Net Loss (USD, thousands)

Depreciation (USD, thousands)

Amortization of Intangible Assets (USD, thousands)

Impairment of Intangible Assets (USD, thousands)

Equity-Based Compensation (USD, thousands)

Realized Loss (Gain) on Sale of Available-for-Sale Marketable Securities (USD, thousands)

Amortization of Premiums on Available-for-Sale Marketable Securities (USD, thousands)

Unrealized Foreign Exchange Loss (Gain) (USD, thousands)

Remeasurement of Marketable Equity Securities (USD, thousands)

Net Cash Provided by (Used in) Operating Activities (USD, thousands)

Purchase of Property and Equipment (USD, thousands)

Business Combination (USD, thousands)

Proceeds from Bank Deposits (USD, thousands)

Proceeds from Maturity of Available-for-Sale Marketable Securities (USD, thousands)

Proceeds from Sale of Available-for-Sale Marketable Securities (USD, thousands)

Net Cash Provided by (Used in) Investing Activities (USD, thousands)

Purchase of Treasury Stock (USD, thousands)

Proceeds from Exercise of Stock-Based Awards (USD, thousands)

Net Cash Provided by (Used in) Financing Activities (USD, thousands)

Effect of Exchange Rate Changes on Cash and Cash Equivalents (USD, thousands)

Decrease/Increase in Cash and Cash Equivalents (USD, thousands)

Income and Withholding Taxes Paid (USD, thousands)

Property and Equipment Purchases Incurred but Unpaid (USD, thousands)

Right-of-Use Assets Obtained for Operating Lease Liabilities (USD, thousands)

Trade Receivables (USD, thousands)

Prepaid Expenses and Other Assets (USD, thousands)

Operating Lease Right-of-Use Assets (USD, thousands)

Accrued Interest on Bank Deposits (USD, thousands)

Deferred Tax, Net (USD, thousands)

Trade Payables (USD, thousands)

Deferred Revenues (USD, thousands)

Accrued Expenses and Other Payables (USD, thousands)

Accrued Payroll and Related Benefits (USD, thousands)

Operating Lease Liability (USD, thousands)

Income Taxes Payable (USD, thousands)

Accrued Severance Pay, Net (USD, thousands)

Investment in Bank Deposits (USD, thousands)

Investment in Available-for-Sale Marketable Securities (USD, thousands)

Cash and Cash Equivalents at the Beginning of Period (USD, thousands)

Cash and Cash Equivalents at the End of Period (USD, thousands)

a3464814de8a591fd8486462b5cf9ebdab3967d26afd170091529afddd671aa1

Overall addressable market size for IoT industrial, consumer and smart home markets (billion devices annually)

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ad80048228e36a9a99b7ce29d133e6ee9729256b00a4a4cb427dbd43c8c85d52

The sharp drop in **Licensing revenue** for Q3 2023 was primarily due to **macroeconomic factors** that slowed funding among smaller semiconductor companies, limiting new customer licensing agreements. Additionally, **broader market dynamics** impacted the semiconductor industry overall, and the **timing of agreements** also played a role in the revenue decline despite strong demand for CEVA’s wireless communications IP portfolio such as **Wi-Fi 7** and **Bluetooth IPs**.  **[0001437749-23-031089_ceva20230930_10q.htm:30]** **[0001437749-23-030793_ex_592002.htm:2]** 

Why did Licensing revenue drop so sharply in Q3 2023?

The negative cost of revenues reported for Q3 2023 is mainly attributable to the absence of several items that had previously increased the cost in Q3 2022. Specifically, there were no **impairment charges** related to prepaid and non‐performing NB-IoT assets, a reduction in **customization work** for licensees, and a slight change in **non-cash equity-based compensation** expense. These factors combined to significantly lower the cost of revenues for that period.  **[0001437749-23-031089_ceva20230930_10q.htm:32]** 

What caused the negative cost of revenues in Q3 2023?

