CEVA INC

For the period ended Sep 30, 2024. Filed Nov 8, 2024.

About this filing

A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Sep 30, 2024 · Filed Nov 8, 2024

CEVA$24.84-8.3%Stored close · as of Nov 9, 2026

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Contents

Item 1. FINANCIAL STATEMENTS

INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

U.S. dollars in thousands, except share and per share data

	September 30, 2024	December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents	$13,228	$23,287
Short-term bank deposits	2,006	10,556
Marketable securities	142,878	132,695
Trade receivables (net of allowance for credit losses of $1,088 and $288 at September 30, 2024 and December 31, 2023, respectively)	38,630	30,307
Prepaid expenses and other current assets	13,970	12,526
Total current assets	210,712	209,371
Long-term assets:
Severance pay fund	6,851	7,070
Deferred tax assets, net	1,685	1,609
Property and equipment, net	6,875	6,732
Operating lease right-of-use assets	5,625	6,978
Goodwill	58,308	58,308
Intangible assets, net	2,132	2,967
Investments in marketable equity securities	309	406
Other long-term assets	12,394	10,644
Total long-term assets	94,179	94,714
Total assets	$304,891	$304,085
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Trade payables	$1,960	$1,154
Deferred revenues	3,418	3,018
Accrued expenses and other payables	6,007	5,800
Accrued payroll and related benefits	13,763	14,402
Operating lease liabilities	2,571	2,513
Total current liabilities	27,719	26,887
Long-term liabilities:
Accrued severance pay	7,304	7,524
Operating lease liabilities	2,627	3,943
Other accrued liabilities	1,471	1,390
Total long-term liabilities	11,402	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 September 30, 2024 and December 31, 2023, respectively. 23,626,747 and 23,440,848 shares outstanding at September 30, 2024 and December 31, 2023, respectively	24	23
Additional paid in-capital	256,685	252,100
Treasury stock at cost (129,508 and 254,342 shares of common stock at September 30, 2024, and December 31, 2023, respectively)	(2,943)	(5,620)
Accumulated other comprehensive loss	(956)	(2,329)
Retained earnings	12,960	20,167
Total stockholders’ equity	265,770	264,341
Total liabilities and stockholders’ equity	$304,891	$304,085

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF LOSS (UNAUDITED)

U.S. dollars in thousands, except per share data

Nine months ended · Three months ended
	September 30,		September 30,
	2024	2023	2024	2023
Revenues:
Licensing and related revenue	$44,266	$45,739	$15,574	$13,940
Royalties	33,450	27,518	11,633	10,133
Total revenues	77,716	73,257	27,207	24,073
Cost of revenues	9,397	9,389	3,961	2,357
Gross profit	68,319	63,868	23,246	21,716
Operating expenses:
Research and development, net	54,739	54,544	17,990	17,814
Sales and marketing	8,999	8,213	3,088	2,862
General and administrative	11,751	11,346	4,642	3,608
Amortization of intangible assets	449	445	150	149
Total operating expenses	75,938	74,548	25,870	24,433
Operating loss	(7,619)	(10,680)	(2,624)	(2,717)
Financial income, net	4,962	3,497	2,299	924
Remeasurement of marketable equity securities	(97)	(76)	21	160
Loss from continuing operation before taxes on income	(2,754)	(7,259)	(304)	(1,633)
Income tax expense	4,296	3,080	1,007	1,117
Net loss from continuing operation	(7,050)	(10,339)	(1,311)	(2,750)
Discontinued operation (Note 4):
Net loss from discontinued operation	—	(5,308)	—	(2,207)
Net loss	$(7,050)	$(15,647)	$(1,311)	$(4,957)
Basic and diluted net loss per share from continuing operation	$(0.30)	$(0.44)	$(0.06)	$(0.12)
Basic and diluted net loss per share from discontinued operation	$—	$(0.23)	$—	$(0.09)
Basic and diluted net loss per share	$(0.30)	$(0.67)	$(0.06)	$(0.21)
Weighted-average shares used to compute net loss per share (in thousands):
Basic and diluted	23,605	23,473	23,678	23,605

