CEVA(CEVA)

Search documents
Strength Seen in Ceva (CEVA): Can Its 6.2% Jump Turn into More Strength?
ZACKS· 2025-09-19 17:30
Company Overview - Ceva (CEVA) shares increased by 6.2% to $26.34 in the last trading session, with a notable trading volume, and have gained 11.8% over the past four weeks [1] - The company is experiencing strong licensing execution, increased AI adoption, and growing royalty streams across consumer, industrial, and automotive markets [1] Earnings Expectations - Ceva is expected to report quarterly earnings of $0.10 per share, reflecting a year-over-year decline of 28.6%, with revenues projected at $28.05 million, a 3.1% increase from the previous year [2] - The consensus EPS estimate for Ceva has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [3] Industry Context - Ceva operates within the Zacks Electronics - Semiconductors industry, where another company, FormFactor (FORM), saw a 13.4% increase in its stock price, closing at $36.04, with a 13.9% return over the past month [3] - FormFactor's consensus EPS estimate has decreased by 1.9% over the past month to $0.25, representing a 28.6% decline from the previous year, and it currently holds a Zacks Rank of 4 (Sell) [4]
Ceva Appoints Former Microsoft AI and Hardware Leader Yaron Galitzky to Accelerate Ceva's AI Strategy and Innovation at the Smart Edge
Prnewswire· 2025-09-17 11:00
Core Insights - Ceva, Inc. strengthens its leadership in edge AI solutions with the appointment of Yaron Galitzky as Executive Vice President of Artificial Intelligence [1][3] - Galitzky brings extensive experience from Microsoft, where he defined edge AI roadmaps and contributed to major consumer devices [2][3] - The company aims to enhance its AI strategy and product innovation, leveraging its NeuPro NPU family to solidify its position in the Smart Edge AI supply chain [1][3] Company Overview - Ceva, Inc. is a leading licensor of silicon and software IP, focusing on Smart Edge technologies [1][4] - The company has a broad portfolio that includes wireless communications, sensing, and Edge AI technologies, powering over 20 billion smart edge products globally [3][4] - Ceva's mission is to deliver silicon and software IP that enables a smarter, safer, and more interconnected world [3][4]
CEVA(CEVA) - 2025 Q2 - Quarterly Report
2025-08-11 20:16
[PART I. FINANCIAL INFORMATION](index=6&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents the company's interim financial statements, management's analysis of operations, market risk disclosures, and internal controls [Item 1. FINANCIAL STATEMENTS](index=6&type=section&id=Item%201.%20FINANCIAL%20STATEMENTS) This section presents the unaudited interim condensed consolidated financial statements and their detailed explanatory notes [Interim Condensed Consolidated Balance Sheets](index=6&type=section&id=Interim%20Condensed%20Consolidated%20Balance%20Sheets) This section provides a snapshot of the company's financial position, detailing assets, liabilities, and stockholders' equity at specific dates | ASSETS (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Cash and cash equivalents | $29,082 | $18,498 | | Marketable securities | $125,568 | $143,117 | | Total current assets | $208,808 | $216,341 | | Total assets | $302,842 | $308,948 | | **LIABILITIES AND STOCKHOLDERS' EQUITY** | | | | Total current liabilities | $24,342 | $30,529 | | Total long-term liabilities | $12,608 | $11,863 | | Total stockholders' equity | $265,892 | $266,556 | | Total liabilities and stockholders' equity | $302,842 | $308,948 | [Interim Condensed Consolidated Statements of Loss](index=7&type=section&id=Interim%20Condensed%20Consolidated%20Statements%20of%20Loss) This section details the company's revenues, gross profit, operating loss, and net loss over specific periods | (in thousands) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total revenues | $25,678 | $28,437 | $49,923 | $50,509 | | Gross profit | $22,129 | $25,504 | $42,887 | $45,073 | | Operating loss | $(4,482) | $(35) | $(8,864) | $(4,995) | | Net loss | $(3,704) | $(291) | $(7,031) | $(5,739) | | Basic and diluted net loss per share | $(0.15) | $(0.01) | $(0.30) | $(0.24) | [Interim Condensed Consolidated Statements of Comprehensive Loss](index=8&type=section&id=Interim%20Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss) This section presents the company's net loss and other comprehensive income or loss, leading to total comprehensive loss | (in thousands) | Six months ended June 30, 2025 | Six months ended June 30, 2024 | Three months ended June 30, 2025 | Three months ended June 30, 2024 | | :------------- | :----------------------------- | :----------------------------- | :------------------------------- | :------------------------------- | | Net loss | $(7,031) | $(5,739) | $(3,704) | $(291) | | Other comprehensive income (loss), net of taxes | $1,674 | $(565) | $1,452 | $(174) | | Comprehensive loss | $(5,357) | $(6,304) | $(2,252) | $(465) | [Interim Condensed Consolidated Statements of Changes in Stockholders' Equity](index=9&type=section&id=Interim%20Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity) This section outlines changes in the company's stockholders' equity, including net loss, comprehensive income, and stock transactions | (in thousands) | Balance as of Jan 1, 2025 | Net loss | Other comprehensive income, net | Equity-based compensation | Purchase of treasury stock | Issuance of common stock | Issuance of treasury stock | Balance as of Jun 30, 2025 | | :------------- | :------------------------ | :------- | :---------------------------- | :------------------------ | :------------------------- | :----------------------- | :------------------------- | :------------------------- | | Total stockholders' equity | $266,556 | $(7,031) | $1,674 | $9,225 | $(6,162) | $1,358 | $272 | $265,892 | - The company purchased **300,000 shares** of treasury stock for **$6.162 million** during the six months ended June 30, 2025[23](index=23&type=chunk) [Interim Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Interim%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section summarizes the company's cash inflows and outflows from operating, investing, and financing activities | (in thousands) | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :------------- | :----------------------------- | :----------------------------- | | Net cash used in operating activities | $(6,221) | $(4,970) | | Net cash provided by investing activities | $20,786 | $8,184 | | Net cash used in financing activities | $(4,532) | $(1,722) | | Increase in cash and cash equivalents | $10,584 | $1,415 | | Cash and cash equivalents at the end of the period | $29,082 | $24,702 | [Notes to the Interim Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the interim condensed consolidated financial statements [NOTE 1: BUSINESS](index=15&type=section&id=NOTE%201:%20BUSINESS) This note describes Ceva's business as a leader in silicon and software IP solutions for smart edge products - Ceva is a leader in silicon and software IP solutions, enabling smart edge products to connect, sense, and infer data. Its IP powers connectivity, sensing, and inference in consumer IoT, automotive, industrial, infrastructure, mobile, and PC markets[28](index=28&type=chunk) - The company's comprehensive portfolio includes advanced wireless connectivity solutions (Bluetooth, Wi-Fi, UWB, cellular IoT, 5G-Advanced) and scalable Edge AI capabilities (NPU IP, sensor fusion processors, embedded application software)[30](index=30&type=chunk)[34](index=34&type=chunk) - Since 2003, over **20 billion smart edge products** have shipped with Ceva IP, with approximately **2 billion** shipped in 2024 alone[28](index=28&type=chunk) [NOTE 2: BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES](index=15&type=section&id=NOTE%202:%20BASIS%20OF%20PRESENTATION%20AND%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) This note outlines the basis of financial statement preparation and summarizes the company's significant accounting policies - The interim condensed consolidated financial statements are prepared in accordance with U.S. GAAP and are consistent with the Company's Annual Report on Form 10-K for December 31, 2024[31](index=31&type=chunk)[32](index=32&type=chunk)[33](index=33&type=chunk) - The Company's financial instruments, including cash, bank deposits, marketable securities, and trade receivables, are subject to credit risk, with the majority of trade receivables in the Asia Pacific region[35](index=35&type=chunk)[37](index=37&type=chunk) - New FASB ASUs (2023-09, 2025-05) related to income tax disclosures, expense disaggregation, and credit loss measurement for accounts receivable are effective for fiscal years beginning after December 15, 2024, or later, and are currently being evaluated for impact[40](index=40&type=chunk)[41](index=41&type=chunk)[42](index=42&type=chunk) [NOTE 3: ACQUISITION](index=18&type=section&id=NOTE%203:%20ACQUISITION) This note details Ceva's acquisition of a Greece-based radio frequency design company in January 2024 - In January 2024, Ceva acquired a Greece-based radio frequency design company for