ParthusCeva Announces Results for the Third Quarter Ended September 30, 2003

San Jose, CA - October 21, 2003 - ParthusCeva, Inc. (NASDAQ:
PCVA and LSE: PCV), the leading licensor of Digital Signal Processor (DSP)
cores and solutions to the semiconductor industry, today announced results
for the third quarter ended September 30, 2003.

Total revenues for the third quarter increased to $9.3 million,
compared with $9.1 million for the second quarter. Licensing revenues for
the third quarter were $6.5 million, compared with $6.3 million for the
second quarter. Royalty revenues in the third quarter were $1.2 million,
compared with $854,000 for the second quarter. Gross margins in the third
quarter were 85%, compared with 82% in the second quarter.

Including a restructuring charge of $1.4 million, net loss for the
third quarter was $1.1 million, compared with net income of $32,000 for
the second quarter. Excluding the restructuring charge, net income in the
third quarter was $268,000. Net loss per share for the third quarter,
including the restructuring charge, was $0.06, compared with net income
per share of $0.002 for the second quarter.

Chet Silvestri, Chief Executive Officer of ParthusCeva, commented: "I
am very pleased that ParthusCeva has maintained good revenue growth and
operating performance in the quarter. We achieved strong growth in royalty
revenues, which grew 37% quarter-on-quarter. In the fourth quarter we look
forward to maintaining our business momentum and launching our
next-generation DSP architecture, which we believe will deliver
breakthrough levels of performance and scalability to our customers."

In the third quarter, ParthusCeva signed five new license agreements
covering a range of DSP and platform-IP technologies, and announced
licensing agreements with semiconductor leaders including
STMicroelectronics, Infineon, Renasas and Via Telecom, reflective of
strong industry uptake of ParthusCeva's DSP technology. The continued
strong growth in royalty revenues reflects an increased number of
ParthusCeva licensees successfully shipping solutions powered by
ParthusCeva technology, predominantly in the wireless sector.

Cash and cash equivalents at the end of the third quarter were $63.5

Presentation of Non-GAAP Information

Management believes that it is useful to present net loss and expenses
figures above, excluding the restructuring charge, because management
believes that the figures provide a better picture of the company's
historical operating results and a more useful point of comparison for its
future performance.

Earnings Call

The management of ParthusCeva will hold a conference call for investors
and analysts at 8:00 am EST, 13:00 BST and 14:00 CET on Wednesday, October
22, 2003. The conference call will be available via the following dial-in

US Participants' Telephone: +1-866-629-0054 (password:
Participants' Telephone: +44-1452-569-340 (Password: ParthusCeva)

If you cannot join the call, you can listen to a recording, which will
be available approximately one hour after the call for five working days
at the following dial-in numbers:

US Participants' Telephone: +1-706-645-9291 (Access code:
Participants' Telephone: +44-1452-55-00-00 (Access code: 3129190#)

The call can also be accessed via ParthusCeva's website at Follow the directions on the main page to link to the
audio. Please go to the website at least 15 minutes prior to the call to
register, and to download and install any necessary audio software. The
webcast will be archived for 30 days.


Interim Condensed Consolidated Statements Of
Operations & Interim Condensed Consolidated Balance Sheets

Interim Condensed Consolidated Statements of Operations
& Interim Condensed Consolidated Balance Sheets are available for
download here
(pdf 23KB)

About ParthusCeva

Further information about ParthusCeva


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 second quarter of 2003, filed with
    the U.S. Securities and Exchange Commission on August 12 , 2003.