Workflow
CEVA(CEVA) - 2024 Q1 - Quarterly Report
CEVACEVA(CEVA)2024-05-09 20:18
Transcript

Revenue Performance - Total revenues for Q1 2024 were 22.1million,adecreaseof1622.1 million, a decrease of 16% compared to Q1 2023[128]. - Licensing and related revenues were 11.4 million, down 37% year-over-year, accounting for 52% of total revenues[132][133]. - Royalty revenues increased by 33% to 10.7million,representing4810.7 million, representing 48% of total revenues, with a 25% year-over-year increase in shipment volumes[134][137]. - The five largest customers contributed 45% of total revenues in Q1 2024, up from 43% in Q1 2023[129]. - Total revenues for Q1 2024 were 22.5 million, a decrease of 9% compared to 24.8millioninQ12023[138].MarketandCustomerInsights−ElevenIPlicensingdealsweresignedinQ12024,includingstrategicagreementsforBluetooth6andWi−Fi7technologies[135].−TheaddressablemarketforBluetooth,Wi−Fi,UWB,andcellularIoTisprojectedtoexceed15billiondevicesannuallyby2027[116].−ThecompanyanticipatesexpandingitscustomerbaseandrevenuesinEuropeandtheU.S.,complementingitspresenceinAPAC[124].FinancialPerformance−Thecompanyexpectsoverallrevenuegrowthof424.8 million in Q1 2023[138]. Market and Customer Insights - Eleven IP licensing deals were signed in Q1 2024, including strategic agreements for Bluetooth 6 and Wi-Fi 7 technologies[135]. - The addressable market for Bluetooth, Wi-Fi, UWB, and cellular IoT is projected to exceed 15 billion devices annually by 2027[116]. - The company anticipates expanding its customer base and revenues in Europe and the U.S., complementing its presence in APAC[124]. Financial Performance - The company expects overall revenue growth of 4% to 8% in 2024, primarily in the second half of the year[125]. - The infrastructure market remains soft due to low capital expenditures for 5G networks globally[135]. - The first quarter of 2024 included 1.0 million in revenue from a resolved royalty audit, indicating strong royalty performance[134]. Cost and Expenses - Cost of revenues decreased to 2.5millioninQ12024,accountingfor112.5 million in Q1 2024, accounting for 11% of total revenues, down from 13% in Q1 2023[139]. - Gross margin improved to 89% in Q1 2024, compared to 87% in Q1 2023, primarily due to lower cost of revenues[140]. - Research and development expenses were 18.0 million in Q1 2024, representing 82% of total revenues, up from 71% in Q1 2023[142]. - Operating expenses totaled 24.5millioninQ12024,adecreasefrom24.5 million in Q1 2024, a decrease from 25.4 million in Q1 2023, mainly due to lower contractor costs[141]. - Sales and marketing expenses were 2.8millioninQ12024,representing132.8 million in Q1 2024, representing 13% of total revenues, compared to 10% in Q1 2023[144]. Cash Flow and Investments - Cash used in operating activities for Q1 2024 was 7.3 million, resulting from a net loss of 5.4millionandadjustmentsfornon−cashitemsof5.4 million and adjustments for non-cash items of 4.6 million[162]. - As of March 31, 2024, total cash, cash equivalents, bank deposits, and marketable securities amounted to 158.8million,downfrom158.8 million, down from 166.5 million at the end of 2023[158]. - Net cash provided by investing activities for Q1 2024 was 5.1million,downfrom5.1 million, down from 6.5 million in Q1 2023, with a cash outflow of 12.7millionandinflowof12.7 million and inflow of 18.9 million from marketable securities[165]. - Net cash provided by financing activities for Q1 2024 was 0.3million,comparedto0.3 million, compared to 1.7 million in Q1 2023, with 56,872 shares repurchased at an average price of 22.48pershare[166].−Cashreceivedfromtheexerciseofstock−basedawardswas22.48 per share[166]. - Cash received from the exercise of stock-based awards was 1.6 million in Q1 2024, slightly down from 1.7millioninQ12023[167].InvestmentandFinancingOutlook−Thecompanyplanstoevaluatepotentialacquisitionsandinvestments,whichmayrequireadditionalfinancing[168].−Thecompanyexpectstohavesufficientcapitaltofundoperationsforatleastthenext12months,butcannotassuretheaccuracyofrevenueandexpenseassumptions[167].OtherFinancialMetrics−Financialincome,net,was1.7 million in Q1 2023[167]. Investment and Financing Outlook - The company plans to evaluate potential acquisitions and investments, which may require additional financing[168]. - The company expects to have sufficient capital to fund operations for at least the next 12 months, but cannot assure the accuracy of revenue and expense assumptions[167]. Other Financial Metrics - Financial income, net, was 1.26 million in Q1 2024, down from 1.45millioninQ12023,withaforeignexchangelossof1.45 million in Q1 2023, with a foreign exchange loss of 0.19 million[146][147]. - The number of research and development personnel decreased to 331 as of March 31, 2024, from 337 a year earlier[142]. - Unrealized losses on investments were approximately 3.5millionasofMarch31,2024,duetochangesintheinterestrateenvironment[172].−Interestincomeandnetgainsfrommarketablesecuritiesincreasedto3.5 million as of March 31, 2024, due to changes in the interest rate environment[172]. - Interest income and net gains from marketable securities increased to 1.45 million in Q1 2024 from 1.19millioninQ12023,attributedtohigherbankdepositsandyields[173].−Aforeignexchangelossof1.19 million in Q1 2023, attributed to higher bank deposits and yields[173]. - A foreign exchange loss of 193,000 was recorded in Q1 2024, compared to a gain of $263,000 in the same period of 2023[169]. - The company has 643,128 shares available for repurchase as of March 31, 2024[166].