approximately **$0.753 million** at closing and an additional **$2.1 million** contingent on employment and performance milestones. The acquisition was accounted for as an asset acquisition[45](index=45&type=chunk) [NOTE 4: SALE OF INTRINSIX CORP.](index=18&type=section&id=NOTE%204:%20SALE%20OF%20INTRINSIX%20CORP.) This note describes the sale of Ceva's subsidiary, Intrinsix Corp., and the subsequent release of escrow funds - On October 2, 2023, Ceva sold its wholly-owned subsidiary, Intrinsix Corp., to Cadence Design Systems, Inc. for **$35.0 million** in cash. During Q2 2025, **$3.47 million** was released from escrow and paid to the Company[46](index=46&type=chunk) [NOTE 5: REVENUE RECOGNITION](index=18&type=section&id=NOTE%205:%20REVENUE%20RECOGNITION) This note explains the company's policies for recognizing revenue from IP licenses, services, and royalties, including disaggregated data - Revenue from IP licenses is recognized at a point in time upon delivery, while customization and implementation services are recognized over time using cost inputs. Post-contract support services revenue is recognized ratably over the service period[47](index=47&type=chunk) - Royalty revenues, derived from sales of licensee products incorporating Ceva's IP, are recognized in the quarter of product sale, based on actual or estimated sales data[48](index=48&type=chunk) | Disaggregated Revenue (in thousands) | Six months ended June 30, 2025 | Six months ended June 30, 2024 | Three months ended June 30, 2025 | Three months ended June 30, 2024 | | :--------------------------------- | :----------------------------- | :----------------------------- | :------------------------------- | :------------------------------- | | **By Geography:** | | | | | | United States | $9,163 | $3,903 | $5,544 | $1,365 | | Europe and Middle East | $3,494 | $8,954 | $2,010 | $7,442 | | Asia Pacific | $37,266 | $37,639 | $18,124 | $19,630 | | **By Use Case:** | | | | | | Connect | $36,722 | $43,055 | $16,277 | $25,049 | | Sense & Infer | $13,201 | $7,454 | $9,401 | $3,388 | | **By Timing:** | | | | | | Products transferred at a point in time | $42,005 | $46,540 | $21,412 | $26,429 | | Products and services transferred over time | $7,918 | $3,969 | $4,266 | $2,008 | [NOTE 6: LEASES](index=21&type=section&id=NOTE%206:%20LEASES) This note details the company's operating lease arrangements for office space and vehicles, including lease costs and commitments - The Company leases office space and vehicles under operating leases, with a weighted average remaining lease term of **4.79 years** and a weighted average discount rate of **3.84%** as of June 30, 2025[55](index=55&type=chunk) | Lease Costs (in thousands) | Six months ended June 30, 2025 | Six months ended June 30, 2024 | Three months ended June 30, 2025 | Three months ended June 30, 2024 | | :------------------------- | :----------------------------- | :----------------------------- | :------------------------------- | :------------------------------- | | Operating lease cost | $1,426 | $1,357 | $716 | $694 | | Cash payments for operating leases | $1,826 | $1,309 | $837 | $687 | - A new operating lease agreement for offices in Israel was signed in March 2025, adding approximately **$9.9 million** in lease commitment, expected to commence in 2025 and run until December 30, 2035[55](index=55&type=chunk) [NOTE 7: MARKETABLE SECURITIES](index=22&type=section&id=NOTE%207:%20MARKETABLE%20SECURITIES) This note provides information on the company's available-for-sale marketable securities, including amortized cost and fair value | Available-for-sale Marketable Securities (in thousands) | June 30, 2025 (Unaudited) | | :-------------------------------------- | :------------------------ | | Amortized cost | $126,057 | | Gross unrealized gains | $440 | | Gross unrealized losses | $(929) | | Fair value | $125,568 | - As of June 30, 2025, investments with unrealized losses totaled **$47.762 million**, with gross unrealized losses of **$(0.929) million**. The Company intends to hold these securities until maturity or recovery of cost basis[36](index=36&type=chunk)[57](index=57&type=chunk) [NOTE 8: FAIR VALUE MEASUREMENT](index=23&type=section&id=NOTE%208:%20FAIR%20VALUE%20MEASUREMENT) This note describes the company's fair value measurements for financial instruments, categorized by a three-tier hierarchy - The Company measures marketable securities, investments in marketable equity securities, and foreign currency derivative contracts at fair value, classifying them within a three-tier hierarchy (Level I, II, III)[59](index=59&type=chunk)[60](index=60&type=chunk) - Investments in marketable equity securities are Level I, while marketable securities and foreign currency derivative contracts are Level II, based on observable market data[60](index=60&type=chunk) | Assets Measured at Fair Value (in thousands) | June 30, 2025 | Level I | Level II | Level III | | :----------------------------------------- | :------------ | :------ | :------- | :-------- | | Marketable securities: Corporate bonds | $125,568 | $— | $125,568 | $— | | Foreign exchange contracts | $785 | $— | $785 | $— | | Investments in marketable equity securities | $50 | $50 | $— | $— | [NOTE 9: GEOGRAPHIC INFORMATION AND MAJOR CUSTOMER DATA](index=24&type=section&id=NOTE%209:%20GEOGRAPHIC%20INFORMATION%20AND%20MAJOR%20CUSTOMER%20DATA) This note presents revenue data disaggregated by geographic region and identifies major customer contributions - Ceva operates as one operating segment, with financial performance evaluated on a consolidated basis by the CEO[63](index=63&type=chunk) | Revenues by Customer Location (in thousands) | Six months ended June 30, 2025 | Six months ended June 30, 2024 | Three months ended June 30, 2025 | Three months ended June 30, 2024 | | :----------------------------------------- | :----------------------------- | :----------------------------- | :------------------------------- | :------------------------------- | | United States | $9,163 | $3,903 | $5,544 | $1,365 | | Europe and Middle East | $3,494 | $8,954 | $2,010 | $7,442 | | Asia Pacific | $37,266 | $37,639 | $18,124 | $19,630 | | China (subset of Asia Pacific) | $29,844 | $29,025 | $13,778 | $15,433 | - Customer A accounted for **17%** of total revenues for the first half of 2025 and **23%** of total trade receivables as of June 30, 2025[66](index=66&type=chunk)[67](index=67&type=chunk) [NOTE 10: FINANCIAL INCOME, NET](index=27&type=section&id=NOTE%2010:%20FINANCIAL%20INCOME,%20NET) This note details the components of the company's financial income, net, including interest income and foreign exchange gains or losses | Financial Income, Net (in thousands) | Six months ended June 30, 2025 | Six months ended June 30, 2024 | Three months ended June 30, 2025 | Three months ended June 30, 2024 | | :--------------------------------- | :----------------------------- | :----------------------------- | :------------------------------- | :------------------------------- | | Interest income | $2,571 | $2,546 | $1,320 | $1,291 | | Foreign exchange gain (loss), net | $1,174 | $(279) | $574 | $(86) | | Total | $4,221 | $2,663 | $2,121 | $1,406 | [NOTE 11: NET LOSS PER SHARE OF COMMON STOCK](index=27&type=section&id=NOTE%2011:%20NET%20LOSS%20PER%20SHARE%20OF%20COMMON%20STOCK) This note provides the calculation of basic and diluted net loss per share, along with relevant share counts | Net Loss Per Share | Six months ended June 30, 2025 | Six months ended June 30, 2024 | Three months ended June 30, 2025 | Three months ended June 30, 2024 | | :----------------- | :----------------------------- | :----------------------------- | :------------------------------- | :------------------------------- | | Net loss | $(7,031) | $(5,739) | $(3,704) | $(291) | | Basic and diluted weighted average common stock outstanding (in thousands) | 23,832 | 23,568 | 23,898 | 23,628 | | Basic and diluted net loss per share | $(0.30) | $(0.24) | $(0.15) | $(0.01) | - **1,943,497 shares** related to outstanding equity-based awards were excluded from diluted net loss per share calculation for the three and six months ended June 30, 2025, due to the net loss[69](index=69&type=chunk) [NOTE 12: COMMON STOCK AND STOCK-BASED COMPENSATION PLANS](index=27&type=section&id=NOTE%2012:%20COMMON%20STOCK%20AND%20STOCK-BASED%20COMPENSATION%20PLANS) This note describes the company's equity-based compensation plans and the associated expense recognition - The Company grants stock options, Restricted Stock Units (RSUs), and Performance-based Stock Units (PSUs) under its equity plans. RSUs generally vest in three equal annual installments, while PSUs have performance goals related to license revenue and total shareholder return[70](index=70&type=chunk)[72](index=72&type=chunk)[74](index=74&type=chunk) | Equity-based Compensation Expense (in thousands) | Six months ended June 30, 2025 | Six months ended June 30, 2024 | Three months ended June 30, 2025 | Three months ended June 30, 2024 | | :--------------------------------------------- | :----------------------------- | :----------------------------- | :------------------------------- | :------------------------------- | | Cost