[PART I. FINANCIAL INFORMATION](index=6&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents CEVA, Inc.'s unaudited interim condensed consolidated financial statements and management's discussion and analysis for the first quarter [Item 1. FINANCIAL STATEMENTS](index=6&type=section&id=Item%201.%20FINANCIAL%20STATEMENTS) This section presents CEVA, Inc.'s unaudited interim condensed consolidated financial statements, including balance sheets, income statements, cash flows, and detailed notes [Interim Condensed Consolidated Balance Sheets](index=6&type=section&id=Interim%20Condensed%20Consolidated%20Balance%20Sheets) This statement provides a snapshot of the company's assets, liabilities, and equity at specific points in time | Metric | March 31, 2019 (Unaudited, in thousands) | December 31, 2018 (in thousands) | | :------------------------------------ | :------------------------- | :------------------ | | Total Assets | $286,832 | $277,263 | | Total Current Liabilities | $22,959 | $21,752 | | Total Long-Term Liabilities | $18,561 | $9,632 | | Total Stockholders' Equity | $245,312 | $245,879 | [Interim Condensed Consolidated Statements of Income (Loss)](index=7&type=section&id=Interim%20Condensed%20Consolidated%20Statements%20of%20Income%20(Loss)) This statement details the company's revenues, expenses, and net loss over specific reporting periods | Metric | Three Months Ended March 31, 2019 (in thousands) | Three Months Ended March 31, 2018 (in thousands) | | :------------------------------------ | :-------------------------------- | :-------------------------------- | | Total Revenues | $16,969 | $17,569 | | Gross Profit | $14,946 | $15,597 | | Total Operating Expenses | $17,878 | $18,505 | | Operating Loss | $(2,932) | $(2,908) | | Net Loss | $(2,297) | $(2,182) | | Basic Net Loss Per Share | $(0.10) | $(0.10) | | Diluted Net Loss Per Share | $(0.10) | $(0.10) | [Interim Condensed Consolidated Statements of Comprehensive Income (Loss)](index=9&type=section&id=Interim%20Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) This statement presents the net loss and other comprehensive income or loss components, leading to the total comprehensive loss | Metric | Three Months Ended March 31, 2019 (in thousands) | Three Months Ended March 31, 2018 (in thousands) | | :------------------------------------ | :-------------------------------- | :-------------------------------- | | Net Loss | $(2,297) | $(2,182) | | Other Comprehensive Income (Loss), net of taxes | $687 | $(602) | | Comprehensive Loss | $(1,610) | $(2,784) | [Interim Condensed Consolidated Statements of Changes In Stockholders' Equity](index=9&type=section&id=Interim%20Condensed%20Consolidated%20Statements%20of%20Changes%20In%20Stockholders'%20Equity) This statement tracks changes in stockholders' equity, including net loss, comprehensive income, and stock-based transactions | Metric | As of January 1, 2019 (in thousands) | As of March 31, 2019 (in thousands) | | :------------------------------------ | :-------------------- | :------------------- | | Total Stockholders' Equity | $245,879 | $245,312 | | Net Loss | $(2,297) | $(2,297) | | Other Comprehensive Income | $687 | $687 | | Equity-based Compensation | $2,416 | $2,416 | | Purchase of Treasury Stock | $(2,536) | $(2,536) | | Issuance upon exercise of stock-based awards | $1,163 | $1,163 | [Interim Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Interim%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This statement summarizes cash inflows and outflows from operating, investing, and financing activities | Metric | Three Months Ended March 31, 2019 (in thousands) | Three Months Ended March 31, 2018 (in thousands) | | :------------------------------------ | :-------------------------------- | :-------------------------------- | | Net Cash Provided by Operating Activities | $4,668 | $1,783 | | Net Cash Used in Investing Activities | $(4,104) | $(4,757) | | Net Cash Used in Financing Activities | $(1,373) | $(397) | | Decrease in Cash and Cash Equivalents | $(791) | $(3,357) | | Cash and Cash Equivalents at End of Period | $21,469 | $18,382 | [Notes to the Interim Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Statements) These notes provide detailed explanations and disclosures supporting the interim condensed consolidated financial statements [NOTE 1: BUSINESS](index=12&type=section&id=NOTE%201:%20BUSINESS) This note describes CEVA's core business of licensing signal processing IPs for communication and smart sensing products - CEVA licenses signal processing IPs in two categories: communication products (5G baseband, cellular IoT, Bluetooth, Wi-Fi) and smart sensing products (voice input, advanced imaging/computer vision, AI processors for edge applications)[21](index=21&type=chunk) - Technologies are licensed to semiconductor and OEM companies for ASICs and ASSPs in wireless, consumer electronics, and automotive end products[22](index=22&type=chunk) [NOTE 2: BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES](index=12&type=section&id=NOTE%202:%20BASIS%20OF%20PRESENTATION%20AND%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) This note outlines the basis of financial statement preparation and key accounting policies, including recent standard adoptions - Interim condensed consolidated financial statements are prepared in accordance with U.S. GAAP and include all necessary adjustments for fair presentation[23](index=23&type=chunk)[24](index=24&type=chunk) - The company adopted ASU No. 2016-02, Leases (Topic 842), on January 1, 2019, using a modified retrospective approach, recognizing ROU assets and lease liabilities for operating leases[26](index=26&type=chunk) - ASU No. 2017-12, Derivatives and Hedging, was also adopted on January 1, 2019, with no material impact on consolidated financial statements[27](index=27&type=chunk) [NOTE 3: REVENUE RECOGNITION](index=14&type=section&id=NOTE%203:%20REVENUE%20RECOGNITION) This note details the company's policies for recognizing revenue from licensing and related