Ceva IP Gets AI Boost

IP developer Ceva has experienced a significant surge in revenue driven by the integration of AI and 5G Redcap into wireless networking chips. In the second quarter of the fiscal year, Ceva reported licensing and related revenues of $17.3 million, marking a 28% increase compared to the previous year. Royalty revenue also saw a notable uptick, reaching $11.2 million, up by 19% year-over-year. The total revenue for the quarter amounted to $28.4 million, reflecting a 24% growth from the same period in 2023.

The company disclosed that it shipped IP in 461 million units during the quarter, representing a 24% increase from the previous year. Notably, Ceva has now shipped over 18 billion devices powered by its technology, with a significant portion being Bluetooth chips. This growth comes at a time when many silicon companies, which are Ceva's customers, are grappling with declining revenue and profits.

AI has emerged as a key driver of Ceva's recent success. The company secured long-term roadmap agreements with two infrastructure OEMs focused on developing custom silicon to meet the rising demand for AI-driven applications on wireless networks. Additionally, Ceva inked a strategic deal with a leading US analog semiconductor company for the Ceva-Waves Bluetooth portfolio, further solidifying its position in the market.

"We are delighted to announce strong execution and results for the second quarter, surpassing our expectations. The growth in licensing and royalty revenue by 28% and 19%, respectively, year-over-year is a testament to the increasing adoption of AI across various industries and devices," stated Amir Panush, the Chief Executive Officer of Ceva. "Our royalty business benefited from overall market strength, market share gains in IoT, and robust growth in the smartphone segment."

Ceva, Inc. disclosed a revenue of $28.4 million for the second quarter of 2024, along with non-GAAP diluted earnings per share of $0.17. The quarter saw the signing of 11 new agreements, including five deals with OEMs. Royalty revenue surged to $11.2 million, marking a 19% increase year-over-year, while Ceva-powered shipments reached 461 million units, up by 25% compared to the previous year.

Throughout the quarter, Ceva entered into eleven IP licensing agreements, focusing on AI for industrial and consumer edge devices, next-generation wireless infrastructure for ubiquitous AI deployment, 5G satellite technology, 5G RedCap integration, and Bluetooth connectivity for wearables and hearables. Notably, five of the agreements were with OEMs, and one deal was signed with a new customer, underscoring Ceva's expanding reach and influence in the market.

The company's strategic shift towards IP development over chip design has been yielding positive results. In the second quarter of 2023, the net loss for discontinued operations amounted to $5.8 million. For more information and detailed insights, visit www.ceva.com.