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED)

U.S. dollars in thousands

Nine months ended · Three months ended
	September 30,		September 30,
	2024	2023	2024	2023
Net loss:	$(7,050)	$(15,647)	$(1,311)	$(4,957)
Other comprehensive income before tax:
Available-for-sale securities:
Changes in unrealized gains	2,607	1,077	2,177	210
Reclassification adjustments for (gains) losses included in net loss	(14)	(68)	(4)	8
Net change	2,593	1,009	2,173	218
Cash flow hedges:
Changes in unrealized gains (losses)	(199)	(1,006)	140	(376)
Reclassification adjustments for (gains) losses included in net loss	(767)	873	(160)	299
Net change	(966)	(133)	(20)	(77)
Other comprehensive income before tax	1,627	876	2,153	141
Income tax expense related to components of other comprehensive income	254	96	215	27
Other comprehensive income, net of taxes	1,373	780	1,938	114
Comprehensive income (loss)	$(5,677)	$(14,867)	$627	$(4,843)

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’** EQUITY (UNAUDITED)**

U.S. dollars in thousands, except share data

Common stock
Nine months ended September 30, 2024 · Number of shares outstanding · Amount · Additional paid-in capital · Treasury stock · Accumulated other comprehensive income (loss) · Retained earnings · Total stockholders’ equity
Balance as of January 1, 2024	23,440,848	$23		$252,100	$(5,620)	$(2,329)	$20,167	$264,341
Net loss	—	—		—	—	—	(7,050)	(7,050)
Other comprehensive income, net	—	—		—	—	1,373	—	1,373
Equity-based compensation	—	—		11,679	—	—	—	11,679
Purchase of treasury stock	(343,604)	(*	)	—	(7,456)	—	—	(7,456)
Issuance of common stock upon exercise of stock-based awards	61,065	(*	)	—	—	—	—	—
Issuance of treasury stock upon exercise of stock-based awards	468,438	1		(7,094)	10,133	—	(157)	2,883
Balance as of September 30, 2024	23,626,747	$24		$256,685	$(2,943)	$(956)	$12,960	$265,770

Common stock
Three months ended September 30, 2024 · Number of shares outstanding · Amount · Additional paid-in capital · Treasury stock · Accumulated other comprehensive income (loss) · Retained earnings · Total stockholders’ equity
Balance as of July 1, 2024	23,659,925	$24		$254,302	$(1,917)	$(2,894)	$14,271	$263,786
Net loss	—	—		—	—	—	(1,311)	(1,311)
Other comprehensive income, net	—	—		—	—	1,938	—	1,938
Equity-based compensation	—	—		4,208	—	—	—	4,208
Purchase of treasury stock	(186,301)	(*	)	—	(4,180)	—	—	(4,180)
Issuance of treasury stock upon exercise of stock-based awards	153,123	(*	)	(1,825)	3,154	—	—	1,329
Balance as of September 30, 2024	23,626,747	$24		$256,685	$(2,943)	$(956)	$12,960	$265,770

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’** EQUITY (UNAUDITED)**

U.S. dollars in thousands, except share data

Nine months ended September 30, 2023 · Number of shares outstanding · Amount · Additional paid-in capital · Treasury stock · Accumulated other comprehensive income (loss) · Retained earnings · Total stockholders’ equity
Balance as of January 1, 2023	23,215,439	$23		$242,841	$(9,904)	$(6,249)	$32,160	$258,871
Net loss	—	—		—	—	—	(15,647)	(15,647)
Other comprehensive income, net	—	—		—	—	780	—	780
Equity-based compensation	—	—		12,306	—	—	—	12,306
Purchase of treasury stock	(135,078)	(*	)	—	(3,003)	—	—	(3,003)
Issuance of common stock upon exercise of stock-based awards	100,030	(*	)	874	—	—	—	874
Issuance of treasury stock upon exercise of stock-based awards	380,054	1		(7,278)	9,911	—	(115)	2,519
Balance as of September 30, 2023	23,560,445	$24		$248,743	$(2,996)	$(5,469)	$16,398	$256,700