services, including contract balances and geographic data - Revenue is recognized when performance obligations are satisfied, either at a point in time (most IP licenses) or over time (significant license customization contracts)[35](index=35&type=chunk) Unrecognized Revenue from Contracts with Customers | Revenue Type | Remainder of 2019 (in thousands) | 2020 (in thousands) | | :------------------------- | :------------------ | :----- | | License and related revenues | $8,494 | $4,192 | Geographic Market Revenue | Geographic Market | Q1 2019 Licensing (in thousands) | Q1 2019 Royalties (in thousands) | Q1 2019 Total (in thousands) | Q1 2018 Licensing (in thousands) | Q1 2018 Royalties (in thousands) | Q1 2018 Total (in thousands) | | :------------------------ | :---------------- | :---------------- | :------------ | :---------------- | :---------------- | :------------ | | United States | $1,493 | $286 | $1,779 | $1,360 | $347 | $1,707 | | Europe and Middle East | $1,382 | $1,960 | $3,342 | $1,338 | $1,115 | $2,453 | | Asia Pacific | $8,136 | $3,712 | $11,848 | $7,385 | $6,024 | $13,409 | | **Total** | **$11,011** | **$5,958** | **$16,969** | **$10,083** | **$7,486** | **$17,569** | Product/Service Line Revenue | Product/Service Line | Q1 2019 Licensing (in thousands) | Q1 2019 Royalties (in thousands) | Q1 2019 Total (in thousands) | Q1 2018 Licensing (in thousands) | Q1 2018 Royalties (in thousands) | Q1 2018 Total (in thousands) | | :------------------------------------ | :---------------- | :---------------- | :------------ | :---------------- | :---------------- | :------------ | | Connectivity products | $6,631 | $5,620 | $12,251 | $6,358 | $6,961 | $13,319 | | Smart sensing products | $4,380 | $338 | $4,718 | $3,725 | $525 | $4,250 | | **Total** | **$11,011** | **$5,958** | **$16,969** | **$10,083** | **$7,486** | **$17,569** | Contract Balances | Contract Balance | March 31, 2019 (Unaudited, in thousands) | December 31, 2018 (in thousands) | | :------------------------------------ | :------------------------- | :------------------ | | Trade receivables | $11,179 | $9,971 | | Unbilled receivables (licensing) | $2,965 | $6,745 | | Unbilled receivables (royalties) | $5,207 | $9,440 | | Deferred revenues (short-term) | $2,811 | $3,593 | - During Q1 2019, the company recognized **$2.621 million** from deferred revenues that were part of the January 1, 2019 balance[39](index=39&type=chunk) [NOTE 4: LEASES](index=17&type=section&id=NOTE%204:%20LEASES) This note describes the company's lease arrangements and the impact of adopting new lease accounting standards - The company leases office space and vehicles under operating leases, with terms expiring between 2020 and 2022, and an option to extend one principal office lease until 2028[40](index=40&type=chunk) - Adoption of Topic 842 on January 1, 2019, resulted in the recognition of **$9.501 million** in operating lease ROU assets and **$9.200 million** in operating lease liabilities as of March 31, 2019[30](index=30&type=chunk) Lease Metrics | Metric | March 31, 2019 (Unaudited) | | :------------------------------------ | :------------------------- | | Weighted average remaining lease term (years) | 7.99 | | Weighted average discount rates | 3.95% | Lease Liabilities Maturity | Year | Total Undiscounted Cash Flows (in thousands) | | :------------------------------------ | :---------------------------- | | Remainder of 2019 | $1,338 | | 2020 | $1,733 | | 2021 | $1,365 | | 2022 | $1,164 | | 2023 | $1,086 | | 2024 and thereafter | $4,140 | | **Total Undiscounted Cash Flows** | **$10,826** | | Less imputed interest | $1,626 | | **Present Value of Lease Liabilities** | **$9,200** | [NOTE 5: MARKETABLE SECURITIES](index=18&type=section&id=NOTE%205:%20MARKETABLE%20SECURITIES) This note provides details on the company's marketable securities portfolio, including fair value, unrealized gains/losses, and realized gains/losses Available-for-Sale Marketable Securities | Type of Security | Amortized Cost (March 31, 2019, in thousands) | Gross Unrealized Gains (March 31, 2019, in thousands) | Gross Unrealized Losses (March 31, 2019, in thousands) | Fair Value (March 31, 2019, in thousands) | | :------------------------------------ | :------------------------------ | :-------------------------------------- | :--------------------------------------- | :-------------------------- | | Corporate bonds (within one year) | $9,358 | $2 | $(46) | $9,314 | | Certificate of deposits (1-5 years) | $747 | — | — | $747 | | Government bonds (1-5 years) | $501 | — | $(3) | $498 | | Corporate bonds (1-5 years) | $67,541 | $129 | $(642) | $67,028 | | **Total** | **$78,147** | **$131** | **$(691)** | **$77,587** | Unrealized Loss Position on Marketable Securities | Unrealized Loss Position | Fair Value (March 31, 2019, in thousands) | Gross Unrealized Loss (March 31, 2019, in thousands) | Fair Value (December 31, 2018, in thousands) | Gross Unrealized Loss (December 31, 2018, in thousands) | | :------------------------------------ | :-------------------------- | :--------------------------------------- | :------------------------------- | :---------------------------------------- | | Less than 12 months | $12,359 | $(141) | $16,580 | $(192) | | 12 months or greater | $51,257 | $(550) | $52,590 | $(1,165) | - Management believes impairments on marketable securities are temporary and recorded losses in accumulated other comprehensive income (loss)[48](index=48&type=chunk) Realized Gains and Losses from Marketable Securities Sales | Metric | Q1 2019 (Unaudited, in thousands) | Q1 2018 (Unaudited, in thousands) | | :------------------------------------ | :------------------ | :------------------ | | Gross realized gains from sale of available-for-sale marketable securities | $0 | $4 | | Gross realized losses from sale of available-for-sale marketable securities | $(24) | $0 | [NOTE 6: FAIR VALUE MEASUREMENT](index=19&type=section&id=NOTE%206:%20FAIR%20VALUE%20MEASUREMENT) This note explains the fair value hierarchy and classification