IC combines RivieraWaves Bluetooth 5.4 IP with SKAIChips inhouse RF/Power/Analog/AI expertise to achieve lowest power draw, critical for ESL tags and related industrial applicationsROCKVILLE, Md., Feb. 6, 2024 /PRNewswire/ -- Ceva, Inc. (NASDAQ: CEVA), the leading licensor of silicon and software IP that enables Smart Edge devices to connect, sense and infer data more reliably and efficiently, announced today that SKAIChips Co. Ltd., a leading innovator in low power wireless technologies for the Fourth Indu ...

Core Viewpoint - Ceva, Inc. will announce its fourth quarter and full year 2023 results on February 14, 2024, before the NASDAQ market opens, followed by a conference call to discuss the operating performance for the quarter [1]. Group 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][3]. - The company offers a broad portfolio of IP technologies, including wireless communications, sensing, and Edge AI, which are integral to advanced smart edge products [3]. - Ceva powers over 17 billion smart edge products globally, including AI-infused smartwatches, IoT devices, wearables, autonomous vehicles, and 5G mobile networks [3]. Group 2: Conference Call Details - The conference call will take place at 8:30 a.m. Eastern Time on February 14, 2024, and will be accessible via specific dial-in numbers for U.S. and international participants [1]. - 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 February 21, 2024, through designated phone numbers and Ceva's website [2].

Companies' long-term collaboration for wireless, audio and voice technologies sees world's leading OEMs adopt Actions Technology's high-quality, low-latency wireless audio SoCs for consumer devices, including speakers, soundbars, earbuds and smartwatches LAS VEGAS, Jan. 10, 2024 /PRNewswire/ -- CES 2024 -- Ceva, Inc. (NASDAQ: CEVA), the leading licensor of silicon and software IP that enables Smart Edge devices to connect, sense and infer data more reliably and efficiently, and Actions Technology Co, Ltd. ( ...

LAS VEGAS, Jan. 10, 2024 /PRNewswire/ -- Ceva, Inc. (NASDAQ: CEVA), the leading licensor of silicon and software IP that enables Smart Edge devices to connect, sense and infer data more reliably and efficiently, and Sunplus Technology Co., Ltd. (TWSE: 2401), a leading chip provider for multimedia and automotive applications, today announced the companies have expanded their collaboration to integrate Ceva's latest generation RivieraWaves Bluetooth audio solution into the Sunplus airlyra family of HD audio p ...

Core Viewpoint - Ceva, Inc. and THX Ltd. have announced the launch of RealSpace® Tuned by THX™, a premium software solution designed to enhance spatial audio experiences across various consumer audio devices, including TWS earbuds, wireless headphones, smartphones, speakers, and soundbars [1][2][3] Company Overview - Ceva, Inc. is a leading licensor of silicon and software IP, focusing on enabling Smart Edge devices to connect, sense, and infer data efficiently [1][8] - THX Ltd., founded by George Lucas, is recognized for its high-fidelity audio and video standards, originally established for cinemas and now expanded to home theater, gaming, and mobile sectors [3][7] Product Features - RealSpace® Tuned by THX™ incorporates Ceva's spatial audio rendering and head tracking technology, providing an optimized audio experience tailored for each OEM device [2][4] - The software includes curated spatial audio presets for various content types such as gaming, movies, music, and speech, enhancing the overall user experience [2][4] Market Impact - The collaboration aims to help OEMs deliver higher fidelity immersive audio experiences, appealing to both existing and new audiences who demand superior audio reproduction [3][4] - Ceva plans to showcase RealSpace® Tuned by THX™ at CES 2024, demonstrating its capabilities in delivering immersive multichannel spatial audio [6] Software Versions - Ceva offers three versions of RealSpace® software for OEMs, all featuring the "Tuned by THX™" option: - RealSpace Personal for TWS earbuds and wireless headphones - RealSpace Mobile for smartphone systems delivering multi-channel sound - RealSpace Ambient for Bluetooth and USB speakers and soundbars [5]

Visionary.ai neural network software ISP for enhanced camera applications and ENOT.ai neural network optimization tools and AI assistance now available for Ceva's NeuPro-M NPU LAS VEGAS, Jan. 8, 2024 /PRNewswire/ -- Ceva, Inc. (NASDAQ: CEVA), the leading licensor of silicon and software IP that enables Smart Edge devices to connect, sense and infer data more reliably and efficiently, today announced that it has expanded the AI ecosystem for its class-leading NeuPro-M NPU IP with the addition of two new par ...

