gained 49% to $13.29 - MetaVia Inc. (MTVA) is up 33% at $10.90 - Kymera Therapeutics, Inc. (KYMR) has increased by 31% to $87.58 - Confluent, Inc. (CFLT) is up 27% at $29.40 - Immix Biopharma, Inc. (IMMX) has risen by 23% to $6.85 - Nurix Therapeutics, Inc. (NRIX) is up 18% at $21.46 - SU Group Holdings Limited (SUGP) has increased by 15% to $6.44 [3] Premarket Losers - SMX (Security Matters) Public Limited Company (SMX) has decreased by 27% to $242.01 - Meihua International Medical Technologies Co., Ltd. (MHUA) is down 27% at $10.20 - Polyrizon Ltd. (PLRZ) has declined by 16% to $10.90 - Fly-E Group, Inc. (FLYE) is down 16% at $6.90 - Sensei Biotherapeutics, Inc. (SNSE) has decreased by 14% to $8.29 - Kentucky First Federal Bancorp (KFFB) is down 10% at $4.00 - Arteris, Inc. (AIP) has declined by 7% to $16.27 - Fusion Fuel Green PLC (HTOO) is down 6% at $3.89 - Kamada Ltd. (KMDA) has decreased by 5% to $6.69 - iOThree Limited (IOTR) is down 5% at $3.11 [4]

Market Overview - U.S. stock futures showed mixed results, with Dow futures decreasing approximately 0.1% on Monday [1] Company-Specific Movements - Meihua International Medical Technologies Co., Ltd. (NASDAQ:MHUA) announced its delisting from Nasdaq, leading to a significant pre-market decline of 32.9%, bringing shares down to $9.41 [1] - SMX (Security Matters) Public Limited Company (NASDAQ:SMX) shares fell 17.2% to $275.00 after a substantial increase of 135% on the previous Friday [3] - Gulf Resources, Inc. (NASDAQ:GURE) saw a decline of 16.1% to $6.87 following a 4% drop on Friday [3] - Wheeler Real Estate Investment Trust, Inc. (NASDAQ:WHLR) shares decreased by 16.1% to $5.35 after a notable surge of 98% on Friday [3] - Fly-E Group, Inc. (NASDAQ:FLYE) experienced a 14.4% drop to $7.08 after receiving a delinquency notice from Nasdaq regarding a delayed Form 10-Q [3] - Ecarx Holdings Inc. (NASDAQ:ECX) shares fell 9.1% to $1.91 after an 8% gain on Friday [3] - Arteris Inc (NASDAQ:AIP) saw a decline of 7.1% to $16.30 in pre-market trading [3] - Veracyte Inc (NASDAQ:VCYT) shares decreased by 5.7% to $42.06 after a 6% decline on Friday [3] - Chagee Holdings Ltd (NASDAQ:CHA) shares fell 4.6% to $13.91 in pre-market trading [3] - PureTech Health PLC (NASDAQ:PRTC) experienced a 4.2% decline to $17.30, despite announcing a successful end-of-Phase 2 meeting with the FDA for Deupirfenidone (LYT-100) in Idiopathic Pulmonary Fibrosis [3] - PepGen Inc (NASDAQ:PEPG) shares declined by 3.9% to $5.23 in pre-market trading [3]

