CEVA, Inc. (NASDAQ:CEVA) Q2 2020 Earnings Conference Call August 10, 2020 8:30 AM ET Company Participants Richard Kingston - Investor Relations Gideon Wertheizer - Chief Executive Officer Yaniv Arieli - Chief Financial Officer Conference Call Participants Matt Ramsay - Cowen and Company Peter Zdebski - Barclays Suji DeSilva - ROTH Capital Partners Operator Good day and welcome to the CEVA, Inc. Second Quarter 2020 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions ...

CEVA, Inc. (NASDAQ:CEVA) Q1 2020 Earnings Conference Call May 11, 2020 8:30 AM ET Company Participants Richard Kingston - Investor Relations Gideon Wertheizer - Chief Executive Officer Yaniv Arieli - Chief Financial Officer Conference Call Participants Matt Ramsay - Cowen Mike Walkley - Canaccord Genuity Suji DeSilva - ROTH Capital Tavy Rosner - Barclays David O’Connor - Exane BNP Paribas Operator Good day and welcome to the CEVA, Inc.’s First Quarter 2020 Earnings Conference Call. All participants will be ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the quarterly period ended: March 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the transition period from to Commission file number: 000-49842 CEVA, Inc. (Exact Name of Registrant as Specified in Its Charter) Delaware 77-0556376 (State or Other Jurisdiction of ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to ____________ Commission file number: 000-49842 CEVA, INC. (Exact name of registrant as specified in its charter) Delaware 77-0556376 (State or other jurisdict ...

CEVA, Inc. (NASDAQ:CEVA) Q4 2019 Earnings Conference Call February 18, 2020 8:30 AM ET Company Participants Richard Kingston - Vice President of Market Intelligence and Investor Relations Gideon Wertheizer - Chief Executive Officer Yaniv Arieli - Chief Financial Officer Conference Call Participants Anthony Nemoto - Canaccord Genuity Peter Zdebski - Barclays Capital Matthew Ramsay - Cowen & Company Suji DeSilva - ROTH Capital Partners David O’Connor - Exane BNP Paribas Gus Richard - Northland Securities Ope ...

Financial Performance - Total revenues for Q3 2019 were $23.4 million, representing a 10% increase year-over-year, while revenues for the first nine months were $58.8 million, a 4% increase compared to the same period in 2018[116]. - Licensing and related revenues reached $11.3 million in Q3 2019, up 15% year-over-year, and $33.1 million for the first nine months, an 11% increase compared to the same period in 2018[120]. - Royalty revenues for Q3 2019 were $12.2 million, a 5% increase year-over-year, while revenues for the first nine months were $25.8 million, a 3% decrease compared to the same period in 2018[123]. - The company expects licensing and related revenue to grow approximately 10% to 20% in 2022 compared to 2018 levels, with royalty revenue projected to be about two times the 2018 levels[115]. Customer and Market Insights - CEVA concluded fourteen licensing deals in Q3 2019, all for non-handset baseband applications, with five agreements made with first-time customers[122]. - Shipments of CEVA-powered non-cellular baseband products grew 29% year-over-year to reach 123 million units in Q3 2019, marking a record high for the company[104]. - The smart sensing product segment accounted for 21% of total revenues in the first nine months of 2019, up from 17% in the same period of 2018[119]. - CEVA's five largest customers accounted for 54% of total revenues in Q3 2019, a decrease from 64% in Q3 2018, indicating a slight diversification in customer base[117]. - The addressable market for Bluetooth, Wi-Fi, and NB-IoT is expected to exceed 9 billion devices annually by 2022, indicating significant growth potential in IoT applications[109]. Expenses and Profitability - Cost of revenues increased to $2.8 million in Q3 2019 from $2.0 million in Q3 2018, representing 12% of total revenues for both periods[127]. - Gross margin for Q3 2019 was 88%, down from 91% in Q3 2018, primarily due to higher costs of revenues[129]. - Total operating expenses rose to $21.0 million in Q3 2019 from $17.3 million in Q3 2018, driven by higher salary costs and expenses related to the Hillcrest Labs acquisition[130]. - Research and development expenses increased to $13.9 million in Q3 2019 from $11.9 million in Q3 2018, representing 59% of total revenues[132]. Cash Flow and Investments - As of September 30, 2019, the company had approximately $147.6 million in cash and cash equivalents, down from $167.7 million at December 31, 2018, primarily due to $21.0 million used for acquisitions[152]. - Cash provided by operating activities for the first nine months of 2019 was $4.3 million, compared to $4.1 million for the same period in 2018[156][157]. - Net cash used in investing activities for the first nine months of 2019 was $9.3 million, compared to $2.0 million for the same period in 2018[159]. - The company repurchased 194,316 shares of common stock at an average price of $25.01 per share for a total of $4.9 million during the first nine months of 2019[163]. - The company invested $32.1 million in cash in bank deposits and marketable securities with maturities up to 56 months during the first nine months of 2019[154]. Tax and Financial Position - Income tax benefits were $0.4 million in Q3 2019, compared to an expense of $0.4 million in Q3 2018, primarily due to the release of a tax provision following a tax audit[143]. - The Irish subsidiary qualified for a 12.5% tax rate on trade, while the French subsidiary has a 31.0% tax rate, with the first €500,000 of taxable profit taxed at a reduced 28% rate[144]. - The Israeli subsidiary's first seven investment programs were subject to a corporate tax rate of 23% for the first nine months of 2019, and the eighth program had a reduced rate of 10%[145]. Foreign Exchange and Market Risks - The company recorded a foreign exchange loss of $0.48 million for the first nine months of 2019, compared to a loss of $0.20 million in the same period of 2018[142]. - The company is exposed to fluctuations in U.S. interest rates, which may adversely impact fixed interest investments if rates rise[173]. - The company follows a foreign currency cash flow hedging program to protect against fluctuations in foreign currency cash flow related to non-U.S. employee payroll[168]. - The company does not currently have any derivative instruments but may implement them in the future to manage market exposures[173].

