Ceva Swings to Profit - TheStreet

Ceva Swings to Profit

Second-quarter sales edge higher.
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Intellectual-property chip firm

Ceva

(CEVA) - Get Report

swung to a profit in the second quarter, besting analysts' expectations.

The San Jose, Calif., company posted sales of $8.5 million in the three months ended June 30, up slightly from the $8.4 million at this time last year. Analysts polled by Thomson Financial were expecting $8 million in sales.

Ceva earned $430,000, or 2 cents a share, in net income during the quarter, compared with a loss of $217,000, or a penny a share, in the year-ago period.

Excluding stock compensation expenses, Ceva earned 5 cents a share, ahead of the 3-cent EPS expected by analysts.

Ceva said it signed 8 new licensing agreements during the quarter, including one with a major Japanese maker of branded consumer electronics, which will use the company's technology in high-end digital televisions.

Ceva is also believed have a role in

Apple's

(AAPL) - Get Report

iPhone, through chipmaker

Infineon

(IFX)

, a Ceva licensee which provides the baseband chip in the new cell phone, according to various teardowns of the iPhone.

In a conference call Tuesday, Ceva CEO Gideon Wertheizer said he couldn't confirm whether Ceva's technology was being used in the iPhone, but said that if that were the case, the company would begin to see royalty revenue from the iPhone in the third quarter.

Ceva projected that sales in the third quarter will range between $8.2 million and $9.2 million.

Analysts polled by Thomson Financial were expecting $8.8 million in sales with EPS of 5 cents in the third quarter.

Ceva shares were off 2.8%, or 26 cents, to $8.90 in midday trading Tuesday.