CEVA INC

Previous wording

Headquartered in Rockville, Maryland, Ceva is the leader in innovative silicon and software IP solutions that enable smart edge products to connect, sense, and infer data more reliably and efficiently. With the industry’s only portfolio of comprehensive communications and scalable edge AI IP, Ceva powers the connectivity, sensing, and inference in today’s most advanced smart edge products across consumer IoT, mobile, automotive, infrastructure, industrial, and personal computing. More than 17 billion of the world’s most innovative smart edge products from AI-infused smartwatches, IoT devices and wearables to autonomous vehicles, 5G mobile networks and more are powered by Ceva.

Current wording

Headquartered in Rockville, Maryland, Ceva is the leader in innovative silicon and software IP solutions that enable smart edge products to connect, sense, and infer data more reliably and efficiently. With the industry’s only portfolio of comprehensive communications and scalable edge AI IP, Ceva powers the connectivity, sensing, and inference in today’s most advanced smart edge products across consumer IoT, mobile, automotive, infrastructure, industrial, and personal computing. More than 18 billion of the world’s most innovative smart edge products from AI-infused smartwatches, IoT devices and wearables to autonomous vehicles, 5G mobile networks and more are powered by Ceva.

Previous wording

We licenses our portfolio of wireless communications and scalable edge AI IP to our customers, breaking down barriers to entry and enabling them to bring new cutting-edge products to market faster, more reliably, efficiently and economically.

Current wording

We license our portfolio of wireless communications and scalable edge AI IP to our customers, breaking down barriers to entry and enabling them to bring new cutting-edge products to market faster, more reliably, efficiently and economically.

Previous wording

We believe our portfolio of wireless communications and sensing and edge AI technologies address some of the most important megatrends, including 5G, generative AI, industrial automation and vehicle electrification. We continue to experience strong interest across our IP portfolio due to these trends, in both traditional and new areas. In the first quarter of 2024, eleven IP licensing deals were concluded for a range of wireless and smart sensing use cases.

Current wording

We believe our portfolio of wireless communications and sensing and edge AI technologies address some of the most important megatrends, including 5G, generative AI, industrial automation and vehicle electrification. We continue to experience strong interest across our IP portfolio due to these trends, in both traditional and new areas. In the second quarter of 2024, eleven IP licensing deals were concluded for a range of wireless and smart sensing use cases.

Previous wording

In 2024, we believe our strategy will return Ceva to year-over-year revenue growth, with overall revenue expected to grow 4% to 8% over 2023. Most of this growth is expected to be concentrated in the second half of the year, In 2024, we expect our licensing and related revenues business will continue to expand into new markets and use cases in the industrial IoT (IIoT) and consumer IoT, offering connectivity platforms, sensing platforms and software, AI solutions (including AI engines, NPUs and software) and more. On royalties, we expect our connectivity products to continue to show strength in 2024, particularly related to our Bluetooth, Wi-Fi and cellular IoT business lines, with the expected ramp of automotive ADAS royalties in the second half of the year. The smartphone market related revenues have continued to decrease for us in recent years due to these trends.

Current wording

In 2024, we believe our strategy will return Ceva to year-over-year revenue growth, with overall revenue expected to grow 4% to 8% over 2023. Most of this growth is expected to be concentrated in the second half of the year. In 2024, we expect our licensing and related revenues business will continue to expand into new markets and use cases in the industrial IoT (IIoT) and consumer IoT, offering connectivity platforms, sensing platforms and software, AI solutions (including AI engines, NPUs and software) and more. On royalties, we expect our connectivity products to continue to show strength in 2024, particularly related to our Bluetooth, Wi-Fi and cellular IoT business lines, with the expected ramp of automotive ADAS royalties in the second half of the year.

Previous wording

Our operations in Israel remain largely unaffected by the war between Israel and Hamas that began on October 7, 2023, and we continue to drive our business and support our customers globally. However, a portion of our employees in Israel have been called to active reserve duty and additional employees may be called in the future, if needed. The Company has executed its business continuity plan with respect to those employees. It is possible that some of our operations in the region may be disrupted if this continues for a significant period of time or if the situation further deteriorates.

