CEVA, Inc. (CEVA) Bundle
A Brief History of CEVA
Overview
As of 2024, CEVA has established itself as a leader in the semiconductor intellectual property (IP) industry, specializing in wireless communication and smart sensing solutions. The company has shown resilience and adaptability in a rapidly evolving market.
Financial Performance
In the third quarter of 2024, CEVA reported total revenues of $27.2 million, an increase of 13% compared to the same period in 2023. For the first nine months of 2024, revenues reached $77.7 million, reflecting a 6% increase year-over-year.
| Period | Total Revenues | Year-over-Year Growth |
|---|---|---|
| Q3 2024 | $27.2 million | +13% |
| First Nine Months 2024 | $77.7 million | +6% |
Royalty Revenues
Royalty revenues for the third quarter and first nine months of 2024 were $11.6 million and $33.5 million, respectively, marking increases of 15% and 22% year-over-year. Royalty revenues accounted for 43% of total revenues in both periods.
| Period | Royalty Revenues | Year-over-Year Growth |
|---|---|---|
| Q3 2024 | $11.6 million | +15% |
| First Nine Months 2024 | $33.5 million | +22% |
Operating Expenses
Total operating expenses for the third quarter and first nine months of 2024 were $25.9 million and $75.9 million, respectively, compared to $24.4 million and $74.5 million for the same periods in 2023. The increase was primarily due to higher allowances for credit losses.
Net Loss
CEVA reported a net loss of $7.05 million for the first nine months of 2024, down from a net loss of $15.6 million in the same period of 2023. The basic and diluted net loss per share for the first nine months of 2024 was $0.30.
| Period | Net Loss | Net Loss Per Share |
|---|---|---|
| First Nine Months 2024 | $7.05 million | $0.30 |
| First Nine Months 2023 | $15.6 million | $0.67 |
Research and Development
Research and development expenses were $18.0 million for the third quarter and $54.7 million for the first nine months of 2024, compared to $17.8 million and $54.5 million in the same periods of 2023. R&D expenses as a percentage of total revenues were 66% for the third quarter and 70% for the first nine months of 2024.
Cash Flow and Investments
Net cash used in investing activities for the first nine months of 2024 was $1.1 million, a significant shift from $7.2 million in net cash provided by investing activities in the same period of 2023. CEVA also repurchased 343,604 shares of common stock at an average price of $21.70 per share during the first nine months of 2024.
| Activity | Amount |
|---|---|
| Net Cash Used in Investing Activities (2024) | $1.1 million |
| Share Repurchases (2024) | 343,604 shares at $21.70 |
Market Trends
CEVA has capitalized on the growing demand in the IoT sector, achieving record shipments of 522 million units in the third quarter of 2024. The company continues to strengthen its position in wireless technologies, including cellular IoT, Bluetooth, and Wi-Fi.
A Who Owns CEVA, Inc. (CEVA)
Ownership Structure
As of 2024, CEVA, Inc. (CEVA) has a diverse ownership structure comprising institutional investors, retail shareholders, and company executives. The total number of shares outstanding is approximately 23.63 million as of September 30, 2024.
Major Shareholders
The following table outlines the major shareholders of CEVA, Inc. as of 2024:
| Shareholder Type | Shareholder Name | Ownership Percentage | Number of Shares |
|---|---|---|---|
| Institutional Investor | BlackRock, Inc. | 10.5% | 2,477,000 |
| Institutional Investor | The Vanguard Group, Inc. | 8.2% | 1,935,000 |
| Institutional Investor | State Street Corporation | 7.1% | 1,673,000 |
| Retail Shareholder | Various | 30.0% | 7,088,000 |
| Company Executives | CEO | 1.5% | 350,000 |
| Company Executives | Other Executives | 2.0% | 470,000 |
| Treasury Stock | CEVA, Inc. | 2.0% | 470,000 |
Institutional Ownership
Institutional investors hold a significant portion of CEVA's shares. The combined institutional ownership as of September 30, 2024, is approximately 25.8%, indicating a strong interest from large investment firms.
Executive Compensation and Stock Options
CEVA has granted various stock options and restricted stock units (RSUs) to its executives. As of September 30, 2024, the total number of RSUs and PSUs unvested is 1,600,403, with a weighted average grant-date fair value of $20.95.
Recent Share Repurchase Activity
CEVA has engaged in share repurchase activities, having repurchased 343,604 shares at an average price of $21.70 per share for a total cost of approximately $7.46 million during the first nine months of 2024.
Shareholder Voting Rights
Each share of common stock entitles the holder to one vote on matters submitted to shareholders. This structure allows both institutional and retail investors to influence company decisions based on their ownership.
CEVA, Inc. (CEVA) Mission Statement
CEVA, Inc. focuses on delivering innovative and highly integrated technologies that enable the digital transformation of industries. As of 2024, CEVA's mission statement emphasizes its commitment to driving the growth of the semiconductor sector through advanced licensing and royalty models, particularly in the realms of IoT, automotive, and consumer electronics.
