NASDAQ$CEVA

Ceva Inc. · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Reported a 6% increase in total revenue year-over-year, with record high royalty revenue contribution from base station & IoT product category.

CEVA, Inc. announced strong financial results for Q3 2020, with total revenue reaching $25.0 million, a 6% increase compared to the previous year. The company saw record high royalty revenue from base station & IoT products, and signed a strategic licensing agreement for ADAS.

  • Total revenue reached $25.0 million, up 6% year-over-year.
  • Royalty revenue from base station & IoT product category increased 86% sequentially and 105% year-over-year.
  • Thirteen license agreements were concluded, with six being with first-time customers.
  • Signed a strategic licensing agreement for ADAS with a leading automotive semiconductor company.

Headline financials

Total Revenue

$25M

Previous: $23.5M+6.3%
EPS (adj)

$0.16

Previous: $0.22-27.3%
Capital Expenditures

-$2.54M

Previous: -$2.66M+4.6%
Free Cash Flow

-$3.28M

Previous: -$1.89M-73.6%
Net Income

-$739K

Previous: $775K-195.4%
Operating Income

$2K

Previous: -$267K+100.7%
Gross Profit

$22.5M

Previous: $20.7M+8.5%
Cash & Equivalents

$153M

Previous: $14.9M+930.2%
Total Assets

$302M

Previous: $294M+2.6%
Stock-Based Comp

$3.55M

Previous: $2.75M+28.9%

Revenue & EPS history

Ceva · Revenue · Quarterly

$25M

Q3 2020+6.3%vs Q3 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Ceva · $24.9M total across 2 segments · Q3 2020

  • Royalties
    $12.5M
  • Licensing and related revenues
    $12.4M

Forward guidance

The press release contains forward-looking statements that involve risks and uncertainties, as well as assumptions that if they materialize or prove incorrect, could cause the results of CEVA to differ materially from those expressed or implied by such forward-looking statements and assumptions.

Tailwinds

  • optimism associated with CEVA’s base station and IoT product category that capitalizes on the fast deployment of 5G base stations in China and record contributions from its Bluetooth, Wi-Fi and sensor fusion technologies
  • capitalizing on CEVA’s broad portfolio and industry reach to expand its customer base and future royalty potential
  • reinforcing CEVA’s leadership position in the highly lucrative automotive semiconductor market

Headwinds

  • the scope and duration of the COVID-19 pandemic
  • the extent and length of the restrictions associated with the COVID-19 pandemic and the impact on customers, consumer demand and the global economy generally
  • the ability of the CEVA DSP cores and other technologies to continue to be strong growth drivers for us
  • our continued success in penetrating new markets and maintaining our market position in existing markets
  • our ability to diversify the company’s royalty streams, the ability of products incorporating our technologies to achieve market acceptance

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q3 2020

Historical avgQ3 2020

-1.0%

Avg return

Earnings day

-1.2%

Avg return

5 days after

-2.6%

Avg return

30 days after

43%

28 / 65 earnings

Positive

+26.8%

Q2 2024

Best reaction

-20.8%

Q4 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.4%-1.3%+11.1%
Q4 2025-9.8%-14.2%-16.3%
Q3 2025-0.6%-6.1%-10.9%
Q1 2025-20.0%-18.8%-23.6%
Q4 2024+10.2%+12.8%-2.7%
Q3 2024+12.3%+11.2%+25.7%
Q2 2024+26.8%+25.1%+42.7%
Q1 2024-7.4%-5.1%-5.2%
Q4 2023+21.3%+14.2%+14.8%
Q3 2023-8.2%-2.1%+6.0%
Q2 2023-12.5%-17.4%-8.4%
Q1 2023-15.4%-13.3%-1.2%
Q4 2022-5.8%-4.7%-15.4%
Q3 2022-3.8%-4.4%-8.6%
Q2 2022-10.8%-8.9%-25.2%
Q1 2022-6.0%+1.0%+4.8%
Q4 2021+13.2%+8.4%+5.5%
Q3 2021-7.4%-2.8%-9.2%
Q2 2021-6.1%-10.8%-10.0%
Q1 2021-12.3%-18.1%-15.0%
Q4 2020+2.1%+0.6%-19.2%
Q3 2020-0.8%-4.2%-4.6%
Q2 2020+1.7%+1.8%-9.2%
Q1 2020-3.3%-5.7%+3.7%
Q4 2019+20.2%+11.4%-25.9%
Q3 2019-0.8%+0.4%-2.1%
Q2 2019+13.3%+19.4%+16.2%
Q1 2019-3.8%-4.3%-5.5%
Q4 2018-11.0%-6.9%-8.2%
Q3 2018+4.7%+0.6%-6.6%
Q2 2018-12.3%-9.1%-7.4%
Q1 2018-11.7%-7.7%-0.6%
Q4 2017-10.7%-9.7%-1.7%
Q3 2017-6.5%-3.3%-2.8%
Q2 2017-6.0%-5.4%-11.1%
Q1 2017+12.7%+20.6%+20.7%
Q4 2016-5.0%+0.6%-5.4%
Q3 2016+1.0%+2.0%-1.0%
Q2 2016+10.2%+7.5%+9.2%
Q1 2016+15.8%
Q4 2015-20.8%
Q3 2015+5.4%
Q2 2015+8.8%
Q1 2015-10.5%
Q4 2014+7.4%
Q3 2014-0.1%
Q2 2014-1.8%
Q1 2014+0.4%
Q4 2013+9.8%
Q3 2013+3.2%
Q2 2013+1.7%
Q1 2013+1.1%
Q4 2011-0.4%
Q4 2012-14.3%
Q3 2012+0.5%
Q2 2012-4.0%
Q1 2011-0.2%
Q1 2012-20.6%
Q4 2009+1.4%
Q3 2011-7.3%
Q3 2010-7.3%
Q2 2010+2.2%
Q2 2011+2.2%
Q4 2010+2.2%
Q1 2010+8.2%

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