Shares of CEVA Inc. (NASDAQ: CEVA), a leading licensor of wireless connectivity and smart sensing technologies, surged over 7.5% in early trading on November 7, 2024, following the company's impressive third-quarter financial results and the announcement of an expanded share repurchase program.
For the third quarter of 2024, CEVA reported revenue of $27.2 million, marking a 13% year-over-year increase. The company's robust performance was driven by exceptional demand for its IP portfolio, particularly in the consumer and industrial markets. CEVA signed several strategic deals with OEMs for 5G-Advanced satellite communications, spatial audio for headphones and earbuds, and its first licensing deal for the NeuPro-Nano embedded AI NPU targeting consumer AIoT devices.
On the profitability front, CEVA'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. This impressive earnings growth was fueled by the strong revenue performance and ongoing operational efficiency measures.
Additionally, CEVA announced that its Board of Directors had authorized the expansion of the company's share repurchase program, adding an additional 700,000 shares of common stock available for repurchase. This move brings the total shares available for repurchase to approximately 1 million, reflecting the management's confidence in CEVA's ongoing performance and long-term strategy to drive profitable growth.
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