CAMPBELL, Calif., Nov. 05, 2024 (GLOBE NEWSWIRE) -- Arteris, Inc. (Nasdaq: AIP), a leading provider of system IP which accelerates system-on-chip (SoC) creation, today announced financial results for the third quarter ended September 30, 2024 and provided fourth quarter and full year 2024 guidance. "We're excited to report a record $60.5 million in Annual Contract Value plus royalties, and our third consecutive quarter of positive free cash flow in the third quarter of 2024," said K. Charles Janac, Presiden ...

CAMPBELL, Calif., Nov. 05, 2024 (GLOBE NEWSWIRE) -- Arteris, Inc. (Nasdaq: AIP), a leading provider of system IP which accelerates system-on-chip (SoC) creation, today announced Tenstorrent has licensed its network-on-chip (NoC) IP for on-chip connectivity in its chiplet-based products. The highly configurable NoC interconnect meets the demanding workload and time-to-market requirements to deliver the next generation of high-performance, energy-efficient computing for AI, HPC, and automotive applications. T ...

CAMPBELL, Calif., Oct. 29, 2024 (GLOBE NEWSWIRE) -- Arteris, Inc. (Nasdaq: AIP), a leading provider of system IP which accelerates system-on-chip (SoC) creation, today announced TIER IV has licensed FlexNoC 5 interconnect IP and Magillem Connectivity SoC integration automation software for its next generation of intelligent vehicle electronics. These products support the development of high-performance, reliable automotive SoC products that are essential to realizing fully autonomous driving in the future. ...

CAMPBELL, Calif., Oct. 21, 2024 (GLOBE NEWSWIRE) -- Arteris, Inc. (Nasdaq: AIP), a leading provider of system IP which accelerates system-on-chip (SoC) creation, and SiFive, Inc., the gold standard for RISC-V computing, today announced the availability of the pre-verified solution to enable the development of highperformance applications in the datacenter market without the risk. The combination of the SiFive P870-D CPU and Arteris Ncore cache coherent interconnect IP accelerates the path for SoC design eng ...

Highlights: Scalable Performance: Expanded network-on-chip tiling supported by mesh topology capabilities in FlexNoC and Ncore interconnect IP products allow systems-on-chip with AI to easily scale by more than 10 times without changing the basic design, meeting AI's huge demand for faster and more powerful computing.Power Reduction: Network-on-chip tiles can be turned off dynamically, cutting power by 20% on average, essential for more energy-efficient and sustainable AI applications with lower operating c ...

Arteris (NASDAQ: AIP ) is a leading provider of semiconductor system intellectual property (referred to as System IP) specializing in on-chip communications. The company licenses its technology and provides its services to a broad range of customers from chip manufacturersAn individual investor primarily focused on undercovered companies, with more than 50 companies on my watchlist. My areas include technology, software, electronics and the energy transition. I have been investing my personal capital for ov ...

Core Insights - Arteris, Inc. has announced the appointment of Joachim Kunkel to its Board of Directors, bringing extensive experience from Synopsys where he led the IP business unit to over $1.5 billion in revenue, making it the second largest semiconductor IP company globally [1][2] - Kunkel's background includes co-founding CADIS GmbH and a master's degree in electrical engineering, focusing on system-level simulation techniques [1] - The company aims to leverage Kunkel's leadership to enhance its growth and innovation in system IP, particularly in the context of increasing complexity in SoC designs driven by AI [2] Company Overview - Arteris is a leading provider of system IP that accelerates system-on-chip (SoC) development, focusing on network-on-chip (NoC) interconnect IP and SoC integration automation technology [3] - The company's technology aims to improve product performance while reducing power consumption and time to market, thereby enhancing SoC economics for its customers [3]

CAMPBELL, Calif., Sept. 10, 2024 (GLOBE NEWSWIRE) -- Arteris, Inc. (Nasdaq: AIP), a leading provider of system IP which accelerates system-on-chip (SoC) creation, today announced that VeriSilicon (688521.SH), a one-stop custom silicon service and semiconductor IP licensing service provider, has licensed Arteris FlexNoC 5 interconnect IP. This physically aware interconnect IP offers enhanced cost and design efficiency, scalability and reliability for VeriSilicon’s high-performance data center SoC solutions. ...

