CEVA Reports Earnings Results for Q2 FY2023
August 11, 2023
🌥️Earnings Overview
CEVA ($NASDAQ:CEVA) reported their earnings results for the second quarter of FY2023, which ended on June 30 2023, on August 9 2023. Total revenue for the quarter fell by 21.2% compared to the same period of the prior year, to USD 26.2 million, while net income was USD -5.8 million, a significant decrease from the -1.1 million reported in the corresponding quarter of the previous year.
Market Price
On Wednesday, CEVA reported their earnings results for Q2 FY2023 with their stock opening at $22.2 and closing at $22.1, plunging by 12.1% from the prior closing price of 25.1. This was a result of the company’s disappointing financial results. CEO and President of CEVA, Yair Seroussi, commented on the earnings results stating “The second quarter represented a challenging period for the company”. CEVA reported that their revenue had decreased by 12% year-on-year with a decrease in gross profit margin of 3 percentage points compared to the same period last year. Operating income also decreased significantly due to a combination of costs associated with selling, general and administrative expenses, research and development expenses and impairment charges.
This was a significant increase compared to the net income of $1 million reported in the same period last year. In light of these results, CEVA is actively working on cost reduction initiatives and is reassessing its capital expenditure plans for the remainder of the year. Overall, this quarter has been challenging for CEVA and they are now asking investors to remain patient as they look to improve their financials going forward. ceva&utm_title=CEVA_Reports_Earnings_Results_for_Q2_FY2023″>Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Ceva. More…
| Total Revenues | Net Income | Net Margin |
| 121.97 | -31.05 | -23.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Ceva. More…
| Operations | Investing | Financing |
| -4.65 | 11.51 | 1.1 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Ceva. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 300.27 | 41.69 | 10.99 |
Key Ratios Snapshot
Some of the financial key ratios for Ceva are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 7.2% | 121.4% | -13.1% |
| FCF Margin | ROE | ROA |
| -6.0% | -3.9% | -3.3% |
Analysis
At GoodWhale, we’ve conducted an in-depth analysis on CEVA’s fundamentals. After careful review, we have concluded that CEVA is a high risk investment when considering both financial and business aspects. We have detected four risk warnings across the income sheet, balance sheet, cashflow statement, and nonfinancials. If you would like to take a closer look at our findings, you can register with us. Our analysis on CEVA can provide you with key insights into the investment’s potential risks associated with it. With this knowledge, you will be able to make more informed decisions about investing in CEVA. ceva&utm_title=CEVA_Reports_Earnings_Results_for_Q2_FY2023″>More…
Peers
Its competitors are Amtech Systems Inc, Qorvo Inc, GSI Technology Inc.
– Amtech Systems Inc ($NASDAQ:ASYS)
Amtech Systems Inc, a Nasdaq-listed company, is engaged in the design, manufacture and sale of capital equipment, including thermal processing equipment, for use in the solar, semiconductor, LED and other industries. The Company offers a comprehensive range of diffusion, wafer handling, annealing and furnace systems.
As of 2022, Amtech’s market cap was $132.23 million and its ROE was 1.5%. The company’s main products are thermal processing equipment and systems for use in solar, semiconductor, LED and other industries.
– Qorvo Inc ($NASDAQ:QRVO)
Qorvo Inc is a company that designs, manufactures, and supplies radio frequency (RF) systems and solutions for applications that drive wireless and broadband communications. The company has a market capitalization of 8.94 billion as of 2022 and a return on equity of 13.39%. Qorvo’s products include RF front-end solutions, power amplifiers, switches, and embedded security solutions. The company’s products are used in a variety of applications, including 3G/4G/5G smartphones, base stations, WiFi, GPS, and satellite communications.
– GSI Technology Inc ($NASDAQ:GSIT)
GSI Technology is a fabless semiconductor company that designs, manufactures and markets high-performance memory products for the communications, networking, computing and consumer electronics markets. The company’s products include SRAM, DRAM and Flash memory products.
GSI Technology’s market cap is 48.86M as of 2022. The company has a Return on Equity of -14.92%.
The company’s products are used in a variety of applications including:
– Communications: Networking and storage equipment, base stations, routers, switches, and communications processors
– Computing: PCs, servers, workstations, and embedded systems
– Consumer Electronics: Smartphones, digital cameras, gaming devices, and set-top boxes
Summary
CEVA Inc.’s second quarter earnings for FY2023, ended on June 30, were reported on August 9. The total revenue was USD 26.2 million, a 21.2% decrease compared to the same period last year. The net income was USD -5.8 million, a significant drop from the prior year’s figure of -1.1 million. The stock price reacted negatively to the news, falling on the same day. Investors ought to keep an eye on CEVA’s performance, as the company has yet to recover from this significant dip in revenue and income.
However, long-term investors may still be optimistic about CEVA’s prospects, as the company appears to be taking steps to ensure future growth and success.
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