of revenue | $325 | $394 | $166 | $191 | | Research and development, net | $5,139 | $4,445 | $2,673 | $2,438 | | Sales and marketing | $1,164 | $816 | $598 | $451 | | General and administrative | $2,597 | $1,816 | $1,465 | $820 | | Total equity-based compensation expense | $9,225 | $7,471 | $4,902 | $3,900 | - As of June 30, 2025, there was **$29.728 million** of unrecognized compensation expense related to unvested RSUs and PSUs, expected to be recognized over a weighted-average period of **1.6 years**[78](index=78&type=chunk) [NOTE 13: DERIVATIVES AND HEDGING ACTIVITIES](index=31&type=section&id=NOTE%2013:%20DERIVATIVES%20AND%20HEDGING%20ACTIVITIES) This note explains the company's use of derivative instruments for foreign currency hedging and their fair value - Ceva uses foreign exchange forward and option contracts as cash flow hedges to mitigate foreign currency exposure, primarily for non-U.S. dollar denominated payroll[81](index=81&type=chunk) - As of June 30, 2025, the notional principal amount of Hedging Contracts to sell U.S. dollars was **$9.65 million**, with a total fair value of derivative assets at **$0.785 million**[82](index=82&type=chunk)[83](index=83&type=chunk) | Unrealized Gains (Losses) on Derivatives (in thousands) | Six months ended June 30, 2025 | Six months ended June 30, 2024 | Three months ended June 30, 2025 | Three months ended June 30, 2024 | | :---------------------------------------------------- | :----------------------------- | :----------------------------- | :------------------------------- | :------------------------------- | | Foreign exchange option contracts | $282 | $16 | $378 | $16 | | Foreign exchange forward contracts | $864 | $(355) | $1,054 | $(160) | | Total | $1,146 | $(339) | $1,432 | $(144) | [NOTE 14: ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)](index=32&type=section&id=NOTE%2014:%20ACCUMULATED%20OTHER%20COMPREHENSIVE%20INCOME%20(LOSS)) This note details the components of accumulated other comprehensive income or loss, including unrealized gains and losses | Accumulated Other Comprehensive Income (Loss) (in thousands) | Beginning balance (Jan 1, 2025) | Net current period other comprehensive income (loss) | Ending balance (Jun 30, 2025) | | :--------------------------------------------------------- | :------------------------------ | :--------------------------------------------------- | :---------------------------- | | Unrealized gains (losses) on available-for-sale marketable securities | $(1,330) | $889 | $(441) | | Unrealized gains (losses) on cash flow hedges | $— | $785 | $785 | | Total | $(1,330) | $1,674 | $344 | - Reclassifications out of accumulated other comprehensive income (loss) for the six months ended June 30, 2025, totaled **$0.376 million**, primarily impacting cost of revenues and operating expenses[87](index=87&type=chunk) [NOTE 15: SHARE REPURCHASE PROGRAM](index=34&type=section&id=NOTE%2015:%20SHARE%20REPURCHASE%20PROGRAM) This note provides information on the company's share repurchase activities and remaining authorization - During the six months ended June 30, 2025, the Company repurchased **300,000 shares** of common stock at an average price of **$20.54 per share**, totaling **$6.162 million**[88](index=88&type=chunk) - As of June 30, 2025, **724,781 shares** of common stock remained available for repurchase under the Company's share repurchase program[88](index=88&type=chunk) [NOTE 16: SUBSEQUENT EVENTS](index=34&type=section&id=NOTE%2016:%20SUBSEQUENT%20EVENTS) This note discloses significant events occurring after the balance sheet date, such as new tax legislation - On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was signed into law, introducing changes to U.S. federal tax law. The Company is assessing its effect on consolidated financial statements but does not expect a material impact on its financial position[90](index=90&type=chunk)[128](index=128&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=35&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial condition, operational results, and future outlook [BUSINESS OVERVIEW](index=35&type=section&id=BUSINESS%20OVERVIEW) This section describes Ceva's market position, IP solutions, and strategic focus on key technology trends - Ceva is a leader in silicon and software IP solutions for smart edge products, holding **68% of the wireless connectivity market share** based on IP design revenues in 2024[92](index=92&type=chunk) - The company's IP portfolio addresses megatrends like 5G expansion, generative AI, embedded AI, industrial automation, and vehicle electrification, with a total addressable market of **$5 billion by 2027**[92](index=92&type=chunk)[96](index=96&type=chunk) - In Q2 2025, Ceva concluded thirteen IP licensing deals, including four for NeuPro family of NPUs, marking a pivotal moment for its Edge AI business's broad adoption phase[96](index=96&type=chunk) [CURRENT TRENDS](index=37&type=section&id=CURRENT%20TRENDS) This section discusses current market trends, Ceva's strategic focus, and updated revenue guidance due to macroeconomic conditions - Ceva focuses on three main use cases for smart edge devices (connect, sense, infer) across consumer IoT, automotive, industrial, and infrastructure markets, aiming for long-term growth[100](index=100&type=chunk) - The company expects licensing and related revenues to expand into new IIoT and consumer IoT markets in 2025, with strong IP expansion into AI, evidenced by four AI-related deals in Q2 2025[101](index=101&type=chunk) - Due to macroeconomic conditions and lower-than-anticipated Q1 revenues, Ceva lowered its 2025 revenue guidance from a high-single digits range to a low-single digits range for growth over 2024 annual revenues[102](index=102&type=chunk) [RESULTS OF OPERATIONS](index=38&type=section&id=RESULTS%20OF%20OPERATIONS) This section provides a detailed analysis of the company's revenues, costs, and expenses for the reported periods [Total Revenues](index=38&type=section&id=Total%20Revenues) This section analyzes the company's total revenues, highlighting changes and customer concentration | Total Revenues (in millions) | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--------------------------- | :------ | :------ | :------ | :------ | | Total Revenues | $25.7 | $28.4 | $49.9 | $50.5 | - Total revenues decreased by **10%** in Q2 2025 and **1%** in H1 2025 compared to the corresponding periods in 2024[104](index=104&type=chunk) - The five largest customers accounted for **42%** of total revenues for both Q2 and H1 2025, a decrease from **66%** and **50%** in comparable 2024 periods, indicating reduced customer concentration[105](index=105&type=chunk) [Licensing and Related Revenues](index=38&type=section&id=Licensing%20and%20Related%20Revenues) This section details revenues from IP licensing and related services, noting key technology drivers and strategic deals | Licensing and Related Revenues (in millions) | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :----------------------------------------- | :------ | :------ | :------ | :------ | | Licensing and related revenues | $15.0 | $17.3 | $30.1 | $28.7 | - Licensing revenues decreased by **13%** in Q2 2025 but increased by **5%** in H1 2025, driven by Edge AI technologies and new Wi-Fi 7 and Bluetooth 7 solutions[107](index=107&type=chunk) - Q2 2025 marked a pivotal moment for the AI business with four strategic NPU customer agreements, including two NeuPro-Nano deals for audio and two NeuPro-M deals for communications/data processing acceleration and LLM compute support[107](index=107&type=chunk) [Royalty Revenues](index=38&type=section&id=Royalty%20Revenues) This section analyzes royalty revenues, attributing changes to market conditions and product shipments | Royalty Revenues (in millions) | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :----------------------------- | :------ | :------ | :------ | :------ | | Royalty revenues | $10.7 | $11.2 | $19.9 | $21.8 | - Royalty revenues decreased by **5%** in Q2 2025 and **9%** in H1 2025, primarily due to softness in the lower end of the smartphone market[109](index=109&type=chunk)[110](index=110&type=chunk) - Consumer IoT shipments showed strong sequential (**21%**) and year-over-year (**16%**) growth, driven by record high cellular IoT and Wi-Fi 6 shipments[110](index=110&type=chunk) [Geographic Revenue Analysis](index=40&type=section&id=Geographic%20Revenue%20Analysis) This section presents a breakdown of revenues by geographic region, identifying major contributors | Geographic Revenue (in millions, except percentages) | H1 2025 | % | H1 2024 | % | Q2 2025 | % | Q2 2024 | % | | :------------------------------------------------- | :------ | :- | :------ | :- | :------ | :- | :------ | :- | | United States | $9.2 | 18% | $3.9 | 8% | $5.6 | 22% | $1.4 | 5% | | Europe and Middle East | $3.5 | 7% | $9.0 | 18% | $2.0 | 8% | $7.4 | 26% | | Asia Pacific | $37.2 | 75% | $37.6 | 74% | $18.1 | 70% | $19.6 | 69% | | China (subset of Asia Pacific) | $29.8 | 60% | $29.0 | 57% | $13.8 | 54% | $15.4 | 54% | - Asia Pacific remains the largest revenue contributor, accounting for **75%** of total revenues