2018 Q2 Form 10-Q Financial Statement

#000119312518244307 Filed on August 09, 2018

View on sec.gov

Income Statement

Concept 2018 Q2 2017 Q2
Revenue $17.49M $20.58M
YoY Change -14.97% 20.3%
Cost Of Revenue $1.988M $1.608M
YoY Change 23.63% 14.61%
Gross Profit $15.51M $18.97M
YoY Change -18.25% 20.81%
Gross Profit Margin 88.64% 92.18%
Selling, General & Admin $6.232M $5.979M
YoY Change 4.23% 21.2%
% of Gross Profit 40.19% 31.52%
Research & Development $11.84M $10.51M
YoY Change 12.69% 34.54%
% of Gross Profit 76.38% 55.41%
Depreciation & Amortization $890.0K $790.0K
YoY Change 12.66% 27.42%
% of Gross Profit 5.74% 4.17%
Operating Expenses $18.17M $16.80M
YoY Change 8.16% 28.68%
Operating Profit -$2.661M $2.170M
YoY Change -222.63% -18.02%
Interest Expense $780.0K $760.0K
YoY Change 2.63% 35.71%
% of Operating Profit 35.02%
Other Income/Expense, Net
YoY Change
Pretax Income -$1.884M $2.925M
YoY Change -164.41% -8.82%
Income Tax $206.0K -$983.0K
% Of Pretax Income -33.61%
Net Earnings -$2.090M $3.908M
YoY Change -153.48% 44.15%
Net Earnings / Revenue -11.95% 18.99%
Basic Earnings Per Share -$0.09 $0.18
Diluted Earnings Per Share -$0.09 $0.17
COMMON SHARES
Basic Shares Outstanding 22.13K 21.71M shares
Diluted Shares Outstanding 22.13K 22.56M shares

Balance Sheet

Concept 2018 Q2 2017 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $93.15M $90.31M
YoY Change 3.14% 27.12%
Cash & Equivalents $10.70M $17.10M
Short-Term Investments $82.45M $73.21M
Other Short-Term Assets $6.200M $4.800M
YoY Change 29.17% 26.32%
Inventory
Prepaid Expenses
Receivables $9.246M $10.39M
Other Receivables $0.00 $0.00
Total Short-Term Assets $149.9M $135.2M
YoY Change 10.89% -1.39%
LONG-TERM ASSETS
Property, Plant & Equipment $8.100M $6.157M
YoY Change 31.56% 49.99%
Goodwill $46.61M $46.61M
YoY Change 0.0% 0.0%
Intangibles
YoY Change
Long-Term Investments $48.90M $54.30M
YoY Change -9.94% 184.29%
Other Assets $4.444M $4.093M
YoY Change 8.58% 3.05%
Total Long-Term Assets $124.9M $121.1M
YoY Change 3.14% 45.89%
TOTAL ASSETS
Total Short-Term Assets $149.9M $135.2M
Total Long-Term Assets $124.9M $121.1M
Total Assets $274.8M $256.3M
YoY Change 7.23% 16.44%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $1.000M $300.0K
YoY Change 233.33% -75.0%
Accrued Expenses $4.543M $3.006M
YoY Change 51.13% -17.03%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $20.85M $17.18M
YoY Change 21.36% -3.63%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00
YoY Change
Other Long-Term Liabilities $9.600M $9.500M
YoY Change 1.05% 15.85%
Total Long-Term Liabilities $9.600M $9.500M
YoY Change 1.05% 15.85%
TOTAL LIABILITIES
Total Short-Term Liabilities $20.85M $17.18M
Total Long-Term Liabilities $9.600M $9.500M
Total Liabilities $30.50M $26.60M
YoY Change 14.66% 2.31%
SHAREHOLDERS EQUITY
Retained Earnings $58.07M $45.47M
YoY Change 27.72% 41.24%
Common Stock $219.4M $213.5M
YoY Change 2.73% 1.99%
Preferred Stock
YoY Change
Treasury Stock (at cost) $31.64M $29.06M
YoY Change 8.88% -38.77%
Treasury Stock Shares 1.565M shares 1.708M shares
Shareholders Equity $244.4M $229.7M
YoY Change
Total Liabilities & Shareholders Equity $274.8M $256.3M
YoY Change 7.23% 16.44%