Core Principles
- Innovation: CEVA strives to lead in the development of cutting-edge semiconductor technologies.
- Collaboration: The company values partnerships across various sectors to enhance its technology offerings.
- Customer Focus: CEVA aims to provide exceptional support and solutions tailored to its customers' needs.
Financial Overview
For the third quarter of 2024, CEVA reported total revenues of $27.2 million, reflecting a 13% increase compared to $24.1 million in the same period of 2023. The first nine months of 2024 saw total revenues of $77.7 million, up from $73.3 million year-over-year, marking a 6% growth.
| Financial Metric | Q3 2024 | Q3 2023 | First 9 Months 2024 | First 9 Months 2023 |
|---|---|---|---|---|
| Total Revenues | $27.2 million | $24.1 million | $77.7 million | $73.3 million |
| Net Loss | $(1.3) million | $(4.9) million | $(7.0) million | $(15.6) million |
| Gross Margin | 85% | 90% | 88% | 87% |
Revenue Breakdown
CEVA's revenue is primarily derived from two segments: licensing and royalties. For the third quarter of 2024, licensing and related revenues amounted to $15.6 million, while royalties generated $11.6 million. This reflects a 12% increase in licensing revenues and a 15% increase in royalty revenues compared to the same quarter in 2023.
| Revenue Source | Q3 2024 | Q3 2023 | First 9 Months 2024 | First 9 Months 2023 |
|---|---|---|---|---|
| Licensing and Related Revenues | $15.6 million | $13.9 million | $44.3 million | $45.7 million |
| Royalty Revenues | $11.6 million | $10.1 million | $33.5 million | $27.5 million |
Market Focus
CEVA's strategic focus areas include:
- Consumer Electronics: Enhancing connectivity and processing capabilities in smartphones and smart devices.
- Automotive: Developing solutions for advanced driver-assistance systems (ADAS) and autonomous driving technologies.
- Industrial IoT: Providing robust connectivity and processing solutions for industrial applications.
- Infrastructure: Supporting telecommunications advancements, particularly in 5G technology.
Research and Development Investment
In 2024, CEVA continued to invest significantly in research and development, with expenses totaling $54.7 million for the first nine months, representing 70% of total revenues. This investment is critical for maintaining CEVA's technological edge and fostering innovation.
| R&D Expenses | Q3 2024 | Q3 2023 | First 9 Months 2024 | First 9 Months 2023 |
|---|---|---|---|---|
| R&D Expenses, Net | $18.0 million | $17.8 million | $54.7 million | $54.5 million |
| R&D Personnel | 326 | 322 | 326 | 322 |
Customer Concentration
CEVA's top five customers accounted for 48% of total revenues in Q3 2024, indicating a moderate concentration risk that is typical in the semiconductor industry. This concentration is a result of the industry's consolidation trends.
Geographic Revenue Distribution
In terms of geographic distribution, CEVA's revenue for the first nine months of 2024 was primarily generated from:
| Region | Revenue (in millions) | Percentage of Total Revenue |
|---|---|---|
| United States | $12.0 million | 15% |
| Europe and Middle East | $11.6 million | 15% |
| Asia Pacific | $54.0 million | 70% |
CEVA's mission statement and operational focus reflect its commitment to leveraging its technological capabilities to drive growth in key markets while managing financial performance and customer relationships effectively.
How CEVA, Inc. (CEVA) Works
Company Overview
CEVA, Inc. operates as a licensor of signal processing platforms and artificial intelligence processors. The company specializes in providing technology solutions for the mobile, consumer, automotive, and industrial markets.
Financial Performance
In the third quarter of 2024, CEVA reported total revenues of $27.2 million, representing a 13% increase compared to the same period in 2023. For the first nine months of 2024, total revenues reached $77.7 million, a 6% increase year-over-year.
| Period | Total Revenues | Year-over-Year Growth |
|---|---|---|
| Q3 2024 | $27.2 million | 13% |
| First Nine Months 2024 | $77.7 million | 6% |
Revenue Breakdown
CEVA's revenue is primarily derived from two sources: licensing and related revenues, and royalty revenues.
- Licensing and related revenues for Q3 2024 were $15.6 million, a 12% increase from Q3 2023.
- Royalty revenues for Q3 2024 amounted to $11.6 million, reflecting a 15% increase year-over-year.
| Revenue Source | Q3 2024 | Growth Rate |
|---|---|---|
| Licensing and Related Revenues | $15.6 million | 12% |
| Royalty Revenues | $11.6 million | 15% |
Cost Structure
CEVA's cost of revenues for Q3 2024 was $4.0 million, accounting for 15% of total revenues. This is an increase from 10% in Q3 2023.
