TEL AVIV, May 9 (Reuters) - Israeli chip designer Ceva Inc reported on Wednesday lower quarterly profit that missed estimates, weighed down by a drop in royalty revenue due to weakness in the mobile phone market.
Ceva earned 4 cents per diluted share excluding one-time items in the first quarter, compared with 28 cents a share a year earlier. Revenue fell 17 percent to $17.6 million.
The company, a licensor of signal processing platforms and artificial intelligence processors, was forecast to earn 11 cents a share on revenue of $18.7 million, according to Thomson Reuters I/B/E/S.
Ceva said it signed 14 licensing agreements in the quarter including two customers for its new NeuPro AI processor used in autonomous driving systems.
“In our royalty business, the market experienced excess channel inventory in the low tier smartphone and feature phone markets, which resulted in weaker than expected baseband shipments in the first quarter,” CEO Gideon Wertheizer said. (Reporting by Tova Cohen Editing by Steven Scheer)