Ceva slumps on lower guidance [Globes, Tel Aviv, Israel]
(Globes (Tel Aviv) Via Acquire Media NewsEdge) Oct. 06--Ceva Inc. (Nasdaq:CEVA); LSE:CVA) saw its share price lose 19 percent on Thursday and Friday after revising downwards its expected revenue for the third quarter of 2013.
Ceva, which licenses silicon intellectual property (SIP) platform solutions and DSP cores for the mobile, digital home and networking markets said it expects to report total revenue of about $10 million, down from company's prior guidance of $11.5 million to $12.5 million.
Ceva CEO Gideon Wertheizer said, "Our licensing and related revenues came in lower than projected for the third quarter due mainly to not closing a significant license agreement. Beyond this licensing agreement, we continue to expand our licensee base and market reach beyond our core market, the cellular handset. During the third quarter, we signed four new, first-time CEVA customers for non-baseband applications for smart meters, satellite communication, automotive and connectivity. We also signed a follow-on agreement with a key player in the wireless infrastructure space."
Ceva added that third quarter operating expenses are forecasted to be higher by $600,000 than previously expected, due to a delay in receiving R&D grant payments from the Office of the Chief Scientist, which were not received in the third quarter, as had been forecasted. "However, these grants are expected to be received in the fourth quarter," Ceva said.
Ceva's share price closed at $13.97 on Wall Street on Friday, giving a market cap of $308 million.
(c)2013 the Globes (Tel Aviv, Israel)
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