TEL AVIV, April 30 (Reuters) - Israeli mobile chip designer Ceva Inc reported higher quarterly net profit and revenue that beat analysts’ expectations as the company secured new customers.
Ceva said on Wednesday it earned 16 cents a share excluding one-off items in the first quarter, compared with 13 cents a year earlier while revenue rose 13 percent to $13.7 million.
Analysts had forecast Ceva would earn 13 cents on revenue of $12.2 million, according to Thomson Reuters I/B/E/S.
Chief Executive Gideon Wertheizer said the company’s results were boosted by record licensing revenue and included two agreements with key players in network infrastructure and smartphone chipsets.
Licensing revenue jumped 57 percent to $7.9 million while royalty revenue declined 19 percent. The drop reflects inventory adjustment of handsets in preparation for new product releases, Chief Financial Officer Yaniv Arieli said.
“Looking ahead, we believe we are well positioned to benefit from the continuing industry transition towards mass market adoption of smartphones at all price points,” he said. (Reporting by Tova Cohen)