in H1 2025, with China representing **60%** of total revenues[112](index=112&type=chunk) [Cost of Revenues](index=40&type=section&id=Cost%20of%20Revenues) This section discusses the cost of revenues and factors influencing its changes, such as customization work | Cost of Revenues (in millions) | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :----------------------------- | :------ | :------ | :------ | :------ | | Cost of revenues | $3.5 | $2.9 | $7.0 | $5.4 | - Cost of revenues increased for both Q2 and H1 2025, primarily due to higher customization and implementation work associated with strategic 5G-Advanced deals[113](index=113&type=chunk) [Gross Margin](index=40&type=section&id=Gross%20Margin) This section analyzes the company's gross margin and the factors contributing to its fluctuations | Gross Margin | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :----------- | :------ | :------ | :------ | :------ | | Gross margin | 86% | 90% | 86% | 89% | - Gross margin decreased for both Q2 and H1 2025, mainly reflecting higher cost of revenues and lower total revenues[114](index=114&type=chunk) [Operating Expenses](index=40&type=section&id=Operating%20Expenses) This section details the company's total operating expenses and the primary drivers of their changes | Total Operating Expenses (in millions) | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :----------------------------------- | :------ | :------ | :------ | :------ | | Total operating expenses | $26.6 | $25.5 | $51.8 | $50.1 | - Total operating expenses increased for both Q2 and H1 2025, primarily due to higher salaries, employee-related costs, and non-cash equity-based compensation expenses[115](index=115&type=chunk) [Research and Development Expenses, Net](index=40&type=section&id=Research%20and%20Development%20Expenses,%20Net) This section analyzes R&D expenses, their proportion of revenues, and personnel changes | R&D Expenses (in millions) | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :------------------------- | :------ | :------ | :------ | :------ | | R&D expenses, net | $18.8 | $18.8 | $36.4 | $36.7 | - R&D expenses as a percentage of total revenues were **73%** for both Q2 and H1 2025, up from **66%** in Q2 2024, mainly due to lower revenues[116](index=116&type=chunk) - The number of R&D personnel decreased slightly to **323** at June 30, 2025, from **332** at June 30, 2024[117](index=117&type=chunk) [Sales and Marketing Expenses](index=41&type=section&id=Sales%20and%20Marketing%20Expenses) This section discusses sales and marketing expenses, attributing changes to personnel and compensation | Sales and Marketing Expenses (in millions) | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--------------------------------------- | :------ | :------ | :------ | :------ | | Sales and marketing expenses | $3.3 | $3.1 | $6.8 | $5.9 | - Sales and marketing expenses increased due to higher salaries, more personnel (**34** at June 30, 2025 vs. **30** at June 30, 2024), and increased equity-based compensation[118](index=118&type=chunk)[119](index=119&type=chunk) [General and Administrative Expenses](index=41&type=section&id=General%20and%20Administrative%20Expenses) This section details general and administrative expenses, noting increases due to compensation and professional services | G&A Expenses (in millions) | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :------------------------- | :------ | :------ | :------ | :------ | | G&A expenses | $4.4 | $3.5 | $8.3 | $7.1 | - G&A expenses increased primarily due to higher non-cash equity-based compensation expenses and professional services costs[120](index=120&type=chunk) - The number of G&A personnel increased to **47** at June 30, 2025, from **45** at June 30, 2024[121](index=121&type=chunk) [Amortization of Intangible Assets](index=41&type=section&id=Amortization%20of%20Intangible%20Assets) This section explains amortization charges related to intangible assets from past acquisitions | Amortization Charges (in millions) | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--------------------------------- | :------ | :------ | :------ | :------ | | Amortization charges | $0.2 | $0.1 | $0.3 | $0.3 | - Amortization charges remained consistent, related to intangible assets from the acquisitions of Hillcrest Labs and VisiSonics[122](index=122&type=chunk) [Financial Income, Net](index=41&type=section&id=Financial%20Income,%20Net) This section analyzes financial income, net, including interest income and foreign exchange gains or losses | Financial Income, Net (in millions) | H1 2025 | H1 2024 | Q2 2025 | Q2 2024 | | :-------------------------------- | :------ | :------ | :------ | :------ | | Financial income, net | $4.22 | $2.66 | $2.12 | $1.40 | | Interest income and gains/losses from marketable securities, net | $3.05 | $2.94 | $1.55 | $1.49 | | Foreign exchange gain (loss) | $1.17 | $(0.28) | $0.57 | $(0.09) | - Financial income, net, increased due to higher interest yields and a foreign exchange gain of **$1.17 million** in H1 2025 (compared to a loss of **$0.28 million** in H1 2024)[124](index=124&type=chunk)[125](index=125&type=chunk) [Remeasurement of Marketable Equity Securities](index=41&type=section&id=Remeasurement%20of%20Marketable%20Equity%20Securities) This section discusses losses from the remeasurement of marketable equity securities | Remeasurement Loss (in thousands) | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :-------------------------------- | :------ | :------ | :------ | :------ | | Loss from remeasurement | $208 | $58 | $262 | $118 | - The Company recorded higher losses from the remeasurement of marketable equity securities in Q2 and H1 2025 compared to 2024[126](index=126&type=chunk) [Provision for Income Taxes](index=43&type=section&id=Provision%20for%20Income%20Taxes) This section details income tax expense, explaining changes and benefits from preferential tax regimes | Income Tax Expense (in millions) | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :------------------------------- | :------ | :------ | :------ | :------ | | Income tax expense | $1.1 | $1.6 | $2.1 | $3.3 | - Income tax expense decreased for both Q2 and H1 2025, primarily due to lower withholding tax expenses in Israel and lower tax expenses under the French IP Box regime[127](index=127&type=chunk) - The Israeli subsidiary benefits from a **12% tax rate** on IP-derived profits, and the French subsidiary qualifies for a preferential **10% CIT rate** on qualifying IP income under the French IP Box regime[131](index=131&type=chunk)[133](index=133&type=chunk) [Critical Accounting Policies and Estimates](index=43&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) This section highlights critical accounting policies and estimates, noting any material changes - Critical accounting policies and estimates include revenue recognition, equity-based compensation, and credit losses. No material changes have occurred since the December 31, 2024, Annual Report on Form 10-K[135](index=135&type=chunk)[136](index=136&type=chunk) [LIQUIDITY AND CAPITAL RESOURCES](index=44&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) This section discusses the company's liquidity position, cash flow activities, and capital adequacy | Liquidity (in millions) | June 30, 2025 | December 31, 2024 | | :---------------------- | :------------ | :---------------- | | Cash and cash equivalents | $29.1 | $18.5 | | Short-term bank deposits | $2.8 | $2.0 | | Marketable securities | $125.6 | $143.1 | | Total liquidity | $157.5 | $163.6 | - Total liquidity decreased by **$6.1 million** in H1 2025, primarily due to cash used in operations and share repurchases, partially offset by **$3.5 million** from the Intrinsix sale escrow release[137](index=137&type=chunk) | Cash Flow Activities (in millions) | H1 2025 | H1 2024 | | :--------------------------------- | :------ | :------ | | Net cash used in operating activities | $(6.2) | $(5.0) | | Net cash provided by investing activities | $20.8 | $8.2 | | Net cash used in financing activities | $(4.5) | $(1.7) | - The Company believes its current cash, deposits, and marketable securities, along with cash from operations, will provide sufficient capital for at least the next **12 months**[148](index=148&type=chunk) [Contractual Obligations and Commitments](index=45&type=section&id=Contractual%20Obligations%20and%20Commitments) This section states that contractual obligations have not materially changed from previous disclosures - The Company states that its contractual obligations and commitments have not materially changed from those disclosed in its Annual Report on Form 10-K for the year ended December 31, 2024[150](index=150&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=45&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section details the company's exposure to market risks, including foreign currency and interest rate fluctuations, and hedging strategies - The Company is exposed to foreign currency exchange rate fluctuations, particularly for expenses denominated in NIS and Euro. It uses a foreign currency cash flow hedging program for non-U.S. dollar payroll[151](index=151&type=chunk)[153](index=153&type=chunk) - A foreign exchange gain of **$1.17 million** was recorded for H1 2025, compared to a loss of **$0.28 million** for H1 2024, partly due to French research tax credits increasing Euro cash balances[151](index=151&type=chunk)[152](index=152&type=chunk) - As of June 30, 2025, unrealized losses on marketable securities were approximately **$0.5 million** due to interest rate changes, but the Company intends to hold these investments to maturity or recovery[155](index=155&type=chunk) [Item 4. Controls and Procedures](index=47&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms the effectiveness of the company's disclosure controls and procedures and the absence of material internal control changes - The CEO and CFO concluded that disclosure controls and procedures were effective as of June 30, 2025[158](index=158&type=chunk) - There have been no material changes in internal control over financial reporting during the most recent fiscal quarter[159](index=159&type=chunk) [PART II. OTHER INFORMATION](index=37&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section provides additional information, including legal proceedings, risk factors, equity sales, and exhibits [Item 1. Legal Proceedings](index=37&type=section&id=Item%201.