Common stock
Three months ended September 30, 2023 · Number of shares outstanding · Amount · Additional paid-in capital · Treasury stock · Accumulated other comprehensive income (loss) · Retained earnings · Total stockholders’ equity
Balance as of July 1, 2023	23,539,104	$24		$244,250	$(1,462)	$(5,583)	$21,355	$258,584
Net loss	—	—		—	—	—	(4,957)	(4,957)
Other comprehensive income, net	—	—		—	—	114	—	114
Equity-based compensation	—	—		4,242	—	—	—	4,242
Purchase of treasury stock	(135,078)	(*	)	—	(3,003)	—	—	(3,003)
Issuance of common stock upon exercise of stock-based awards	100,030	(*	)	874	—	—	—	874
Issuance of treasury stock upon exercise of stock-based awards	56,389	(*	)	(623)	1,469	—	—	846
Balance as of September 30, 2023	23,560,445	$24		$248,743	$(2,996)	$(5,469)	$16,398	$256,700

(*)	Amount less than $1.

The accompanying notes are an integral part of the consolidated financial statements.

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

U.S. dollars in thousands

	Nine months ended September 30,
	2024	2023
Cash flows from operating activities:
Net loss	$(7,050)	$(15,647)
Adjustments required to reconcile net loss to net cash used in operating activities:
Depreciation	2,155	2,195
Amortization of intangible assets	835	1,718
Equity-based compensation	11,679	12,306
Realized gain on sale of available-for-sale marketable securities	(14)	(68)
Amortization of premiums (accretion of discount) on available-for-sale marketable securities	(654)	41
Unrealized foreign exchange gain	(467)	(148)
Remeasurement of marketable equity securities	97	76
Changes in operating assets and liabilities:
Trade receivables, net	(7,812)	(778)
Prepaid expenses and other assets	(3,711)	(1,969)
Operating lease right-of-use assets	1,353	720
Accrued interest on bank deposits	550	(130)
Deferred tax, net	(330)	(1,486)
Trade payables	422	(836)
Deferred revenues	400	950
Accrued expenses and other payables	353	47
Accrued payroll and related benefits	(703)	(6,237)
Operating lease liability	(1,314)	(718)
Income taxes payable	(368)	(1,372)
Accrued severance pay, net	8	192
Net cash used in operating activities	(4,571)	(11,144)
Cash flows from investing activities:
Purchase of property and equipment	(1,926)	(2,123)
Acquisition of business	—	(3,600)
Proceeds from the sale of Intrinsix (see note 4)	540	—
Asset acquisition	(753)	—
Investment in bank deposits	(2,000)	(2,000)
Proceeds from bank deposits	10,000	6,000
Investment in available-for-sale marketable securities	(41,308)	(10,524)
Proceeds from maturity of available-for-sale marketable securities	24,580	8,800
Proceeds from sale of available-for-sale marketable securities	9,806	10,659
Net cash provided by (used in) investing activities	(1,061)	7,212
Cash flows from financing activities:
Purchase of treasury stock	(7,456)	(3,003)
Proceeds from exercise of stock-based awards	2,883	3,393
Net cash provided by (used in) financing activities	(4,573)	390
Effect of exchange rate changes on cash and cash equivalents	146	(53)
Decrease in cash and cash equivalents	(10,059)	(3,595)
Cash and cash equivalents at the beginning of the period	23,287	21,285
Cash and cash equivalents at the end of the period	$13,228	$17,690
Supplemental information of cash-flow activities:
Cash paid during the period for:
Income and withholding taxes	$3,934	$6,073
Non-cash transactions:
Property and equipment purchases incurred but unpaid at period end	$351	$71
Right-of-use assets obtained in the exchange for operating lease liabilities	$457	$1,562

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The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.