The availability of lower-cost smart phones has already helped increase Android's popularity, according to Jeronimo. In general, the trend towards even cheaper smart phones will continue in 2011, and Android-based products will play an important role in helping bring down prices even further, Jeronimo said.
On October 26. 2010 CEVA, Inc. (NASDAQ: CEVA); (LSE: CVA) announced its financial results for the third quarter ended September 30, 2010.
Total revenue for the third quarter of 2010 was a record $10.7 million, an increase of 11% compared to $9.7 million reported for the third quarter of 2009, and an increase of slightly less than 1% over the just prior second quarter of 2010.
Third quarter of 2010 licensing revenue was $4.5 million, a decrease of 15% compared to $5.2 million reported for the third quarter of 2009. Royalty revenue for the third quarter of 2010 was $5.2 million, an increase of 42% over $3.7 million reported for the third quarter of 2009. Revenue from services for the third quarter of 2010 was $1 million, an increase of 35% from $0.7 million reported for the third quarter of 2009.
Gideon Wertheizer, Chief Executive Officer of CEVA, stated: "We are pleased with our solid performance in the third quarter, including a strategic agreement for the CEVA-XC DSP with a leading semiconductor company, a new powerhouse in the wireless space. Our royalty revenue continues to grow, and we reached a new record high market share of 33% for the worldwide handset cellular baseband market."
"Furthermore, due to projections for stronger than expected shipments of products incorporating our technologies by a few of our customers in the third quarter, we currently anticipate significant sequential increase our fourth quarter royalty revenue," continued Mr. Wertheizer.
U.S. GAAP net income for the third quarter of 2010 was $3.0 million, an increase of 71% compared to $1.8 million reported for the same period in 2009, and up almost 41% sequentially. U.S. GAAP diluted earnings per share for the third quarter of 2010 was $0.13, an increase of 44% compared to $0.09 reported for the third quarter of 2009.
During the quarter, the Company concluded six new licensing agreements. Five agreements were for CEVA DSP cores, platforms and software, and one agreement was for CEVA Bluetooth technology. Target applications for customer deployment are 3G/4G handset and mobile broadband processors, smart metering systems, and Android-based application processors for smart phones, tablets and e-readers. Geographically, two of the agreements signed were in the U.S., three were in Asia and one was in Europe.
Yaniv Arieli, Chief Financial Officer of CEVA, stated: "Our third quarter financial performance demonstrated continued progress towards our long term profitability milestones. We reached a new record high royalty revenue for the fourth consecutive quarter and also recorded all-time highs for GAAP operating margins, which was driven by solid top line growth aligned with on-going expense management. In addition, we continued to generate significant positive cash flow during the quarter which further enhances our already strong balance sheet. As of September 30, 2010, CEVA's cash balance, marketable securities and bank deposits were $117.2 million, an increase of 8% from the second quarter of 2010."
CEVA, Inc. self description
CEVA is the world's leading licensor of silicon intellectual property (SIP) DSP cores and platform solutions for the mobile handsets, portable and consumer electronics markets. CEVA's IP portfolio includes comprehensive technologies for cellular baseband (2G / 3G / 4G), multimedia, HD video and audio, voice over packet (VoP), Bluetooth, Serial Attached SCSI (SAS) and Serial ATA (SATA). In 2009, CEVA's IP was shipped in over 330 million devices, powering handsets from 7 out of the top 8 handset OEMs, including LG, Motorola, Nokia, Samsung, Sony Ericsson and ZTE. Today, one in every three handsets shipped worldwide is powered by a CEVA DSP core. For more information, visit www.ceva-dsp.com.
Chart courtesy Yahoo Finance
CEVA News Item
CEVA Announces Licensing Agreement with PMC-Sierra for Voice-Over-IP Platform to Enable VoIP in Fiber-to-the-Home SoC Solutions
Powered by CEVA-TeakLite-II DSP core, CEVA-VoP™ brings lowest cost per channel VoIP capabilities to PMC-Sierra's GPON products
On December 14, 2010 CEVA, Inc. (NASDAQ: CEVA); (LSE: CVA), announced that PMC-Sierra (NASDAQ: PMCS), the premier Internet infrastructure semiconductor solution provider, had licensed its CEVA-VoP™ voice-over-IP platform for use in PMC-Sierra's next generation system-on-chip (SoC) devices for Fiber-To-The-Home applications.
CEVA-VoP is a complete hardware and software VoIP solution based on the CEVA-TeakLite-II DSP, designed to be deployed in integrated networking and VoP SoCs.
The CEVA-VoP platform is built on top of the widely adopted, fully programmable CEVA-TeakLite-II low-cost DSP engine, and the Xpert-TeakLite-II integrated subsystem - with cached memory, peripherals, and system interfaces - capable of handling multiple, simultaneous voice channels on a single core. The solution includes a fully integrated VoIP software suite, including speech compression and decompression, echo cancellation, telephony functions, and signaling/networking. The incorporated software is open, allowing design licensees to add proprietary algorithms and broaden the use of the design to other markets or applications.
"We required a complete hardware plus software VoIP solution that can be efficiently integrated within our SoC architecture and provide the necessary performance, power and cost efficiencies required in the competitive EPON and GPON markets," said Ofer Bar-Or, PMC-Sierra's vice president and co-general manager, FTTH division. "CEVA's proven VoIP platform provides our EPON and GPON products with the required technology to enable multiple simultaneous voice channels and signal processing functions in our VoIP-enabled SoCs."
"We are pleased that PMC-Sierra has adopted our DSP-based platform to provide VoIP functionality," said Gideon Wertheizer, CEO of CEVA. "The flexibility of the CEVA solution is well suited to support PMC-Sierra's evolving needs as it continues to enhance its product lines with additional VoIP functionality."
About PMC-Sierra, Inc.
PMC-Sierra®, the premier Internet infrastructure semiconductor solution provider, offers its customers technical and sales support worldwide through a network of offices in North America, Europe, Israel and Asia. PMC-Sierra provides semiconductor solutions for Enterprise and Channel Storage, Wide Area Network Infrastructure, Fiber-To-The-Home, and Laser Printer/Enterprise market segments. The Company is publicly traded on the NASDAQ Stock Market under the PMCS symbol. For more information, visit www.pmc-sierra.com .
