CEVA Reports Third Quarter Earnings for FY2023 on November 8th
November 20, 2023
🌥️Earnings Overview
CEVA ($NASDAQ:CEVA) announced its earnings results for the third quarter of FY2023, ending September 30 2023, on November 8 2023. Total revenue in the quarter totalled USD 24.1 million, a decrease of 28.5% from the same quarter the previous year. The company reported a net income of USD -5.0 million, an improvement on the net loss of -22.3 million from the same period in the prior year.
Price History
The stock opened at $18.8 and closed at $19.7, representing a 3.6% decrease from the previous closing price of $20.4. This decrease in stock value follows a recent trend that has seen the company’s stock price decline steadily since mid-October. This was due to cost-cutting initiatives implemented over the past year, such as reducing headcount by 5% and reducing energy usage by 10%.
Overall, CEVA‘s third quarter earnings report showed mixed results, as the company reported declining revenues but improved margins and dividend payments. The company will continue to focus on cost-cutting initiatives in an effort to restore growth in the coming quarters. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Ceva. CEVA_Reports_Third_Quarter_Earnings_for_FY2023_on_November_8th”>More…
| Total Revenues | Net Income | Net Margin |
| 117.67 | -13.71 | -12.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Ceva. CEVA_Reports_Third_Quarter_Earnings_for_FY2023_on_November_8th”>More…
| Operations | Investing | Financing |
| -7.75 | -4.58 | 0.39 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Ceva. CEVA_Reports_Third_Quarter_Earnings_for_FY2023_on_November_8th”>More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 295.99 | 39.29 | 10.9 |
Key Ratios Snapshot
Some of the financial key ratios for Ceva are shown below. CEVA_Reports_Third_Quarter_Earnings_for_FY2023_on_November_8th”>More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 5.4% | 121.4% | -18.6% |
| FCF Margin | ROE | ROA |
| -8.9% | -5.3% | -4.6% |
Analysis
At GoodWhale, we conducted an analysis of CEVA‘s fundamentals and concluded that the company has a high health score of 8/10 according to our Star Chart. This indicates that CEVA is capable to pay off debt and fund future operations. We classified CEVA as an ‘elephant’, which is a type of company that is rich in assets after deducting off liabilities. Given that CEVA is strong in asset, profitability, and medium in growth, but weak in dividend, we believe that long-term value investors may be interested in such a company. Such investors may find CEVA’s stability and potential for long-term capital appreciation attractive. Furthermore, the focus on profitability and assets also make CEVA a viable investment option for those seeking more passive income. 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. reported its earnings results for the third quarter of FY2023, ending September 30th 2023, on November 8th 2023. Total revenue for the quarter was a 28.5% decrease from the same quarter last year, at USD 24.1 million. Net income for the quarter was USD -5.0 million, compared to a net loss of -22.3 million from the same period last year. Following the announcement, the stock price dropped.
Investors are advised to consider CEVA’s financial performance, market share, and competitive positioning before investing to gain an understanding of the company’s overall outlook. Factors such as new product offerings, sales execution, cost structure, and overall industry trends should also be taken into consideration.
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