Close

Form 8-K CEVA INC For: Jul 30

July 30, 2015 8:02 AM EDT

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of report (Date of earliest event reported): July 30, 2015

 

 

CEVA, INC.

(Exact Name of Registrant as Specified in Its Charter)

 

 

Delaware

(State or Other Jurisdiction of Incorporation)

 

000-49842   77-0556376
(Commission File Number)   (I.R.S. Employer Identification No.)
1943 Landings Drive, Mountain View, CA   94043
(Address of Principal Executive Offices)   (Zip Code)

650/417-7900

(Registrant’s Telephone Number, Including Area Code)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

  ¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

  ¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

  ¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

  ¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 


ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On July 30, 2015, CEVA, Inc. (the “Company”) announced its financial results for the quarter ended June 30, 2015. A copy of the press release, dated July 30, 2015, is attached and filed herewith as Exhibit 99.1. This information, including Exhibit 99.1 attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference to such filing.

In addition to the disclosure of financial results for the quarters ended June 30, 2015 and 2014 in accordance with generally accepted accounting principles in the United States (“GAAP”), the press release also included non-GAAP net income (loss) and diluted earnings (loss) per share (EPS) figures that excluded (i) equity-based compensation expenses for the respective periods, (ii) for the quarter ended June 30, 2015, transaction expenses, net of taxes, associated with an acquisition and (iii) for the quarter ended June 30, 2014, the impact of the amortization of acquired intangibles and other costs, net of taxes, associated with an acquisition.

The Company believes that the reconciliation of financial measures in the press release is useful to investors in analyzing the results for the quarters and years ended June 30, 2015 and 2014 because the exclusion of such expenses may provide a more meaningful analysis of the Company’s core operating results and comparison of quarterly results. Further, the Company believes it is useful for investors to understand how the expenses associated with the application of FASB ASC No. 718 are reflected on its statements of income. The reconciliation of financial measures should be reviewed in addition to and in conjunction with results presented in accordance with GAAP, and are intended to provide additional insight into the Company’s operations that, when viewed with its GAAP results and the accompanying reconciliation, offer a more complete understanding of factors and trends affecting the Company’s business. The reconciliation of financial measures should not be viewed as a substitute for the Company’s reported GAAP results.

ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.

(d) Exhibits.

 

99.1    Press Release of CEVA, Inc., dated July 30, 2015.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

  CEVA, INC.
Date: July 30, 2015   By:  

/s/ Yaniv Arieli

    Yaniv Arieli
    Chief Financial Officer

Exhibit 99.1

 

LOGO

CEVA, Inc. Announces Second Quarter 2015 Financial Results

 

    Total quarterly revenue of $13.4M, up 45% year-over-year

 

    Record fourteen deals in the quarter

 

    Record eleven million CEVA-powered LTE smartphones and tablets shipped in the quarter

MOUNTAIN VIEW, Calif. – July 30, 2015 CEVA, Inc. (NASDAQ: CEVA), the leading licensor of DSP and IP platforms for cellular, multimedia and connectivity, today announced its financial results for the second quarter ended June 30, 2015.

Total revenue for the second quarter of 2015 was $13.4 million, a 45% increase compared to $9.2 million reported for the second quarter of 2014 and at the top end of the Company’s guidance range. Second quarter 2015 licensing and related revenue was $7.7 million, a 76% increase when compared to $4.4 million reported for the same quarter a year ago. Royalty revenue for the second quarter of 2015 was $5.7 million, an increase of 17% when compared to $4.9 million reported for the second quarter of 2014.

Gideon Wertheizer, Chief Executive Officer of CEVA, stated: “Our solid second quarter performance is the result of a continuing strong licensing environment for our products and our customers’ progress in LTE shipments. We concluded a record fourteen licensing deals in the quarter, further expanding our addressable markets and customer base. Market demand for connected devices and our high-value IP portfolio for such devices are driving our licensing business. Our growing share in both the 3G and LTE smartphone segments resulted in year-over-year royalty revenue growth for the second consecutive quarter. We anticipate this momentum will accelerate in the coming quarters.”

