Wunderlich Securities Provides Color On CEVA 4Q

CEVA, Inc. CEVA reported 4Q10 earnings of $0.19 on revenue of $13.0 million, which increased nearly 28% for the strongest revenue growth since the company became public approximately eight years ago, Wunderlich Securities reports. “We had forecast EPS of $0.17 on sales of $12.5 million (consensus was similar), which was at the mid-range of guidance for EPS of $0.16-$0.18 on sales of $12-$13 million,” Wunderlich Securities writes. “A penny of the upside was from lower-than-expected taxes. “While Apple AAPL grew smartphone unit volume 93% over the past two quarters, CEVA volume associated with mobile devices grew 114%. We estimate iPhone contribution to CEVA royalty revenue to be less than 8% and expect strength from other customers to enable the company to achieve guidance, even if Apple moves to a competitor for iPhone 5.” CEVA closed Monday at $24.17.