CEVA, Inc. (CEVA) has reported a 2.39 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $3.39 million, or $0.15 a share in the quarter, compared with $3.31 million, or $0.16 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $5.21 million, or $0.24 a share compared with $4.73 million or $0.22 a share, a year ago.
Revenue during the quarter grew 9.92 percent to $17.85 million from $16.24 million in the previous year period. Gross margin for the quarter contracted 8 basis points over the previous year period to 92.03 percent. Total expenses were 78.77 percent of quarterly revenues, up from 78.50 percent for the same period last year. That has resulted in a contraction of 28 basis points in operating margin to 21.23 percent.
Operating income for the quarter was $3.79 million, compared with $3.49 million in the previous year period.
Gideon Wertheizer, chief executive officer of CEVA, stated: "CEVA delivered another exceptional quarter of growth and profitability, resulting in all-time record high total revenues. In the quarter, we solidified partnerships with key customers, including the signing of our first portfolio license agreement and a new DSP agreement with a tier one handset OEM customer for its 5G New Radio platform. This, together with our recent 5G base station design win, positions us as the only end-to-end DSP provider for 5G."
Working capital increases sharply
CEVA, Inc. has recorded an increase in the working capital over the last year. It stood at $118.80 million as at Sep. 30, 2016, up 45.39 percent or $37.09 million from $81.71 million on Sep. 30, 2015. Current ratio was at 6.58 as on Sep. 30, 2016, up from 5.99 on Sep. 30, 2015.
At the same time, days payable outstanding went up to 66 days for the quarter from 64 for the same period last year.
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