Current wording

Our operations in Israel remain largely unaffected by the war between Israel and Hamas that began on October 7, 2023, and we continue to drive our business and support our customers globally. However, a portion of our employees in Israel have been or are called to active reserve duty and additional employees may be called in the future, if needed. The Company has executed its business continuity plan with respect to those employees. It is possible that some of our operations in the region may be disrupted if this continues for a significant period of time or if the situation further deteriorates.

Previous wording

Total revenues were $22.1 million for the first quarter of 2024, representing a decrease of 16% as compared to the corresponding period in 2023. The decrease in total revenues for the first quarter of 2024 was mainly due to lower licensing and related revenues, offset by higher royalty revenues, as further described below.

Current wording

Total revenues were $28.4 million and $50.5 million for the second quarter and first half of 2024, respectively, representing an increase of 24% and 3% as compared to the corresponding periods in 2023. The increase in total revenues for the second quarter of 2024 was due to higher licensing and related revenues and higher royalty revenues, as further described below. The increase in total revenues for the first half of 2024 was due to higher royalty revenues, offset by lower licensing and related revenues, as further described below.

Previous wording

Our five largest customers accounted for 45% of our total revenues for the first quarter of 2024, as compared to 43% for the comparable period in 2023. Two customers accounted for 15% and 14% of our total revenues for the first quarter of 2024, as compared to one customer that accounted for 14% of our total revenues for the first quarter of 2023. Generally, the identity of our customers representing 10% or more of our total revenues varies from period to period, especially with respect to our IP licensing customers as we generate licensing revenues generally from new customers on a quarterly basis. With respect to our royalty revenues, two royalty paying customers represented 10% or more of our total royalty revenues for the first quarter of 2024, and collectively represented 41% of our total royalty revenues for the first quarter of 2024. Two royalty paying customers represented 10% or more of our total royalty revenues for the first quarter of 2023, and collectively represented 28% of our total royalty revenues for the first quarter of 2023. We expect that a significant portion of our future revenues will continue to be generated by a limited number of customers. The concentration of our customers is explainable in part by consolidation in the semiconductor industry.

Current wording

Our five largest customers accounted for 66% and 50% of our total revenues for the second quarter and first half of 2024, respectively, as compared to 49% and 33% for the comparable periods in 2023. Three customers accounted for 23%, 21% and 13% of our total revenues for the second quarter of 2024, as compared to three customers that accounted for 14%, 14% and 10% of our total revenues for the second quarter of 2023. Three customers accounted for 13%, 13% and 13% of our total revenues for the first half of 2024. There were no customers that accounted for more than 10% of our total revenues for the first half of 2023. Generally, the identity of our customers representing 10% or more of our total revenues varies from period to period, especially with respect to our IP licensing customers as we generate licensing revenues generally from new customers on a quarterly basis. With respect to our royalty revenues, two royalty paying customers represented 10% or more of our total royalty revenues for both the second quarter and first half of 2024, and collectively represented 45% and 43% of our total royalty revenues for the second quarter and first half of 2024, respectively. Two royalty paying customers represented 10% or more of our total royalty revenues for both the second quarter and first half of 2023, and collectively represented 47% and 38% of our total royalty revenues for the second quarter and first half of 2023, respectively. We expect that a significant portion of our future revenues will continue to be generated by a limited number of customers. The concentration of our customers is explainable in part by consolidation in the semiconductor industry.

Previous wording

Royalty revenues were $10.7 million for the first quarter of 2024, representing an increase of 33%, as compared to the corresponding period in 2023. Royalty revenues accounted for 48% of our total revenues for the first quarter of 2024, as compared to 31% for the comparable period of 2023. The first quarter of 2024 included revenue of $1.0 million following the resolution of a royalty audit. Excluding this amount, the first quarter of 2024 would have been up by 20% as compared to the comparable period of 2023. In the first quarter of 2024 we saw shipment volumes up 25% year-over-year, and increase in every end market we serve, as restocking continued across the broad IoT markets. Smartphone units, while up year-over-year, were down quite sharply from the fourth quarter, a similar trend to what we saw last year. Also, the infrastructure market remains soft, reflecting low CapEx for 5G networks globally.

