The company’s CEVAnet Partner Network extends its core IP offerings to deliver complete solutions through close working relationships with close to 50 companies in the IC design chain. Partners range from critical application software developers, to IC design tool suppliers, to chip manufacturing foundries.
CEVA Financial Performance
As a supplier of licensable IP, CEVA enjoys a relatively low overhead business model. It achieves its revenues in two forms – an upfront licensing fee for its technology, and a royalty stream once the IP is in production. Its primary customers are the IC suppliers, who integrate the CEVA technology into their chips which are then sold to systems companies/OEMs.
CEVA finished 2010 with almost $45 million in total sales, a new all-time high for the company and an increase of 17% over 2009. Significantly, revenues from royalties increased 55%. In its most recent quarterly results, CEVA showed a year over year sales increase of 36% (including a 60% jump in royalty revenues) and upped its revenue guidance for the full year 2011 to the $57-59 million range. It has a solid balance sheet, including $153 million in cash.
The success of CEVA is based on an alphabet soup of key growth factors: DSP, IP, SoC, 4G, LTE. These terms are now becoming mainstream in the world of electronics. CEVA has combined them strategically into a portfolio of solutions that address a rapidly growing market opportunity, adding technical innovation and a commitment to customer service that has earned it a strong following of customers around the world.
Its strategy is to leverage its position as the number one supplier of DSP IP solutions and grow that alongside the big market drivers fueling DSP growth overall – wireless connectivity, mobile multimedia and home entertainment. Its expertise in programmable, software based solutions help differentiate it from the competition, and its well-run business model provides a solid foundation for growth.
 Footnote: What is a DSP and why is it important? A DSP is a type of chip that converts analog signals to digital ones in real time. This capability is critical to products like cellular phones and mobile media conversion of analog to digital allows for data compression, which has additional advantages: faster processing speeds, elimination of background noise, reduction of required memory space, and lower power consumption. The DSP market continues to grow as the use of mobile devices proliferates throughout the world.
 Footnote: CEVA STOCK CHARTS
SHARE PRICE Oct 7, 2011 = $25.24
OCTOBER 7, 2011 Mkt Cap = $583.22 million
 Footnote: CEVA EXECUTIVE TEAM
Gideon Wertheizer, has 26 years of experience in the semiconductor and Silicon Intellectual Property (SIP) industries. He previously served as the Executive Vice President and General Manager of the DSP business unit at CEVA. Prior joining CEVA in November 2002, Mr. Wertheizer held various executive positions at DSP Group including roles as Executive VP - Strategic Business Development, Vice President for Marketing and VP of VLSI design. Mr. Wertheizer holds a B.Sc. in Electrical Engineering from Ben Gurion University in Israel and executive MBA from Bradford University in the United Kingdom.
Yaniv Arieli has served as our CFO since May of 2005. Prior to this, Mr. Arieli served as President of US Operations and Director of Investor Relations for DSP Group. Other positions held within DSP Group include DSP Cores Licensing Divisions' Vice President of Finance, Chief Financial Officer and Secretary. Prior to joining DSP Group in 1997, Mr. Arieli served as an account manager and certified public accountant in Kesselman & Kesselman, a member of Price Waterhouse Coopers, an accounting firm. Mr. Arieli is a CPA and holds a B.A. in Accounting and Economics from Haifa University in Israel and an M.B.A. from Newport University and is also a member of the National Investor Relation Institute - niri.
Issachar Ohana serves as our Executive Vice President of World Wide sales. Prior to this, Mr. Ohana served as our Vice President of World Wide sales since the company formed through the merger of Parthus and CEVA in 2002. Previously, Mr. Ohana was with DSP Group beginning in August 1994 as a VLSI design engineer. He was appointed Project Manager of DSP Group's research and development in July 1995, Director of Core Licensing in August 1998, and Vice President-Sales of the Core Licensing Division in May 2000. Mr. Ohana holds a B.Sc. in Electrical and Computer Engineering from Ben Gurion University in Israel and an MBA from University of Bradford in England.
Menachem Stern serves as our Vice President of Research & Development at CEVA. Prior to this, Mr. Stern was the Vice President for Software Development Tools and Application Solutions. Mr. Stern has worked with CEVA / Licensing Division of DSP Group since 1995 serving as the Director of Software Development Tools as well as various R&D positions within the department. Mr. Stern holds a BSc degree in Computer Science and Operations Research from the Tel-Aviv University.
Erez Bar-Niv has 16 years of experience in the semiconductor and silicon industries. Prior joining CEVA, Mr. Bar-Niv served as the Vice President of R&D at the Cores BU of DSP Group. Prior to joining DSP Group in 1998, Mr. Bar-Niv held various R&D and application positions in National Semiconductor. Mr. Bar-Niv holds a B.Sc. for electrical engineering from Tel-Aviv University in Israel and holds several US patents.