exv99w1

Exhibit 99.1

CEVA, Inc. Reports Third Quarter 2007 Financial Results
Expanding licensee base to new markets and continued momentum in increased royalty revenue;
profitability and EPS growth

SAN JOSE, Calif. — November 1, 2007 — CEVA, Inc. [(NASDAQ: CEVA); (LSE: CVA)], a leading licensor of silicon intellectual property (SIP) platform solutions and DSP cores for mobile, consumer electronics and storage applications, today announced its financial results for the quarter ended September 30, 2007.

Total revenue for the third quarter of 2007 was $8.7 million, an increase of 11% compared to $7.9 million reported for the third quarter of 2006. Third quarter of 2007 licensing revenue was $5.3 million, a decrease of 4% from $5.5 million reported for the third quarter of 2006. Royalty revenue for the third quarter of 2007 was $2.2 million, an increase of 55% over $1.4 million for the third quarter of 2006. Revenue from services for the third quarter of 2007 was $1.2 million, an increase of 30% compared to $1.0 million reported for the third quarter of 2006.

Net income for the third quarter of 2007 was $1.1 million, an increase of 226% compared to net income of $0.3 million for the third quarter of 2006. Diluted net income per share for the third quarter of 2007 was $0.05 per share, an increase of 150% compared to diluted net income of $0.02 per share for the third quarter of 2006.

In the third quarter of 2007 and 2006, the Company recognized an equity-based compensation expense of $0.5 million pursuant to the adoption of SFAS 123R. In the third quarter of 2007, the Company also recorded a gain of $0.4 million in interest and other income related to the disposal of an investment. Non-GAAP net income and net income per share for the third quarter of 2007, excluding the equity-based compensation expense and gain on disposal of the investment, was $1.2 million and $0.06, respectively, an increase of 42% and 50%, respectively, compared to $0.9 million of non-GAAP net income and $0.04 of non-GAAP net income per share for the third quarter of 2006. Non-GAAP net income and net income per share for the third quarter of 2006 excluded an equity-based compensation expense of $0.5 million.

During the third quarter of 2007, the Company concluded ten new license agreements, bringing the total number of new license agreements signed during the first nine months of 2007 to 27. Eight agreements were for CEVA DSP cores and platforms and two were for CEVA SATA technology. Target applications for customer deployment are 2G/3G/4G phones, wireless headsets, solid state disk (SSD) devices,

surveillance equipment and fingerprint recognition systems. Geographically, two of the ten deals signed were in the U.S., five were in Europe and three were in the Asia Pacific region.

During the third quarter, CEVA signed a strategic licensing agreement with one of the Company’s largest customers who extended their use of CEVA-X DSP cores to products for wireless applications. In addition, one of Japan’s largest, branded, original equipment manufacturers licensed the CEVA MM2000 multimedia platform for its development of next generation surveillance camera equipment. This license agreement represents a key design win for CEVA in the fast growing surveillance market as the underlying technology transitions from analog to digital IP network-based systems.

Gideon Wertheizer, Chief Executive Officer of CEVA, stated: “The third quarter of 2007 was another solid quarter for CEVA in terms of expanding the licensee base, increasing the royalty revenue and building the pipeline. Our royalty revenue surpassed the $2.0 million mark for the first time in the Company’s history, and we received during the third quarter the first royalty payment from one of the leaders in the 3G chipset market who is now shipping products incorporating our CEVA-X DSP cores in high volumes. We also are pleased with the recent traction our customers that incorporate our DSP core technologies have generated with leading mobile handset manufacturers.”

Yaniv Arieli, Chief Financial Officer of CEVA, stated: “In the third quarter we achieved a few important financial milestones: royalty revenue trend is positive, profitability continues to improve during the first three quarters of 2007 and net income and EPS increased sequentially during the same period. The Company’s positive cash flow also continues to improve sequentially and in the third quarter reached approximately $1.1 million. As of September 30, 2007, CEVA’s cash balances and marketable securities were $66.0 million.”

CEVA Conference Call

On November 1, 2007, CEVA management will conduct a conference call at 8:30 a.m. Eastern Time / 1:30 p.m. London time, to discuss the operating performance for the quarter.