Current wording

Royalty revenues were $11.2 million and $21.8 million for the second quarter and first half of 2024, respectively, representing an increase of 19% and 25%, as compared to the corresponding periods in 2023. The second quarter and first half of 2024 included revenue of $0.3 million and $1.3 million, respectively, following the resolution of royalty audits. Excluding this amount, the second quarter and first half of 2024 would have been up by 16% and 18%, respectively, as compared to the comparable periods of 2023. Royalty revenues accounted for 39% and 43% of our total revenues for the second quarter and first half of 2024, respectively, as compared to 41% and 35% for the comparable periods of 2023. In the second quarter of 2024 we saw shipment volumes up 24% year-over-year, driven predominantly by our customers taking more market share in Bluetooth, Wi-Fi and cellular IoT in the growing industrial, healthcare and consumer IoT end markets. Smartphones recovered well from the first quarter of 2024, and our large customer addressing the low to mid-range market segment is expanding its customer base with new design wins.

Previous wording

Our customers reported sales of 371 million chipsets incorporating our technologies for the first quarter of 2024, an increase of 25% from the corresponding period in 2023 for actual shipments reported.

Current wording

Our customers reported sales of 461 million and 832 million chipsets incorporating our technologies for the second quarter and first half of 2024, respectively, an increase of 24% and 25% from the corresponding periods in 2023 for actual shipments reported.

Previous wording

The five largest royalty-paying customers accounted for 58% of our total royalty revenues for the first quarter of 2024, as compared to 49% for the comparable period of 2023.

Current wording

The five largest royalty-paying customers accounted for 63% and 59% of our total royalty revenues for the second quarter and first half of 2024, respectively, as compared to 64% and 53% for the comparable periods of 2023.

Previous wording

Cost of revenues was $2.5 million for the first quarter of 2024, as compared to $3.5 million for the comparable period of 2023. Cost of revenues accounted for 11% of our total revenues for the first quarter of 2024, as compared to 13% for the comparable period of 2023. The decrease for the first quarter of 2024 principally reflected lower customization work for our licensees and lower cost of unit shipments related to our sensor fusion chip business. Included in cost of revenues for the first quarter of 2024 was a non-cash equity-based compensation expense of $203,000, as compared to $206,000 for the comparable period of 2023.

Current wording

Cost of revenues was $2.9 million and $5.4 million for the second quarter and first half of 2024, respectively, as compared to $3.5 million and $7.0 million for the comparable periods of 2023. Cost of revenues accounted for 10% and 11% of our total revenues for the second quarter and first half of 2024, respectively, as compared to 15% and 14% for the comparable periods of 2023. The decrease for the second quarter of 2024 principally reflected lower customization work for our licensees. The decrease for the first half of 2024 principally reflected lower customization work for our licensees and lower cost of unit shipments related to our sensor fusion chip business. Included in cost of revenues for the second quarter and first half of 2024 was a non-cash equity-based compensation expense of $191,000 and $394,000, respectively, as compared to $214,000 and $420,000 for the comparable periods of 2023.

Previous wording

Gross margin for the first quarter of 2024 was 89%, as compared to 87% for the comparable period of 2023. The increase for the first quarter of 2024 mainly reflected lower cost of revenues as set forth above, offset by lower total revenues. The gross margin for the first quarter of 2023 reflects historical period on a re-cast basis excluding the Intrisix business as a discontinued operation, is also illustrative of our decision to return to pure IP licensing and royalty business model.

Current wording

Gross margin for the second quarter and first half of 2024 was 90% and 89%, respectively, as compared to 85% and 86% for the comparable periods of 2023. The increase for both the second quarter and first half of 2024 mainly reflected lower cost of revenues as set forth above, as well as higher total revenues. The gross margin for the second quarter and first half of 2023 reflects historical period on a re-cast basis excluding the Intrisix business as a discontinued operation, is also illustrative of our decision to return to pure IP licensing and royalty business model.

Previous wording

Our research and development expenses, net, were $18.0 million for the first quarter of 2024, as compared to $18.7 million for the comparable period of 2023. The decrease for the first quarter of 2024 principally reflected lower contractor costs. Included in research and development expenses for the first quarter of 2024 were non-cash equity-based compensation expenses of $2,007,000, as compared to $2,102,000 for the comparable period of 2023. Research and development expenses as a percentage of our total revenues were 82% for the first quarter of 2024, as compared to 71% for the comparable period of 2023. The percentage increase for the first quarter of 2024, as compared to the comparable period of 2023, was mainly due to lower revenues.

