Ceva reported stronger-than-expected quarterly results today, as demand for its intellectual property is soaring thanks in part to mobile-computing demand from customers like Intel (INTC - Get Report) and Broadcom (BRCM - Get Report).
The Israeli-based company reported $16 million in revenue and earnings of 26 cents per share. Wall Street analysts polled by Thomson Reuters expected $14.9 million in revenue and 22 cents cent per share in earnings."During the fourth quarter, we were able to drive meaningful growth and generate significant momentum throughout our operations, producing record-setting results. CEVA-powered cellular baseband processor shipments increased for the twelfth consecutive quarter and continued to drive growth for us in every segment of the wireless market, from low cost feature phones through to 4G LTE smartphones and tablets," said Gideon Wertheizer, CEO of CEVA, in a statement. Wertheizer said CEVA's customers "shipped more than 927 million CEVA-powered basebands during the year, and more than 1 billion CEVA-based chipsets overall." Despite strong fourth quarter results. CEVA shares are down on weaker-than-expected guidance for the first half of 2012, as management cited an inventory correction in China and slowness in Europe. Management expects first quarter revenue to be between $14.2 million and $15.2 million and earnings of 20 cents to 22 cents per share. Analysts polled by Thomson Reuters expect $15.4 million in revenue and earnings of 24 cents per share. William Blair analyst Anil Doradla was positive on the results, and maintained his outperform rating. "CEVA's fourth-quarter results were above our expectations across most metrics," Doradla wrote in his note. CEVA is one of TheStreet's Breakout Stocks. CEVA shares are down 7.5% since the start of 2012.