As announced in May this year, Sir Robin Saxby retired from the ARM board on 1 October 2006, when he became President of the Institute of Engineering and Technology (IET). During his year as President of the IET, he will remain associated with ARM as Chairman Emeritus.
On October 25, 2006 CEVA, Inc. reported financial results for the third quarter, the period ended September 30, 2006. Total revenue for the third quarter of 2006 was $7.9 million, a decrease of 6% compared to $8.4 million for both the third quarter of 2005 and the second quarter of 2006. This $7.9 million was at the low end of range given as guidance last quarter. Licensing revenue for the third quarter of 2006 was $5.5 million, a decrease of 4% compared to $5.7 million for the third quarter of 2005, and an 8.3% decrease form the prior quarter. Royalty revenue for the quarter of 2006 was $1.4 million, a decrease of 7% compared to $1.5 million for the third quarter of 2005, but flat compared to the prior quarter. Revenue from services was $1.0 million for the third quarter of 2006, a decrease of 17% compared to $1.2 million for the third quarter of 2005, and a 9% decrease sequentially.
In the third quarter of 2006, ten new license agreements were signed, bringing the total to twenty-six new license agreements signed in the first nine months of 2006. Of the ten new license agreements, seven were for CEVA DSP cores and platforms, two for CEVA SATA technology and one for CEVA Bluetooth technology
Net income for the quarter was $341K. This compares to losses of $520K and $217K in the same quarter last year and in the previous quarter, respectively.
Yaniv Arieli, Chief Financial Officer of CEVA, stated: "Despite a traditionally challenging third quarter in terms of licensing revenue due to the summer vacation season, we managed to achieve significant milestones with regards to reaching our profitability goals. The last time CEVA reported Non-GAAP positive operating income was six quarters ago, in the first quarter of 2005. We continue to monitor our expenses closely and put more emphasis on top line growth. Our balance sheet continues to be robust with positive overall cash flow of $0.2 million for the third quarter of 2006 and as of September 30, 2006, our total cash, investments, deposits and cash equivalents totaled $63.8 million."
New orders in the quarter totaled $3.8 million. The firm exited the quarter with a backlog of $21.4 million, compared to $19.9 million backlog at the end of the prior quarter. Approximately $9.4 of the total backlog is expected to be recognized as revenue ratably over the next 12 months.
As previously announced, MIPS formed a special committee of independent members of its Board of Directors to review the Company's historical stock option grant practices and the Company's accounting for its option grants. Due to the continuing internal investigation, MIPS is not releasing first quarter fiscal 2007 earnings at this time.
John Bourgoin, MIPS president and CEO, said: "We had an excellent first quarter, with revenue up 65% year-over-year; this is the highest revenue level since early 2001. MIPS earned strong royalties from three key market segments: digital TV, consumer, and broadband. Our strength in those and other markets drove MIPS-Based unit shipments to 90 million last quarter, continuing our impressive royalty growth."
During the quarter, MoSys announced a technology license agreement with Fujitsu Limited, under which MoSys' 1T-SRAM technology is licensed to Fujitsu on its advanced 65nm production process. Another significant deal was concluded after the quarter closed. MoSys recognized revenue from 13 chip developments.
Net loss for the quarter was $2.9 million, compared to a net gain of $50K in the third quarter of 2005 and a net loss of $2.1 million in the second quarter of 2006.
Chet Silvestri, Chief Executive Officer of MoSys, said: “During the third quarter, we continued to make progress on our 65nm and embedded flash initiatives. The agreement with Fujitsu at 65 nanometers is a milestone for MoSys as it further validates the scalability of our technology at the most advanced process nodes and positions our technology for additional adoption into high volume consumer devices. We also signed our first 1T-Flash flash license during the quarter. In addition, we anticipate our royalties beginning to significantly ramp in the fourth quarter and continuing into 2007 as the Nintendo Wii video game console, and other licensees' products, are introduced into the market place."
On the same day, MoSys announced the settlement of all outstanding litigation with UniRAM related to the trade secret misappropriation and patent infringement suit filed in 2004 by UniRAM. Under the settlement agreement, the companies agreed to dismiss all outstanding claims and counterclaims with prejudice. MoSys will pay UniRAM $2.4 million, and receive a complete release of all claims as well as a future fully paid license for itself and all of its licensees. The settlement amount was included in the third quarter results.
Revenue for the third quarter was $45.9 million, up 28% over the third quarter last year and down 6% from the previous quarter. This $45.9 in revenue was above the range given as guidance in the last quarter. This increase over the third quarter last year was driven by new product licensing revenues and patent licensing revenues from agreements announced earlier this year. (Note that the $10 million quarterly royalties from Intel ceased in the previous quarter).
Cash, cash equivalents and marketable securities increased by $5.3 million in the third quarter to an ending balance of $421.2 million as of September 30, 2006.
Harold Hughes, president and chief executive officer at Rambus, said: "We delivered a strong quarter with year-over-year revenue growth. The key, as always, is signing important licensing deals like our latest agreement with Toshiba. Toshiba's licensing of the XDR memory architecture demonstrates our momentum in helping customers bring great products to market through our leadership solutions."