Current wording

Total research and development expenses, net were $18.8 million and $36.7 million for the second quarter and first half of 2024, respectively, as compared to $18.1 million and $36.7 million for the comparable periods of 2023. The increase for the second quarter of 2024 principally reflected lower research grants received, mainly from the IIA, and lower customization work for our licensees, partially offset by lower salaries and related costs. Included in research and development expenses for the second quarter and first half of 2024 were non-cash equity-based compensation expenses of $2,438,000 and $4,445,000, respectively, as compared to $2,344,000 and $4,446,000 for the comparable periods of 2023. Research and development expenses as a percentage of our total revenues were 66% and 73% for the second quarter and first half of 2024, respectively, as compared to 79% and 75% for the comparable periods of 2023. The percentage decrease for both the second quarter and first half of 2024, as compared to the comparable periods of 2023, was mainly due to higher revenues.

Previous wording

The number of research and development personnel was 331 at March 31, 2024, as compared to 337 at March 31, 2023.

Current wording

The number of research and development personnel was 332 at June 30, 2024, as compared to 337 at June 30, 2023.

Previous wording

Our sales and marketing expenses were $2.8 million for the first quarter of 2024, as compared to $2.7 million for the comparable period of 2023. Included in sales and marketing expenses for the first quarter of 2024 were non-cash equity-based compensation expenses of $365,000, as compared to $378,000 for the comparable period of 2023. Sales and marketing expenses as a percentage of our total revenues were 13% for the first quarter of 2024, as compared to 10% for the comparable period of 2023.

Current wording

Our sales and marketing expenses were $3.1 million and $5.9 million for the second quarter and first half of 2024, respectively, as compared to $2.6 million and $5.4 million for the comparable periods of 2023. The increase for both the second quarter and first half of 2024 principally reflected higher commission expenses as well as higher sales training and higher marketing and trade shows events. Included in sales and marketing expenses for the second quarter and first half of 2024 were non-cash equity-based compensation expenses of $451,000 and $816,000, respectively, as compared to $449,000 and $827,000 for the comparable periods of 2023. Sales and marketing expenses as a percentage of our total revenues were 11% and 12% for the second quarter and first half of 2024, respectively, as compared to 11% for both the comparable periods of 2023.

Previous wording

The total number of sales and marketing personnel was 28 at March 31, 2024, as compared to 31 at March 31, 2023.

Current wording

The total number of sales and marketing personnel was 30 at June 30, 2024, as compared to 33 at June 30, 2023.

Previous wording

Our general and administrative expenses were $3.6 million for the first quarter of 2024, as compared to $3.8 million for the comparable period of 2023. The decrease for the first quarter of 2024 primarily reflected lower salaries and related costs. Included in general and administrative expenses for the first quarter of 2024 were non-cash equity-based compensation expenses of $996,000, as compared to $866,000 for the comparable period of 2023. General and administrative expenses as a percentage of our total revenues were 16% for the first quarter of 2024, as compared to 15% for the comparable period of 2023.

Current wording

Our general and administrative expenses were $3.5 million and $7.1 million for the second quarter and first half of 2024, respectively, as compared to $3.9 million and $7.7 million for the comparable periods of 2023. The decrease for both the second quarter and first half of 2024 primarily reflected lower professional services cost. Included in general and administrative expenses for the second quarter and first half of 2024 were non-cash equity-based compensation expenses of $820,000 and $1,816,000, respectively, as compared to $897,000 and $1,758,000 for the comparable periods of 2023. General and administrative expenses as a percentage of our total revenues were 12% and 14% for the second quarter and first half of 2024, respectively, as compared to 17% and 16% for the comparable periods of 2023.

Previous wording

The number of general and administrative personnel was 46 at March 31, 2024, as compared to 41 at March 31, 2023.

Current wording

The number of general and administrative personnel was 45 at June 30, 2024, as compared to 42 at June 30, 2023.

Previous wording

Our amortization charges were $0.2 million for both the first quarter of 2024 and 2023. The amortization charges for the first quarter of 2024 were incurred in connection with the amortization of intangible assets associated with the acquisitions of the Hillcrest Labs and VisiSonics business. The amortization charges for the first quarter of 2023 were incurred in connection with the amortization of intangible assets associated with the acquisitions of the Hillcrest Labs.

