Benzinga | Nov 9, 2021 12:01PM EST

CEVA Beats Q3 Backed By Edge Tech, Intrinsix Chip Design

* CEVA Inc (NASDAQ:CEVA) reported third-quarter FY21 revenue growth of 31% year-on-year to $32.8 million, beating the consensus of $31.2 million.

* Segments: Licensing, non-recurring engineering (NRE), and related revenue increased 74% Y/Y to $21.6 million. Royalty revenue declined 11% Y/Y to $11.2 million.

* The Q3 saw 25 license agreements, including 13 with first-time customers.

* Non-GAAP EPS of $0.20 beat the consensus of $0.17.

* The gross margin contracted 470 bps to 85.3%, and CEVA held $145.2 million in cash and equivalents.

* "Our IP licensing continues to be very strong, with a growing number of deals for our Bluebud wireless audio platform and Wi-Fi 6 products. It also includes a full quarter contribution from Intrinsix for the first time, with a number of important agreements signed, including with Lockheed Martin Corp (NYSE:LMT). In royalties, our base station and IoT product category continues to expand, reaching an all-time record high revenue and surpassing 400 million royalty-bearing devices in a quarter for the first time," Gideon Wertheizer, CEO of CEVA said.

* Price action: CEVA shares are trading lower by 4.88% at $46.80 on the last check Tuesday.