of financial instruments based on input observability - Fair value is defined as an exit price in an orderly transaction between market participants, categorized into a three-tier hierarchy (Level I, II, III) based on input observability[50](index=50&type=chunk)[51](index=51&type=chunk)[52](index=52&type=chunk) - Marketable securities and foreign currency derivative contracts are classified as Level II, while investment in other company is Level III due to unobservable inputs[52](index=52&type=chunk) Fair Value Measurements by Level | Asset/Liability | March 31, 2019 (Unaudited, in thousands) | Level I (in thousands) | Level II (in thousands) | Level III (in thousands) | | :------------------------------------ | :------------------------- | :------ | :------- | :-------- | | Certificate of deposits | $747 | $0 | $747 | $0 | | Government bonds | $498 | $0 | $498 | $0 | | Corporate bonds | $76,342 | $0 | $76,342 | $0 | | Foreign exchange contracts (assets) | $56 | $0 | $56 | $0 | | **Total Assets** | **$77,643** | **$0** | **$77,643** | **$0** | | Foreign exchange contracts (liabilities) | $0 | $0 | $0 | $0 | [NOTE 7: INTANGIBLE ASSETS, NET](index=20&type=section&id=NOTE%207:%20INTANGIBLE%20ASSETS,%20NET) This note details the company's intangible assets, their amortization periods, and estimated annual amortization charges Intangible Assets, Net | Intangible Asset | Weighted Average Amortization Period (years) | Gross Carrying Amount (March 31, 2019, in thousands) | Accumulated Amortization (March 31, 2019, in thousands) | Net (March 31, 2019, in thousands) | | :------------------------------------ | :------------------------------------------- | :------------------------------------- | :---------------------------------------- | :------------------- | | Customer relationships | 4.5 | $272 | $272 | $0 | | Customer backlog | 1.5 | $93 | $93 | $0 | | Core technologies | 5.1 | $5,796 | $5,165 | $631 | | NB-IoT technologies | 7.0 | $2,200 | $420 | $1,780 | | **Total Intangible Assets** | | **$8,361** | **$5,950** | **$2,411** | - During Q1 2018, the company acquired NB-IoT technologies for **$2.8 million**, with **$2.2 million** recognized and amortized in 'cost of revenues'[56](index=56&type=chunk) Estimated Annual Amortization Charges | Year | Estimated Annual Amortization Charges (in thousands) | | :------------------------------------ | :------------------------------------ | | 2019 | $289 | | 2020 | $289 | | 2021 | $289 | | 2022 | $289 | | 2023 | $289 | | 2024 | $289 | [NOTE 8: GEOGRAPHIC INFORMATION AND MAJOR CUSTOMER DATA](index=21&type=section&id=NOTE%208:%20GEOGRAPHIC%20INFORMATION%20AND%20MAJOR%20CUSTOMER%20DATA) This note provides a breakdown of revenues by geographic area and identifies major customers contributing significantly to total revenues - The company operates as one reportable segment: licensing intellectual property[58](index=58&type=chunk) Geographic Area Revenues | Geographic Area | Q1 2019 Revenues (in thousands) | Q1 2018 Revenues (in thousands) | | :------------------------------------ | :----------------- | :----------------- | | United States | $1,779 | $1,707 | | Europe and Middle East | $3,342 | $2,453 | | Asia Pacific | $11,848 | $13,409 | | **Total** | **$16,969** | **$17,569** | | Germany | $2,589 | <10% | | China | $7,243 | $6,152 | | S. Korea | $1,767 | $2,802 | | Japan | $2,647 | $2,624 | Major Customer Revenue Contribution | Customer | Q1 2019 % of Total Revenues | Q1 2018 % of Total Revenues | | :------------------------------------ | :-------------------------- | :-------------------------- | | Customer A | <10% | 21% | | Customer B | 12% | 16% | | Customer C | 12% | <10% | | Customer D | 10% | <10% | | Customer E | <10% | 15% | [NOTE 9: NET LOSS PER SHARE OF COMMON STOCK](index=23&type=section&id=NOTE%209:%20NET%20LOSS%20PER%20SHARE%20OF%20COMMON%20STOCK) This note presents the calculation of basic and diluted net loss per share, including the impact of anti-dilutive securities Net Loss Per Share Calculation | Metric | Three Months Ended March 31, 2019 (in thousands, except per share data) | Three Months Ended March 31, 2018 (in thousands, except per share data) | | :------------------------------------ | :-------------------------------- | :-------------------------------- | | Net Loss | $(2,297) | $(2,182) | | Basic Weighted-Average Common Stock Outstanding (in thousands) | 21,917 | 22,148 | | Diluted Weighted-Average Common Stock Outstanding (in thousands) | 21,917 | 22,148 | | Basic Net Loss Per Share | $(0.10) | $(0.10) | | Diluted Net Loss Per Share | $(0.10) | $(0.10) | - Outstanding stock options of **1,361,746** (2019) and **1,354,693** (2018) were excluded from diluted net loss per share calculation due to their anti-dilutive effect[64](index=64&type=chunk) [NOTE 10: COMMON STOCK AND STOCK-BASED COMPENSATION PLANS](index=24&type=section&id=NOTE%2010:%20COMMON%20STOCK%20AND%20STOCK-BASED%20COMPENSATION%20PLANS) This note details the company's stock option, SAR, and RSU plans, including activity, unrecognized compensation, and expense allocation - The company grants stock options and Stock Appreciation Rights (SARs) to employees and non-employee directors, vesting over four years (employees) or annually (directors)[66](index=66&type=chunk) Stock Option and SAR Activity | Metric | Number of Options and SAR Units (March 31, 2019) | Weighted Average Exercise Price (March 31, 2019) | | :------------------------------------ | :----------------------------------------------- | :----------------------------------------------- | | Outstanding as of December 31, 2018 | 702,817 | $19.88 | | Exercised | (17,963) | $17.09 | | Forfeited or expired | (375) | $24.86 | | Outstanding as of March 31, 2019 | 684,479 | $19.95 | | Exercisable as of March 31, 2019 | 610,513 | $19.22 | - Unrecognized compensation expense for unvested stock options and SARs was **$108,000** as of March 31, 2019, expected to be recognized over **1.1 years**[69](index=69&type=chunk) - Restricted Stock Units (RSUs) are granted to employees