CEVA Tops Q4 Consensus Backed By Robust Demand For IP, Chip Design Portfolio - CEVA (NASDAQ:CEVA)

CEVA Inc CEVA reported fourth-quarter FY21 revenue growth of 21% year-on-year to $34.1 million, beating the consensus of $32.6 million.
Segments: Licensing, non-recurring engineering (NRE), and related revenue increased 77% Y/Y to $21.3 million. Royalty revenue declined 21% Y/Y to $12.7 million.
The Q4 saw 20 license agreements, including 4 with first-time customers.
Non-GAAP EPS of $0.22 beat the consensus of $0.19.
The gross margin contracted 850 bps to 82.6% as the costs soared 138% Y/Y.
CEVA held $155 million in cash and equivalents.
Gideon Wertheizer, the CEO, stated: "Our record fourth-quarter revenue and strong overall performance highlight the incredible demand for our comprehensive IP and chip design portfolio."
Price action: CEVA shares traded higher by 6.35% at $39.37 on the last check Tuesday.