The chart at the time of recommendation

CEVA Chart

CEVA -  (Sold on 4/17/09 for a gain of 60%)
BOUGHT at $5.19     SOLD at $8.30

                  Next Closed Pick                Back to Closed Positions List

     The following is the commentary subscribers originally received.

     


      On February 3rd Ceva Inc., which licenses intellectual property to electronics companies, reported 4th quarter 2008 revenue of $10 million, up 21% from the $8.2 million reported in the 4th quarter of 2007. Licensing revenue was $4.6 million, up 15%. Royalty revenue was $4.3 million, up 41% and a record for the company. Licensing and royalty revenue accounted for 89% of total revenue. Gross margin during the 4th quarter was 89%, flat from a year ago. Net income was $1 million or 5 cents per share. On a non Gaap basis net income was $1.6 million or 8 cents per share which compares to 2 cents per share in the year ago period. During the 4th quarter the company closed 6 new license agreements. Ceva's technologies are in mass production at Nokia, Samsung, Sony Ericsson, LG, and Panasonic. Ceva's technology is also used in Apple's Iphone and Sony's Playstation 3, as well as in many electronic devices including HDTV's, blu-ray players, cellphones, digital set top boxes, and home gaming devices.
     Looking forward Ceva will continue to benefit from the continued move to 3g in the handset market worldwide. Three of the largest 3G chip suppliers use Ceva's technology.
     For the 1st quarter of 2009 Ceva expects revenue of $8.7 - $9.7 with gross margins of 89%. On a non Gaap basis, which excludes stock based compensation, Ceva expects 5-7  cents per share. The current consensus estimate calls for earnings of 29 cents per share this year.
     For the 1st 9 months of 2008 85% of revenue was derived from outside the United States. Also during this time period the company's largest customer accounted fro 20% of sales. There were no other customers that accounted for 10% or more of revenue.
     Ceva has cash & investments worth $84.6 million or $4.31 per share. Book value is $4.33 per share and the company carries no debt. At the current level the stock has a price-to-sales ratio of 2.5 and a price-to-book ratio of just 1.2. The company's cash & investments level and book value are up approximately 30% since the stock was last at this price a few years ago. Sales and profitability are also up.   (originally recommended on 3/09/09)

4/17/09-  SOLD FOR A GAIN OF 60%. DURING THE SAME TIME PERIOD THE NASDAQ WAS UP 32%.

 

  Next Closed Pick               Back to Closed Positions List