%20Legal%20Proceedings) This section discloses ongoing legal proceedings and claims, including any provisions made - As of June 30, 2025, the Company's interim condensed consolidated balance sheet includes a provision of approximately **$0.3 million** for legal proceedings and claims[160](index=160&type=chunk) [Item 1A. Risk Factors](index=49&type=section&id=Item%201A.%20Risk%20Factors) This section updates previously disclosed risk factors, emphasizing new or heightened risks related to trade and geopolitics - No material changes to previously disclosed risk factors were identified, except for those related to the U.S. trade environment, global tariffs, and economic uncertainty associated with geopolitics[162](index=162&type=chunk)[163](index=163&type=chunk) - Trade restrictions and rising political tensions could reduce trade volume and investment, potentially causing customers to delay projects or resulting in lower licensing and royalty revenues[163](index=163&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=50&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's common stock repurchases under its share repurchase program | Period (Q2 2025) | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs | | :--------------- | :------------------------------- | :--------------------------- | :----------------------------------------------------------------------------- | :----------------------------------------------------------------------------- | | Month 1 (April) | — | — | — | 1,024,781 | | Month 2 (May) | 235,000 | $20.70 | 235,000 | 789,781 | | Month 3 (June) | 65,000 | $19.96 | 65,000 | 724,781 | | TOTAL | 300,000 | $20.54 | 300,000 | 724,781 | - During Q2 2025, Ceva repurchased **300,000 shares** of common stock at an average price of **$20.54 per share**[166](index=166&type=chunk) [Item 3. Defaults Upon Senior Securities](index=50&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This item is not applicable to the Company for the reporting period [Item 4. Mine Safety Disclosures](index=50&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the Company for the reporting period [Item 5. Other Information](index=50&type=section&id=Item%205.%20Other%20Information) This section confirms no director or officer trading arrangements were adopted or terminated during the period - No director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the six months ended June 30, 2025[169](index=169&type=chunk) [Item 6. Exhibits](index=51&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed as part of the Quarterly Report on Form 10-Q - Exhibits include Amended and Restated 2011 Stock Incentive Plan, Amended and Restated 2002 Employee Stock Purchase Plan, Rule 13a-14(a)/15d-14(a) Certifications of CEO and CFO, Section 1350 Certification, and iXBRL formatted financial statements[171](index=171&type=chunk) [SIGNATURES](index=51&type=section&id=SIGNATURES) This section confirms the official signing of the report by the Chief Executive Officer and Chief Financial Officer
CEVA(CEVA) - 2025 Q2 - Earnings Call Transcript
2025-08-11 13:30
Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $25.7 million, down 10% from $28.4 million in Q2 2024 [15] - Licensing and related revenue totaled $15 million, representing 59% of total revenue, reflecting a 13% year-over-year decline [15][16] - Royalty revenue for the quarter was $10.7 million, accounting for 41% of total revenues, with a 16% sequential increase but a 5% year-over-year decrease [17][18] - GAAP net loss for Q2 was $3.7 million, with a diluted loss per share of $0.15, compared to a net loss of $0.3 million and diluted loss per share of $0.01 in the same period last year [19] Business Line Data and Key Metrics Changes - The company secured 13 license agreements, including five first-time customers and four OEM customers, indicating strong licensing execution [4] - Royalty revenue saw a sequential growth of 16%, driven by increased shipments from consumer and smartphone customers [11] - Consumer IoT shipments were up 21% sequentially and 60% year-over-year, reflecting strong demand [12] Market Data and Key Metrics Changes - Shipments by CEVA's licensees during Q2 2025 were 488 million units, up 16% sequentially and 6% year-over-year [20] - Cellular IoT shipments reached an all-time record high at 66 million units, up 66% year-over-year [21] - WiFi shipments were 62 million units, up 80% from 35 million units a year ago, with WiFi 6 shipments up 113% year-over-year [21] Company Strategy and Development Direction - The company aims to expand its NPU business into infrastructure and data center markets, indicating a strategic shift towards AI integration [9][13] - CEVA is focused on deepening relationships through multiple IP agreements, enhancing product capabilities and increasing royalty per device [6][10] - The company views the milestone of over 20 billion devices shipped as a launchpad for future growth in the Smart Edge Era [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the licensing pipeline and potential deal flow, particularly around Edge AI prospects [23] - The company anticipates stronger royalty revenue in the second half of the year due to seasonality and new product deployments [23][24] - Management reiterated confidence in achieving a double-digit percentage increase in non-GAAP net income and fully diluted non-GAAP EPS relative to 2024 [25] Other Important Information - Total GAAP operating expenses for Q2 were $26.6 million, above guidance due to higher employee-related benefits [18] - The company repurchased 300,000 shares for approximately $6.2 million during the quarter [22] - CEVA's cash and cash equivalents were approximately $157 million as of June [22] Q&A Session Summary Question: Will increased licensing in NPUs lead to higher royalty revenues? - Management confirmed that higher complexity in technology will lead to better economics and a meaningful increase in royalty per unit as these devices are deployed [28][29] Question: What is the expected timing for royalties from more complex designs? - Management indicated that the time from licensing to royalty reporting is typically 18 to 24 months, but may be shorter for consumer devices due to rapid market needs [30][31] Question: What is the outlook for flagship smartphone customers in 2026? - Management did not provide specific guidance for 2026 but expressed confidence in technology penetration and expected strong performance in the second half of the year [39][40] Question: What is the scalability of CEVA's AI offerings? - Management highlighted the scalability of their NPU solutions and the comprehensive software stack provided to customers, which supports various applications including edge and cloud inference [42][44] Question: What contributed to the decline in Bluetooth shipments this quarter? - Management noted that the decline was not due to specific issues but expected good sequential growth in the second half of the year as new Bluetooth technologies are adopted [57][58]
CEVA(CEVA) - 2025 Q2 - Quarterly Results
2025-08-11 13:15