and directors, generally vesting in annual installments[70](index=70&type=chunk) RSU Activity | Metric | Number of RSUs (March 31, 2019) | Weighted Average Grant-Date Fair Value (March 31, 2019) | | :------------------------------------ | :------------------------------ | :------------------------------------------------------ | | Unvested as of December 31, 2018 | 564,390 | $32.28 | | Granted | 340,050 | $28.57 | | Vested | (220,908) | $29.23 | | Forfeited or expired | (6,265) | $29.63 | | Unvested as of March 31, 2019 | 677,267 | $31.43 | - Unrecognized compensation expense for unvested RSUs was **$18.786 million** as of March 31, 2019, expected to be recognized over **1.7 years**[72](index=72&type=chunk) Equity-Based Compensation Expense | Expense Category | Q1 2019 (Unaudited, in thousands) | Q1 2018 (Unaudited, in thousands) | | :------------------------------------ | :------------------ | :------------------ | | Cost of revenue | $136 | $157 | | Research and development, net | $1,362 | $1,269 | | Sales and marketing | $356 | $454 | | General and administrative | $562 | $891 | | **Total Equity-Based Compensation Expense** | **$2,416** | **$2,771** | [NOTE 11: DERIVATIVES AND HEDGING ACTIVITIES](index=26&type=section&id=NOTE%2011:%20DERIVATIVES%20AND%20HEDGING%20ACTIVITIES) This note describes the company's use of derivative instruments for hedging foreign currency risk and their fair value impact - The company adopted ASU No. 2017-12 on January 1, 2019, requiring derivative instruments to be recognized at fair value on the balance sheet[75](index=75&type=chunk)[76](index=76&type=chunk) - CEVA uses foreign exchange forward or option contracts as cash flow hedges to offset risks from foreign currency fluctuations, primarily for non-U.S. employee payroll[76](index=76&type=chunk) Fair Value of Derivative Instruments | Derivative Instrument | March 31, 2019 (Unaudited, in thousands) | December 31, 2018 (in thousands) | | :------------------------------------ | :------------------------- | :------------------ | | Foreign exchange option contracts (assets) | $2 | $0 | | Foreign exchange forward contracts (assets) | $54 | $0 | | Foreign exchange option contracts (liabilities) | $0 | $14 | | Foreign exchange forward contracts (liabilities) | $0 | $63 | Unrealized Gains (Losses) on Derivatives | Derivative Type | Q1 2019 (Unaudited, in thousands) | Q1 2018 (Unaudited, in thousands) | | :------------------------------------ | :------------------ | :------------------ | | Unrealized gains (losses) on foreign exchange option contracts | $16 | $(19) | | Unrealized gains (losses) on foreign exchange forward contracts | $190 | $(5) | | **Total Unrealized Gains (Losses)** | **$206** | **$(24)** | Net (Gains) Losses Reclassified from AOCI | Derivative Type | Q1 2019 (Unaudited, in thousands) | Q1 2018 (Unaudited, in thousands) | | :------------------------------------ | :------------------ | :------------------ | | Net (gains) losses reclassified from AOCI (option contracts) | $0 | $14 | | Net (gains) losses reclassified from AOCI (forward contracts) | $(73) | $5 | | **Total Net (Gains) Losses Reclassified** | **$(73)** | **$19** | [NOTE 12: ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)](index=28&type=section&id=NOTE%2012:%20ACCUMULATED%20OTHER%20COMPREHENSIVE%20INCOME%20(LOSS)) This note provides a reconciliation of accumulated other comprehensive income (loss) components, including unrealized gains/losses Accumulated Other Comprehensive Income (Loss) | Metric | Unrealized Gains (Losses) on Available-for-Sale Marketable Securities (Q1 2019, in thousands) | Unrealized Gains (Losses) on Cash Flow Hedges (Q1 2019, in thousands) | Total (Q1 2019, in thousands) | | :------------------------------------ | :----------------------------------------------------------------- | :------------------------------------------------------ | :-------------- | | Beginning balance | $(1,046) | $(68) | $(1,114) | | Other comprehensive income (loss) before reclassifications | $552 | $181 | $733 | | Amounts reclassified from AOCI | $18 | $(64) | $(46) | | Net current period other comprehensive income (loss) | $570 | $117 | $687 | | Ending balance | $(476) | $49 | $(427) | [NOTE 13: SHARE REPURCHASE PROGRAM](index=29&type=section&id=NOTE%2013:%20SHARE%20REPURCHASE%20PROGRAM) This note outlines the company's share repurchase activities, including shares bought back and remaining authorization Share Repurchase Activity | Period | Shares Repurchased | Average Purchase Price Per Share | Aggregate Purchase Price (in thousands) | | :------------------------------------ | :----------------- | :------------------------------- | :----------------------- | | Q1 2019 | 91,303 | $27.77 | $2,536 | | Q1 2018 | 41,322 | $35.31 | $1,459 | - As of March 31, 2019, **263,877 shares** remained available for repurchase under the program[85](index=85&type=chunk) - Share repurchases are accounted for as treasury stock, reducing stockholders' equity[86](index=86&type=chunk) [NOTE 14: IMPACT OF RECENTLY ISSUED ACCOUNTING STANDARDS NOT YET ADOPTED](index=29&type=section&id=NOTE%2014:%20IMPACT%20OF%20RECENTLY%20ISSUED%20ACCOUNTING%20STANDARDS%20NOT%20YET%20ADOPTED) This note discusses the potential impact of recently issued accounting standards that the company has not yet adopted - The company is evaluating ASU 2016-13, "Financial Instruments – Credit Losses on Financial Instruments," effective January 1, 2020, which requires measuring expected credit losses on amortized cost basis and through an allowance for available-for-sale debt securities[87](index=87&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses CEVA's Q1 2019 financial condition, results of operations, business overview, revenue and expense analysis, critical accounting policies, and liquidity [BUSINESS OVERVIEW](index=30&type=section&id=BUSINESS%20OVERVIEW) This section provides an overview of CEVA's business, strategic focus, product portfolio, and key growth drivers - CEVA is a leading licensor of signal processing platforms