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Mar 31, 2023
Ceva Q1 2023 Earnings Report
CEVA reported a decrease in revenue and a net loss compared to the same quarter last year, but saw resilience in its licensing business and growth in cellular IoT and Wi-Fi royalties.
Key Takeaways
CEVA reported a decrease in total revenue for Q1 2023 to $28.7 million, a 16% decrease compared to Q1 2022. The company experienced a GAAP operating loss of $4.8 million and a GAAP net loss of $4.9 million. However, the licensing business showed resilience, and there was record high royalty revenue from cellular IoT and Wi-Fi customers.
Total revenue decreased by 16% year-over-year to $28.7 million.
Licensing revenue decreased by 7% year-over-year to $20.7 million.
Royalty revenue decreased by 33% year-over-year to $8.0 million.
GAAP net loss was $4.9 million, compared to a net loss of $1.7 million in the same period last year.
Ceva
Ceva
Ceva Revenue by Segment
Revenue by Segment
Royalties Revenue
CapyFin.com Forward Guidance
The company remains well positioned to benefit from the long-term global megatrends of 5G, IoT and AI. Connectivity is at the forefront of these trends, and the company continues to build upon its unrivalled position as the leading licensor of 5G, Bluetooth, Wi-Fi and cellular IoT platforms.
Positive Outlook
- Strategic agreements concluded with leading OEMs for 5G smartphones and Wi-Fi access points.
- Agreement with a semiconductor player developing a 5G broadband IoT modem
- Three new Wi-Fi 6 royalty payers in the quarter, marking the beginning of the Wi-Fi 6 royalty cycle.
- Acquisition of RealSpace® 3D Spatial Audio business from VisiSonics Corporation.
- Connectivity is at the forefront of the 5G, IoT and AI trends.
Challenges Ahead
- Royalties were impacted by customer inventory adjustments.
- Prolonged weak demand for smartphones and PCs.
- Total revenue decreased by 16% year-over-year.
- GAAP operating loss for the first quarter of 2023 was $4.8 million, as compared to a GAAP operating income of $0.5 million for the same period in 2022.
- GAAP net loss for the first quarter of 2023 was $4.9 million, as compared to a GAAP net loss of $1.7 million reported for the same period in 2022.