The operating loss was nearly neutralized in Q2 2024 due to a combination of **revenue growth** and an **improved gross margin** that boosted profitability, along with **disciplined expense control** that kept operating costs in check. Additionally, favorable **non-GAAP adjustments** further offset the loss, contributing to a conversion from a large loss in the previous year to a nearly neutral operating result in Q2 2024.  **[20240807SF77950:4]** **[0001437749-24-025030_ex_708355.htm:4]** **[20240807SF77950:0]** 

Why was the operating loss nearly neutralized in Q2 2024?

The dramatic reduction in net loss from continuing operations in Q3 2024 was driven by a combination of factors. **Revenue growth** played a significant role, with total revenues increasing by **13% year-over-year** to **$27.2 million**, which included a **12% increase in licensing and related revenue** to **$15.6 million** and a **15% increase in royalty revenue** to **$11.6 million**.  **[20241107SF50059:4]** **[20241107SF50059:0]** **[0001437749-24-033785_ex_743441.htm:0]**  Additionally, **improved non-GAAP operating income** rose by **30% year-over-year** to **$2.1 million**, bolstered by enhanced operational efficiency.  **[20241107SF50059:1]** **[0001437749-24-033785_ex_743441.htm:1]**  There was also **better cost management**, evidenced by a slightly lower GAAP operating loss and **higher gross profit**, despite a modest decline in gross margins due to customization efforts for 5G advanced deals.  **[20241107SF50059:0]** **[CEVA_3406678_4]**  Finally, **lower GAAP tax expenses**—$1 million less than guidance—further contributed to the improved net loss.  **[CEVA_3406678_4]** 

What drove the dramatic reduction in net loss from continuing operations in Q3 2024?

The reversal from net income to a net loss in Q4 2023 was largely driven by a mix of factors. **Declining revenues** had a major impact, with total revenue dropping from **$30.3 million** in Q4 2022 to **$24.2 million** in Q4 2023, including a sharp decline in licensing and related revenue from **$19.4 million** to **$11.8 million**. In addition, **higher tax expenses** played a significant role—this included a **$1.3 million tax charge** due to a completed tax audit and a **$4.5 million one-time tax charge** associated with the write-off of a deferred tax asset. Furthermore, the operating performance deteriorated, with Q4 2023 reporting a **GAAP operating loss of $2.8 million** compared to the previous period's operating profit. Finally, **one-time expenses** such as equity-based compensation, extrapayment of acquired intangibles, and deal-related costs also contributed to the shift from profitability to an overall net loss.  **[CEVA_3373258_5]** **[0001437749-24-004004_ex_625426.htm:0]** **[0001437749-24-004004_ex_625427.htm:5]** 

What factors contributed to the reversal of net loss in Q4 2023?

dfa8b195b748e16ed2983e67836338f58db0d6d92f9411c6ea383997b1cf7fc0

Operating cash flow in Q1 2023 turned so negative primarily because the company experienced a significantly higher **net loss** of **$(4,872) thousand** compared to **$(1,696) thousand** in Q1 2022. This larger loss was compounded by unfavorable changes in operating assets and liabilities—most notably, an increase in **trade receivables** by **$(3,802) thousand** (in contrast to a decrease of **$3,944 thousand** in Q1 2022) and an increase in **prepaid expenses and other assets** by **$(2,205) thousand**. Additionally, the positive impacts from deferred revenues and accrued payroll and related benefits were substantially lower compared to the previous period, further contributing to the net cash being **$(5,076) thousand** in Q1 2023.  **[0001437749-23-013600_ceva20230331_10q.htm:7]** **[0001437749-23-013600_ceva20230331_10q.htm:29]** 

Why did Operating Cash Flow turn so negative in Q1 2023?

In Q2 2023, the significant decline in operating cash flow was primarily driven by a **substantially higher net loss** compared to the previous period, an **increase in equity-based compensation** (a non-cash expense that required adjustment), a **less favorable change in deferred revenues**, a **marked increase in negative accrued payroll and related benefits**, and **unfavorable changes in accrued expenses and other payables**.  **[0001437749-23-022803_ceva20230630_10q.htm:7]** 

What factors contributed to the significant Operating Cash Flow decline in Q2 2023?