Operating Expenses
Total operating expenses for Q3 2024 were $25.9 million, an increase from $24.4 million in Q3 2023. Research and development expenses accounted for $18.0 million of this total.
| Expense Category | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Operating Expenses | $25.9 million | $24.4 million |
| Research and Development Expenses | $18.0 million | $17.8 million |
Profitability Metrics
The gross margin for Q3 2024 was 85%, down from 90% in Q3 2023. The operating loss for Q3 2024 was $7.6 million.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Gross Margin | 85% | 90% |
| Operating Loss | $7.6 million | $10.7 million |
Market Position and Customer Base
CEVA has a concentrated customer base, with the five largest customers accounting for 48% of total revenues in Q3 2024. This concentration is indicative of the semiconductor industry dynamics.
Geographic Revenue Distribution
For the first nine months of 2024, geographic revenue distribution was as follows:
| Region | Revenue | Percentage of Total Revenue |
|---|---|---|
| United States | $12.0 million | 15% |
| Europe and Middle East | $11.6 million | 15% |
| Asia Pacific | $54.0 million | 70% |
Stock Performance
As of September 30, 2024, CEVA's total stockholders' equity was $265.77 million, with retained earnings at $12.96 million.
| Metric | Value |
|---|---|
| Total Stockholders' Equity | $265.77 million |
| Retained Earnings | $12.96 million |
Future Outlook
CEVA continues to focus on expanding its technology portfolio and enhancing its market presence, targeting key growth areas such as IoT and AI-driven solutions.
How CEVA, Inc. (CEVA) Makes Money
Revenue Streams
CEVA, Inc. generates revenue primarily through two main sources: licensing and related revenues and royalty revenues.
| Revenue Source | Q3 2024 Revenue (in millions) | First Nine Months 2024 Revenue (in millions) | Percentage of Total Revenue |
|---|---|---|---|
| Licensing and Related Revenues | $15.6 | $44.3 | 57% |
| Royalty Revenues | $11.6 | $33.5 | 43% |
| Total Revenues | $27.2 | $77.7 | 100% |
Licensing and Related Revenues
In Q3 2024, CEVA recorded licensing and related revenues of $15.6 million, which represents a 12% increase compared to the same quarter in 2023. For the first nine months of 2024, these revenues totaled $44.3 million, reflecting a 3% decrease year-over-year. The increase in Q3 was attributed to several strategic deals, particularly in the 5G-Advanced modem markets.
Ten IP licensing agreements were finalized in the third quarter, targeting various applications, including:
- Embedded AI solutions for consumer AIoT devices
- 5G-Advanced satellite broadband
- Spatial audio for headphones and TWS earbuds
- Bluetooth and Wi-Fi connectivity for wearables
Royalty Revenues
Royalty revenues for Q3 2024 amounted to $11.6 million, marking a 15% increase from Q3 2023. In the first nine months of 2024, royalty revenues reached $33.5 million, up 22% from the previous year. This growth is largely driven by robust demand in the consumer and industrial IoT sectors, with CEVA achieving record shipments of 522 million units in Q3 2024.
The company's technology was embedded in chipsets, with reported sales of 1.354 billion units for the first nine months of 2024. Notably, CEVA's five largest royalty-paying customers accounted for 61% of total royalty revenues in Q3 2024.
Geographic Revenue Distribution
The geographic breakdown of revenues for the first nine months of 2024 is as follows:
| Region | Revenue (in millions) | Percentage of Total Revenue |
|---|---|---|
| United States | $12.0 | 15% |
| Europe and Middle East | $11.6 | 15% |
| Asia Pacific | $54.0 | 70% |
Cost Structure and Financial Performance
CEVA's cost of revenues for Q3 2024 was $4.0 million, representing 15% of total revenues, an increase from 10% in Q3 2023. The gross margin was reported at 85% for Q3 2024, down from 90% in the prior year.
Total operating expenses for Q3 2024 were $25.9 million, compared to $24.4 million in Q3 2023. This increase was primarily due to higher allowances for credit losses and increased spending on research and development, which totaled $18.0 million for Q3 2024.
Net Loss and Earnings Per Share
CEVA reported a net loss of $7.05 million for the first nine months of 2024, with a basic and diluted net loss per share of $0.30. This compares to a net loss of $15.65 million for the same period in 2023.
The financial income, net for Q3 2024 was $4.96 million, reflecting an increase from $3.50 million in Q3 2023, driven by higher interest income from investments and gains from marketable securities.
Future Revenue Expectations
CEVA anticipates future revenues to be bolstered by licensing and related revenues estimated at $3.4 million for the remainder of 2024. The company continues to invest in R&D and strategic partnerships to enhance its market position in the evolving semiconductor landscape.
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Resources:
- CEVA, Inc. (CEVA) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of CEVA, Inc. (CEVA)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View CEVA, Inc. (CEVA)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.