CEVA, Inc. announced its financial results for the second quarter ended June 30, 2010. Total revenue for the second quarter of 2010 was $10.6 million, an increase of 16% compared to $9.1 million reported for the second quarter of 2009. Second quarter of 2010 licensing revenue was $4.6 million, an increase of 7% compared to $4.3 million reported for the second quarter of 2009. Royalty revenue for the second quarter of 2010 was a record high $5.2 million, an increase of 30% over $4.0 million reported for the second quarter of 2009. Revenue from services for both the second quarter of 2010 and 2009 was $0.9 million.

Gideon Wertheizer, Chief Executive Officer of CEVA, stated: "We are extremely pleased with our achievements in the second quarter. Our worldwide market share in the handset cellular baseband space increased to a record 29%, and additional high-profile CEVA-powered product introductions by first-tier handset vendors will further increase our market share going forward.

Wertheizer added, "With substantial growth in data bandwidth requirements for mobile connectivity, we are experiencing strong demand from wireless industry leaders for our flagship CEVA-XC DSP to power their LTE user equipment and facilitate network upgrades. We are also encouraged by continued traction in the home entertainment markets as another first-tier manufacturer adopted our technology during the quarter."
U.S. GAAP net income for the second quarter of 2010 was $2.1 million, a decrease of 8% compared to $2.3 million reported for the same period in 2009. U.S. GAAP diluted earnings per share for the second quarter of 2010 was $0.10, a decrease of 17% compared to $0.12 reported for the second quarter of 2009. U.S. GAAP net income for the second quarter of 2009 included a pre-tax capital gain of $1.9 million related to our equity divestment of GloNav, Inc. to NXP Semiconductors.

Non-GAAP net income and diluted earnings per share for the second quarter of 2010 reached all time highs of $2.7 million and $0.12, respectively, representing an increase of 59% and 50%, respectively, over the $1.7 million and $0.08 reported for the second quarter of 2009. Non-GAAP net income and diluted earnings per share for the second quarter of 2010 and 2009, excluded an aggregate equity-based compensation expense of $0.5 million and $0.7 million, respectively, and a pre-tax capital gain of $1.9 million and the applicable tax expense of $0.5 million, related to our equity divestment of GloNav for the second quarter of 2009.

During the quarter, the Company concluded nine new licensing agreements. All nine agreements were for CEVA DSP cores, platforms and software. Target applications for customer deployment are 3G and 4G handsets, mobile broadband, cellular base stations, VoIP gateways, Digital TVs and Blu-ray players. Geographically, four of the agreements signed were in the U.S., four were in Asia and one was in Europe.

Yaniv Arieli, Chief Financial Officer of CEVA, stated: "We continue to show consistent progress in our financial performance. Revenues for the quarter were at the high end of our guidance and set a new record for royalty revenues for the third successive quarter. In addition, we expanded our existing stock repurchase program with an additional two million shares of common stock available for repurchase, which represents approximately 10% of the Company's total outstanding shares. Finally, we continued to generate significant positive cash flow during the quarter. As of June 30, 2010, CEVA's cash balances, marketable securities and long term bank deposits were $108.6 million, after taking into consideration $1.2 million used for buyback activities."