Market Overview - U.S. stock futures showed mixed results, with Dow futures decreasing approximately 0.1% on Monday [1] Company-Specific Movements - Meihua International Medical Technologies Co., Ltd. (NASDAQ:MHUA) announced its delisting from Nasdaq, leading to a significant pre-market decline of 32.9%, bringing shares down to $9.41 [1] - SMX (Security Matters) Public Limited Company (NASDAQ:SMX) shares fell 17.2% to $275.00 after a substantial increase of 135% on the previous Friday [3] - Gulf Resources, Inc. (NASDAQ:GURE) saw a decline of 16.1% to $6.87 following a 4% drop on Friday [3] - Wheeler Real Estate Investment Trust, Inc. (NASDAQ:WHLR) shares decreased by 16.1% to $5.35 after surging 98% on Friday [3] - Fly-E Group, Inc. (NASDAQ:FLYE) experienced a 14.4% drop to $7.08 after receiving a delinquency notice from Nasdaq regarding a delayed Form 10-Q [3] - Ecarx Holdings Inc. (NASDAQ:ECX) shares fell 9.1% to $1.91 after an 8% gain on Friday [3] - Arteris Inc (NASDAQ:AIP) saw a decline of 7.1% to $16.30 in pre-market trading [3] - Veracyte Inc (NASDAQ:VCYT) shares decreased by 5.7% to $42.06 after a 6% decline on Friday [3] - Chagee Holdings Ltd (NASDAQ:CHA) shares fell 4.6% to $13.91 in pre-market trading [3] - PureTech Health PLC (NASDAQ:PRTC) declined 4.2% to $17.30 despite announcing a successful end-of-Phase 2 meeting with the FDA for Deupirfenidone (LYT-100) in Idiopathic Pulmonary Fibrosis [3] - PepGen Inc (NASDAQ:PEPG) shares decreased by 3.9% to $5.23 in pre-market trading [3]

Core Insights - Arteris has announced that Black Sesame Technologies has licensed its Ncore 3 and FlexNoC 5 network-on-chip interconnect IPs to enhance data movement and performance for advanced automotive SoCs [1][2] Company Overview - Arteris is a leading provider of system IP for semiconductor creation, focusing on high-performance and power-efficient silicon [4] - Black Sesame Technologies specializes in automotive-grade computing SoCs and intelligent vehicle solutions, offering full-stack autonomous driving capabilities [5] Technology and Product Features - The Ncore 3 IP provides advanced cache coherence, while FlexNoC 5 offers physical awareness to optimize place-and-route efficiency and minimize wire congestion [2][3] - The combination of Ncore and FlexNoC delivers a coherent and flexible connectivity fabric essential for complex automotive SoC designs, improving data movement efficiency and reducing time-to-market [3] Partnership and Collaboration - Black Sesame Technologies has been collaborating with Arteris since 2019, utilizing earlier versions of FlexNoC in previous SoC designs, which has established Arteris as a trusted partner [3] - The licensing of Ncore 3 and FlexNoC 5 is aimed at achieving greater performance and accelerating time to market for autonomous driving solutions [3]

Core Insights - The article discusses potential investment opportunities in AIP, highlighting a possible long position that may be initiated within the next 72 hours [1]. Group 1 - The analyst expresses a personal opinion on AIP and indicates no current stock or derivative positions in the mentioned companies [1]. - There is an emphasis on the independence of the analyst's views, which may not reflect the opinions of Seeking Alpha as a whole [2]. - The article does not provide specific investment recommendations or advice tailored to individual investors [2].

Core Insights - Arteris, Inc. has announced that Blaize has adopted its FlexNoC 5 interconnect IP to enhance the performance and scalability of the Blaize AI Platform, which is designed for hybrid AI deployment models across edge and cloud infrastructure [1][3] - The integration of Arteris' technology allows Blaize to optimize performance and efficiency, enabling scalable, real-time inference across hybrid edge infrastructure [3] Company Overview - Arteris is a global leader in system IP for semiconductors, focusing on high-performance and power-efficient silicon creation, with its NoC interconnect IP and SoC integration automation software utilized by top semiconductor companies [4] - Blaize offers a full-stack programmable processor architecture and low-code/no-code software platform for AI processing solutions, emphasizing real-time insights and decision-making capabilities with low power consumption and high efficiency [5] Technology Impact - The FlexNoC 5 interconnect IP from Arteris is designed to optimize on-chip communication, enhancing performance, power efficiency, and area optimization for AI applications [3] - Blaize aims to overcome existing trade-offs in edge systems regarding inference performance, power, and cost efficiency by leveraging Arteris' technology [2]

