CEVA Inc. Files Q2 2024 10-Q Report

TL;DR

CEVA Inc. 10-Q filed for Q2 2024. Financials and operations detailed.

AI Summary

CEVA Inc. filed its 10-Q for the period ending June 30, 2024. The filing covers the second quarter of 2024, detailing financial performance and operational updates. Key financial figures and business developments for the period are presented in this report.

Why It Matters

This 10-Q filing provides investors and analysts with a detailed look at CEVA Inc.'s financial health and operational performance during the second quarter of 2024, influencing investment decisions.

Risk Assessment

Risk Level: medium — 10-Q filings are standard for public companies, but the specific financial details and forward-looking statements within can reveal risks.

Key Players & Entities

• CEVA INC (company) — Filer of the 10-Q
• 20240630 (date) — End of the reporting period
• 20240808 (date) — Filing date

FAQ

Key Financial Figures

• $0.001 — cable date: 23,685,941 of common stock, $0.001 par value, as of August 5, 2024. 1 Ta
• $61 billion — nd conversational AI devices will reach $61 billion and $108 billion, respectively, by 2030
• $108 b — l AI devices will reach $61 billion and $108 billion, respectively, by 2030, indicatin
• $1 — 355 $ 258,584 (*) Amount less than $1. The accompanying notes are an integra

Filing Documents

• ceva20240630_10q.htm (10-Q) — 1785KB
• ex_708553.htm (EX-31.1) — 12KB
• ex_708554.htm (EX-31.2) — 12KB
• ex_708555.htm (EX-32) — 6KB
• 0001437749-24-025558.txt ( ) — 9095KB
• ceva-20240630.xsd (EX-101.SCH) — 81KB
• ceva-20240630_def.xml (EX-101.DEF) — 463KB
• ceva-20240630_lab.xml (EX-101.LAB) — 426KB
• ceva-20240630_pre.xml (EX-101.PRE) — 505KB
• ceva-20240630_cal.xml (EX-101.CAL) — 57KB
• ceva20240630_10q_htm.xml (XML) — 1915KB

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 27 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 35 Item 4.

Controls and Procedures

Controls and Procedures 36 PART II. OTHER INFORMATION 36 Item 1.

Legal Proceedings

Legal Proceedings 36 Item 1A.

Risk Factors

Risk Factors 36 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 37 Item 3 Defaults Upon Senior Securities 37 Item 4 Mine Safety Disclosures 37 Item 5 Other Information 37 Item 6 Exhibits 38

SIGNATURES

SIGNATURES 38 2 Table of Contents

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS AND INDUSTRY DATA

FORWARD-LOOKING STATEMENTS AND INDUSTRY DATA This Quarterly Report 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. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. Forward-looking statements are generally written in the future tense and/or are preceded by words such as "will," "may," "should," "could," "expect," "suggest," "believe," "anticipate," "intend," "plan," or other similar words. Forward-looking statements include the following: Our belief that our portfolio of wireless communications and sensing and edge AI technologies address some of the most important megatrends, including 5G, generative AI, industrial automation and vehicle electrification, and our belief in the continued interest in our IP portfolio due to these trends, in both traditional and new areas; Our belief that our Bluetooth, Wi-Fi, Ultra Wide Band (UWB) and cellular IoT IPs allow us to address the high volume IoT industrial, consumer and smart home markets, and our expectation that the overall addressable market size will be more than 15 billion devices annually by 2027 based on research from ABI Research; Our belief that Wi-Fi represents a significant royalty revenue opportunity in connection with our dominant market position in licensing Wi-Fi 6 and our leadership position in Wi-Fi 7 IP; Our belief that our PentaG2 platform, including the recently announced CevaXC22 multi-thread DSP, ensures we offer the most comprehensive baseband processor IP platform in the industry today, and that our 5G IPs provide newcomers and incumbents with a customizable solution to address the need for 5G processing for smartphones, fixed wireless access, satellite communications and a range of connected devic

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

Item 1. FINANCIAL STATEMENTS INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) U.S. dollars in thousands, except share and per share data June 30, 2024 December 31, 2023 ASSETS Current assets: Cash and cash equivalents $ 24,702 $ 23,287 Short-term bank deposits 2,107 10,556 Marketable securities 131,602 132,695 Trade receivables (net of allowance for credit losses of $ 288 at both June 30, 2024 and December 31, 2023) 35,655 30,307 Prepaid expenses and other current assets 13,201 12,526 Total current assets 207,267 209,371 Long-term assets: Severance pay fund 6,762 7,070 Deferred tax assets, net 1,317 1,609 Property and equipment, net 6,843 6,732 Operating lease right-of-use assets 6,137 6,978 Goodwill 58,308 58,308 Intangible assets, net 2,411 2,967 Investments in marketable equity securities 288 406 Other long-term assets 11,069 10,644 Total long-term assets 93,135 94,714 Total assets $ 300,402 $ 304,085 LIABILITIES AND STOCKHOLDERS ' EQUITY Current liabilities: Trade payables $ 1,092 $ 1,154 Deferred revenues 2,830 3,018 Accrued expenses and other payables 6,051 5,800 Accrued payroll and related benefits 12,394 14,402 Operating lease liabilities 2,615 2,513 Total current liabilities 24,982 26,887 Long-term liabilities: Accrued severance pay 7,210 7,524 Operating lease liabilities 2,964 3,943 Other accrued liabilities 1,460 1,390 Total long-term liabilities 11,634 12,857 Stockholders' equity: Preferred Stock: $ 0.001 par value: 5,000,000 shares authorized; none issued and outstanding — — Common Stock: $ 0.001 par value: 45,000,000 shares authorized; 23,756,255 and 23,695,190 shares issued at June 30, 2024 and December 31, 2023, respectively. 23,659,925 and 23,440,848 shares outstanding at June 30, 2024 and December 31, 2023, respectively 24 23 Additional paid in-capital 254,302 252,100 T

BUSINESS

BUSINESS The financial information in this quarterly report includes the results of Ceva, Inc. and its subsidiaries (the "Company" or "Ceva"). Ceva is the leader in innovative silicon and software IP solutions that enable smart edge products to connect, sense, and infer data more reliably and efficiently. With the industry's only portfolio of comprehensive communications and scalable edge AI IP, Ceva powers the connectivity, sensing, and inference in today's most advanced smart edge products across consumer IoT, mobile, automotive, infrastructure, industrial, and personal computing. More than 18 billion of the world's most innovative smart edge products from AI-infused smartwatches, IoT devices and wearables to autonomous vehicles, 5G mobile networks and more are powered by Ceva. Ceva is a trusted partner to many of the leading semiconductor and original equipment manufacturer (OEM) companies targeting a wide variety of cellular and IoT end markets, including mobile, PC, consumer, automotive, smart-home, surveillance, robotics, industrial and medical. The customers incorporate Ceva's IP into application-specific integrated circuits (ASICs) and application-specific standard products (ASSPs) that they manufacture, market and sell to consumer electronics companies. Ceva's application software IP is licensed primarily to OEMs who embed it in their System on Chip (SoC) designs to enhance the user experience, and OEMs also license Ceva's hardware IP products and solutions for their SoC designs to create power-efficient, intelligent, secure and connected devices. Ceva's wireless communications, sensing and edge AI technologies are at the heart of some of today's most advanced smart edge products. From Bluetooth connectivity, Wi-Fi, ultra-wide band (UWB) and 5G platform IP for ubiquitous, robust communications, to scalable edge AI neural processing unit (NPU) IPs, sensor fusion processors and embedded application software that make devices smarter. Ceva licenses its

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