The conference call will be available via the following dial-in numbers:

	•		US Participants: Dial 1-877-493-9121 (Access Code: CEVA)

	•		UK/Rest of World: Dial +44-800-032-3836 (Access Code: CEVA)

The conference call also will be available live via the Internet at the following link: http://www.videonewswire.com/event.asp?id=43147. 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 1-877-519-4471 (passcode: 9337401) for US domestic callers and +44-800-169-3875 (passcode: 9337401) for international callers from two hours after the end of the call until 11:59 p.m. (Eastern Time) on November 8, 2007. The replay will also be available at CEVA’s web site www.ceva-dsp.com.


For More Information Contact:
Yaniv Arieli, CFO		Richard Kingston
CEVA, Inc.		CEVA, Inc.
Tel: +1.408.514.2941		Tel: +1.408.514.2976
Email: yaniv.arieli@ceva-dsp.com		Email: richard.kingston@ceva-dsp.com

About CEVA, Inc.

Headquartered in San Jose, Calif., CEVA is a leading licensor of silicon intellectual property (SIP) platform solutions and DSP cores for mobile, consumer electronics and storage applications. CEVA’s IP portfolio includes comprehensive solutions for multimedia, audio, voice over packet (VoP), Bluetooth, Serial Attached SCSI (SAS) and Serial ATA (SATA), and a wide range of programmable DSP cores and subsystems with different price/performance metrics serving multiple markets. In 2006, CEVA’s IP was shipped in over 190 million devices. For more information, visit http://www.ceva-dsp.com

Forward-Looking Statements

This press release contains forward-looking statements that involve risks and uncertainties, as well as assumptions that if they materialize or prove incorrect, could cause CEVA’s results 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, including statements about optimism about the pipeline buildup, the positive royalty revenue and profitability trend, and CEVA’s ability to capitalize on the fast growing surveillance market and the traction generated by CEVA’s customers with mobile handset manufacturers; and the potential additional royalty revenue associated with a CEVA customer that is a leader in the 3G chipset market and the ramp-up production of other customers with products that incorporate CEVA’s technologies. The risks, uncertainties and assumptions include: the ability of the CEVA DSP cores and other technologies to continue to be strong growth drivers for the Company; the effect of intense competition within our industry; the effect of the challenging period of growth experienced by the industries in which we license our technology; the possibility that the market for our technology may not develop as expected; our ability to timely and successfully develop and introduce new technologies; our reliance on revenue derived from a limited number of licensees; our ability to improve our royalty revenue in future periods and other risks relating to our business and the pipeline of companies interested in our technologies, including, but not limited to, those that are described from time to time in the Company’s Securities and Exchange Commission filings. CEVA assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates.

CEVA, INC. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS — U.S. GAAP
U.S. dollars in thousands, except per share data


	Quarter ended						Nine Months ended
	September 30,						September 30,
	2007			2006			2007			2006

	Unaudited			Unaudited			Unaudited			Unaudited

Revenues:
Licensing and royalties	$	7,492		$	6,938		$	21,540		$	21,553
Other revenues		1,237			955			3,430			2,886


Total revenues		8,729			7,893			24,970			24,439


Cost of revenues		1,001			992			2,926			3,022


Gross profit		7,728			6,901			22,044			21,417


Operating expenses:
Research and development, net		4,705			4,270			14,015			14,159
Sales and marketing		1,471			1,414			4,645			4,791
General and administrative		1,515			1,577			4,134			4,535
Amortization of intangible assets		41			42			124			373


Total operating expenses		7,732			7,303			22,918			23,858


Operating loss		(4	)		(402	)		(874	)		(2,441	)
Interest and other income, net		1,170			778			2,620			1,949


Income (loss) before taxes on income		1,166			376			1,746			(492	)
Taxes on income		54			35			204			185


Net income (loss)	$	1,112		$	341		$	1,542		$	(677	)


Basic net income (loss) per share	$	0.06		$	0.02		$	0.08		$	(0.04	)
Diluted net income (loss) per share	$	0.05		$	0.02		$	0.08		$	(0.04	)
Weighted-average number of Common Stock used in computation of net income (loss) per share (in thousands):
Basic		19,647			19,239			19,516			19,150
Diluted		20,287			19,324			19,900			19,150

CEVA, INC. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS — NON GAAP
U.S. dollars in thousands, except per share data


	Quarter ended				Nine Months ended
	September 30,				September 30,
	2007		2006		2007		2006

