CEVA Beats Q3 Backed by Edge Tech, Intrinsix Chip Design

By Benzinga
Benzinga
Benzinga
November 10, 2021 Updated: November 10, 2021

CEVA Inc (CEVA) reported third-quarter FY21 revenue growth of 31 percent year-on-year to $32.8 million, beating the consensus of $31.2 million.

Segments

Licensing, non-recurring engineering (NRE), and related revenue increased 74 percent Y/Y to $21.6 million. Royalty revenue declined 11 percent Y/Y to $11.2 million.

The Q3 saw 25 license agreements, including 13 with first-time customers.

Non-GAAP EPS of $0.20 beat the consensus of $0.17.

The gross margin contracted 470 bps to 85.3 percent, and CEVA held $145.2 million in cash and equivalents.

“Our IP licensing continues to be very strong, with a growing number of deals for our Bluebud wireless audio platform and Wi-Fi 6 products. It also includes a full quarter contribution from Intrinsix for the first time, with a number of important agreements signed, including with Lockheed Martin Corp (LMT). In royalties, our base station and IoT product category continues to expand, reaching an all-time record high revenue and surpassing 400 million royalty-bearing devices in a quarter for the first time,” Gideon Wertheizer, CEO of CEVA said.

Price action

CEVA shares are trading lower by 7.48 percent at $45.52 on the last check Tuesday.

By Anusuya Lahiri

© 2021 The Epoch Times. The Epoch Times does not provide investment advice. All rights reserved.

Benzinga