Financial Data and Key Metrics Changes - Revenue for Q3 2023 was $24.1 million, down from $30 million in the same quarter last year, with licensing revenue at $13.9 million and royalty revenue at $10.1 million [18][21] - GAAP net loss for continuing operations was $2.7 million, compared to a net loss of $22.3 million in Q3 2022, with diluted EPS of $0.21 for Q3 2023 [21] - Non-GAAP operating income was $1.6 million, down from $7.3 million in the same period last year [20][21] Business Line Data and Key Metrics Changes - Licensing and related revenue accounted for 58% of total revenues, reflecting a 3% sequential increase [18] - Royalty revenue represented 42% of total revenues, marking the second sequential increase in royalties [19] - CEVA shipped 500 million units in Q3 2023, a 35% sequential increase and a 40% year-over-year increase [22] Market Data and Key Metrics Changes - Bluetooth shipments reached 313 million units, up from 210 million units in the previous quarter, driven by strong consumer demand [23] - Cellular IoT shipments hit an all-time high of over 35 million units, reflecting a maturing market [23] - Wireless infrastructure showed softness, with main customers reporting weaker-than-anticipated 5G network builds [15] Company Strategy and Development Direction - The company divested the Intrinsix business to focus on core strengths in wireless communications, edge AI, and sensing software IP [7][9] - CEVA aims to reinforce its leadership position as the world's number one supplier of wireless communication IP and pursue opportunities in edge AI [9][16] - The company plans to increase its share repurchase program by an additional 700,000 shares to enhance shareholder value [16][24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery in consumer demand and the strength of the licensing pipeline [15][26] - The company anticipates that the divestment of Intrinsix will lead to improved gross margins and a focus on high-volume IP licensing [8][26] - Future growth is expected to be driven by demand for WiFi 7 and continued strength in Bluetooth and cellular IoT markets [12][27] Other Important Information - The company established a corporate strategy function and appointed a Chief Strategy Officer to drive long-term growth [16] - CEVA's cash equivalent balances were approximately $132 million at the end of Q3 2023 [24] - The company reported a significant increase in shipments of smart edge devices and audio technologies [15] Q&A Session Summary Question: Why is CEVA outperforming in a tough IoT market? - Management attributed the performance to a larger customer base and competitive positioning, allowing for increased volume despite market challenges [31] Question: How are US sanctions affecting licensing deals in China? - Management indicated that sanctions have not significantly impacted their licensing activities in China, as their focus is on consumer markets [32][34] Question: What benefits are expected from the sale of Intrinsix? - The sale is expected to improve gross margins and allow for a more focused IP business model, enhancing overall profitability [35][37] Question: What are the drivers for revenue growth in 2024? - Key drivers include strong leadership in wireless communication, increased demand for UWB and 5G IoT technologies, and new edge AI products [44][45] Question: What is the outlook for wireless infrastructure in 2024? - Management noted that while the market is currently soft, there is potential for growth as demand for 5G continues to evolve [56][58] Question: What is the status of licensing activity in China? - Demand in China has stabilized, with customers seeking next-generation technologies, indicating potential for growth in 2024 [52][53]

Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, $.001 per share CEVA The NASDAQ Stock Market LLC Table of Contents 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: September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the transition pe ...

Financial Data and Key Metrics Changes - Revenue for Q2 2023 was $26.2 million, down from $33.2 million in Q2 2022, with licensing revenue at $16.8 million and royalty revenue at $9.4 million [18][19] - Royalty revenue grew 17% sequentially, reaching $9.5 million, indicating a recovery from previous quarters [12][19] - GAAP operating loss for Q2 2023 was $6.3 million, compared to a loss of $0.3 million in the same quarter last year [21] Business Line Data and Key Metrics Changes - Licensing revenue, which constitutes 64% of total revenue, decreased from $22.1 million in Q2 2022 to $16.8 million in Q2 2023 [18] - Royalty revenue, making up 36% of total revenue, fell from $11.1 million in Q2 2022 to $9.4 million in Q2 2023, but showed a sequential increase [18][19] - The company signed 17 new licensing and NRE agreements, including 3 WiFi 6 deals and 4 new agreements in the automotive sector [9][10] Market Data and Key Metrics Changes - Shipped units by licensees in Q2 2023 were 370 million, up 25% sequentially but down from 433 million units year-over-year [22] - Handset-based chip shipments increased to 79 million units, up from 27 million in Q1 2023 [22] - Significant recovery noted in smartphone, PC, and 5G base station markets, indicating a positive trend in demand [12][19] Company Strategy and Development Direction - The company is focusing on expanding its AI capabilities, particularly in generative AI applications, and enhancing its product portfolio to support this trend [14][16] - CEVA aims to leverage its strengths in wireless communications and sensing AI technologies to drive long-term growth [17] - The company is taking a cautious approach to forecasting revenue due to current market conditions, while anticipating sequential growth in royalties [25][27] Management's Comments on Operating Environment and Future Outlook - Management noted a slower-than-expected recovery in some regions due to challenging macroeconomic conditions, but expressed optimism about the resumption of chip demand [7][8] - The company expects continued recovery in royalty revenue through the remainder of the year, particularly in the smartphone and IoT markets [13][25] - Management emphasized the importance of monitoring market trends and adjusting strategies accordingly [26] Other Important Information - The company has taken immediate measures to reduce overall headcount and expenses in response to recent financial results [26] - Gross margin for Q2 2023 was 79% on a GAAP basis, lower than previous guidance due to a reduced revenue base [19][20] - Cash and cash equivalents at the end of Q2 2023 were approximately $136 million [24] Q&A Session Summary Question: Licensing trends in China - Management acknowledged potential in new companies emerging in China but noted that decisions are taking longer due to funding and project approvals [30][32] Question: Licensing revenue expectations for 2023 - Management indicated that licensing revenue for Q3 and Q4 is expected to be around $17 million, slightly below 2021 levels [34][36] Question: Delays in licensing deals - Most licensing deals are experiencing delays rather than cancellations, with some companies taking longer to secure necessary funding [40][41] Question: Applications for new NPU in generative AI - The new NPU is expected to be deployed across various applications, including edge devices and automotive [42][43] Question: Expansion into industrial markets - The company is already active in the industrial space and is focusing on innovation and high-performance products to drive adoption [44][45] Question: Sustainability of cost reduction measures - Management emphasized a strategic focus on long-term growth areas while implementing cost reduction measures [46][48] Question: Geographic distribution of licensing business - The company maintains a strong presence in the U.S. and China, with increasing opportunities in Europe and Japan [50][51]