and AI processors for connected devices across mobile, consumer, automotive, industrial, and IoT markets[91](index=91&type=chunk) - The company's portfolio includes platforms for 4G/5G baseband, cellular IoT, Bluetooth, Wi-Fi, voice input, advanced imaging/computer vision, and AI processors for edge applications[92](index=92&type=chunk) - In Q1 2019, CEVA signed **8 licensing deals**, all for non-cellular handset baseband applications, including a significant deal with a major automotive OEM for NeuPro AI processor in autonomous cars (targeting 2024 production)[94](index=94&type=chunk) - Shipments of CEVA-powered non-cellular baseband products grew **16% YoY** to **86 million units** in Q1 2019[94](index=94&type=chunk) - Key growth drivers include 5G baseband for various applications, expansion into IoT with Bluetooth/Wi-Fi/NB-IoT IPs (addressable market >**9 billion devices** by 2022), voice-assisted devices with WhisPro and ClearVox, and imaging/vision platforms (camera-enabled devices >**1 billion units** by 2022)[96](index=96&type=chunk)[98](index=98&type=chunk)[99](index=99&type=chunk)[100](index=100&type=chunk) - NeuPro AI processors for deep learning at the edge represent new licensing and royalty drivers[101](index=101&type=chunk) - Forecasted financial metrics for 2022 include licensing revenue growth of **10-20%**, royalty revenue approximately **two times current levels**, and non-GAAP net income approximately **three times current levels**[103](index=103&type=chunk) [RESULTS OF OPERATIONS](index=32&type=section&id=RESULTS%20OF%20OPERATIONS) This section analyzes CEVA's financial performance, including revenues, gross margin, and operating expenses for the period [Total Revenues](index=32&type=section&id=Total%20Revenues) This section analyzes the company's total revenues, including changes and customer concentration | Metric | Q1 2019 (in millions) | Q1 2018 (in millions) | YoY Change | | :------------------------------------ | :------ | :------ | :--------- | | Total Revenues | $17.0 | $17.6 | -3% | | Reason for Change | Lower royalty revenues | | | - Five largest customers accounted for **63% of total revenues** in Q1 2019, compared to **49%** in Q1 2018, indicating increased customer concentration[105](index=105&type=chunk) - Spreadtrum's contribution to total revenues decreased from **16%** in Q1 2018 to **12%** in Q1 2019[105](index=105&type=chunk) Revenue by Product Category | Product Category | Q1 2019 % of Total Revenues | Q1 2018 % of Total Revenues | | :------------------------------------ | :-------------------------- | :-------------------------- | | Connectivity products | 72% | 76% | | Smart sensing products | 28% | 24% | [Licensing and Related Revenues](index=34&type=section&id=Licensing%20and%20Related%20Revenues) This section details the trends and drivers behind the company's licensing and related revenue performance | Metric | Q1 2019 (in millions) | Q1 2018 (in millions) | YoY Change | | :------------------------------------ | :------ | :------ | :--------- | | Licensing and Related Revenues | $11.0 | $10.1 | +9% | | % of Total Revenues | 65% | 57% | | - Increase driven by more handset and non-handset baseband licensing deals, including strategic deals for autonomous driving and three 5G applications (base station RAN, mmwave small cells, cellular V2X)[110](index=110&type=chunk) - Concluded **eight new licensing deals** in Q1 2019 (3 smart sensing, 5 connectivity), with **four first-time customers**, targeting AI for autonomous cars, 5G, Bluetooth earbuds, smart speakers, and IoT devices[111](index=111&type=chunk) [Royalty Revenues](index=34&type=section&id=Royalty%20Revenues) This section examines the factors influencing the company's royalty revenue, including unit shipments and customer concentration | Metric | Q1 2019 (in millions) | Q1 2018 (in millions) | YoY Change | | :------------------------------------ | :------ | :------ | :--------- | | Royalty Revenues | $6.0 | $7.5 | -20% | | % of Total Revenues | 35% | 43% | | - Decrease primarily due to lower handset shipments caused by excess channel inventory of customers[112](index=112&type=chunk) - Customer chipsets incorporating CEVA technologies decreased **11% YoY** to **175 million units** in Q1 2019[113](index=113&type=chunk) - The five largest royalty-paying customers accounted for **81% of total royalty revenues** in Q1 2019, compared to **85%** in Q1 2018[113](index=113&type=chunk) [Geographic Revenue Analysis](index=34&type=section&id=Geographic%20Revenue%20Analysis) This section breaks down revenue by geographic region, highlighting key markets and their contributions | Geographic Area | Q1 2019 Revenues (millions) | Q1 2019 % | Q1 2018 Revenues (millions) | Q1 2018 % | | :------------------------------------ | :-------------------------- | :-------- | :-------------------------- | :-------- | | United States | $1.8 | 10% | $1.7 | 10% | | Europe and Middle East | $3.3 | 20% | $2.5 | 14% | | Asia Pacific | $11.8 | 70% | $13.4 | 76% | | Germany | $2.6 | 15% | <10% | <10% | | China | $7.2 | 43% | $6.2 | 35% | | S. Korea | $1.8 | 10% | $2.8 | 16% | | Japan | $2.6 | 16% | $2.6 | 15% | - Geographic revenue split varies quarter-to-quarter due to the nature of license agreements and large individual contract amounts[115](index=115&type=chunk) [Cost of Revenues](index=36&type=section&id=Cost%20of%20Revenues) This section analyzes the components and changes in the cost of revenues, including customization work and equity-based compensation | Metric | Q1 2019 (in millions) | Q1 2018 (in millions) | | :------------------------------------ | :------ | :------ | | Cost of Revenues | $2.0 | $2.0 | | % of Total Revenues | 12% | 11% | - Q1 2019 cost of revenues reflected higher customization work for licensees, partially offset by lower payments to the Israeli Innovation Authority[116](index=116&type=chunk) - Non-cash equity-based compensation expense in cost of revenues was **$136,000** in Q1 2019, down from **$157,000** in Q1 2018[116](index=116&type=chunk) - Anticipated