Revenue during the quarter surged 31.89 percent to $21.20 million from $16.07 million in the previous year period. Gross margin for the quarter expanded 106 basis points over the previous year period to 92.30 percent. Total expenses were 71.08 percent of quarterly revenues, down from 86.14 percent for the same period last year. This has led to an improvement of 1505 basis points in operating margin to 28.92 percent.

Operating income for the quarter was $6.13 million, compared with $2.23 million in the previous year period.

Gideon Wertheizer, Chief Executive Officer of CEVA, stated: "CEVA had a strong fourth quarter, posting record revenues for the fourth quarter in succession. Licensing strength was underpinned by eight agreements for our imaging and vision technologies, further entrenching CEVA as a de-facto industry standard for intelligent vision processing. In royalties, we achieved record revenue and shipments driven by smartphones and Bluetooth-enabled devices."

Working capital increases sharply
CEVA, Inc. has recorded an increase in the working capital over the last year. It stood at $123.53 million as at Dec. 31, 2016, up 41.92 percent or $36.48 million from $87.04 million on Dec. 31, 2015. Current ratio was at 6.47 as on Dec. 31, 2016, up from 5.59 on Dec. 31, 2015.