Why CEVA (CEVA) Shares Are Falling Today - CEVA (NASDAQ:CEVA)

CEVA, Inc CEVA reported a first-quarter FY23 revenue decline of 16% year-on-year to $28.7 million, missing the consensus of $31.6 million.
Segments: Licensing, non-recurring engineering (NRE), and related revenue decreased 7% Y/Y to $20.7 million. Royalty revenue declined by 33% Y/Y to $8 million.
The quarter saw 13 license agreements, including 5 with first-time customers.
Non-GAAP EPS of $0.00 missed the consensus of $0.12.
CEVA held $136.8 million in cash and equivalents.
Amir Panush, Chief Executive Officer of CEVA, stated: "Our licensing business continued to show resilience in the first quarter, underpinned by strategic agreements for our 5G DSPs with a leading Android smartphone OEM and a wireless semiconductor company and for our Wi-Fi 6 platform with a global leader of Wi-Fi access points. Royalties were impacted by customer inventory adjustments and prolonged weak demand for smartphones and PCs."
CEVA also announced the acquisition of the RealSpace 3D Spatial Audio business, technology and patents from VisiSonics Corporation. The financial terms were not disclosed.
Based in Maryland, close to CEVA's sensor fusion R&D development center, the VisiSonics spatial audio R&D team and software extend the company's application software portfolio.
Price Action: CEVA shares traded lower by 9.11% at $22.65 premarket on the last check Wednesday.

Why CEVA Shares Are Falling Today