Smallcap Stock CEVA Clocks Mixed Q4 Results, Royalty Revenue Gains Amid Licensing Revenue Declines
Portfolio Pulse from Anusuya Lahiri
CEVA, Inc (NASDAQ:CEVA) reported mixed Q4 FY23 results with a 20% year-on-year revenue decline to $24.16 million, missing consensus estimates. However, adjusted EPS of $0.10 exceeded expectations. Licensing and related revenues fell by 39.2%, while royalty revenues increased by 13%. The company also improved its adjusted gross margin to 92% and concluded seventeen IP license and NRE agreements. CEVA's stock price rose by 18.60% to $23.95.
February 14, 2024 | 5:25 pm
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CEVA, Inc reported mixed Q4 FY23 results with a notable decline in revenue but exceeded EPS expectations. The stock price surged by 18.60% to $23.95.
Despite the revenue decline, CEVA's better-than-expected EPS and the significant improvement in its stock price indicate a positive short-term impact. The increase in royalty revenue and improved gross margin also contribute to a positive outlook, offsetting the decline in licensing revenue.
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