Net income for the quarter was $28.1 million, an almost 7% rise from the $26.3 million in the year ago quarter, and an increase of 60% from the $17.7 million in the just previous quarter.
Warren East, ARM Chief Executive Officer, said, “ARM has made good progress in the first half of 2008 in challenging market conditions, further extending the Group's backlog which was already at record levels. We see continued strong demand for ARM's technology including long-term commitments for our processor and physical IP technology by industry leaders.
Prospects for PD licensing in H2 2008 are promising notwithstanding the uncertain current trading environment. We have a broad product portfolio that our customers are designing into applications from mobile computers to microcontrollers. We are encouraged by our second successive quarter of sequential growth in PIPD as we build momentum in that business.
Growth of more than 25% year-on-year in underlying royalty revenues for both PD and PIPD provides further evidence of the increasing use of ARM's technology in a rapidly broadening range of consumer electronics products.”
On July 23, 2008 CEVA, Inc. reported financial results for the second quarter, the period ended June 30, 2008. Total revenue for the quarter was $10.1 million, an increase of 18% compared to $8.5 million reported for the second quarter of 2007, and essentially flat compared to the prior quarter, reflecting seasonal weakness. The $10.1 million was above the midrange of the forecast given last quarter.
Q2 licensing revenue was $6.0 million, accounting for 60% of total revenue, an increase of 9% year-over-year from $5.5 million, and an increase of almost 19% from the $5.1 million in the just previous quarter. Royalty revenue was $3.0 million, 30% of total revenue, a year-over-year increase of 58% but a drop of 18% sequentially. Revenue from services was $1.0 million, 10% of total revenue, a drop of 4% year-over-year and a decline of 18% sequentially.
During the quarter CEVA concluded eight new license agreements. Seven agreements were for CEVA DSP cores, platforms and software, and one agreement was for CEVA Bluetooth technology. Seven of these were in Asia and one in Europe. CEVA also concluded two strategic licensing agreements with tier 1 OEMs for its DSP cores and platforms. CEVA is reportedly the leading DSP IP provider with 61% marketshare, up 10% year-over-year. CEVA has 180 employees.
CEVA licensees shipped 70 million units in the 2nd quarter. This was a 54% growth from the same period a year ago, but down 18% from the record highs in the last two quarters. Of the 70 million units, 48 million were from licensees paying per unit royalty. CEVA has 27 licensees, of which 20 are paying per unit royalties versus drawing down from prepaid royalties.
Net income for the quarter was $0.7 million, a 61% increase compared to $0.4 million for the second quarter of 2007, but a drop of 88% versus $5.5 million in the just preceding quarter.
Gideon Wertheizer, Chief Executive Officer of CEVA, stated, "During the second quarter of 2008, CEVA continued to expand its licensing activities and customer base in the handset market with strategic agreements in LTE and 3G data cards. We continue to see the introduction and adoption of new handsets enabled by our technologies which we believe will further contribute to our growth. We also are encouraged by the growing adoption of our technologies beyond cellular to wireless and consumer electronics applications."
Yaniv Arieli, Chief Financial Officer of CEVA, stated, "During the first half of 2008, CEVA achieved strong financial performance as compared to prior years. CEVA achieved an increase of 24% in revenue for the first six months of 2008 as compared to the same period in 2007, as well as a significant increase of 1400% in fully diluted EPS when comparing the same periods. The results for the first half of 2008 include a capital gain of $7.7 million, net of taxes, associated with CEVA's divestment of its equity interest in GloNov Inc. and a restructuring expense of $3.5 million associated with the termination of the Harcourt lease.”
Net loss for the quarter was $1 million, compared to net losses of $1.1 million and $1.3 million in the year ago quarter and in the prior quarter, respectively.
James T. Healy, president and CEO of LogicVision, said, “The second quarter of 2008 was another good quarter. Our revenues, net loss and cash position were in line with the guidance we gave in April, and our bookings were $7.1 million. The new orders came from 15 customers and included a sizeable renewal from an existing major customer as well as a first-time order from a new customer that could potentially grow into a bigger account. This quarter's bookings combined with $10.5 million of new orders in the first quarter gives us a total of $17.6 million of new orders in the first half of 2008 -- making it the highest six-month booking period in the company's history.”
Royalty revenue of $10.8 million in Fiscal Q4, accounting for 32% of total revenue, was a drop of 4.4% year-over-year, and a drop of 14.3% sequentially. The reduction in royalty revenue was driven by a combination of lower volumes and the impact of reduced per-unit royalties attributable to certain customers reaching specified volume levels.
Fiscal Q4 contract and license revenue was $18.1 million, an increase of 22% from the $14.8 million reported in the prior quarter, and a hefty increase of 46% from the $12.4 million reported in the fourth quarter a year ago. This Fiscal fourth quarter contract and license revenue increase was due to strong Processor Business Group licensing results ($10.1 million) partially offset by lower Analog Business Group license results ($7.9 million).
Net loss for the fourth Fiscal quarter was a giant $108 million, compared to a net gain of $2.3million in the year ago quarter, and compared to a net loss of $4.3 million in the prior quarter.
Why was the Q4 loss so large? In connection with the completion of accounts for the fiscal year, the company evaluated the intangible and goodwill assets recorded for the Chipidea acquisition (August 27, 2007) and concluded that a significant reduction in value was required, given the softening overall market for IP and delays experienced in realizing expected synergies. MIPS Technologies also concluded that several other impairments should be recorded with respect to other acquisitions and investments. Accordingly, Fiscal Q4 operating expenses of $126.1 million included a $103.1 million impairment of goodwill and intangible assets, of which $101.4 million was associated with the Analog Business Group (Chipidea).
For the entirety of Fiscal 2008, MIPS reported revenue of $97.8 million, up 17.4% from the $83.3 million in the preceding year. Royalty revenue was $46.4 million, or 47% of total revenue. This was an increase of 4.4% from fiscal 2007. License and contract revenue was $51.4 million, up 32.2% from the previous year. Net loss for the year was $131 million, compared to a net gain of $8.4 million in the prior year.