ParthusCeva Announces Results for the Second Quarter Ended June 30, 2003

San Jose, CA - July 22, 2003 - ParthusCeva, Inc. (NASDAQ: PCVA;
LSE: PCV), the industry's leading licensor of Digital Signal Processor
(DSP) cores and platform-level IP solutions, today announced results for
the second quarter ended June 30, 2003.

Total revenues for the second quarter of 2003 were $9.1 million,
compared with $8.8 million for the first quarter of 2003, an increase of
3%. Royalty revenues for the second quarter were $854,000, compared with
$606,000 for the first quarter, an increase of 41%. Gross margins in the
second quarter were 82%, compared with 81% in the first quarter.
ParthusCeva signed six license agreements in the second quarter,
principally involving its DSP technologies, and achieved its first
licensing win in 802.11 wireless-LAN technology. Two of the top five
semiconductor companies worldwide licensed ParthusCeva's DSP cores in the
second quarter.

In addition, ParthusCeva achieved a number of strategic wireless and
cellular design wins in Asia, resulting in strong sales growth in the
region in the second quarter. Operating expenses for the second quarter of
2003 were $7.3 million, compared with $8.6 million (including a
restructuring charge of $1.4 million) for the first quarter. Operating
income for the second quarter was $216,000, compared with an operating
loss of $1.4 million in the first quarter. Due to the weakening of the
U.S. dollar, principally against the euro, ParthusCeva incurred a currency
translation loss of $389,000 in the second quarter of 2003, compared with
a translation loss of $199,000 in the first quarter.

Net income for the second quarter of 2003 amounted to $32,000, compared
with a net loss of $1.3 million for the first quarter. Net income per
share for the second quarter amounted to $0.002, compared with a net loss
per share of ($0.073) for the first quarter.

Cash and cash equivalents at the end of the second quarter of 2003
amounted to $65.3 million.

As previously announced, with the assumption by Chet Silvestri of his
duties of Chief Executive Officer, Eli Ayalon and Brian Long will no
longer perform executive functions at the company, but will remain on the
Board of Directors as Chairman and Vice Chairman, respectively.

Chet Silvestri, Chief Executive Officer of ParthusCeva, commented:

"I am pleased that ParthusCeva has achieved operating
profitability and positive net income in the second quarter, driven by
robust licensing performance with six licensing agreements signed. We
achieved continued strong adoption of our open-standard DSPs, including
two with semiconductor companies ranked in the top five worldwide. I am
also delighted with 41% quarter-on-quarter growth in royalty revenues, as
our licensees successfully ship products containing ParthusCeva

We have sustained our licensing momentum in the first weeks of the
third quarter. This momentum, underpinned by a portfolio of new DSP and
platform products we plan to launch in the next couple of quarters, gives
us confidence that we can achieve our corporate goals of profitable growth
and technology leadership." All results are presented in accordance with


ParthusCeva, Inc. and its Subsidiaries Interim
Condensed Consolidated Statements of Operations and Consolidated Balance

About ParthusCeva

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A PDF copy of this press release is also available here


Safe Harbour Statement

Various statements in this press release concerning
ParthusCeva's future expectations, plans and prospects are
"forward-looking statements", which are subject to certain risks and
uncertainties that could cause actual results to differ materially from
those stated. Any statements that are not statements of historical fact
(including, without limitation, statements to the effect that the company
or its management "believes", "expects", "anticipates", "plans" and
similar expressions) should be considered forward-looking statements.
These statements are subject to a number of risks and uncertainties that
could cause actual results to differ materially from those described,
including the following:

  • the industries in which we license our
    technology are experiencing a challenging period of slow growth that has
    negatively impacted and could continue to negatively impact our business
    and operating results;
  • the markets in which we operate are highly
    competitive, and as a result we could experience a loss of sales, lower
    prices and lower revenue;
  • our operating results fluctuate from quarter to
    quarter due to a variety of factors including our lengthy sales cycle,
    and are not a meaningful indicator for future performance
  • we rely significantly on revenue derived from a
    limited number of licensees; and
  • other risks discussed in "Management's
    Discussion and Analysis of Financial Condition and Results of
    Operations--Factors that Could Affect Our Operating Results," in our
    quarterly report on Form 10-Q for the first quarter of 2003, filed with
    the U.S. Securities and Exchange Commission on May 14, 2003.