increase in cost of revenues for 2019 due to over **$1 million** in engineering customization expenses allocated from R&D for a 5G-related license deal[117](index=117&type=chunk) [Gross Margin](index=36&type=section&id=Gross%20Margin) This section discusses the company's gross margin and the factors influencing its changes | Metric | Q1 2019 (percentage) | Q1 2018 (percentage) | | :------------------------------------ | :------ | :------ | | Gross Margin | 88% | 89% | | Reason for Change | Lower royalty revenues | | [Operating Expenses](index=36&type=section&id=Operating%20Expenses) This section provides an overview of total operating expenses and their primary drivers | Metric | Q1 2019 (in millions) | Q1 2018 (in millions) | | :------------------------------------ | :------ | :------ | | Total Operating Expenses | $17.9 | $18.5 | | Reason for Change | Lower non-cash equity-based compensation and higher research grants, partially offset by higher salary/employee costs due to increased headcount | | [Research and Development Expenses, Net](index=36&type=section&id=Research%20and%20Development%20Expenses,%20Net) This section details R&D expenses, including headcount changes and anticipated future increases | Metric | Q1 2019 (in millions) | Q1 2018 (in millions) | YoY Change | | :------------------------------------ | :------ | :------ | :--------- | | R&D Expenses, Net | $12.3 | $12.0 | +2.5% | | % of Total Revenues | 73% | 68% | | - Increase due to higher salary and employee-related costs from increased headcount, partially offset by higher research grants[120](index=120&type=chunk) - R&D personnel increased to **265** at March 31, 2019, from **231** at March 31, 2018[121](index=121&type=chunk) - Anticipated R&D expenses to increase by approximately **$4 million** in 2019, mainly for headcount, employee-related costs, and EDA tools[122](index=122&type=chunk) [Sales and Marketing Expenses](index=37&type=section&id=Sales%20and%20Marketing%20Expenses) This section analyzes sales and marketing expenses, including changes in personnel and related costs | Metric | Q1 2019 (in millions) | Q1 2018 (in millions) | YoY Change | | :------------------------------------ | :------ | :------ | :--------- | | Sales and Marketing Expenses | $3.0 | $3.2 | -6.25% | | % of Total Revenues | 18% | 18% | | - Decrease primarily due to lower salary and employee-related costs[122](index=122&type=chunk) - Sales and marketing personnel decreased to **32** at March 31, 2019, from **37** at March 31, 2018[123](index=123&type=chunk) [General and Administrative Expenses](index=37&type=section&id=General%20and%20Administrative%20Expenses) This section reviews general and administrative expenses, highlighting factors like salary costs and equity compensation | Metric | Q1 2019 (in millions) | Q1 2018 (in millions) | YoY Change | | :------------------------------------ | :------ | :------ | :--------- | | General and Administrative Expenses | $2.3 | $3.0 | -23.3% | | % of Total Revenues | 14% | 17% | | - Decrease primarily due to lower salary and employee-related costs and lower non-cash equity-based compensation expenses[123](index=123&type=chunk) - General and administrative personnel increased to **31** at March 31, 2019, from **27** at March 31, 2018[124](index=124&type=chunk) [Amortization of intangible assets](index=37&type=section&id=Amortization%20of%20intangible%20assets) This section details amortization charges related to intangible assets from past acquisitions | Metric | Q1 2019 (in millions) | Q1 2018 (in millions) | | :------------------------------------ | :------ | :------ | | Amortization Charges | $0.2 | $0.4 | | Net Intangible Assets (March 31, 2019) | $0.6 | | - Charges are related to the amortization of intangible assets from the RivieraWaves acquisition in July 2014[124](index=124&type=chunk) [Financial Income, Net](index=37&type=section&id=Financial%20Income,%20Net) This section analyzes net financial income, including interest income, marketable securities gains/losses, and foreign exchange impacts | Metric | Q1 2019 (in millions) | Q1 2018 (in millions) | | :------------------------------------ | :------ | :------ | | Financial Income, Net | $0.80 | $0.93 | | Interest income and gains/losses from marketable securities, net | $0.93 | $0.88 | | Foreign exchange income (loss) | $(0.13) | $0.05 | - Increase in interest income and gains/losses from marketable securities due to higher yields, offset by lower combined cash, bank deposits, and marketable securities balances[126](index=126&type=chunk) - Foreign exchange loss of **$0.13 million** in Q1 2019, compared to a gain of **$0.05 million** in Q1 2018, due to currency fluctuations[127](index=127&type=chunk) [Provision for Income Taxes](index=37&type=section&id=Provision%20for%20Income%20Taxes) This section discusses income tax expenses and the tax rates applicable to the company's international subsidiaries | Metric | Q1 2019 (in millions) | Q1 2018 (in millions) | | :------------------------------------ | :------ | :------ | | Income Tax Expenses | $0.2 | $0.2 | - Israeli and Irish subsidiaries are taxed at rates substantially lower than U.S. rates (Irish subsidiary: **12.5%** on trade, **25%** on interest; Israeli subsidiary: **23%** for first seven investment programs, **10%** for eighth)[129](index=129&type=chunk)[130](index=130&type=chunk) - The Tax Cuts and Jobs Act (2017) reduced the U.S. federal corporate income tax rate from **35% to 21%** and introduced a one-time tax on cumulative retained earnings of U.S.