Core Insights - Arteris, Inc. reported a quarterly loss of $0.09 per share, better than the Zacks Consensus Estimate of a loss of $0.11, representing an earnings surprise of +18.18% [1] - The company posted revenues of $17.41 million for the quarter ended September 2025, exceeding the Zacks Consensus Estimate by 2.40% and showing a year-over-year increase from $14.71 million [2] - Arteris shares have increased approximately 28.5% year-to-date, outperforming the S&P 500's gain of 16.5% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.09 on revenues of $18.1 million, and for the current fiscal year, it is -$0.40 on revenues of $68.13 million [7] - The estimate revisions trend for Arteris was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Internet - Software industry, to which Arteris belongs, is currently ranked in the top 32% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Another company in the same industry, Samsara Inc., is expected to report quarterly earnings of $0.12 per share, reflecting a year-over-year change of +71.4% with revenues projected at $399.44 million, up 24.1% from the previous year [9]

Financial Data and Key Metrics Changes - In Q3 2025, total revenue was $17.4 million, up 5% sequentially and 18% year-over-year, exceeding guidance [17] - Annual contract value plus royalties reached $74.9 million, a 24% year-over-year increase, marking a new record [18] - Remaining performance obligations were $104.7 million, representing a 34% year-over-year increase, surpassing the $100 million milestone for the first time [18] - Non-GAAP gross profit was $15.9 million, with a gross margin of 91% [18] - Non-GAAP operating loss was $3.5 million, in line with guidance [19] - GAAP net loss was $9 million, or diluted net loss per share of $0.21 [20] Business Line Data and Key Metrics Changes - AI applications accounted for over half of licensing dollars in Q3, indicating strong product adoption across multiple vertical markets [6] - FlexGen was deployed by multiple new customers, including in the automotive sector, highlighting its growing adoption [8][9] - The company saw increased adoption of chiplets for high-end automotive applications, with two of the top five EV automotive OEMs expanding their use of Arteris technology [11] Market Data and Key Metrics Changes - The semiconductor industry is shifting from traditional monolithic chips to chiplets for multi-die SoC architectures, particularly driven by AI workloads [10] - The company is experiencing a growing demand for advanced boundary nodes, particularly in the 5nm, 3nm, and 2nm processes [9] Company Strategy and Development Direction - The company aims to enhance its product portfolio and expand collaborations with major technology firms, as evidenced by partnerships with Altera and AMD [6][8] - Arteris joined the UALink Consortium to support the scaling of data center solutions, indicating a strategic focus on AI workloads [13] - Continuous innovation is a priority, with recognition received for its technology, including awards for innovative technology [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strong deal execution and the potential for accelerated interest from major customers [21] - The company anticipates that AI workloads will drive significant growth, with expectations that data center applications will represent 25%-35% of future business [47] Other Important Information - The company ended the quarter with $56.2 million in cash and no financial debt, indicating a strong balance sheet [20] - Free cash flow was positive at $2.5 million for the quarter, above guidance [20] Q&A Session Summary Question: Can you talk more about Altera? - Management indicated that there are further opportunities with Altera, as they continue to evolve and grow [24] Question: What led to AMD's increased usage of your product? - Management noted that AMD has multiple groups, and the expansion reflects their satisfaction with the initial collaboration [25] Question: How important is reliability and safety in your interconnects? - Management emphasized that reliability is crucial, as any issues can lead to significant delays and problems for customers [26] Question: What is the timing for licenses from the UALink Consortium? - Management stated that they are already involved in designs and following the consortium's protocol to support data center scale-up efforts [30] Question: What is the royalty growth expectation? - Management explained that there is typically a 3-6 year lag between design starts and mass production, but they are seeing early signs of royalty growth [34][36] Question: How many top tech companies are customers? - Management indicated that they have penetrated over 50% of the top 40 semiconductor and system electronics companies, with significant room for growth [39][40]

