CEVA Inc. (NASDAQ: CEVA), an Israeli company which licenses wireless connectivity and smart sensing technologies, has agreed to acquire Massachusetts-based Intrinsix Corp., a chip design specialist company, for approximately $33 million in cash. And Ceva also revealed positive results for Q1 2021.
The company reported that total revenue for the first quarter of 2021 was $25.4 million, an 8% increase compared to $23.6 million reported for the first quarter of 2020. First quarter 2021 licensing and related revenue was $14.4 million, a decrease of 1% when compared to $14.5 million reported for the same quarter a year ago. Royalty revenue for the first quarter of 2021 was $11.0 million, an increase of 21% when compared to $9.1 million reported for the first quarter of 2020.
Net loss for the first quarter of 2021 was $3.6 million, as compared to a net loss of $1.2 million reported for the same period in 2020. GAAP diluted loss per share for the first quarter of 2021 was ($0.16), as compared to a GAAP diluted loss per share of ($0.05) for the same period in 2020.
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CEVA offers Digital Signal Processors, AI processors, wireless platforms and complementary software for sensor fusion, image enhancement, computer vision, voice input and artificial intelligence, all of which are key enabling technologies for a smarter, connected world. The company partners with semiconductor companies and OEMs worldwide to “create power-efficient, intelligent and connected devices for a range of end markets, including mobile, consumer, automotive, robotics, industrial and IoT.”
CEVA to Acquire Intrinsix Corp., Expanding its Offering to Include Full Turnkey IP Platforms
– Extends CEVA’s market reach into the sustainable aerospace & defense markets
– Increases CEVA’s revenue and royalty opportunity by combining…@intrinsixcorp https://t.co/SCLmzQ7VYq pic.twitter.com/wkB0lwGI1G
— CEVA IP (@CEVA_IP) May 10, 2021
Intrinsix provide complex System-on-Chip (SoC) design expertise in the areas of RF, mixed signal, digital, software, secure processors and interface IP for Heterogenous SoCs (HSoCs), otherwise referred to as chiplets. With more than 1,500 successful designs with a customer base that includes blue chip names such as Intel, IBM, Leidos and Lockheed Martin, Intrinsix boasts that it commands a “strong foothold” in aerospace and defense, a market which it says is estimated to reach $6 billion in semiconductor spending in 2022. Intrinsix is also involved in the development of chiplets and secure processors for DARPA projects.
Gideon Wertheizer, CEO of CEVA, commented, “The acquisition of Intrinsix will provide us with new growth vectors and a larger market reach. We will be able to offer our key customers a comprehensive portfolio of turnkey IP solutions that will capitalize on our off-the-shelf IP and Intrinsix’s reputable design capabilities in RF, mixed-signal, security and more. Furthermore, Intrinsix’s experience and customer base in the growing chip development programs with the U.S. Department of Defense and DARPA and its IP offerings for processor security and chiplets will extend CEVA’s serviceable market and revenue base. We are delighted to welcome the Intrinsix team to CEVA and look forward to the opportunities ahead.”