https://www.fool.com/investing/2018/01/22/3-low-key-artifici…
CEVA looks the most interesting to me Analysts made a huge miss Q3 so they may be missing something Chart good but not great , revenues and earnings increasing. OTOH it’s mostly hardware -or maybe not
comprehensive, scalable, integrated hardware and software IP platform centered on the CEVA-XM6 includes the CEVA Deep Neural Network (CDNN) toolkit, which greatly simplifies the development and deployment of deep learning systems for mass-market embedded devices. Added to this are hardware accelerators, software libraries, and a broad set of algorithms that support the development process and minimize cost, risk, and time-to-market.
https://www.ceva-dsp.com/product/ceva-xm6/
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Mauser
I have been in CEVA for a long time - since the Parthus days. I sold our recently for about 1000% gain. They have a ton of IP that seems highly valuable to me but they never seem to making massive market penetration with it.
Their latest upturn was on the back of Intel steeling away modem chips from Qualcomm. This held promise as mentioned in the article…
CEVA’s potential win at Apple could be a sign of bigger things to come for the company. It’s likely that Apple has decided not to use Qualcomm’s DSPs because of its feud with the chipmaker, so CEVA could be a long-term beneficiary.
However a couple of things struck me when I decided to sell.
- Even if there is a feud and Apple are not paying Qualcomm their royalties and are taking them to court they still use Qualcomm modems. With the latest release of the the Apple 8 and X, Qualcomm still held slots in most of the worldwide models.
- In head to head trials the Intel modem performance was absolutely cruddy compared to Qualcomm and still wouldn’t cover all ranges and signal types.
Add on the fact that Intel chips appear compromised and the patches impact performance by 25% I wouldn’t be wanting to nail my stock to the Intel mast. This performance shortfall and security flaw will probably mean Intel continued to use Qualcomm as well as accelerates their intentions to design chips in house. All meaning that CEVA’s ride on the Intel coat-tails is potentially about end.
I exited along with my Audiocodes after a very long holding period. Unless CEVA radically change and bend the line, I’m through with any more of the same old mega promise accompanied by pedestrian results.
Ant
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Ant and Mauser,
How does CEVA make money?
Is revenue recurring?
How fast do you expect them to grow in 2018?
Thanks,
Bear
Combo of licensing and royalties. Licensing are one off revenues, royalties are recurring and from memory these should be good for a 5-10 year tailing off. They need to keep innovating obviously. Only question is whether things like 5G or CDMA replacements etc change the game and disrupt Ceva’s technology. Sometimes it works in their favour but sometimes it might not.
With ARM gone, CEVA is one of the last Chip IP houses around to invest in.
They promise a lot and have grown well but it seems to be reducing in growth rates.
Ant
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