-owned foreign subsidiaries[132](index=132&type=chunk) - The company elected to treat GILTI tax as a period expense rather than providing U.S. deferred taxes on foreign temporary differences[133](index=133&type=chunk) [Critical Accounting Policies and Estimates](index=39&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) This section identifies key accounting policies and estimates, noting any recent changes or adoptions - Critical accounting policies and estimates include revenue recognition, fair value of financial instruments, equity-based compensation, and income taxes[135](index=135&type=chunk) - No changes in critical accounting policies compared to the 2018 Form 10-K, except for policy changes in accounting for leases due to Topic 842 adoption[136](index=136&type=chunk) [LIQUIDITY AND CAPITAL RESOURCES](index=39&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) This section assesses CEVA's liquidity position, capital resources, and cash flow activities from operations, investing, and financing [Overview of Liquidity](index=39&type=section&id=Overview%20of%20Liquidity) This section provides an overview of the company's liquid assets and their changes over the period | Metric | March 31, 2019 (in millions) | December 31, 2018 (in millions) | | :------------------------------------ | :------------- | :---------------- | | Cash and cash equivalents | $21.5 | $22.3 | | Short term bank deposits | $57.8 | $46.1 | | Marketable securities | $77.5 | $77.5 | | Long term bank deposits | $14.5 | $21.9 | | **Total Liquid Assets** | **$171.3** | **$167.7** | - Increase in total liquid assets primarily from cash provided by operations and stock-based award exercises, partially offset by **$2.5 million** used for share repurchases[137](index=137&type=chunk) - **$141.0 million** of total liquid assets held by foreign subsidiaries, with an intent for permanent reinvestment[138](index=138&type=chunk) - Invested **$8.9 million** in bank deposits and marketable securities in Q1 2019, with **$5.4 million** proceeds from sales/redemptions[140](index=140&type=chunk) [Operating Activities](index=40&type=section&id=Operating%20Activities) This section details cash flows generated or used by operating activities, including non-cash adjustments | Metric | Q1 2019 (in millions) | Q1 2018 (in millions) | | :------------------------------------ | :------ | :------ | | Net Cash Provided by Operating Activities | $4.7 | $1.8 | | Net Loss | $(2.3) | $(2.2) | | Adjustments for Non-Cash Items | $3.7 | $3.9 | | Changes in Operating Assets and Liabilities | $3.3 | $0 | - Q1 2019 non-cash adjustments included **$1.0 million** depreciation/amortization, **$2.4 million** equity-based compensation, and **$0.2 million** amortization of marketable securities premiums[142](index=142&type=chunk) - Changes in operating assets/liabilities in Q1 2019 included a **$6.8 million** decrease in trade receivables and a **$1.4 million** increase in accrued payroll, partially offset by increases in prepaid expenses and other assets (**$3.1 million**)[142](index=142&type=chunk) [Investing Activities](index=40&type=section&id=Investing%20Activities) This section outlines cash flows related to investing activities, such as marketable securities and bank deposits | Metric | Q1 2019 (in millions) | Q1 2018 (in millions) | | :------------------------------------ | :------ | :------ | | Net Cash Used in Investing Activities | $(4.1) | $(4.8) | | Cash outflow for marketable securities | $(5.0) | $(9.5) | | Cash inflow from marketable securities | $5.4 | $6.0 | | Investment in bank deposits | $(3.8) | | - Q1 2018 included a **$0.9 million** cash outflow for the purchase of NB-IoT technologies license[145](index=145&type=chunk) [Financing Activities](index=40&type=section&id=Financing%20Activities) This section describes cash flows from financing activities, including share repurchases and stock-based award exercises | Metric | Q1 2019 (in millions) | Q1 2018 (in millions) | | :------------------------------------ | :------ | :------ | | Net Cash Used in Financing Activities | $(1.4) | $(0.4) | | Purchase of treasury stock | $(2.5) | $(1.5) | | Proceeds from exercise of stock-based awards | $1.2 | $1.1 | - The company believes current cash, equivalents, bank deposits, marketable securities, and cash from operations will fund operations for at least the next **12 months**[151](index=151&type=chunk) - Potential acquisitions or investments may require substantial capital, possibly necessitating additional debt or equity financing[152](index=152&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=42&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section details CEVA's exposure to market risks, including foreign currency fluctuations and interest rate changes, and its hedging strategies - Majority of revenues and assets are in USD, but most expenses are in non-USD currencies (NIS, Euro), exposing the company to foreign currency exchange rate fluctuations[153](index=153&type=chunk) Foreign Exchange Income (Loss) | Metric | Q1 2019 (in thousands) | Q1 2018 (in thousands) | | :------------------------------------ | :------ | :------ | | Foreign exchange income (loss) | $(133) | $51 | - The company uses a foreign currency cash flow hedging program (forward and option contracts) for anticipated non-U.S. employee payroll, recording **$117,000** in accumulated other comprehensive gain (net of taxes) in Q1 2019[154](index=154&type=chunk) - Cash and cash equivalents are invested in high-grade certificates of deposits, exceeding FDIC limits, posing minimal credit risk but potential impact if financial institutions fail[155](index=155&type=chunk) - Investment portfolio consists principally of corporate bonds; management believes unrealized losses are temporary[156](index=156&type=chunk) Interest Income and Gains/Losses from Marketable Securities | Metric | Q1 2019 (in millions) | Q1 2018 (in millions) | | :------------------------------------ | :------ | :------ | | Interest income and gains/losses from marketable securities, net | $0.93 | $0.88 | - Fluctuations in interest rates within the investment portfolio are not anticipated to have a material effect on financial position[159](index=159&type=chunk) [Item 4. Controls and Procedures](index=43&type=section&id=Item%204.