Cashflow Statement

Concept 2018 Q2 2017 Q2
OPERATING ACTIVITIES
Net Income -$2.090M $3.908M
YoY Change -153.48% 44.15%
Depreciation, Depletion And Amortization $890.0K $790.0K
YoY Change 12.66% 27.42%
Cash From Operating Activities $2.020M $4.260M
YoY Change -52.58% -376.62%
INVESTING ACTIVITIES
Capital Expenditures -$2.630M -$840.0K
YoY Change 213.1% 154.55%
Acquisitions
YoY Change
Other Investing Activities $2.030M -$2.420M
YoY Change -183.88% -135.64%
Cash From Investing Activities -$600.0K -$3.260M
YoY Change -81.6% -150.46%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -8.970M 3.380M
YoY Change -365.38% 36.29%
NET CHANGE
Cash From Operating Activities 2.020M 4.260M
Cash From Investing Activities -600.0K -3.260M
Cash From Financing Activities -8.970M 3.380M
Net Change In Cash -7.550M 4.380M
YoY Change -272.37% -40.81%
FREE CASH FLOW
Cash From Operating Activities $2.020M $4.260M
Capital Expenditures -$2.630M -$840.0K
Free Cash Flow $4.650M $5.100M
YoY Change -8.82% -521.49%