U.S. GAAP net income for the second quarter of 2015 was $0.2 million, compared to a $1.5 million net loss reported for the same period in 2014. U.S. GAAP diluted earnings per share for the second quarter of 2015 were $0.01, compared to $0.07 net loss per share reported for the second quarter of 2014.

Non-GAAP net income and diluted earnings per share for the second quarter of 2015 were $1.3 million and $0.06, respectively, compared to a non-GAAP net loss and diluted loss per share of $0.1 million and $0.00, respectively, in the second quarter of 2014. Non-GAAP net income and diluted earnings per share for the second quarter of 2015 excluded: (a) equity-based compensation expense of $0.8 million, and (b) the impact of the amortization of acquired intangibles and other costs, net of

 

1


tax, of $0.3 million associated with the acquisition of RivieraWaves. Non-GAAP net loss and diluted loss per share for the second quarter of 2014 excluded equity-based compensation expense, net of taxes, of $1.3 million and $0.2 million related to transaction costs, net of taxes, associated with the RivieraWaves acquisition.

During the quarter, CEVA completed fourteen new licensing deals. Eight of the deals were for CEVA DSP cores, platforms and software and six of the deals were for CEVA connectivity IPs. Of the fourteen licensing deals signed during the quarter, six are with first time customers for CEVA. Target applications for customer deployment include smartphones, tablets, machine to machine equipment, DSLR cameras, various IoT devices and wearables. Geographically, one deal was signed in the US, four were in Europe and nine were in Asia.

Yaniv Arieli, Chief Financial Officer of CEVA, stated: “LTE smartphones and tablets powered by our DSPs reached a record high eleven million units in the quarter, as our customers continue to execute on their product ramp ups. This is our sixth consecutive quarter of LTE unit growth and we expect this to continue. During the quarter, we repurchased approximately 176,000 shares of our common stock for an aggregate consideration of approximately $3.4 million. At the end of the quarter, our cash balance, marketable securities and bank deposits totaled $126 million.”

CEVA Conference Call

On July 30, CEVA management will conduct a conference call at 8:30 a.m. Eastern Time to discuss the operating performance for the quarter.

The conference call will be available via the following dial in numbers:

 

    U.S. Participants: Dial 1-866-364-3869 (Access Code: CEVA)

 

    International Participants: Dial +1-412-902-4215 (Access Code: CEVA)

The conference call will also be available live via the Internet at the following link: https://www.webcaster4.com/Webcast/Page/984/9434. Please go to the web site at least fifteen minutes prior to the call to register, download and install any necessary audio software.

For those who cannot access the live broadcast, a replay will be available by dialing 1-877-344-7529 or +1-412-317-0088 (access code: 10068746) from one hour after the end of the call until 9:00 a.m. (Eastern Time) on August 7, 2015. The replay will also be available at CEVA’s investor web site investors.ceva-dsp.com.

 

2


For More Information Contact:

 

Yaniv Arieli

CEVA, Inc.

CFO

+1.650.417.7941

[email protected]

 

Richard Kingston

CEVA, Inc.

VP Market Intelligence, Investor & Public Relations

+1.650.417.7976

[email protected]

About CEVA, Inc.

CEVA is the leading licensor of cellular, multimedia and connectivity technologies to semiconductor companies and OEMs serving the mobile, consumer, automotive and IoT markets. Our DSP IP portfolio includes comprehensive platforms for multimode 2G/3G/LTE/LTE-A baseband processing in terminals and infrastructure, computer vision and computational photography for any camera-enabled device, audio/voice/speech and ultra-low power always-on/sensing applications for multiple IoT markets. For connectivity, we offer the industry’s most widely adopted IPs for Bluetooth (Smart and Smart Ready), Wi-Fi (802.11 b/g/n/ac up to 4x4) and serial storage (SATA and SAS). One in every three phones sold worldwide is powered by CEVA, from many of the world’s leading OEMs including Samsung, Huawei, Xiaomi, Lenovo, HTC, LG, Coolpad, ZTE, Micromax and Meizu. Visit us at

www.ceva-dsp.com and follow us on Twitter, YouTube and LinkedIn.

