CEVA Earnings: Here’s Why Investors are Not Excited Now

CEVA Inc. (NASDAQ:CEVA) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 1.08%.

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CEVA Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 45.83% to $0.13 in the quarter versus EPS of $0.24 in the year-earlier quarter.

Revenue: Decreased 19.92% to $12.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: CEVA Inc. reported adjusted EPS income of $0.13 per share. By that measure, the company missed the mean analyst estimate of $0.15. It missed the average revenue estimate of $12.58 million.

Quoting Management: Yaniv Arieli, Chief Financial Officer of CEVA, stated: “Our licensing and related revenue was slightly below what we forecasted primarily due to recognizing partial revenue in the quarter of an important agreement we signed with a tier-one customer in the mobile infrastructure space. We anticipate recognizing the remaining revenues to be generated from this agreement during future periods. Our royalty revenue was primarily impacted by softness in the consumer electronics space while 3G smartphones powered by our DSPs outpaced the seasonal trend. During the first quarter we repurchased approximately 130,000 shares of our common stock for an aggregate consideration of approximately $2 million. At the end of the quarter, our cash balance, marketable securities and bank deposits totaled $157 million.”

Key Stats (on next page)…

Revenue decreased 6.71% from $12.97 million in the previous quarter. EPS decreased 31.58% from $0.19 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.14 and has not changed. For the current year, the average estimate has moved down from a profit of $0.71 to a profit of $0.69 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)