CEVA Royalty Revenues in 2015 Supports Future IoT Design Win

SemiWiki - Eric Esteve, Dec. 07, 2015 – 

Historically, CEVA has developed a family of DSP IP cores to support modem for mobile phone application. If we look back in the early 2000's, the top cell phone OEM, Nokia, Ericsson or Motorola were using TI baseband solution, including TI DSP core. But TI DSP was not licensable as an IP only, OEM had to buy the complete solution, branded OMAP later on, to benefit from TI DSP. TI strategy was an opportunity for CEVA and the company has started to penetrate the mobile phone market with TEAK and TEAK-Lite DSP IP cores.

We have to explicit CEVA business model to better understand the dynamic of the company. Because CEVA DSP is unique, like can be a processor core but not a protocol related function like USB or PCI Express controller, the company can define a business model based on up-front license fee plus royalty, usually a small percentage of the chip ASP. This model provides several great advantages, smoothing the revenue flow and generating revenues coming several years after the IP design-win.

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