ROCKVILLE, Md. - Ceva, Inc. (NASDAQ: NASDAQ:CEVA), a prominent licensor of smart connectivity and sensing technologies, and Edge Impulse, a leader in edge machine learning (ML) solutions, have announced a partnership aimed at advancing artificial intelligence (AI) development for edge devices. The collaboration focuses on integrating the Edge Impulse Platform with Ceva's NeuPro-Nano Neural Network Processor Unit (NPU) intellectual property (IP), which will allow for pre-silicon ML model training, optimization, and deployment.
This partnership is set to create a streamlined process for AI developers, enabling them to efficiently develop and deploy embedded ML applications on the Ceva-NeuPro-Nano NPU IP. By leveraging the Edge Impulse Platform, developers can test and refine their AI models' performance in a simulated environment before the actual hardware is manufactured.
The Ceva-NeuPro-Nano NPU IP is designed to meet the demands of AI on the Internet of Things (AIoT) devices, balancing power efficiency and high performance in a compact form. It caters to a range of products, including wearables, smart home devices, and factory automation tools. The collaboration with Edge Impulse is expected to enhance the development of AI applications across these products, offering a 'no code' approach to deploying ML applications and facilitating a more rapid time-to-market.
Zach Shelby, Co-founder and CEO of Edge Impulse, highlighted the significance of the collaboration, stating that it would unlock the full potential of embedded ML in AIoT products pre-silicon. Similarly, Chad Lucien, vice president and general manager of the Sensors and Audio Business Unit at Ceva, emphasized the growing demand for powerful and low-power AIoT devices and the need for solutions that integrate embedded ML applications effectively.
The Edge Impulse Platform is designed to complement the NeuPro-Nano hardware, providing tools that simplify the deployment and benchmarking of embedded ML applications. The NeuPro-Nano's architecture supports AI inference and the digital signal processing workloads commonly found in audio, voice, and vision applications.
The NeuPro-Nano NPU IP is currently available for licensing in two optimized configurations to suit various use cases. The Edge Impulse Platform will become available for use with the NeuPro-Nano in the upcoming months. This information is based on a press release statement.
In other recent news, Ceva, Inc. continues to dominate the wireless interface IP market, capturing a 67% revenue share in 2023 and powering over 1.3 billion devices globally with its wireless IPs. The company's Bluetooth technology alone held significant market shares in the global Bluetooth IoT sector and the TWS earbuds market. Analysts at IPnest have commended Ceva's consistent delivery of low-power, cutting-edge wireless standards.
Ceva's recent financial performance has been robust, with a 24% year-over-year increase in Q2 2024 revenue to $28.4 million, driven by successful execution and royalty growth in IoT and smartphone markets. The company's licensing revenue saw a significant 28% rise, while royalty revenues also grew by 19% year-over-year. Analysts at Roth/MKM have upgraded Ceva's stock rating from Neutral to Buy, reflecting confidence in the company's strategic shift and recent financial performance.
Under new management, Ceva has refocused on an IP-centric product portfolio, emphasizing connectivity assets and the enablement of edge AI platforms. The company has launched NeuPro-Nano and Ceva-Waves Links IP products and signed significant deals for AI development and strategic Bluetooth portfolio licensing. These are recent developments that highlight Ceva's commitment to maintaining its competitive edge in the wireless connectivity IP sector.
InvestingPro Insights
As Ceva, Inc. (NASDAQ: CEVA ) forges ahead with its partnership with Edge Impulse to enhance AI development for edge devices, the company's financial health and market performance offer valuable insights. InvestingPro data reveals a market capitalization of $553.3 million, reflecting the company's current valuation in the market. Despite a challenging environment with a negative revenue growth of -9.89% over the last twelve months as of Q2 2024, CEVA has managed to maintain an impressive gross profit margin of 89.82%, underscoring its ability to control costs and maintain profitability on its products and services.
InvestingPro Tips highlight several key strengths for CEVA, including the fact that the company holds more cash than debt on its balance sheet, providing it with a solid foundation for investment and growth. Additionally, CEVA's liquid assets exceed its short-term obligations, ensuring the company can meet its immediate financial commitments. While CEVA has not been profitable over the last twelve months, analysts predict the company will turn a profit this year, offering a positive outlook for potential investors. It's also noteworthy that CEVA does not pay a dividend, which could be a strategic choice to reinvest earnings back into the company's growth initiatives.
Moreover, the stock has shown a strong return over the last three months, with a price total return of 26.13%, indicating a bullish trend in investor sentiment and market performance. This data, coupled with the fact that CEVA's price is at 91.82% of its 52-week high, suggests a level of confidence from the market in the company's direction and potential.
For readers interested in a deeper dive into CEVA's financials and additional InvestingPro Tips, there are currently 6 more tips available on InvestingPro's platform, offering further analysis and guidance for informed investment decisions.
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