The improvement in Q3 2023’s Operating Cash Flow was driven by a **lower net loss** and the effect of significant **non-cash adjustments**. Specifically, while the net loss in the first nine months of 2023 was still negative, it was notably smaller than in the previous comparable period, and the large non-cash adjustments—particularly from **depreciation and amortization** and **equity-based compensation**—helped mitigate the cash outflows from operations.  **[0001437749-23-031089_ceva20230930_10q.htm:7]**  

What led to the notable improvement in Operating Cash Flow in Q3 2023?

a671227e0fa1a98d2fd99dc4f6b8144e14b7f2043f9da2636fc2a6abad626661

United States

Europe and Middle East

- Germany

Asia Pacific

- China

- Japan

- South Korea

Other

Total Revenue

0459d48e9ed1941871a9537b1c7f5c299ae970cca96d6743c299b9569789f686

4a3a6cbfc90f885eea1c84ea5fc10f01554c8e69d29b8926358752d13b1e527e

cc30e1772a9f03b5226d18073f5b82648a90dbb9a01a3cb3f960f8d92c36d1b9

000884ca56492dc03270242a0a5ae2f4b489192935011cca92491ec8ede652d0

Licensing and related revenue (USD, thousands)

Royalties (USD, thousands)

Total revenues (USD, thousands)

Cost of revenues (USD, thousands)

Gross profit (USD, thousands)

Research and development, net (USD, thousands)

Sales and marketing (USD, thousands)

General and administrative (USD, thousands)

Amortization of intangible assets (USD, thousands)

Total operating expenses (USD, thousands)

Operating loss (USD, thousands)

Financial income, net (USD, thousands)

Remeasurement of marketable equity securities (USD, thousands)

Loss from continuing operation before taxes on income (USD, thousands)

Income tax expense (USD, thousands)

Net loss (USD, thousands)

Basic and diluted net loss per share (USD)

Weighted-average shares used to compute net loss per share, Basic and diluted (thousands)

7b80dd650bb0ec81fd8939d8e6bdd560b5897450d2cb55e89186d5c13eec9009

Cash and cash equivalents (USD, thousands)

Short-term bank deposits (USD, thousands)

Marketable securities (USD, thousands)

Trade receivables, net (USD, thousands)

Prepaid expenses and other current assets (USD, thousands)

Total current assets (USD, thousands)

Severance pay fund (USD, thousands)

Deferred tax assets, net (USD, thousands)

Property and equipment, net (USD, thousands)

Operating lease right-of-use assets (USD, thousands)

Goodwill (USD, thousands)

Intangible assets, net (USD, thousands)

Investments in marketable equity securities (USD, thousands)

Other long-term assets (USD, thousands)

Total long-term assets (USD, thousands)

Total assets (USD, thousands)

Trade payables (USD, thousands)

Deferred revenues (USD, thousands)

Accrued expenses and other payables (USD, thousands)

Accrued payroll and related benefits (USD, thousands)

Operating lease liabilities - current (USD, thousands)

Total current liabilities (USD, thousands)

Accrued severance pay - long-term (USD, thousands)

Operating lease liabilities - long-term (USD, thousands)

Other accrued liabilities - long-term (USD, thousands)

Total long-term liabilities (USD, thousands)

Common Stock (USD, thousands)

Additional paid in-capital (USD, thousands)

Treasury stock at cost (USD, thousands)

Accumulated other comprehensive loss (USD, thousands)

Retained earnings (USD, thousands)

Total stockholders’ equity (USD, thousands)

Total liabilities and stockholders’ equity (USD, thousands)

68ce458292fc25d85695ba7bc49f6db133d6331836223242a10059bc41bebe79

CEVA Inc (CEVA)

Financials