[Company Announcement & Executive Summary](index=1&type=section&id=1.%20Company%20Announcement%20%26%20Executive%20Summary) This section provides an overview of Ceva, Inc.'s Q2 2025 financial performance, key operational achievements, and strategic highlights, including revenue figures, net loss, and significant business milestones [Announcement and Business Overview](index=1&type=section&id=1.1%20Announcement%20and%20Business%20Overview) Ceva, Inc. announced its second quarter financial results for the period ended June 30, 2025, highlighting its role as a leading silicon and software IP licensor enabling reliable, efficient smart edge devices - Ceva, Inc. (NASDAQ: CEVA) announced its second quarter financial results for the period ended June 30, 2025[1](index=1&type=chunk)[2](index=2&type=chunk) - The company is a leading silicon and software IP licensor, enabling smart edge devices to reliably, efficiently connect, sense, and infer data[2](index=2&type=chunk) [Second Quarter 2025 Financial Highlights](index=1&type=section&id=1.2%20Second%20Quarter%202025%20Financial%20Highlights) Ceva's Q2 2025 total revenue was $25.7 million, down 9.7% year-over-year but up 6% sequentially, with GAAP net loss widening to $3.7 million and non-GAAP net income decreasing by 57.1% | Metric | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | YoY Change | QoQ Change | | :------------------- | :------------------- | :------------------- | :--------- | :--------- | | **Total Revenue** | 25.7 | 28.4 | -9.7% | +6% | | Licensing and Related Revenue | 15.0 | 17.3 | -13.3% | - | | Royalty Revenue | 10.7 | 11.2 | -4.5% | Sequentially Increased | | **GAAP Net Loss** | (3.7) | (0.3) | Widened | - | | **GAAP Diluted Loss Per Share** | (0.15) | (0.01) | Widened | - | | **Non-GAAP Net Income** | 1.8 | 4.2 | -57.1% | - | | **Non-GAAP Diluted Earnings Per Share** | 0.07 | 0.17 | -58.8% | - | [Operational and Strategic Achievements](index=1&type=section&id=1.3%20Operational%20and%20Strategic%20Achievements) Ceva's AI business expanded with four new NPU agreements and 13 IP licensing deals, reaching 20 billion Ceva-powered device shipments and repurchasing 300,000 shares - AI business continued to expand, signing **four new NPU agreements** this quarter, marking a critical moment for customer adoption[4](index=4&type=chunk)[6](index=6&type=chunk) - A total of **13 IP licensing agreements** were concluded this quarter, covering a wide range of markets and applications including edge AI NPU, V2X communication, 4D radar, Bluetooth, and spatial audio[4](index=4&type=chunk) - **Five agreements** were signed with first-time customers, and **four** with OEM customers[4](index=4&type=chunk) - Ceva-powered device shipments surpassed the **20 billion unit milestone**, with **488 million units** shipped this quarter, including record cellular IoT and Wi-Fi 6 shipments[4](index=4&type=chunk)[6](index=6&type=chunk) - **300,000 shares** of Ceva stock were repurchased this quarter, valued at approximately **$6.2 million**[6](index=6&type=chunk)[8](index=8&type=chunk) [GAAP Financial Results](index=1&type=section&id=2.%20GAAP%20Financial%20Results) This section presents Ceva's GAAP financial performance, including interim condensed consolidated statements of loss and key GAAP metrics for Q2 and H1 2025, detailing revenue, gross profit, and net loss [Interim Condensed Consolidated Statements of Loss](index=5&type=section&id=2.1%20Interim%20Condensed%20Consolidated%20Statements%20of%20Loss) In Q2 2025, Ceva's total revenue was $25.7 million, a decrease year-over-year, resulting in a GAAP gross profit of $22.1 million, an operating loss of $4.5 million, a net loss of $3.7 million, and a diluted loss per share of $0.15 Ceva, Inc. Interim Condensed Consolidated Statements of Loss (GAAP) | Metric (Thousands USD) | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--------------------------------- | :------- | :------- | :------- | :------- | | **Revenue:** | | | | | | Licensing and Related Revenue | 15,022 | 17,278 | 30,064 | 28,692 | | Royalty | 10,656 | 11,159 | 19,859 | 21,817 | | **Total Revenue** | **25,678** | **28,437** | **49,923** | **50,509** | | Cost of Revenue | 3,549 | 2,933 | 7,036 | 5,436 | | **Gross Profit** | **22,129** | **25,504** | **42,887** | **45,073** | | **Operating Expenses:** | | | | | | Research and Development, net | 18,758 | 18,758 | 36,367 | 36,749 | | Selling and Marketing | 3,322 | 3,095 | 6,771 | 5,911 | | General and Administrative | 4,381 | 3,537 | 8,314 | 7,109 | | Amortization of Intangible Assets | 150 | 149 | 299 | 299 | | **Total Operating Expenses** | **26,611** | **25,539** | **51,751** | **50,068** | | **Operating Loss** | **(4,482)** | **(35)** | **(8,864)** | **(4,995)** | | Net Financial Income | 2,121 | 1,406 | 4,221 | 2,663 | | Revaluation of Tradable Equity Securities | (208) | (58) | (262) | (118) | | **Loss (Income) Before Taxes** | **(2,569)** | **1,313** | **(4,905)** | **(2,450)** | | Income Tax Expense | 1,135 | 1,604 | 2,126 | 3,289 | | **Net Loss** | **(3,704)** | **(291)** | **(7,031)** | **(5,739)** | | **Basic and Diluted Net Loss Per Share** | **(0.15)** | **(0.01)** | **(0.30)** | **(0.24)** | | **Weighted Average Shares (Thousands):** | | | | | | Basic and Diluted | 23,898 | 23,628 | 23,832 | 23,568 | [Key GAAP Financial Metrics](index=1&type=section&id=2.2%20Key%20GAAP%20Financial%20Metrics) In Q2 2025, Ceva's total revenue decreased to $25.7 million from $28.4 million in Q2 2024, with both licensing and royalty revenues declining, GAAP gross margin falling to 86%, and GAAP operating and net losses significantly widening 2025年第二季度关键GAAP财务指标 (同比) | Metric | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | YoY Change | | :------------------- | :------------------- | :------------------- | :--------- | | **Total Revenue** | 25.7 | 28.4 | -9.7% | | Licensing and Related Revenue | 15.0 | 17.3 | -13.3% | | Royalty Revenue | 10.7 | 11.2 | -4.5% | | **GAAP Gross Margin** | 86% | 90% | -4% | | **GAAP Operating Loss** | (4.5) | (0.04) | Loss Widened | | **GAAP Net Loss** | (3.7) | (0.3) | Loss Widened | | **GAAP Diluted Loss Per Share** | (0.15) | (0.01) | Loss Widened | [Non-GAAP Financial Results](index=2&type=section&id=3.%20Non-GAAP%20Financial%20Results) This section outlines Ceva's non-GAAP financial performance, presenting key non-GAAP metrics for Q2 2025 and detailed reconciliations from GAAP measures, highlighting adjustments for stock-based compensation and other non-cash items [Key Non-GAAP Financial Metrics](index=2&type=section&id=3.1%20Key%20Non-GAAP%20Financial%20Metrics) In Q2 2025, Ceva's non-GAAP gross margin was 87%, non-GAAP operating income was $0.8 million, non-GAAP net income was $1.8 million, and non-GAAP diluted EPS was $0.07, all showing a decline year-over-year 2025年第二季度关键非GAAP财务指标 (同比) | Metric | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | YoY Change | | :------------------- | :------------------- | :------------------- | :--------- | | **Non-GAAP Gross Margin** | 87% | 91% | -4% | | **Non-GAAP Operating Income** | 0.8 | 4.4 | -81.8% | | **Non-GAAP Net Income** | 1.8 | 4.2 | -57.1% | | **Non-GAAP Diluted Earnings Per Share** | 0.07 | 0.17 | -58.8% | [Reconciliation of GAAP to Non-GAAP Measures](index=6&type=section&id=3.2%20Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) Ceva's non-GAAP metrics exclude stock-based compensation, acquisition-related intangible asset amortization, asset acquisition costs, and tradable equity securities revaluation losses to provide a clearer view of operating performance, significantly impacting net income, operating income, and gross profit Reconciliation of GAAP Net Loss to Non-GAAP Net Income (Thousands USD) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :------------------------------------------------- | :------- | :------- | :------- | :------- | | **GAAP Net Loss** | **(3,704)** | **(291)** | **(7,031)** | **(5,739)** | | Stock-based compensation expense (cost of revenue) | 166 | 191 | 325 | 394 | | Stock-based compensation expense (R&D) | 2,673 | 2,438 | 5,139 | 4,445 | | Stock-based compensation expense (selling and marketing) | 598 | 451 | 1,164 | 816 | | Stock-based compensation expense (general and administrative) | 1,465 | 820 | 2,597 | 1,816 | | Amortization of acquired intangible assets | 209 | 278 | 417 | 556 | | Asset acquisition related costs | 144 | 252 | 288 | 532 | | Revaluation loss of tradable equity securities | 208 | 58 | 262 | 118 | | **Non-GAAP Net Income** | **1,759** | **4,197** | **3,161** | **2,938** | Reconciliation of GAAP Operating Loss to Non-GAAP Operating Income (Thousands USD) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :------------------------------------------------- | :------- | :------- | :------- | :------- | | **GAAP Operating Loss** | **(4,482)** | **(35)** | **(8,864)** | **(4,995)** | | Stock-based compensation expense (cost of revenue) | 166 | 191 | 325 | 394 | | Stock-based compensation expense (R&D) | 2,673 | 2,438 | 5,139 | 4,445 | | Stock-based compensation expense (selling and marketing) | 598 | 451 | 1,164 | 816 | | Stock-based compensation expense (general and administrative) | 1,465 | 820 | 2,597 | 1,816 | | Amortization of acquired intangible assets | 209 | 278 | 417 | 556 | | Asset acquisition related costs | 144 | 252 | 288 | 532 | | **Non-GAAP Operating Income** | **773** | **4,395** | **1,066** | **3,564** | Reconciliation of GAAP Gross Profit to Non-GAAP Gross Profit (Thousands USD) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :------------------------------------------------- | :------- | :------- | :------- | :------- | | **GAAP Gross Profit** | **22,129** | **25,504** | **42,887** | **45,073** | | GAAP Gross Margin | 86% | 90% | 86% | 89% | | Stock-based compensation expense (cost of revenue) | 166 | 191 | 325 | 394 | | Amortization of acquired intangible assets | 59 | 129 | 118 | 257 | | **Non-GAAP Gross Profit** | **22,354** | **25,824** | **43,330** | **45,724** | | Non-GAAP Gross Margin | 87% | 91% | 87% | 91% | - Non-GAAP gross margin, operating income, net income, and diluted EPS calculations exclude stock-based compensation, amortization of acquired intangible assets, asset acquisition costs, and revaluation losses of tradable equity securities[14](index=14&type=chunk)[15](index=15&type=chunk)[16](index=16&type=chunk) [Management Insights](index=1&type=section&id=4.