Financial Performance - For the three months ended September 30, 2025, Arteris generated revenue of $17.4 million, with a net loss of $9.0 million and a net loss per share of $0.21[87] - Total revenue for the three months ended September 30, 2025, was $17.4 million, an increase of 18% compared to $14.7 million for the same period in 2024[120] - Revenue for the nine months ended September 30, 2025 increased by 19% to $50.4 million, compared to $42.2 million for the same period in 2024[134] - 59.6% of revenue for the nine months ended September 30, 2025, was derived from international sales, with 24.4% specifically from customers in China[95] Growth Indicators - As of September 30, 2025, the Annual Contract Value (ACV) was $69.4 million, up from $56.4 million in 2024, and the total ACV plus royalties was $74.9 million, compared to $60.5 million in 2024[99] - During the three months ended September 30, 2025, Arteris had 23 Confirmed Design Starts, an increase from 14 in the same period of 2024, indicating growth in customer activity[100] - Remaining Performance Obligations (RPO) amounted to $104.7 million as of September 30, 2025, compared to $78.4 million in 2024, reflecting a significant increase in contracted future revenue[102] Expenses and Costs - Total operating expenses increased by $3.2 million, or 15%, to $24.4 million for the three months ended September 30, 2025[124] - Cost of revenue rose by $0.3 million, or 21%, to $1.8 million, driven by higher employee-related expenses due to increased headcount of application engineers[123] - Research and development (R&D) expenses increased by $0.7 million, or 6%, to $12.6 million, attributed to higher employee-related costs and stock-based compensation[125] - Sales and marketing (S&M) expenses surged by $1.9 million, or 38%, to $6.9 million, mainly due to increased headcount and stock-based compensation[126] - General and administrative (G&A) expenses rose by $0.6 million, or 13%, to $4.9 million, primarily from higher employee-related costs and professional fees[127] Cash Flow and Investments - Net cash provided by operating activities was $3.6 million for the nine months ended September 30, 2025, compared to $1.9 million for the same period in 2024[147] - As of September 30, 2025, the company had $39.0 million in cash and cash equivalents and short-term investments[145] - Net cash provided by investing activities for the nine months ended September 30, 2024 was $2.9 million, primarily from proceeds of available-for-sale securities and certificate of deposit[152] - Net cash provided by financing activities for the nine months ended September 30, 2025 was $1.3 million, mainly from proceeds of stock options and employee stock purchase plan[153] Market and Industry Trends - The company’s growth is driven by increasing complexity in System-on-Chip (SoC) designs, particularly in sectors like automotive and AI, which has positively impacted financial performance[85] - The semiconductor industry is characterized by cyclical trends, which can lead to fluctuations in customer demand and revenue for Arteris[97] - The company anticipates that the demand for its interconnect IP solutions will continue to grow, particularly in the automotive market, which is crucial for revenue stability[90] Strategic Initiatives - Arteris is exploring growth opportunities through potential acquisitions to enhance its market position and product offerings[94] - The company expects R&D expenses to continue increasing in absolute terms in the short to medium term but decrease as a percentage of revenue with new product launches[111] Other Financial Metrics - Interest expense for the three months ended September 30, 2025 was $49,000, a decrease of 11% from $55,000 in the same period of 2024[128] - Other income (expense), net decreased by 18% to $636,000 for the three months ended September 30, 2025, compared to $775,000 for the same period in 2024[129] - Loss from equity method investment was $484,000 for the three months ended September 30, 2025, down 17% from $580,000 in the same period of 2024[130] Tax and Accounting - Provision for income taxes increased by 19% to $1.5 million for the nine months ended September 30, 2025, compared to $1.3 million for the same period in 2024[143] - The company has no off-balance sheet financing arrangements or relationships with unconsolidated entities during the periods presented[155] - There have been no material changes to critical accounting estimates compared to those described in the 2024 Form 10-K[157] - The company is an emerging growth company under the JOBS Act, allowing it to delay the adoption of certain accounting standards[159] - The financial statements may not be comparable to companies that comply with new or revised accounting pronouncements as of public company effective dates due to the extended transition period[159] - Quantitative and qualitative disclosures about market risk are not required for the company as a smaller reporting company[160]