Core Insights - Arteris, Inc. reported a quarterly loss of $0.11 per share, better than the Zacks Consensus Estimate of a loss of $0.15, and an improvement from a loss of $0.13 per share a year ago, indicating a 26.67% earnings surprise [1] - The company generated revenues of $14.58 million for the quarter ended June 2024, exceeding the Zacks Consensus Estimate by 6.58%, although this represents a slight decline from $14.73 million in the same quarter last year [1] Financial Performance - The earnings surprise of 26.67% reflects the company's ability to exceed consensus EPS estimates three out of the last four quarters [1] - Arteris has also surpassed consensus revenue estimates in all four of the last quarters [1] Stock Performance - Arteris shares have increased by approximately 39.1% since the beginning of the year, significantly outperforming the S&P 500's gain of 15.8% [2] Future Outlook - The company's earnings outlook will be influenced by management's commentary during the earnings call, which is crucial for assessing future stock movements [2][3] - Current consensus EPS estimate for the upcoming quarter is -$0.14 on revenues of $14.4 million, and for the current fiscal year, it is -$0.52 on revenues of $56.25 million [4] Industry Context - The Internet - Software industry, to which Arteris belongs, is currently ranked in the top 36% of over 250 Zacks industries, indicating a favorable industry outlook [5] - Another company in the same industry, PagerDuty, is expected to report a quarterly earnings decline of 31.6% year-over-year, with revenues projected to be $116.65 million, up 8.4% from the previous year [5]

Financial Performance - For the three months ended June 30, 2024, Arteris generated revenue of $14.6 million, with a net loss of $8.3 million and a net loss per share of $0.22[88]. - Total revenue for Q2 2024 was $14.575 million, a decrease of 1% compared to $14.734 million in Q2 2023[121]. - Total revenue for the six months ended June 30, 2024, was $27.5 million, a decrease of $366 thousand, or 1%, compared to $27.9 million for the same period in 2023[135]. - Net loss for Q2 2024 was $8.344 million, compared to a net loss of $9.165 million in Q2 2023[121]. Revenue Sources - 64.7% of revenue for the six months ended June 30, 2024, was derived from international sales, with 30.1% from customers in China[96]. - Licensing, support, and maintenance revenue increased by $0.555 million, or 4%, to $13.553 million in Q2 2024 compared to Q2 2023[125]. - Variable royalties decreased by $0.729 million, or 43%, to $0.971 million in Q2 2024 compared to Q2 2023[125]. Customer Metrics - The company reported 21 Confirmed Design Starts for the three months ended June 30, 2024, compared to 22 in the same period of 2023[102]. - The company added six net new Active Customers during the three months ended June 30, 2024, compared to 12 in the same period of 2023[101]. Performance Obligations - Remaining Performance Obligations (RPO) amounted to $77.5 million as of June 30, 2024, up from $65.1 million in 2023[104]. - As of June 30, 2024, the Annual Contract Value (ACV) was $56.1 million, an increase from $53.6 million as of June 30, 2023[100]. Expenses - Cost of revenue increased by $0.233 million, or 19%, to $1.458 million in Q2 2024 from $1.225 million in Q2 2023, primarily due to higher FAE employee-related expenses[126]. - Research and development (R&D) expenses decreased by $1.370 million, or 11%, to $10.717 million in Q2 2024 from $12.087 million in Q2 2023[128]. - Sales and marketing (S&M) expenses decreased by $0.588 million, or 10%, to $5.013 million in Q2 2024 from $5.601 million in Q2 2023[129]. - General and administrative (G&A) expenses increased by $0.324 million, or 7%, to $4.828 million in Q2 2024 from $4.504 million in Q2 2023[127]. - Total operating expenses decreased by $1.634 million, or 7%, to $20.558 million in Q2 2024 from $22.192 million in Q2 2023[127]. Cash Flow - Net cash provided by operating activities was $788 thousand for the six months ended June 30, 2024, compared to net cash used of $(9.9) million for the same period in 2023[147]. - Net cash provided by investing activities was $7.5 million for the six months ended June 30, 2024, compared to $0.4 million for the same period in 2023[151]. - As of June 30, 2024, the company had $45.8 million in cash and cash equivalents and short-term investments[145]. Strategic Outlook - Arteris' technology is driving growth due to increasing complexity in System-on-Chip (SoC) designs, particularly in automotive and AI markets[86]. - The company is exploring growth opportunities through potential acquisitions to enhance its market position[95]. - Research and development expenses are expected to continue increasing in absolute terms, reflecting ongoing investments in technology and product design[94]. - The company expects R&D expenses to increase in absolute terms in the short to medium term but decrease as a percentage of revenue as new products are launched[113]. Industry Context - The semiconductor industry is characterized by cyclical trends, impacting customer demand and revenue predictability[97]. Accounting and Controls - The company has no off-balance sheet financing arrangements or relationships with unconsolidated entities[154]. - There have been no material changes to critical accounting estimates compared to the previous year[156]. - The company is utilizing the extended transition period under the JOBS Act for adopting certain accounting standards[158]. - Management evaluated the effectiveness of disclosure controls and procedures, concluding they were effective at a reasonable assurance level[161]. - No changes in internal control over financial reporting were identified that materially affected the company's reporting[162]. - Management believes that the control systems provide reasonable assurance but cannot guarantee absolute detection of all errors or fraud[163].