%20Management%20Insights) This section provides management's perspective on Ceva's Q2 2025 performance, with commentary from the CEO on strategic achievements and AI business scaling, and the CFO on financial drivers and capital allocation [CEO's Commentary](index=1&type=section&id=4.1%20CEO's%20Commentary) CEO Amir Panush expressed satisfaction with Q2 results, driven by expanded AI licensing deals, strong execution across connectivity, sensing, and inferring use cases, and sequential royalty revenue growth, anticipating continued AI business scaling and sequential and year-over-year growth in H2 - Satisfied with second-quarter performance, primarily driven by expanded AI licensing deals and strong execution across the three pillar use cases of connectivity, sensing, and inferring[4](index=4&type=chunk) - AI business continues to scale, with **four new NPU agreements** signed this quarter, highlighting the growing demand for industry-leading edge AI technology[4](index=4&type=chunk) - The company has reached the milestone of **20 billion Ceva-powered device shipments**, solidifying its leadership in wireless connectivity IP[4](index=4&type=chunk) - Anticipates the company's business will achieve sequential and year-over-year growth in the second half of the year[4](index=4&type=chunk) [CFO's Commentary](index=2&type=section&id=4.2%20CFO's%20Commentary) CFO Yaniv Arieli noted AI NPU demand supported licensing, with total licensing revenue exceeding $15 million for the fifth consecutive quarter, while royalty revenue saw continued growth in consumer IoT and record cellular IoT and Wi-Fi 6 shipments, affirming focus on expense management, profitability, and active share repurchase - AI NPU demand supported the quarter's licensing business, with total licensing revenue exceeding **$15 million** for the fifth consecutive quarter[8](index=8&type=chunk) - In terms of royalty revenue, consumer IoT shipments continued to grow, with cellular IoT and Wi-Fi 6 shipments reaching **record highs**[8](index=8&type=chunk) - The company will continue to focus on stringent expense management and improving profitability[8](index=8&type=chunk) - Actively executed the share repurchase program this quarter, repurchasing **300,000 shares** valued at approximately **$6.2 million**[8](index=8&type=chunk) [Financial Position](index=8&type=section&id=5.%20Financial%20Position) This section details Ceva's financial position as of June 30, 2025, through its interim condensed consolidated balance sheets, outlining assets, liabilities, and shareholders' equity [Interim Condensed Consolidated Balance Sheets](index=8&type=section&id=5.1%20Interim%20Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, Ceva's total assets were $302.8 million, a slight decrease from $308.9 million on December 31, 2024, with cash and cash equivalents increasing but tradable securities and short-term bank deposits decreasing, alongside a slight decline in total liabilities and total shareholders' equity Ceva, Inc. Interim Condensed Consolidated Balance Sheets (Thousands USD) | Metric | June 30, 2025 | December 31, 2024 | | :--------------------------------- | :------------- | :-------------- | | **Assets:** | | | | **Current Assets:** | | | | Cash and cash equivalents | 29,082 | 18,498 | | Tradable securities and short-term bank deposits | 128,422 | 145,146 | | Accounts receivable, net | 11,832 | 15,969 | | Unbilled accounts receivable | 24,851 | 21,240 | | Prepaid expenses and other current assets | 14,621 | 15,488 | | **Total Current Assets** | **208,808** | **216,341** | | **Long-Term Assets:** | | | | Severance pay fund | 7,864 | 7,161 | | Deferred tax assets, net | 1,630 | 1,456 | | Property and equipment, net | 6,484 | 6,877 | | Operating lease right-of-use assets | 4,645 | 5,811 | | Investment in tradable equity securities | 50 | 312 | | Goodwill | 58,308 | 58,308 | | Intangible assets, net | 1,460 | 1,877 | | Other long-term assets | 13,593 | 10,805 | | **Total Assets** | **302,842** | **308,948** | | **Liabilities and Shareholders' Equity:** | | | | **Current Liabilities:** | | | | Accounts payable | 1,771 | 1,125 | | Deferred revenue | 3,212 | 3,599 | | Accrued expenses and other payables | 17,749 | 23,207 | | Operating lease liabilities | 1,610 | 2,598 | | **Total Current Liabilities** | **24,342** | **30,529** | | **Long-Term Liabilities:** | | | | Accrued severance pay | 8,155 | 7,365 | | Operating lease liabilities | 2,755 | 2,963 | | Other accrued liabilities | 1,698 | 1,535 | | **Total Liabilities** | **36,950** | **42,392** | | **Shareholders' Equity:** | | | | Ordinary shares | 24 | 24 | | Additional paid-in capital | 267,743 | 259,891 | | Treasury stock | (5,874) | (3,222) | | Accumulated other comprehensive income (loss) | 344 | (1,330) | | Retained earnings | 3,655 | 11,193 | | **Total Shareholders' Equity** | **265,892** | **266,556** | | **Total Liabilities and Shareholders' Equity** | **302,842** | **308,948** | [Corporate Information](index=3&type=section&id=6.%20Corporate%20Information) This section provides essential corporate information about Ceva, Inc., including its business focus on smart edge devices, IP portfolio, global presence, and important forward-looking statements with associated risk factors [About Ceva, Inc.](index=3&type=section&id=6.1%20About%20Ceva,%20Inc.) Ceva, Inc. innovates smart edge devices through wireless communication, sensing, and edge AI technologies, offering a broad IP portfolio including Bluetooth, Wi-Fi, UWB, 5G, scalable edge AI NPU, and sensor fusion solutions to enable a smarter, safer, and more connected world, headquartered in Rockville, Maryland, with global operations and a commitment to corporate citizenship - Ceva is dedicated to bringing innovation to smart edge devices through its wireless communication, sensing, and edge AI technologies[17](index=17&type=chunk) - The company offers the broadest IP portfolio, including wireless connectivity IP (Bluetooth, Wi-Fi, UWB, and 5G platform IP), scalable edge AI NPU IP, and sensor fusion solutions[17](index=17&type=chunk) - Ceva's technology powers over **20 billion smart edge products**, including smartwatches, IoT devices, wearables, autonomous vehicles, and 5G mobile networks[17](index=17&type=chunk) - Headquartered in Rockville, Maryland, the company boasts a global customer base and operational network, committed to being a responsible global corporate citizen[18](index=18&type=chunk)[19](index=19&type=chunk) [Forward-Looking Statements](index=3&type=section&id=6.2%20Forward-Looking%20Statements) This press release contains forward-looking statements involving risks, uncertainties, and assumptions that could cause Ceva's actual results to differ materially from expectations, including industry competition, technology market acceptance, market demand changes, semiconductor industry cyclicality, revenue diversification, the Israel-Gaza conflict, and other SEC-filed risks, with Ceva disclaiming any obligation to update such statements - The press release contains forward-looking statements involving risks, uncertainties, and assumptions that could cause actual results to differ materially from expectations[13](index=13&type=chunk) - Forward-looking statements include the continued scaling of the AI business, Ceva's position as a leader in wireless connectivity IP, and expectations for sequential growth in the second half of the year[13](index=13&type=chunk) - Risk factors include industry competition, technology market acceptance, changes in market demand, semiconductor industry cyclicality, ability to diversify revenue streams, the Israel-Gaza conflict, and other risks described in SEC filings[13](index=13&type=chunk) - Ceva undertakes no obligation to update any forward-looking statements or information[13](index=13&type=chunk) [Investor Relations](index=2&type=section&id=7.%20Investor%20Relations) This section provides details for Ceva's Q2 2025 earnings conference call, including access information and replay options, along with key investor and public relations contact details [Conference Call Details](index=2&type=section&id=7.1%20Conference%20Call%20Details) Ceva management will host a conference call on August 11, 2025, at 8:30 AM ET to discuss quarterly operating results, with dial-in and webcast options available, and a replay service provided - Ceva management will host a conference call on **August 11, 2025, at 8:30 AM ET** to discuss the quarter's operating results[9](index=9&type=chunk) - The conference call can be accessed via designated dial-in numbers (US participants: **1-844-435-0316**, international participants: **+1-412-317-6365**, access code: **Ceva**) or through the webcast link: https://app.webinar.net/QYyg6d46Eeb[10](index=10&type=chunk)[12](index=12&type=chunk) - A replay will be available after the call by dialing **+1-877-344-7529** or **+1-412-317-0088** (access code: **1439858**), accessible until **9:00 AM ET on August 18, 2025**, and also on Ceva's website[11](index=11&type=chunk) [Contact Information](index=4&type=section&id=7.2%20Contact%20Information) Investors and public relations contacts include CFO Yaniv Arieli and VP of Market Intelligence, Investor & Public Relations Richard Kingston - Contacts include Ceva, Inc. CFO **Yaniv Arieli** (+972.9.961.3770, yaniv.arieli@ceva-ip.com) and VP of Market Intelligence, Investor & Public Relations **Richard Kingston** (+1.650.220.1948, richard.kingston@ceva-ip.com)[21](index=21&type=chunk)
