Preliminary fourth quarter results for the newly merged ParthusCeva show that the company expects to record a staggering loss of between US$24.7m and US$25.2m for the quarter.
The company attributes a portion of these losses to one-time charges from the merger between Dublin firm Parthus and Silicon Valley-based Ceva Inc in November. The newly combined company said it expects total revenues for the fourth quarter ended 31 December, 2002, to be in the range of US$5m to US$5.6m.
ParthusCeva was created as a result of the merger between Dublin-based Parthus Technologies and California-based Ceva, formerly the licensing division of DSP Group. In 2001, more than 80 million silicon chips powered by ParthusCeva were shipped industries ranging from wireless and consumer multimedia to automotives and networking.
In a statement, ParthusCeva said that losses of up to US$25.2m are attributable to a one-time restructuring charge of US$6.6m to US$6.8m as well as a one-time non-cash charge for in-process research and development costs as a result of the merger totalling US$15.8m. Additional costs include amortisation of finances totalling US$200,000 as well as losses totalling US$500,000 as a result of appreciation of the euro against the US dollar.
ParthusCeva’s CEO Kevin Fielding said that a persistent tech downturn and challenging market conditions have caused delays in licensing decisions on several significant deals, although the company’s overall sales pipeline is still intact. “We continue to make progress on the execution of our strategy and plan to launch an extensive range of integrated DSP and application platform new products in 2003. We are confident that its focus and our strong financial position will help ensure ParthusCeva’s success in implementing its business plan for 2003.”
The final results on ParthusCeva’s fourth quarter performance are expected to be announced on 22 January.
By John Kennedy
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