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CEVA, Inc. (CEVA) Grows by Leaps and Bounds in ‘08

CEVA bills itself as a leading licensor of Silicon Intellectual Property (SIP) platform solutions and Digital Signal Processor (DSP) cores for consumer mobile-electronics. Yesterday, CEVA, Inc. reported first quarter financial results which stand to push it further toward success in the Intellectual Property sector.

From the beginning of January until the end of March, the company recorded over $10 million in total revenue; 30 percent higher than the $7.7 million attained in the first quarter of 2007. CEVA’s royalty revenue (commonly associated with IP licensing) reached an all-time high of $3.7 million, and earnings from services also showed a significant increase. Net income for the first quarter was $5.5 million, compared to $0 in 2007. Diluted net income per share for the quarter was $0.27.

2008 started off great for CEVA. The company concluded ten new license agreements; eight for CEVA DSP cores and platforms, and two for other technologies. Targeted applications include 3G smart phones, cellular femtocells (service-providing docking stations), portable multimedia players and solid state drive (SSD) devices.

Gideon Wertheizer, Chief Executive Officer of CEVA, stated “The first quarter of 2008 represented the most successful quarter in CEVA’s five year history, with record total revenue, royalty revenue, net income and earnings per share. Record royalties of $3.7 million reflect the Company’s growing market share expansion in the cellular handset market. Our strong presence across all the key handset segments, comprising of ultra low-cost, mid-range and high-end 3.5G phones, continues to grow as many of the leading handset manufacturers transitioning to multi-source strategies favor CEVA’s DSP technology.”

There did not seem to be one area in which company development receded in the first three months of this year. With rapidly increasing earnings, and an ever-expanding technology base, CEVA, Inc. is definitely worth a look.

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