CEVA Inc. (NASDAQ: CEVA), a leading licensor of wireless connectivity and smart sensing technologies, saw its stock soar 5.76% in pre-market trading on November 7, 2024. The rally came after the company reported strong third-quarter 2024 financial results and announced an expansion of its share repurchase program.
For the third quarter, CEVA reported revenue of $27.2 million, up 13% year-over-year, driven by a 12% increase in licensing and related revenue and a 15% rise in royalty revenue. The company's non-GAAP net income more than doubled to $3.4 million, or $0.14 per diluted share, compared to $1.4 million, or $0.06 per diluted share, in the prior-year period.
CEVA's strong performance was attributed to exceptional demand for its IP portfolio, particularly in the consumer and industrial markets. The company signed several strategic deals with OEMs for 5G-Advanced satellite communications, spatial audio for headphones and earbuds, and its first licensing deal for its NeuPro-Nano embedded AI NPU targeting consumer AIoT devices. CEVA-powered shipments reached the second-highest quarterly level on record, including a record of over 400 million combined shipments of Bluetooth, Wi-Fi, and cellular IoT devices.
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