Operational Highlights:
- Introduced new Wi-Fi 7 platform for high-end consumer and industrial IoT
- Introduced new low power Ultra-Wideband (UWB) IP for consumer and industrial IoT
- Expanded Ceva-NeuPro-M NPU AI ecosystem with new partnerships for automotive and edge AI
- Announced strategic partnership with India's No. 1 audio and wearable brand, boAt for wireless audio
- Partnered with THX to bring premium spatial audio to hearables, consumer and mobile products
- Collaborated with Arm through Arm Total Design to accelerate development of end-to-end 5G SoCs for Infrastructure and NTN Satellites
Total revenue for the first quarter of 2024 was $22.1 million, compared to $26.3 million reported for the first quarter of 2023. Licensing and related revenue for the first quarter of 2024 was $11.4 million, compared to $18.2 million reported for the same quarter a year ago. Royalty revenue for the first quarter of 2024 was $10.7 million, compared to $8.0 million reported for the first quarter of 2023.
Amir Panush, Chief Executive Officer of Ceva, commented: "Our first quarter results reflect solid trends across our business. We achieved year-over-year growth of 33% in royalty revenue and 25% in volume shipments, which increased across every end market we serve. Licensing revenue for the first quarter included strategic early-adopter deals with lead customers for our Bluetooth 6 and Wi-Fi 7 IPs, but overall was lower than anticipated as some deals expected to close in the first quarter were delayed. We have already concluded one of these deals early in the second quarter, a significant agreement with a strategic customer for a next-generation IP in development, and expect others to be executed in the remainder of the year. Overall, I am very encouraged by our diversified licensing pipeline and demand for our next-generation IPs, and I am confident we can reach our total revenue target for the year."
During the quarter, eleven IP licensing agreements were concluded, targeting a wide range of end markets and applications, including Bluetooth 5 connectivity for wearables and industrial IoT, Bluetooth 6 for wireless audio, Wi-Fi 6, Wi-Fi 7 and UWB for smart edge consumer devices, 5G RedCap for consumer and industrial devices, 5G V2X modems for automotive, and audio for smartphones. Two of the deals signed were with first-time customers.
GAAP gross margin for the first quarter of 2024 was 89%, as compared to 87% in the first quarter of 2023. GAAP operating loss for the first quarter of 2024 was $5.0 million, as compared to a GAAP operating loss of $2.6 million for the same period in 2023. GAAP net loss for the first quarter of 2024 was $5.4 million, as compared to a GAAP net loss of $2.7 million reported for the same period in 2023. GAAP diluted loss per share for the first quarter of 2024 was $0.23, as compared to GAAP diluted loss per share of $0.12 for the same period in 2023.
GAAP net loss with the discontinued operation for the first quarter of 2023 was $4.9 million. GAAP diluted loss per share with the discontinued operation for the first quarter of 2023 was $0.21.
Non-GAAP gross margin for the first quarter of 2024 was 90%, as compared to 88% for the same period in 2023. Non-GAAP operating loss for the first quarter of 2024 was $0.8 million, as compared to non-GAAP operating income of $1.2 million reported for the first quarter of 2023. Non-GAAP net loss and diluted loss per share for the first quarter of 2024 were $1.3 million and $0.05, respectively, compared with non-GAAP net income and diluted income per share of $1.2 million and $0.05, respectively, reported for the first quarter of 2023.
Non-GAAP net income including the discontinued operation for the first quarter of 2023 was $0.1 million. Non-GAAP diluted income per share including the discontinued operation for the first quarter of 2023 was $0.00.
Yaniv Arieli, Chief Financial Officer of Ceva, stated: "While we saw a shortfall in licensing revenue in the first quarter, we have managed to build a healthy backlog which will benefit us in the second quarter. We continue to monitor our expenses closely and look for ways to further improve our operating efficiency. At the end of the quarter, our cash and cash equivalent balances, marketable securities and bank deposits were approximately $159 million , and we remain well positioned to pursue opportunities to enhance our product offerings, expand our addressable markets and accelerate our growth."
