To continue the story guys - the progress looks good and consistent, CEVA pre-announced year end numbers this week. The licensing activity and the numbers are very interesting and that leaves me with some research and thinking to do on this in order to disambiguate the intel impact within iPhone and the broader longer term opportunity (http://seekingalpha.com/article/4007619-ceva-story-just-appl…) - I’m hoping the eventual
If we look at revenues - these are estimated at above guidance at an all-time high too - $21.2m vs guidance of $18.5-19.5m. Whilst growing slightly with a lot of erratic seesawing in the numbers along the way (top and bottom line), since mid 2015 with the LTE roll out hitting full steam and the RivierraWave acquisition bedding in, Ceva numbers has been demonstrating the very model of growth.
Returning to the article in the link at the beginning of this post, I have been caught in 2 minds whether:
This is proving a short term bounce based on Intel (and therefore Ceva) winning a modem slot in a model of the iPhone and Qualcomm’s Snapdragon 810 getting kicked out of Samsung - leaving Ceva with an opportunity but with Qualcomm’s 820 back in Samsung and Intel’s modem under performing Qualcomm’s significantly - these gains could be very quickly reversed;
versus…
If actually and looking at the licensing activity these gains are coming from deep learning, visual intelligence, smart home and automotive arenas; then Ceva may actually have a long road of growth ahead of it and immune from short term Intel type boosts.
Err am I imagining it or has the Fool completely done away with board search functionality? Ok with help from Google and none from TMF’s pitiful remaining search function and to continue this thread…
The forward guidance beat expectations and the shares tanked.
No transcript yet but with Qualcomm in the litigation dog house it offers Intel and CEVA a ray of hope for continued Apple business along with their uber strong IoT success.
Ant
Somehow I get the feeling that MF regards the boards as a nuisance.
When to me they are the most important part of MF. No corrections after posting (a feature found on services like investors hub) now no search.
While I find MF recommendations useful ,I find some of the posters even more useful.
As you may have noticed - CEVA is by a long way the highest % gainer out of all my current holdings in my monthly portfolio review.
With Apple looking as though it is going to go nuclear on Qualcomm in favour of either Intel or an in-house chipset CEVA looks like it could be in for a good run. It is also very well positioned for 5G and for the next wave of bluetooth and Visual AI (e.g. ADAS etc).
They have just announced results which take the consistency in business performance to another level. Adding to the numbers I recorded previously, here are the revenues and earnings track record. https://seekingalpha.com/pr/16821121-ceva-inc-announces-firs…
Ceva revenue numbers are now demonstrating consistently solid double digit growth (every Q for the last 2 years). They seem to be settling around the 30% YoY growth rate.
They are becoming a worthy successor to my ARM fabless IP licensing investment… Ant
Ant
OK, Ant, you convinced me. I spent the entire morning getting a handle on the business and the financials. I liked what I saw, but it is an expensive company sporting a market cap ~ 10 annual revenues. Plus, insiders like to award themselves lotsa options for quick cash-outs. Sigh. Taking everything into consideration, I placed a GTC order to buy an entry position at $37.00. Meanwhile, I’ll keep studying the company. Like you, I’m rather partial to the ARM business model of fabless IP licensing.
Sure mate. If you want to play it safe you could wait till the iPhone 8 release tear down to see if Intel clean sweeps the modem chips away from Qualcomm. If that does happen it will be a big kicker for CEVA.
Ant