%20Controls%20and%20Procedures) Management evaluated disclosure controls and procedures as effective, with no material changes to internal control over financial reporting - Disclosure controls and procedures were evaluated and deemed effective as of March 31, 2019[160](index=160&type=chunk) - No material changes in internal control over financial reporting occurred during the most recent fiscal quarter[161](index=161&type=chunk) [PART II. OTHER INFORMATION](index=43&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section includes information on legal proceedings, risk factors, equity security sales, and other required disclosures [Item 1. Legal Proceedings](index=43&type=section&id=Item%201.%20Legal%20Proceedings) The company is not involved in any legal proceedings expected to materially affect its business or financial condition - The company is not a party to any legal proceedings expected to have a material effect on its business, results of operations, and financial condition[162](index=162&type=chunk) [Item 1A. Risk Factors](index=43&type=section&id=Item%201A.%20Risk%20Factors) This section outlines various risks, including market competition, operational fluctuations, customer reliance, international trade, and intellectual property challenges, that could affect CEVA's future performance - The markets for CEVA's technology are highly competitive, with direct competition from companies like Verisilicon, Cadence, Synopsys, Arm Limited, Imagination Technologies, Nvidia, and internal engineering teams of major semiconductor companies[166](index=166&type=chunk)[167](index=167&type=chunk) - Quarterly operating results fluctuate due to factors such as customer dependence, sales cycle length, revenue recognition delays, royalty pricing pressures, market acceptance of new technologies, and global economic conditions[169](index=169&type=chunk)[170](index=170&type=chunk) - Significant reliance on a limited number of customers; Spreadtrum accounted for **12% of total revenues** in Q1 2019, and three royalty-paying customers represented **70% of total royalty revenues**[173](index=173&type=chunk) - Royalty rates could decrease due to declining average selling prices, competitive pressures, renegotiations, and changes in product mix (e.g., more lower-royalty products)[176](index=176&type=chunk)[177](index=177&type=chunk) - A significant portion of revenues, especially royalty revenue, is derived from the highly competitive and volatile handset baseband market[178](index=178&type=chunk)[179](index=179&type=chunk) - International operations, particularly in Asia Pacific, expose the company to political, economic, and trade risks, including tariffs and potential disruptions like the 2018 ZTE ban[190](index=190&type=chunk)[192](index=192&type=chunk)[194](index=194&type=chunk) - Dependence on Israeli government research grants (IIA) and French research tax credits (CIR); reduction or termination of these benefits could increase R&D expenses and tax liabilities[205](index=205&type=chunk)[210](index=210&type=chunk)[213](index=213&type=chunk) - Product development is time-consuming and expensive (**$12.3 million** in Q1 2019 R&D expenses), with no guarantee of acceptable return or market acceptance for new products[218](index=218&type=chunk)[219](index=219&type=chunk) - Exposure to currency exchange rate fluctuations, particularly NIS and EURO against USD, impacting expenses and liabilities, despite hedging programs[214](index=214&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=56&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's share repurchase activities, including shares purchased and remaining authorization under the program Share Repurchase Program Activity | Period | Total Number of Shares Purchased | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans | Maximum Number of Shares That May Yet Be Purchased Under the Plans | | :------------------------------------ | :------------------------------- | :--------------------------- | :----------------------------------------------------------------- | :----------------------------------------------------------------- | | Month 3 (March 1-31, 2019) | 91,303 | $27.77 | 91,303 | 263,877 | | **TOTAL** | **91,303** | **$27.77** | **91,303** | **263,877** | - The share repurchase program was approved in August 2008 and extended multiple times, with an additional **700,000 shares** authorized in May 2018[239](index=239&type=chunk) [Item 3. Defaults Upon Senior Securities](index=57&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) There are no defaults upon senior securities to report - Not applicable[241](index=241&type=chunk) [Item 4. Mine Safety Disclosures](index=58&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) There are no mine safety disclosures applicable to the company - Not applicable[241](index=241&type=chunk) [Item 5. Other Information](index=58&type=section&id=Item%205.%20Other%20Information) There is no other information to report - Not applicable[241](index=241&type=chunk) [Item 6. Exhibits](index=58&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including certifications and XBRL documents - Includes Rule 13a-14(a)/15d-14(a) Certifications of CEO and CFO, Section 1350 Certification, and various XBRL Taxonomy Extension Documents[240](index=240&type=chunk) [SIGNATURES](index=59&type=section&id=SIGNATURES) This section contains the official signatures of the Chief Executive Officer and Chief Financial Officer, certifying the report - The report was signed by Gideon Wertheizer, Chief Executive Officer, and Yaniv Arieli, Chief Financial Officer, on May 10, 2019[244](index=244&type=chunk)[245](index=245&type=chunk)

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 ...

CEVA, Inc. (NASDAQ:CEVA) Q4 2018 Results Conference Call February 13, 2019 8:30 AM ET Company Participants Richard Kingston - VP, Market Intelligence, Investor and Public Relations Gideon Wertheizer - CEO Yaniv Arieli - CFO Conference Call Participants Gary Mobley - Benchmark Matt Ramsay - Cowen Mike Walkley - Canaccord Genuity Suji Desilva - Roth Capital Tavi Rosner - Barclays David O'Connor - Exane BNP Paribas Operator Good day, and welcome to the CEVA, Inc. Fourth Quarter and Year-End 2018 Earnings Confe ...