Overview

• US silicon IP licensor's Q1 revenue rose 11% yr/yr, beating analyst expectations

• Adjusted EPS for Q1 declined yr/yr to $0.04 from $0.06

• Company says licensing growth driven by integrated solutions and edge AI adoption

Outlook

• Company did not provide specific financial guidance for the current quarter or full year

Result Drivers

• LICENSING GROWTH - Co said Q1 licensing and related revenues rose 18% yr/yr, driven by demand for integrated, system-level solutions in connectivity and AI

• ROYALTY TRENDS - Record Wi-Fi shipments and growth in cellular IoT, 5G infrastructure and automotive AI drove smart edge royalty revenues, partly offset by softness in smartphones

• AI CONTRIBUTION - AI accounted for more than 20% of licensing and related revenues, with growth supported by automotive production milestones and new collaborations

Company press release: ID:nPn5McfkBa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Beat	$27 mln	$26.12 mln (8 Analysts)
Q1 EPS		-$0.16
Q1 Net Income		-$4.5 mln
Q1 Adjusted Gross Margin		87%
Q1 Adjusted Operating Income		$524,000

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the semiconductors peer group is "buy"

• Wall Street's median 12-month price target for CEVA Inc is $30.00, about 18.9% below its May 8 closing price of $36.97

• The stock recently traded at 61 times the next 12-month earnings vs. a P/E of 33 three months ago

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