Facts In Submission

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<div> <p style="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"> <b>NOTE 13: IMPACT OF RECENTLY ISSUED ACCOUNTING STANDARDS NOT YET ADOPTED</b></p> <p style="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"> In January 2016, the FASB issued ASU <font style="white-space:nowrap">2016-13,</font> &#x201C;Financial Instruments &#x2013; Credit Losses on Financial Instruments,&#x201D; which requires that expected credit losses relating to financial assets measured on an amortized cost basis and <font style="white-space:nowrap"><font style="white-space:nowrap">available-for-sale</font></font> debt securities be recorded through an allowance for credit losses. ASU <font style="white-space:nowrap">2016-13</font> limits the amount of credit losses to be recognized for <font style="white-space:nowrap"><font style="white-space:nowrap">available-for-sale</font></font> debt securities to the amount by which carrying value exceeds fair value and also requires the reversal of previously recognized credit losses if fair value increases. The new standard will be effective for interim and annual periods beginning after January&#xA0;1, 2020, and early adoption is permitted. The Company is currently evaluating whether to early adopt this standard and the potential effect of such adoption on its consolidated financial statements.</p> <p style="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"> In February 2016, the FASB issued ASU <font style="white-space:nowrap">2016-02,</font> &#x201C;Leases (Topic 842),&#x201D; which will replace the existing guidance in ASC 840, &#x201C;Leases.&#x201D; The updated standard aims to increase transparency and comparability among organizations by requiring lessees to recognize lease assets and lease liabilities on the balance sheet and requiring disclosure of key information about leasing arrangements. This ASU is effective for annual periods beginning after December&#xA0;15, 2018, and interim periods within those annual periods; early adoption is permitted and modified retrospective application is required. The Company is in the process of evaluating this guidance to determine the impact the adoption will have on its financial statements and related disclosures.</p> <p style="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"> In August 2017, the FASB issued ASU <font style="white-space:nowrap">2017-12,</font> Derivatives and Hedging (Topic 815)&#x2014;Targeted Improvements to Accounting for Hedging Activities (&#x201C;ASU <font style="white-space:nowrap">2017-12&#x201D;),</font> which improves the financial reporting of hedging relationships to better portray the economic results of an entity&#x2019;s risk management activities in its financial statements and makes certain targeted improvements to simplify the qualification and application of the hedge accounting compared to current GAAP. This update is effective for fiscal years beginning after December&#xA0;15, 2018, with early adoption permitted. The Company is currently evaluating the impact of the adoption of ASU <font style="white-space:nowrap">2017-12</font> on its consolidated financial statements.</p> <p style="font-size:1px;margin-top:12px;margin-bottom:0px"> &#xA0;</p> <p style="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"> In January 2018, the FASB released guidance on the accounting for tax on the global intangible <font style="white-space:nowrap">low-taxed</font> income (&#x201C;GILTI&#x201D;) provisions of the Tax Cuts and Jobs Act (&#x201C;TCJA&#x201D;). The GILTI provisions impose a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. The guidance indicates that either (i)&#xA0;accounting&#xA0;for deferred taxes related to GILTI inclusions, or (ii)&#xA0;treating any taxes on GILTI inclusions as period cost, are both acceptable methods subject to an accounting policy election. In accordance with SEC Staff Accounting Bulletin No.&#xA0;118, and as the Company is not yet able to reasonably estimate the effect of the GILTI tax, as described in note 12 of the Company&#x2019;s 2017 consolidated financial statements included in the Annual Report on Form <font style="white-space:nowrap">10-K</font> for fiscal year 2017, the Company has not yet adopted an accounting policy with respect to the GILTI tax.</p> <p style="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"> Effective no later than January&#xA0;1, 2019, the Company will adopt the accounting standards update that allows for reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the TCJA.&#xA0;The update, which permits early adoption, is effective for annual reporting periods beginning after December&#xA0;15, 2018, including interim periods within those annual periods.&#xA0;The Company continues to evaluate the requirements and does not expect the adoption to have a material effect on its condensed consolidated statements of financial position, operations and cash flows and on the disclosures contained in the notes to condensed consolidated financial statements.</p> </div>
dei Document Fiscal Period Focus
DocumentFiscalPeriodFocus
Q2
dei Document Fiscal Year Focus
DocumentFiscalYearFocus
2018
dei Document Type
DocumentType
10-Q
dei Entity Registrant Name
EntityRegistrantName
CEVA INC
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2018-06-30
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<div> <p style="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"> <b>NOTE 1: BUSINESS</b></p> <p style="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"> The financial information in this quarterly report includes the results of CEVA, Inc. and its subsidiaries (the &#x201C;Company&#x201D; or &#x201C;CEVA&#x201D;).</p> <p style="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"> CEVA licenses a family of signal processing IPs, including comprehensive platforms for 5G baseband processing in handsets and base station RAN, highly integrated cellular IoT solutions, DSP and voice input algorithms and software for voice enabled devices, advanced imaging and computer vision, DSP platforms for any camera-enabled device, and a family of self-contained AI processors that address a wide range of applications. For short-range wireless, we offer the industry&#x2019;s most widely adopted IPs for Bluetooth (low energy and dual mode) and <font style="white-space:nowrap">Wi-Fi</font> (802.11 b/g/n/ac/ax up to 4x4)</p> <p style="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"> CEVA&#x2019;s technologies are licensed to leading semiconductor and original equipment manufacturer (OEM) companies. These companies design, manufacture, market and sell application-specific integrated circuits (&#x201C;ASICs&#x201D;) and application-specific standard products (&#x201C;ASSPs&#x201D;) based on CEVA&#x2019;s technology to wireless, consumer electronics and automotive companies for incorporation into a wide variety of end products.</p> </div>