Financial Data and Key Metrics Changes - Total revenue for Q3 2019 was $23.5 million, up 28% sequentially and 10% year-over-year [10][19] - License revenue was $11.3 million, reflecting a 15% increase year-over-year [10][19] - Royalty revenue reached $12.2 million, up 61% sequentially and 5% year-over-year [10][19] - Gross margin was 88% on a GAAP basis and 89% on a non-GAAP basis [20] - U.S. GAAP net income for the quarter was $0.8 million, with diluted earnings per share of $0.03, down from $2.5 million and $0.11 in Q3 2018 [21] Business Line Data and Key Metrics Changes - Non-handset baseband royalty revenue reached an all-time high of $3.9 million, with units up 29% sequentially and 27% year-over-year [16][19] - Shipped units by CEVA licensees during Q3 2019 were 292 million units, up 35% sequentially and 11% year-over-year [22] - Non-handset shipments reached an all-time record high of 123 million units, up 27% sequentially and annually [22] Market Data and Key Metrics Changes - In the U.S., opportunities are seen in smart edge devices for consumer, robotics, and automotive [11] - In Europe, strong interest is noted in digital health and smart city applications [11] - In APAC, excluding China, interest is growing for ADAS and consumer electronics [11] - In China, engagement is ongoing across various verticals including wireless infrastructure and IoT devices [11] Company Strategy and Development Direction - The company is focused on executing licensing agreements and gaining key customer adoption, which is seen as a precursor for royalty growth [18] - The strategy includes leveraging a comprehensive portfolio for wireless connectivity and smart sensing to meet the IP needs of semiconductor companies and OEMs [11] - The company aims to double royalty levels by 2022 from 2018 levels, with a strong focus on new technologies and customer diversification [40] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the IP portfolio for wireless connectivity and smart sensing, as well as new agreements in the automotive space [6] - The adoption of NarrowBand-IoT is progressing globally, with significant initiatives in India [15] - Management noted that the market for motion sensors is expected to grow to over $6 billion by 2024 [17] Other Important Information - The company has $148 million in cash and equivalents, down from $166 million in the prior quarter, due to investments in new technologies [23] - The company has repurchased approximately 194,000 shares for about $4.9 million in 2019 [23] Q&A Session Summary Question: Can you expand on the renewed strength in 4G devices? - Management noted that there is still a sizable amount of feature phones being shipped in developing markets, and customers are gaining market share due to price advantages [29] Question: What is the update on the timing and magnitude of royalty revenues for 5G? - Management indicated that customers are in design for 5G, but visibility on volume ramp-up is limited [31] Question: How do you see the next 1 to 2 years developing for infrastructure customers? - Management stated that they cannot specify timing but emphasized that customers are committed to winning market share once products are ready [37] Question: Is the business model tracking to double royalty levels by 2022? - Management confirmed that they are committed to this goal and have seen progress in 2019 [40] Question: How many customers are commercially shipping products today? - Management estimated around 40 to 50 customers are currently shipping, with more than 60 in design [42] Question: Can you provide insights on the competitive landscape in the automotive sector? - Management highlighted that the new automotive customer is a strong incumbent, and they are leveraging broad technologies to gain visibility in this high-entry-barrier market [52]