(Adds Q3 EPS outlook, share reaction)
JERUSALEM, July 31 Israeli mobile chip designer
Ceva Inc reported no earnings and missed estimates on
Thursday, pulled down by a 28 percent drop in revenue, but
predicts a stronger third quarter.
Ceva reported diluted earnings per share were zero, versus
EPS of 15 cents a year earlier. Revenue dipped to $9.2 million
from $12.8 million, with both licensing and royalty revenue down
The company was forecast to have earned 4 cents a share
ex-items on revenue of $10.55 million, according to Thomson
Reuters I/B/E/S. Ceva itself had projected revenue of $10-$11
million and adjusted EPS of 3-5 cents.
"Notwithstanding the challenges we experienced in the second
quarter of 2014, we are forecasting record high licensing
revenue for the third quarter driven by strong demand for our
DSPs (digital signal processors)," said Yaniv Arieli, Ceva's
chief financial officer.
Ceva expects third-quarter revenue of $13.3-$14.3 million,
up from $10 million in the same period in 2013. It also foresees
adjusted EPS of 8-12 cents, up from 6 cents a year ago. Analysts
predict EPS of 11 cents on revenue of $12.6 million.
"Looking ahead, we are seeing a good licensing pipeline and
improved visibility for the upcoming quarter," said Gideon
Wertheizer, Ceva's chief executive. "We are expecting
sequential royalty revenue growth driven by an increase in
Ceva's Nasdaq-listed shares were 1.4 percent lower in early
(Reporting by Steven Scheer)