CEVA(CEVA) - 2025 Q2 - Earnings Call Presentation
2025-08-11 12:30
Financial Performance - Total revenue reached $25.7 million[2], compared to $28.4 million in Q2'24[2], a decrease of approximately 9.5% - Non-GAAP earnings per share were 7 cents[2], down from 17 cents in Q2'24[2] - GAAP earnings per share were a loss of 15 cents[2], compared to a loss of 1 cent in Q2'24[2] - Licensing and related royalties revenue was $15 million[4] in Q2'25, compared to $17.3 million[4] in Q2'24, a decrease of approximately 13% - Non-GAAP operating income was $1.8 million[4] in Q2'25, compared to $4.4 million[4] in Q2'24, a decrease of approximately 59% - Non-GAAP net income was $0.8 million[4] in Q2'25, compared to $4.2 million[4] in Q2'24, a decrease of approximately 81% Business Highlights - The company signed four new NPU agreements during the quarter[1] - The company returned $6.2 million to shareholders via stock repurchase of 300,000 shares[9] Shipment Data - Total units shipped reached 488 million[8], including 55 million smartphones[8] and 433 million smart edge devices (excluding smartphones)[8] - Smart Edge shipments include 254 million Bluetooth units[8], 62 million Wi-Fi units[8], and 66 million Cellular IoT units[8] Financial Stability - The company has $157 million in cash, cash equivalents, marketable securities, and bank deposits at the end of Q2, and is debt free[9]
Ceva, Inc. Announces Second Quarter 2025 Financial Results
Prnewswire· 2025-08-11 11:00
Core Viewpoint - Ceva, Inc. reported its Q2 2025 financial results, highlighting a decline in revenue compared to the previous year but showcasing growth in AI licensing and device shipments, particularly in cellular IoT and Wi-Fi 6 technologies [2][3][4]. Financial Performance - Total revenue for Q2 2025 was $25.7 million, down from $28.4 million in Q2 2024, representing a year-over-year decrease of approximately 9.5% [3]. - Licensing and related revenue for Q2 2025 was $15.0 million, compared to $17.3 million in Q2 2024, a decline of about 13.3% [3]. - Royalty revenue for Q2 2025 was $10.7 million, down from $11.2 million in the same quarter of 2024, a decrease of approximately 4.5% [3]. Profitability Metrics - GAAP gross margin for Q2 2025 was 86%, down from 90% in Q2 2024 [5]. - GAAP operating loss for Q2 2025 was $4.5 million, compared to a loss of $0.04 million in Q2 2024 [5]. - Non-GAAP net income for Q2 2025 was $1.8 million, with diluted income per share of $0.07, compared to $4.2 million and $0.17 per share in Q2 2024 [6][14]. Licensing and Agreements - The company concluded 13 licensing agreements in Q2 2025, including 4 AI deals for the NeuPro product line and 2 strategic automotive IP agreements with U.S. companies [2][4]. - The AI business is scaling, with significant customer adoption reflected in the new NPU agreements signed during the quarter [4][7]. Device Shipments and Milestones - Ceva-powered device shipments reached 488 million units in Q2 2025, including record shipments in cellular IoT and Wi-Fi 6 technologies [2][8]. - The company surpassed the milestone of 20 billion Ceva-powered devices shipped, reinforcing its leadership in wireless connectivity IP [4][8]. Share Repurchase Program - During the quarter, Ceva repurchased 300,000 shares of its stock for approximately $6.2 million, indicating a commitment to returning value to shareholders [8][9].
Ceva Retains Top Spot in Wireless Connectivity IP in Latest IPnest Report
Prnewswire· 2025-07-29 11:00
Core Insights - Ceva, Inc. has been recognized as the 1 vendor in Wireless Connectivity IP, achieving a market share of 68% in 2024, significantly outpacing its closest competitor by more than 10 times [1] - The company’s leadership in wireless connectivity IP is attributed to its comprehensive portfolio that includes Bluetooth, Wi-Fi, UWB, 802.15.4, and cellular IoT solutions, which are essential for the development of smart edge devices [1][3] Industry Trends - The convergence of wireless connectivity, on-device AI, and sensor fusion is driving the demand for smart edge devices, particularly in consumer and industrial SoCs and MCUs [2] - Local data processing is becoming crucial for real-time decision-making, reducing latency, preserving privacy, and enhancing energy efficiency in smart edge applications [2] Company Strategy - Ceva aims to build on its leadership by offering a unified IP portfolio that integrates wireless, sensing, and AI capabilities, facilitating innovation in the AIoT landscape [3] - The Ceva-Waves™ family provides a comprehensive wireless connectivity IP portfolio optimized for seamless integration into SoCs and MCUs, supporting both single and multi-standard configurations [3] Product Offerings - The Ceva-Waves platform includes the Ceva-Waves Dragonfly, a fully integrated solution for LTE-M and NB-IoT connectivity, suitable for low-power applications like asset tracking and smart metering [3] - Ceva has expanded its offerings to include RF IP, launching its first Bluetooth 7 RF IP on TSMC 12nm, alongside support for IEEE 802.15.4, reinforcing its commitment to delivering complete wireless solutions [3] Company Overview - Ceva is dedicated to innovation in the smart edge, providing a broad portfolio of wireless communications, sensing, and Edge AI technologies that power over 19 billion smart edge products globally [4] - The company focuses on delivering high-performance, low-power silicon and software IP solutions to create a smarter, safer, and more interconnected world [4]
Ceva, Inc. Schedules Second Quarter 2025 Earnings Release and Conference Call
Prnewswire· 2025-07-09 11:00
Core Viewpoint - Ceva, Inc. will announce its second quarter 2025 results on August 11, 2025, before the NASDAQ market opens, followed by a conference call to discuss the operating performance for the quarter [1] Company Overview - Ceva, Inc. is a leading licensor of silicon and software IP that enables Smart Edge devices to connect, sense, and infer data more reliably and efficiently [1] - The company offers a broad portfolio of IP, including wireless connectivity IPs (Bluetooth, Wi-Fi, UWB, and 5G platform IP), scalable Edge AI NPU IPs, and sensor fusion solutions [4] - Ceva powers over 19 billion smart edge products, including AI-infused smartwatches, IoT devices, wearables, autonomous vehicles, and 5G mobile networks [4] Conference Call Details - The conference call will take place at 8:30 a.m. Eastern Time on August 11, 2025, and will be accessible via dial-in numbers and a live webcast [2][8] - A replay of the conference call will be available from one hour after the end of the call until 9:00 a.m. Eastern Time on August 18, 2025 [3] Corporate Responsibility - Ceva emphasizes sustainability and environmental consciousness, focusing on environmental preservation, recycling, employee welfare, and privacy [6]
Consumer-Tech Brand, Nothing, Taps Ceva's RealSpace Software to Bring Immersive Spatial Audio to Headphones and Earbuds
Prnewswire· 2025-07-02 11:00
Core Insights - Ceva and Nothing have announced a collaboration to integrate Ceva's RealSpace® Spatial Audio Software into Nothing's upcoming audio products, including the Nothing Headphone (1) [1][2][4] - This partnership aims to enhance the listening experience by providing cinematic 3D sound with dynamic head tracking, aligning with Nothing's design-first approach [4][5][6] Company Overview - Nothing, founded in London in 2020, focuses on creating innovative consumer technology that emphasizes design and user experience, having sold over 10 million devices and generated over $1 billion in lifetime revenue [7] - Ceva, Inc. specializes in silicon and software IP for smart edge applications, powering over 19 billion smart edge products globally, including advanced wireless communications and Edge AI technologies [9][10] Product Details - The Nothing Headphone (1) represents Nothing's first entry into the over-ear audio device market, aiming to deliver an immersive audio experience [1][2][4] - Ceva's RealSpace technology is designed for low power consumption and efficient integration into wireless audio devices, enhancing the overall audio experience [5][6] Strategic Goals - The collaboration is part of Nothing's mission to redefine user engagement with audio across music, movies, and games, leveraging Ceva's spatial audio technology [4][6] - Both companies aim to push the boundaries of audio technology, creating a more emotional and immersive listening experience for users [5][6]