During Wednesday’s trading, CEVA, Inc. (NASDAQ: CEVA) observed a noticeable surge in its stock performance on US market. Showing a significant 21.40% rise, the share concluded the day at $24.51. This positive trend follows the disclosure of CEVA’s financial results.
CEVA, Inc. (CEVA) yesterday unveiled its financial results for the final quarter of 2023, which concluded on December 31. After experiencing a 20% drop from the $30.3 million reported for the equivalent period in 2022, the total revenue for Q4 2023 stood at $24.2 million. Considering ceased activities, the net profit for Q4 2023 amounted to $3.8 million, or $0.16 per share, diluted.
Conversely, for the same quarter in the preceding year, the net income, incorporating discontinued operations, was $1.9 million, with diluted earnings of $0.08 per share. CEVA’s fourth-quarter earnings aligned with predictions despite the challenges encountered in its served sectors.
Through the company’s dedication to enhancing operational efficiency, profitability and earnings potential have significantly risen. Notably, its royalties business grew for the third straight quarter, going back to growing year over year. Strong results in both the consumer and industrial IoT categories as well as recoveries in the mobile industry drove this comeback.
lthough licensing revenues fell short of projections for the quarter, CEVA remains optimistic about diverse licensing opportunities within its technology portfolio. It anticipates augmenting its product range as it forges ahead with the development of new AI-related offerings.
Throughout the quarter, CEVA finalized seventeen IP licensing agreements spanning various end markets and applications. Notably, two of these agreements were secured with OEMs, and three represented first-time customers. These agreements encompass consumer devices, Wi-Fi 6 for industrial IoT, Bluetooth for IoT and medical-grade hearables, AI for automotive ADAS, and 5G RedCap and cellular IoT modems, among others.
CEVA’s position as a leader in the wireless communications market continues to strengthen, with its IP facilitating the connection of over 1.2 billion smart edge IoT devices and more than 280 million smartphones in 2023 alone. Furthermore, the company expanded its product offerings during the year by introducing the NPU family for edge AI and acquiring spatial audio software from VisiSonics, further solidifying its market presence and technological prowess.
