CEVA Inc. (NASDAQ:CEVA) Q4 2019 Earnings Conference Call - Final Transcript

Feb 18, 2020 • 08:30 am ET


CEVA Inc. (NASDAQ:CEVA) Q4 2019 Earnings Conference Call - Final Transcript


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Good day, and welcome to the CEVA Inc. Fourth Quarter and Full Year 2019 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] Please note today's event is being recorded.

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

Richard Kingston

Thank you, Rocco. Good morning, everyone, and welcome to CEVA's fourth quarter and full year 2019's earnings conference call. I'm joined today by Gideon Wertheizer, Chief Executive Officer; and Yaniv Arieli, Chief Financial Officer of CEVA. Gideon will cover the business aspects and highlights from the fourth quarter and full year 2019 and provide general qualitative data. Yaniv will then cover the financial results for the fourth quarter and full year 2019 and also provide qualitative data for the first quarter and full year 2020. I will start with the forward-looking statements.

Please note that today's discussion contains forward-looking statements that involve risks and uncertainties as well as assumptions that, if they materialize or prove incorrect, could cause the results of CEVA to differ materially from those expressed or implied by such forward-looking statements and assumptions. Forward-looking statements include our assessment of the overall licensing market in the first quarter of 2020, our annual 2020 and first quarter 2020 guidance, our anticipated pillars of growth and optimism about achieving such growth objectives, reaffirmation of our 2022 royalty goals, higher R&D expenses in 2020, and market data by Dell'Oro.

For information on the factors that could cause the difference in our results, please refer to our filings with the Securities and Exchange Commission. These include the ability of CEVA's IP for smarter connected devices to continue to be strong growth drivers for us, our success in penetrating new markets and maintaining our market position in existing markets, the ability of new products incorporating our technology to achieve market acceptance, the speed and extent of the expansion of the 5G Wi-Fi contextual awareness and IoT markets, our ability to execute more non-handset baseband license agreements, the effect of trade tariffs and political tensions, the effect of intense industry competition and consolidation and global chip market trends. CEVA assumes no obligation to update any forward-looking statements or information which speak as of their respective dates.

With that said, I'll now hand the call over to Gideon.

Gideon Wertheizer

Thank you, Richard. Good morning, everyone, and thank you for joining us today. CEVA delivered an outstanding fourth quarter and overall excellent year with revenues and EPS both surpassing Street expectations. Moreover, our strong performance in particular on the licensing front set the stage for continued growth in 2020 as will be reflected in the annual guidance that Yaniv will share with you shortly.

I will elaborate in my prepared remarks on the growth pillars and the underlying technology that are driving this performance. Total revenue for the fourth quarter of 2019 came in at $28.3 million, an all-time record high and significantly ahead of street expectations. A brisk