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]

CEVA, Inc. (NASDAQ:CEVA) Q2 2019 Results Conference Call August 8, 2019 8:30 AM ET Company Participants Richard Kingston - VP, Market Intelligence and IR Gideon Wertheizer - CEO Yaniv Arieli - CFO Conference Call Participants Peter Zdebski - Barclays Suji Desilva - Roth Capital Operator Good morning, and welcome to the CEVA, Inc. Second Quarter 2019 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Richard Kingston, V ...

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: June 30, 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 Jurisdiction of I ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 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 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, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the transition period from to Commissio ...

Financial Data and Key Metrics Changes - Total revenue for Q1 2019 was $17 million, down 3% year-over-year [9] - License revenue was $11 million, up 9% year-over-year [9] - Royalty revenue was $6 million, down 20% year-over-year [9] - Gross margins were 88% on a GAAP basis and 89% on a non-GAAP basis [17] - U.S. GAAP net loss for the quarter increased by 5%, with diluted loss per share at $0.10 [18] Business Line Data and Key Metrics Changes - Licensing performance was strong, with eight license agreements concluded, three for smart sensor products and five for connectivity products [10] - Non-handset royalty revenues were up 22% year-over-year, with total non-handset units up 16% year-over-year to 86 million units [14] - Handset unit decline was down 27% year-over-year, attributed to excess inventory levels [14] Market Data and Key Metrics Changes - Shipped units by CEVA licensees during Q1 2019 were 175 million, down 30% sequentially and down 11% year-over-year [19] - Of the 175 million units shipped, 89 million units (51%) were for handset baseband chips, reflecting a sequential decrease of 34% [19] - Non-handset baseband volume shipments were down 25% sequentially but increased by 16% year-over-year [19] Company Strategy and Development Direction - CEVA aims to double its annual royalty revenue by 2022, focusing on growth and diversification beyond handsets [5][9] - The company is expanding its presence in the automotive sector and 5G markets, with significant agreements in AI and connectivity technologies [11][12] - CEVA is positioned to capitalize on the emerging edge compute industry, leveraging its technologies for 5G and AI [13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the ability to maintain guidance despite challenges in the handset market due to inventory levels [14][21] - The company anticipates a gradual recovery in demand as excess inventory is consumed, leading to growth in the second half of the year [21] - Management highlighted the importance of strategic engagements and the potential for downstream adoption of technologies in the automotive sector [29] Other Important Information - Michael Boukaya was appointed as Chief Operating Officer, allowing the CEO to focus on developing new growth engines [15] - CEVA completed its buyback plan, repurchasing approximately 91,000 shares for about $2.5 million [20] Q&A Session Summary Question: Impact of Intel's exit from the 5G smartphone space on CEVA's outlook - Management indicated that it is too early to assess the impact of Intel's exit on 2022 projections, emphasizing resilience in non-handset markets [26][27] Question: Details on automotive agreements and potential royalties - Management described the agreement with a major automotive OEM as transformative, with expectations for downstream adoption and royalties from automotive Tier 1s [29] Question: Inventory levels and market confidence in the handset sector - Management noted that Chinese customers are working to replenish inventory, with expectations for a return to growth in shipments [32][34] Question: Trends in the wireless infrastructure market - Management reported positive dynamics in the 5G infrastructure market, with ongoing interest in V2X applications [36] Question: Licensing deal sizes and revenue trends - Management confirmed that larger deals contributed to revenue growth, with a mix of high ASP products driving non-handset royalty revenue [40][42] Question: Future growth opportunities and M&A potential - Management indicated that they are exploring various growth opportunities, including content expansion and potential M&A activities [43]

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, 2018 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | |-----------------------------------------------------------------------------------------------------------|-----------------------------------------------------| | For the transition period ...