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CEVA Shares Fall After Q1 Earnings Miss, Licensing Revenue Decline

05/10/2021 09:40
  • CEVA Inc (NASDAQ: CEVAreported first-quarter FY21 revenue growth of 8% year-on-year to $25.4 million, beating the analyst consensus of $24.01 million. A 56% growth in royalties from base station & IoT product category drove the growth, CFO Yaniv Arieli said.
  • Licensing and related revenue declined 1% Y/Y to $14.4 million, while Royalty revenue rose 21% Y/Y to $11 million.
  • Eleven license agreements were completed in Q1, with two agreements out of the eleven were with first-time customers.
  • Ten of the agreements were inked in China, and one was elsewhere in the Asia-Pacific region.
  • The Q1 results reflect a strong start for the year, with outstanding execution in licensing and royalty revenues exceeding expectations, CEO Gideon Wertheizer said. The wireless connectivity technologies noted exceptional demand, from Bluetooth 5 and Wi-Fi 6, and new IoT use cases based on the 5G RedCap standard and UWB, Wertheizer added.
  • Non-GAAP net income declined 88.5% Y/Y to $0.3 million with adjusted EPS of $0.01, missing the analyst consensus of $0.06.
  • CEVA held $174 million in cash and equivalents.
  • Price action: CEVA shares fell 7.96% at $48.01 on the last check Monday.