	Unaudited		Unaudited		Unaudited		Unaudited


Revenues:
Licensing and royalties	$	7,492	$	6,938	$	21,540	$	21,553
Other revenues		1,237		955		3,430		2,886


Total revenues		8,729		7,893		24,970		24,439


Cost of revenues		982		978		2,871		2,984


Gross profit		7,747		6,915		22,099		21,455


Operating expenses:
Research and development, net		4,471		4,100		13,369		13,636
Sales and marketing		1,395		1,336		4,395		4,533
General and administrative		1,319		1,328		3,576		3,693
Amortization of intangible assets		41		42		124		373


Total operating expenses		7,226		6,806		21,464		22,235


Operating income (loss)		521		109		635		(780	)
Interest and other income, net		745		778		2,195		1,892


Income before taxes on income		1,266		887		2,830		1,112
Taxes on income		54		35		204		185


Net income	$	1,212	$	852	$	2,626	$	927


Non-GAAP basic and diluted net income per share	$	0.06	$	0.04	$	0.13	$	0.05

Weighted-average number of Common Stock used in computation of non-GAAP net income per share (in thousands):
Basic		19,647		19,239		19,516		19,150
Diluted		20,439		19,324		20,062		19,350

Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures
(U.S. Dollars in thousands, except per share amounts)


	Quarter ended					Nine Months ended
	September 30					September 30
	2007			2006		2007			2006

	Unaudited			Unaudited		Unaudited			Unaudited


GAAP net income (loss)	$	1,112		$	341	$	1,542		$	(677	)
Equity-based compensation expense included in cost of revenue		19			14		55			38
Equity-based compensation expense included in research and development expenses		234			170		646			523
Equity-based compensation expense included in sales and marketing expenses		76			78		250			258
Equity-based compensation expense included in general and administrative expenses		196			249		558			842
Interest and other income, net (1)		(425	)		—		(425	)		(57	)

Non-GAAP net income	$	1,212		$	852	$	2,626		$	927

GAAP weighted-average number of Common Stock used in computation of net income (loss) per share (in thousands) (diluted)		20,287			19,324		19,900			19,150
Weighted-average number of shares related to outstanding options		—			—		—			200
Weighted-average number of options related to equity-based compensation expense		152			—		162			—

Non-GAAP weighted-average number of Common Stock used in computation of net income per share (in thousands) (diluted)		20,439			19,324		20,062			19,350

GAAP diluted net income (loss) per share	$	0.05		$	0.02	$	0.08		$	(0.04	)
Equity-based compensation expense	$	0.03		$	0.02	$	0.07		$	0.09
Interest and other income, net (1)	$	(0.02	)		—	$	(0.02	)	$	(0.00	)

Non-GAAP diluted net income per share	$	0.06		$	0.04	$	0.13		$	0.05


(1)		Results for the three months and nine months ended September 30, 2007 and for the nine months ended September 30, 2006 included a gain of $0.4 million, $0.4 million and $0.1 million, respectively, reported in interest and other income related to the disposal of an investment.

CEVA, INC. AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

U.S. Dollars in Thousands


	September 30,			December 31,
	2007			2006

	Unaudited			Audited


ASSETS
Current assets:
Cash and cash equivalents	$	42,679		$	37,968
Marketable securities and bank deposits		23,278			26,266
Trade receivables, net		10,994			8,421
Deferred tax assets		761			613
Prepaid expenses		803			564
Other current assets		1,494			1,890

Total current assets		80,009			75,722

Long-term investments:
Severance pay fund		2,573			2,338
Deferred tax assets		600			382
Property and equipment, net		1,767			1,706
Investment		4,233			4,233
Goodwill		36,498			36,498
Other intangible assets, net		77			201

Total assets	$	125,757		$	121,080


LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Trade payables	$	541		$	718
Accrued expenses and other payables		8,691			9,462
Taxes payable		131			135
Deferred revenues		683			406

Total current liabilities		10,046			10,721

Accrued severance pay		2,842			2,519
Accrued liabilities		1,305			1,697


Total liabilities		14,193			14,937


Stockholders’ equity:
Common Stock		20			19
Additional paid in-capital		146,567			142,826
Other comprehensive income		137			—
Accumulated deficit		(35,160	)		(36,702	)

Total stockholders’ equity		111,564			106,143

Total liabilities and stockholders’ equity	$	125,757		$	121,080