Forward Looking Statement

This press release contains forward-looking statements that involve risks and uncertainties, as well as assumptions that if they materialize or prove incorrect, could cause the results of CEVA to differ materially from those expressed or implied by such forward-looking statements and assumptions. Forward-looking statements include Mr. Wertheizer’s statements that the additional licensing deals executed during the second quarter expands CEVA’s addressable markets and customer base and that the royalty revenue growth momentum will accelerate in the coming quarters, as well as Mr. Arieli’s statement that LTE unit growth from CEVA’s customers will continue. The risks, uncertainties and assumptions include: the ability of the CEVA DSP cores and other technologies, including connectivity IPs, to continue to be strong growth drivers for us; our success in penetrating new markets and maintaining our market position in existing markets; the ability of products incorporating our technologies to achieve market acceptance, the speed and extent of the expansion of the 3G and LTE networks, the effect of intense industry competition and consolidation, global chip market trends, the possibility that markets for CEVA’s technologies may not develop as expected or that products incorporating our technologies do not achieve market acceptance; our ability to timely and successfully develop and introduce new technologies; and general market conditions and other risks relating to our business, including, but not limited to, those that are described from time to time in our SEC filings. CEVA assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates.

 

3


CEVA, INC. AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS – U.S. GAAP

U.S. dollars in thousands, except per share data

 

     Three months ended     Six months ended  
     June 30,     June 30,  
     2015      2014     2015      2014  
     Unaudited  

Revenues:

          

Licensing and related revenues

   $ 7,669       $ 4,355      $ 15,508       $ 12,261   

Royalties

     5,690         4,860        11,685         10,628   
  

 

 

    

 

 

   

 

 

    

 

 

 

Total revenues

     13,359         9,215        27,193         22,889   
  

 

 

    

 

 

   

 

 

    

 

 

 

Cost of revenues

     1,550         1,370        2,735         2,482   
  

 

 

    

 

 

   

 

 

    

 

 

 

Gross profit

     11,809         7,845        24,458         20,407   
  

 

 

    

 

 

   

 

 

    

 

 

 

Operating expenses:

          

Research and development, net

     7,241         6,051        14,604         12,047   

Sales and marketing

     2,548         2,197        4,974         4,590   

General and administrative

     1,666         1,861        3,638         3,901   

Amortization of intangible assets

     324           649      
  

 

 

    

 

 

   

 

 

    

 

 

 

Total operating expenses

     11,779         10,109        23,865         20,538   
  

 

 

    

 

 

   

 

 

    

 

 

 

Operating income (loss)

     30         (2,264     593         (131

Financial income, net

     269         417        242         877   
  

 

 

    

 

 

   

 

 

    

 

 

 

Income (loss) before taxes on income

     299         (1,847     835         746   

Income tax expenses (benefit)

     131         (321     181         287   
  

 

 

    

 

 

   

 

 

    

 

 

 

Net income (loss)

     168         (1,526     654         459   
  

 

 

    

 

 

   

 

 

    

 

 

 

Basic and diluted net income (loss) per share

   $ 0.01       ($ 0.07   $ 0.03       $ 0.02   

Weighted-average number of Common Stock used in computation of net income (loss) per share (in thousands):

          

Basic

     20,564         20,778        20,491         20,968   

Diluted

     20,984         20,778        20,971         21,368   
  

 

 

    

 

 

   

 

 

    

 

 

 

 

4


Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures

(U.S. Dollars in thousands, except per share amounts)

 

     Three months ended     Six months ended  
     June 30     June 30  
     2015      2014     2015      2014  
     Unaudited  

GAAP net income (loss)

   $ 168       ($ 1,526   $ 654       $ 459   

Equity-based compensation expense included in cost of revenue

     42         56        77         114   

Equity-based compensation expense included in research and development expenses

     494         533        885         1,134   

Equity-based compensation expense included in sales and marketing expenses

     165         266        244         568   

Equity-based compensation expense included in general and administrative expenses

