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Sep 30, 2022
Ceva Q3 2022 Earnings Report
CEVA reported a year-over-year revenue increase driven by growth in both licensing and royalties.
Key Takeaways
CEVA announced its Q3 2022 financial results, reporting a 3% increase in total revenue compared to the same quarter last year. The company saw growth in both licensing and royalties, with royalties from 5G RAN benefiting from share gains in China and the rollout of new base stations in the U.S.
Total revenue reached $33.7 million, a 3% increase year-over-year.
Licensing, NRE, and related revenue was $22.3 million, compared to $21.6 million in the same quarter last year.
Royalty revenue was $11.4 million, compared to $11.2 million in the same quarter last year.
GAAP operating loss was $4.0 million, while non-GAAP operating income was $6.8 million, up 4% year-over-year.
Ceva
Ceva
Ceva Revenue by Segment
Revenue by Segment
Royalties Revenue
CapyFin.com Forward Guidance
The company expects 5G RAN royalties to grow further next year as 5G base station rollouts in India begin.
Positive Outlook
- CEVA is well-positioned to continue delivering innovation.
- 5G RAN royalties are expected to grow further next year.
- Expansion in the wearable space with a major OEM launching a new device using CEVA's cellular technology.
- Consistent royalty revenue growth from 5G RAN.
- Share gains in China and the rollout of new base stations in the U.S. are helping to grow base station & IoT royalties.
Challenges Ahead
- Challenging demand environment.
- GAAP operating loss for the third quarter of 2022 was $4.0 million.
- GAAP net loss for the third quarter of 2022 was $22.3 million.
- GAAP diluted loss per share for the third quarter of 2022 was $0.96.
- One-time tax asset write-off and impairment charges totaling $21.2 million impacted GAAP results.