CEVA(CEVA) - 2024 Q3 - Quarterly Report

Financial Performance - Total revenues for the nine months ended September 30, 2024, were $77,716,000, an increase of 6.0$73,257,000 for the same period in 2023[13]. - Gross profit for the nine months ended September 30, 2024, was $68,319,000, up from$63,868,000, reflecting a gross margin improvement[13]. - Operating loss decreased to $(7,619,000) for the nine months ended September 30, 2024, compared to$(10,680,000) for the same period in 2023, indicating improved operational efficiency[13]. - Net loss from continuing operations for the nine months ended September 30, 2024, was $(7,050,000), a significant reduction from$(10,339,000) in the prior year[15]. - Total revenues for the nine months ended September 30, 2024, reached $77.716 billion, a 6.5$73.257 billion for the same period in 2023[62]. - Revenue from the United States for the nine months ended September 30, 2024, was $12.022 billion, up from$5.668 billion in the previous year, reflecting a significant growth[62]. - Revenue from Asia Pacific for the nine months ended September 30, 2024, was $54.037 billion, a decrease of 4.4$56.551 billion in the same period of 2023[62]. - Basic and diluted net loss per share from continuing operations was $(0.30) for the nine months ended September 30, 2024, compared to$(0.44) in the prior year, indicating a narrowing loss per share[13]. Assets and Equity - Total current assets as of September 30, 2024, were $210,712,000, compared to$209,371,000 as of December 31, 2023, indicating a slight increase[10]. - Total stockholders' equity rose to $265,770,000 as of September 30, 2024, compared to$264,341,000 at the end of 2023[12]. - The company’s total stockholders' equity as of September 30, 2024, was $265,770,000, reflecting a stable financial position[16]. - Total stockholders' equity as of September 30, 2023, was$256,700,000, a decrease from $258,871,000 as of January 1, 2023[17]. Cash Flow and Investments - Cash and cash equivalents decreased from$23,287,000 at December 31, 2023, to $13,228,000 at September 30, 2024[10]. - Cash used in operating activities for the first nine months of 2024 was$4.6 million, consisting of a net loss of $7.0 million and adjustments for non-cash items of$13.6 million[147]. - As of September 30, 2024, the company had approximately $158.1 million in cash, cash equivalents, bank deposits, and marketable securities, down from$166.5 million at December 31, 2023[143]. - The company invested $41.3 million in marketable securities during the first nine months of 2024, while selling or redeeming marketable securities for$34.4 million[145]. - Unrealized losses associated with the company's investment portfolio were approximately $1.1 million as of September 30, 2024, due to changes in the interest rate environment[159]. Research and Development - Research and development expenses for the nine months ended September 30, 2024, were$54,739,000, slightly up from $54,544,000 in the same period last year, indicating continued investment in innovation[13]. - The number of research and development personnel increased to 326 as of September 30, 2024, from 322 a year earlier[125]. Market Position and Growth - The company expects the overall addressable market size for IoT devices to exceed 15 billion annually by 2027, driven by trends in 5G and AI technologies[5]. - The company is well-positioned for long-term growth in shipments and royalty revenues from smart edge products across consumer, automotive, industrial, and infrastructure markets[6]. - The company anticipates year-over-year revenue growth in 2024, with a significant portion of future revenues expected from a limited number of customers[6]. - The company is a leader in innovative silicon and software IP solutions, powering over 18 billion smart edge products globally[22]. Customer and Revenue Diversification - Major customers represented 13$19.61[70]. - The company expects to recognize $257,000 of unrecognized compensation expense related to unvested stock options over a weighted-average period of 2.1 years[70]. - Total equity-based compensation expense from continuing operations for the nine months ended September 30, 2024, was$11,679,000, compared to $11,431,000 for the same period in 2023[77]. Share Repurchase Program - The company repurchased 186,301 shares of common stock at an average price of$22.44 per share for a total of $4,180,000 during the three months ended September 30, 2024[90]. - The total number of shares repurchased in the nine months ended September 30, 2024, was 343,604 at an average price of$21.70 per share, totaling $7,456,000[90]. - The company authorized an expansion of the share repurchase program by an additional 700,000 shares, increasing the total available for repurchase to approximately 1,056,000 shares[92]. Strategic Initiatives - In Q3 2024, the company signed ten IP licensing deals across various wireless and smart sensing applications[100]. - The company signed three new deals for 5G and 5G-Advanced use cases in Q3 2024, indicating strong demand for its 5G IPs[102]. - The company achieved a shipment milestone with over 400 million units for its wireless connectivity IPs in Q3 2024[101].