     126         493        470         1,045   

Deferred tax related to equity-based compensation expenses

     —           (69     —           (204

Costs associated with the RivieraWaves acquisition, net of taxes

     49         176        147         176   

Amortization of intangible assets related to RivieraWaves transaction, net of taxes

     216         —          428         —     
  

 

 

    

 

 

   

 

 

    

 

 

 

Non-GAAP net income (loss)

   $ 1,260       ($ 71   $ 2,905       $ 3,292   
  

 

 

    

 

 

   

 

 

    

 

 

 

GAAP weighted-average number of Common Stock used in computation of diluted net income (loss) per share (in thousands)

Weighted-average number of shares related to outstanding options (in thousands)

    

 

20,984

259

  

  

    

 

20,778

—  

  

  

   

 

20,971

187

  

  

    

 

21,368

—  

  

  

  

 

 

    

 

 

   

 

 

    

 

 

 

Weighted-average number of Common Stock used in computation of diluted earnings per share, excluding the above (in thousands )

     21,243         20,778        21,158         21,368   

GAAP diluted net income (loss) per share

   $ 0.01       ($ 0.07   $ 0.03       $ 0.02   

Equity-based compensation expense, net of taxes

   $ 0.04       $ 0.06      $ 0.08       $ 0.12   

Costs associated with the RivieraWaves acquisition, net of taxes

     —         $ 0.01      $ 0.01       $ 0.01   

Amortization of intangible assets related to RivieraWaves transaction, net of taxes

   $ 0.01         —        $ 0.02         —     
  

 

 

    

 

 

   

 

 

    

 

 

 

Non-GAAP diluted net income (loss) per share

   $ 0.06       $ 0.00      $ 0.14       $ 0.15   
  

 

 

    

 

 

   

 

 

    

 

 

 

 

5


CEVA, INC. AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(U.S. Dollars in thousands)

 

     June 30,     December 31,  
     2015     2014 (*)  
     Unaudited     Unaudited  

ASSETS

    

Current assets:

    

Cash and cash equivalents

   $ 12,084      $ 16,166   

Marketable securities and short term bank deposits

     57,378        85,277   

Trade receivables, net

     9,390        8,347   

Deferred tax assets

     1,878        1,868   

Prepaid expenses and other current assets

     5,325        3,982   
  

 

 

   

 

 

 

Total current assets

     86,055        115,640   
  

 

 

   

 

 

 

Long-term assets:

    

Long term bank deposits

     56,764        28,424   

Severance pay fund

     7,773        7,011   

Deferred tax assets

     624        399   

Property and equipment, net

     2,836        2,605   

Goodwill

     46,612        46,612   

Investment in other company

     1,806        1,806   

Other intangible assets

     4,863        5,512   
  

 

 

   

 

 

 

Total assets

   $ 207,333      $ 208,009   
  

 

 

   

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

    

Current liabilities:

    

Trade payables

   $ 918      $ 864   

Deferred revenues

     2,803        1,681   

Accrued expenses and other payables

     12,625        16,711   

Taxes payable

     397        739   

Deferred tax liabilities

     474        464   
  

 

 

   

 

 

 

Total current liabilities

     17,217        20,459   

Long-term liabilities:

    

Accrued severance pay

     8,050        7,096   

Deferred tax liabilities

     1,199        1,405   
  

 

 

   

 

 

 

Total liabilities

     26,466        28,960   
  

 

 

   

 

 

 

Stockholders’ equity:

    

Common stock:

     20        20   

Additional paid in-capital

     211,102        209,426   

Treasury stock

     (51,885     (54,708

Accumulated other comprehensive loss

     (139     (436

Retained earnings

     21,769        24,747   
  

 

 

   

 

 

 

Total stockholders’ equity

     180,867        179,049   
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 207,333      $ 208,009   
  

 

 

   

 

 

 

 

(*) Derived from audited financial statements

 

6



Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

SEC Filings