Revenue Performance - Total revenues for Q2 2023 were $26.2 million, a decrease of 21% compared to Q2 2022, and $54.9 million for the first half of 2023, down 19% year-over-year [142]. - Licensing, NRE, and related revenues were $16.8 million for Q2 2023, a 24% decrease from Q2 2022, and $37.5 million for the first half of 2023, down 16% year-over-year [145]. - Royalty revenues were $9.4 million for Q2 2023, a 15% decrease from Q2 2022, and $17.4 million for the first half of 2023, down 25% year-over-year [146]. - Total revenues for the first half of 2023 were $39.7 million, a decrease from $50.0 million in the first half of 2022, reflecting a 20% decline [150]. - The five largest customers accounted for 43% of total revenues in Q2 2023, up from 36% in Q2 2022, indicating increased customer concentration [143]. Product and Market Insights - Connectivity products represented 77% of total revenues for the first half of 2023, compared to 74% in the same period of 2022 [145]. - CEVA shipped 1.7 billion devices in 2022, averaging over 50 devices per second, showcasing strong market presence [128]. - The addressable market for Bluetooth, Wi-Fi, UWB, and cellular IoT is projected to exceed 15 billion devices annually by 2027 [136]. - CEVA's technologies have been incorporated into over 16 billion chips shipped to date, highlighting the extensive reach of its product offerings [128]. Financial Metrics - CEVA's royalty revenues accounted for 36% of total revenues in Q2 2023, slightly up from 33% in Q2 2022, indicating a stable revenue stream [146]. - Cost of revenues for the second quarter of 2023 was $5.6 million, accounting for 21% of total revenues, compared to $6.8 million and 21% in the second quarter of 2022 [151]. - Gross margin for the first half of 2023 remained stable at 80%, consistent with the same period in 2022 [152]. - Research and development expenses for the first half of 2023 were $40.4 million, representing 74% of total revenues, up from 59% in the first half of 2022 [154]. - Operating expenses for the second quarter of 2023 were $26.9 million, slightly higher than $26.6 million in the second quarter of 2022 [153]. Cash Flow and Investments - Financial income, net, for the first half of 2023 was $2.58 million, significantly higher than $0.69 million in the first half of 2022 [159]. - The company recorded a foreign exchange gain of $0.36 million for the first half of 2023, compared to a loss of $0.26 million in the first half of 2022 [160]. - General and administrative expenses for the first half of 2023 were $8.2 million, up from $7.3 million in the first half of 2022, with a percentage of total revenues increasing from 11% to 15% [157]. - As of June 30, 2023, the company had approximately $135.6 million in cash, cash equivalents, short-term bank deposits, and marketable securities, a decrease from $147.7 million at December 31, 2022 [172]. - Cash used in operating activities for the first six months of 2023 was $9.9 million, consisting of a net loss of $10.7 million and adjustments for non-cash items of $10.7 million [176]. - The company invested $2.5 million in marketable securities during the first half of 2023, while cash inflow from marketable securities amounted to $21.7 million [174]. - Net cash provided by investing activities for the first six months of 2023 was $14.4 million, compared to a net cash outflow of $12.3 million for the same period in 2022 [179]. - The company had a cash outflow of $3.6 million for the acquisition of the VisiSonics business during the first half of 2023 [179]. - Interest income and gains from marketable securities for the second quarter of 2023 were $1.03 million, up from $0.58 million in the same period of 2022 [189]. - The unrealized losses associated with the company's investments were approximately $6.0 million as of June 30, 2023, due to changes in the interest rate environment [188]. - The company received $1.7 million from the exercise of stock-based awards during the first six months of 2023, consistent with the same period in 2022 [181]. - As of June 30, 2023, the company had 278,799 shares available for repurchase under its share repurchase program [180]. - The company expects its cash and cash equivalents, along with cash from operations, to be sufficient to fund operations for at least the next 12 months [181]. Workforce and Taxation - The number of research and development personnel increased to 339 as of June 30, 2023, from 333 a year earlier [155]. - The company is applying the Technological Preferred Enterprise tax track for its Israeli subsidiary, which is taxed at a rate of 12% on profits from intellectual property [168].