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<div> <p style="margin-top:18pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"> <b><i>Reclassification</i></b></p> <p style="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"> Certain amounts in the prior years&#x2019; financial statements have been reclassified to conform to the current year&#x2019;s presentation. These amounts are associated with trade receivables and accrued revenues. Such reclassifications have no effect on stockholders&#x2019; equity or net income as previously reported.</p> </div>
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ceva Share Based Compensation Arrangement By Share Based Payment Award Options And Stock Appreciation Rights Exercises In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsAndStockAppreciationRightsExercisesInPeriod
12911 shares
us-gaap Share Based Compensation
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ceva Treasury Stock Value Acquired Weighted Average Method
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ceva Increase Decrease In Accrued Salaries And Related Expenses
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ceva Increase Decrease In Accrued Severance Pay Net
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ceva Increase Decrease In Accrued Interest On Bank Deposits
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ceva Proceeds From Bank Deposits
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P4Y9M18D
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0
ceva Share Based Compensation Arrangements By Share Based Payment Award Options And Stock Appreciation Rights Exercises In Period Weighted Average Exercise Price
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15.90
ceva Share Based Compensation Arrangement By Share Based Payment Award Options And Stock Appreciation Rights Forfeitures And Expirations In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsAndStockAppreciationRightsForfeituresAndExpirationsInPeriodWeightedAverageExercisePrice
18.82
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8000
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3919000
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21712000 shares
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CY2018Q2 us-gaap Cost Of Revenue
CostOfRevenue
1988000
CY2018Q2 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
-0.09
CY2018Q2 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
-0.09
CY2018Q2 us-gaap Gross Profit
GrossProfit
15506000
CY2018Q2 us-gaap General And Administrative Expense
GeneralAndAdministrativeExpense
2833000
CY2018Q2 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
-1884000
CY2018Q2 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
206000
CY2018Q2 us-gaap Investment Income Net
InvestmentIncomeNet
777000
CY2018Q2 us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Before Tax
OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodBeforeTax
-199000
CY2018Q2 us-gaap Operating Expenses
OperatingExpenses
18167000
CY2018Q2 us-gaap Other Comprehensive Income Loss Available For Sale Securities Adjustment Before Tax
OtherComprehensiveIncomeLossAvailableForSaleSecuritiesAdjustmentBeforeTax
-197000
CY2018Q2 us-gaap Other Comprehensive Income Loss Before Reclassifications Net Of Tax
OtherComprehensiveIncomeLossBeforeReclassificationsNetOfTax
-388000
CY2018Q2 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci For Sale Of Securities Before Tax
OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIForSaleOfSecuritiesBeforeTax
-2000
CY2018Q2 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci On Derivatives Before Tax
OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIOnDerivativesBeforeTax
-177000
CY2018Q2 us-gaap Other Comprehensive Income Loss Tax
OtherComprehensiveIncomeLossTax
-47000
CY2018Q2 us-gaap Net Income Loss
NetIncomeLoss
-2090000
CY2018Q2 us-gaap Other Comprehensive Income Loss Before Tax
OtherComprehensiveIncomeLossBeforeTax
-276000
CY2018Q2 us-gaap Other Comprehensive Income Loss Derivatives Qualifying As Hedges Before Tax
OtherComprehensiveIncomeLossDerivativesQualifyingAsHedgesBeforeTax
-79000
CY2018Q2 us-gaap Other Comprehensive Income Loss Net Of Tax
OtherComprehensiveIncomeLossNetOfTax
-229000
CY2018Q2 us-gaap Other Comprehensive Income Unrealized Gain Loss On Derivatives Arising During Period Before Tax
OtherComprehensiveIncomeUnrealizedGainLossOnDerivativesArisingDuringPeriodBeforeTax
-256000
CY2018Q2 us-gaap Operating Income Loss
OperatingIncomeLoss
-2661000
CY2018Q2 us-gaap Other Cost And Expense Operating
OtherCostAndExpenseOperating
14768000
CY2018Q2 us-gaap Reclassification From Accumulated Other Comprehensive Income Current Period Net Of Tax
ReclassificationFromAccumulatedOtherComprehensiveIncomeCurrentPeriodNetOfTax
-159000
CY2018Q2 us-gaap Selling And Marketing Expense
SellingAndMarketingExpense
3399000
CY2018Q2 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
17494000
CY2018Q2 us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
11843000
CY2018Q2 us-gaap Treasury Stock Shares Acquired
TreasuryStockSharesAcquired
269734 shares
CY2018Q2 us-gaap Stock Issued During Period Shares Employee Stock Purchase Plans
StockIssuedDuringPeriodSharesEmployeeStockPurchasePlans
0 shares
CY2018Q2 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
22129000 shares
CY2018Q2 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
22129000 shares
CY2018Q2 us-gaap Treasury Stock Acquired Average Cost Per Share
TreasuryStockAcquiredAverageCostPerShare
33.28
CY2018Q2 ceva Treasury Stock Value Acquired Weighted Average Method
TreasuryStockValueAcquiredWeightedAverageMethod
8975000

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