CEVA Inc. (NASDAQ:CEVA) Q1 2017 Earnings Conference Call - Final Transcript

May 04, 2017 • 08:30 am ET

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CEVA Inc. (NASDAQ:CEVA) Q1 2017 Earnings Conference Call - Final Transcript

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Presentation
Operator
operator

Good morning, and welcome to the CEVA Q1 2017 Earnings Conference Call. All participants will be in a listen-only mode. (Operator Instructions) After today's presentation, there will be an opportunity to ask questions. (Operator Instructions) Please note this event is being recorded.

I would now like to turn the conference over to Richard Kingston, VP of Market Intelligence and Investor and Public Relations. Please go ahead, sir.

Executive
Richard Kingston

Thank you, Denise. Good morning everyone and welcome to CEVA's first quarter 2017 earnings conference call. I'm joined today by Gideon Wertheizer, CEO of CEVA; and Yaniv Arieli, CFO of CEVA. Gideon will cover the business aspects and the highlights from the quarter and provide general qualitative data. Yaniv will then cover the financial results for the first quarter and provide guidance for the second quarter of 2017. I will start with the forward-looking statements.

(Forward-Looking Cautionary Statements)

With that said, I would now like to turn the call over to Gideon.

Operator
operator

Pardon me, this is the conference operator, it appears we are having some technical difficulty. I would ask you to continue to hold the line for one moment please. Pardon me, this is the conference operator, I appreciate you holding. I would like to go ahead and connect Yaniv into the call at this moment. Please go ahead, sir. Pardon me, Yaniv? Pardon me, this is the conference operator, again we appear to have some difficulty in technical area. Please hold with the hold music. Pardon me, this is the conference operator, I have connected Yaniv's line. Please go ahead, sir.

Executive
Gideon Wertheizer

Hi, this is the CEVA guys, are we connected now to the call?

Operator
operator

Yes sir, you are connected. Thank you so much.

Executive
Gideon Wertheizer

Okay. Don't worry about that. So, let me start from the beginning with my prepared remark. So, we delivered exceptional results for the first quarter. We achieved an all time high quarterly revenue, including our strongest licensing quarter ever and our key customer wins. Once we took advantage of the world's largest consumer and wireless event CES, Mobile World Congress to announce our next generation platform for a range of application and a number of strategic agreements with customers. I will summarize these achievements in the next few minutes.

Let me begin with the financial highlights. Revenue for the first quarter came in a new record high of $21.3 million, up 29% year-over-year. Licensing and related revenue was also record high at approximately $9.5 million, up 10% year-over-year on the back of 11 deals that were concluded. Of those 11 deals, 8 were for DSP platform and 3 were for our connectivity IPs. All of the 11 bills were for non-handset baseband application, 4 of which were with first time customer. Customers private application include 5G base station, automotive ADAS, surveillance camera, smartphones, smart home appliances and a variety of IoP devices enabled by our connectivity portfolio.

The outstanding licensing performance during the quarter not only delivered record revenue, but also enabled us to grow our backlog because of