CEVA Reports Solid First Quarter 2005 Financial Results

SAN JOSE, Calif. - April 28, 2005 - CEVA, Inc. (NASDAQ: CEVA;
LSE: CVA) the leading licensor of digital signal processors (DSP),
communications and multimedia solutions to the semiconductor industry,
today announced financial results for the first quarter of 2005, which
ended March 31, 2005. CEVA recorded 9 percent sequential growth in total
revenue and profits in line with the guidance issued by the Company for
the first quarter.

First Quarter 2005

Total revenue for the first quarter of 2005 was $10.0 million, an
increase of 9 percent compared to the $9.2 million reported in both the
first and fourth quarter of 2004. First quarter 2005 licensing revenue of
$7.1 million increased 22 percent from the fourth quarter of 2004, and 7.5
percent from the first quarter of 2004.

As in the fourth quarter 2004, seven license deals were completed in
the first quarter 2005, representing strength across all key product
technologies including DSP, GPS and Serial ATA. Moreover, CEVA will
introduce a number of new technologies in the coming months which will add
to its licensing strength in the second half of the year.

First quarter 2005 royalty revenue was $1.8 million, a decrease of 13
percent compared to $2.0 million reported in the fourth quarter 2004,
reflecting the seasonality of our consumer-oriented licensees' product
shipments, but up 49 percent compared to $1.2 million reported in the
first quarter of 2004. The seasonality in royalty revenue in the first
quarter of 2005 is similar to the 17 percent sequential decrease in
royalty revenue from the fourth quarter 2003 to the first quarter 2004.

The first quarter gross margin was 87 percent compared with 89 percent
in the prior quarter and 84 percent in the year ago first quarter. First
quarter net income increased to $627,000 or $0.03 per share compared with
fourth quarter 2004 net income of $187,000 or $0.01 per share. The Company
reported net income of $409,000 or $0.02 per share in the year ago first

Commenting on the First Quarter, Chet Silvestri, Chairman
and CEO of CEVA remarked:

"I am pleased to announce that the momentum we established in 2004 has
continued into the first quarter of 2005, as we report a solid financial
quarter with revenues and earnings both growing and the Company remaining
cash flow positive. Licensing partners reported shipments of 30 million
units in the first quarter of 2005 representing a 55 percent increase over
the 19 million units shipped by our customers in the first quarter of
2004. We completed seven major licensing agreements during the first
quarter of 2005, including major multi-use agreements for our Serial ATA
and GPS 4000 technologies. During the quarter, the Company completed its
first CEVA-TeakLite-II™ license. Teaklite-II is an enhanced design of the
Company's highest-volume DSP and offers better performance, functionality
and speed with backward software compatibility. CEVA expects many of its
existing Teaklite licensees to be interested in this upgrade, and we look
forward to seeing continued growth for this product in the coming

Solid Balance Sheet

As a result of generating cash during the quarter, the Company's cash
balances and marketable securities were $60.3 million at March 31, 2005
compared to $59.6 million at December 31, 2004.

"Our continued sales and financial discipline has significantly reduced
our DSO's from 106 days in the fourth quarter to 82 days at the end of the
first quarter," noted Christine Russell, CFO of CEVA. "We will maintain
continued focus on a reduction in DSOs throughout 2005 as we have
substantially tightened our payment terms on new deals. Our full year
guidance remains unchanged as we see revenue in the range of $44 million
to $46 million, gross margin in the range of 88 percent to 90 percent,
operating expense in the range of $36 million to $37 million, and net
income in the range of $3.5 million to $4.5 million."

CEVA Conference Call

On April 28, 2005, CEVA management will conduct a conference call at
10:30 a.m. ET/15.30 p.m. London time, to discuss the operating performance
for the quarter. To participate in the conference call, US domestic
callers can dial 877-951-7311 and international callers can dial
+44-207-019-0810, access code "CEVA."

The conference call will also be available live via the Internet by
accessing the CEVA web site at ceva-dsp.com. Please go to the web site
at least fifteen minutes prior to the call to register, download and
install any necessary audio software.

For those who cannot access the live broadcast, a replay will be
available by dialing 1-877-267-9703 for US domestic callers and
+44-0207-970-8261 for international callers from two hours after the end
of the call until 11:59 p.m. (ET) on May 5, 2005. The replay will also be
available at CEVA's web site ceva-dsp.com.


Condensed Consolidated Statements Of Income &
Condensed Consolidated Balance Sheets

Condensed Consolidated Statements of Income & Condensed
Consolidated Balance Sheets are available for download here
(pdf )

About CEVA, Inc.

Headquartered in San Jose, Calif., CEVA is the leading licensor of digital signal processor (DSP) cores, multimedia, GPS and storage platforms to the semiconductor industry. CEVA licenses a family of programmable DSP cores, associated SoC system platforms and a portfolio of application platforms including multimedia, audio, Voice over Packet (VoP), GPS location, Bluetooth, Serial Attached SCSI and Serial ATA (SATA). In 2005 CEVA's IP was shipped in over 115 million devices. CEVA was created through the merger of the DSP licensing division of DSP Group and Parthus Technologies. For more information, visit ceva-dsp.com.

A PDF copy of this press release is also available here

Forward-Looking Statements

This press release contains forward-looking statements
that involve risks and uncertainties, as well as assumptions that if they
ever materialize or prove incorrect, could cause the results of CEVA to
differ materially from those expressed or implied by such forward-looking
statements and assumptions. All statements other than statements of
historical fact are statements that could be deemed forward-looking
statements. The forward looking statements in this press release include
statements concerning expected growth in sales from a number of
technologies, including some recently introduced and expected to be
introduced in the future, continued momentum of revenue growth and
operating efficiencies, and CEVA's guidance with respect to its revenue,
gross margins, total operating expenses and net income for 2005. The
risks, uncertainties and assumptions referred to above include
macroeconomic and geopolitical trends and events; intense competition
within our industry; the industries in which we license our technology
have experienced a challenging period of slow growth; that the market for
the sale of our technology may not develop as expected, especially in the
case of newly introduced or planned to be introduced technologies; our
ability to timely and successfully develop and introduce new technologies;
that we rely significantly on revenue derived from a limited number of
licensees; the possible loss of key employees and/or senior management;
and the challenges of managing a geographically dispersed operation. CEVA
assumes no obligation to update any forward-looking statements or
information, which speak as of their respective dates.