CEVA Shares Fall After Q1 Earnings Miss, Licensing Revenue Decline - CEVA (NASDAQ:CEVA)

CEVA Inc CEVA reported first-quarter FY21 revenue growth of 8% year-on-year to $25.4 million, beating the analyst consensus of $24.01 million. A 56% growth in royalties from base station & IoT product category drove the growth, CFO Yaniv Arieli said.
Licensing and related revenue declined 1% Y/Y to $14.4 million, while Royalty revenue rose 21% Y/Y to $11 million.
Eleven license agreements were completed in Q1, with two agreements out of the eleven were with first-time customers.
Ten of the agreements were inked in China, and one was elsewhere in the Asia-Pacific region.
The Q1 results reflect a strong start for the year, with outstanding execution in licensing and royalty revenues exceeding expectations, CEO Gideon Wertheizer said. The wireless connectivity technologies noted exceptional demand, from Bluetooth 5 and Wi-Fi 6, and new IoT use cases based on the 5G RedCap standard and UWB, Wertheizer added.
Non-GAAP net income declined 88.5% Y/Y to $0.3 million with adjusted EPS of $0.01, missing the analyst consensus of $0.06.
CEVA held $174 million in cash and equivalents.
Price action: CEVA shares fell 7.96% at $48.01 on the last check Monday.