Current wording

Our amortization charges were $0.1 million and $0.3 million for the second quarter and first half of 2024, respectively, as compared to $0.1 million and $0.3 million for the comparable periods of 2023. The amortization charges for the second quarter and first half of 2024 and 2023 were incurred in connection with the amortization of intangible assets associated with the acquisitions of the Hillcrest Labs and VisiSonics business.

Previous wording

The increase in interest income and gains and losses from marketable securities, net, during the first quarter of 2024 principally reflected higher combined bank deposits and marketable securities balances held (mainly because of cash received from the sale of Intrinsix in October 2023) and higher yields.

Current wording

The increase in interest income and gains and losses from marketable securities, net, during both the second quarter and first half of 2024 principally reflected higher combined bank deposits and marketable securities balances held (mainly because of cash received from the sale of Intrinsix in October 2023) and higher yields.

Previous wording

We review our monthly expected major non-U.S. dollar denominated expenditures and look to hold equivalent non-U.S. dollar cash balances to mitigate currency fluctuations. However, our Euro cash balances increase significantly on a quarterly basis beyond our Euro liabilities, mainly from applicable French research tax credits, which are generally refunded every three years. This has resulted in a foreign exchange loss of $0.19 million for the first quarter of 2024, as compared to foreign exchange gain of $0.26 million for the comparable period of 2023.

Current wording

We review our monthly expected major non-U.S. dollar denominated expenditures and look to hold equivalent non-U.S. dollar cash balances to mitigate currency fluctuations. However, our Euro cash balances increase significantly on a quarterly basis beyond our Euro liabilities, mainly from applicable French research tax credits, which are generally refunded every three years. This has resulted in a foreign exchange loss of $0.09 million and $0.28 million for the second quarter and first half of 2024, respectively, as compared to foreign exchange gain of $0.09 million and $0.36 million for the comparable periods of 2023.

Previous wording

We recorded a loss of $0.0 million for the first quarter of 2024, as compared to a loss of $0.1 million for the comparable period of 2023, related to remeasurement of marketable equity securities, which we hold at cost. Over time, other income (expense), net, may be affected by market dynamics and other factors. Equity values generally change daily for marketable equity securities and upon the occurrence of observable price changes or upon impairment of marketable equity securities. In addition, volatility in the global economic climate and financial markets could result in a significant change in the value of our investments.

Current wording

We recorded a loss of $0.1 million for both the second quarter and first half of 2024 as compared to a loss of $0.1 million and $0.2 million for the comparable periods of 2023, related to remeasurement of marketable equity securities, which we hold at cost. Over time, other income (expense), net, may be affected by market dynamics and other factors. Equity values generally change daily for marketable equity securities and upon the occurrence of observable price changes or upon impairment of marketable equity securities. In addition, volatility in the global economic climate and financial markets could result in a significant change in the value of our investments.

Previous wording

Our income tax expenses was $1.7 million for the first quarter of 2024, as compared to $1.4 million for the comparable period of 2023. The increase for the first quarter of 2024 primarily reflected higher withholding tax expenses in our Israeli subsidiary for which we will not be able to obtain a refund from the tax authorities.

Current wording

Our income tax expenses was $1.6 million and $3.3 million for the second quarter and first half of 2024, respectively, as compared to $0.5 million and $2.0 million for the comparable periods of 2023. The increase for both the second quarter and first half of 2024 primarily reflected higher withholding tax expenses in our Israeli subsidiary for which we will not be able to obtain a refund from the tax authorities and the effect of the capitalization of R&D expenditures under IRC Section 174.

Previous wording

As of March 31, 2024, we had approximately $21.2 million in cash and cash equivalents, $10.7 million in bank deposits, and $126.9 million in marketable securities, totaling $158.8 million, as compared to $166.5 million at December 31, 2023. The decrease for the first three months of 2024 principally reflected cash used in operating activities.

Current wording

As of June 30, 2024, we had approximately $24.7 million in cash and cash equivalents, $2.1 million in bank deposits, and $131.6 million in marketable securities, totaling $158.4 million, as compared to $166.5 million at December 31, 2023. The decrease for the first six months of 2024 principally reflected cash used in operating activities and funds used to repurchase 157,303 shares of common stock for an aggregate consideration of approximately $3.3 million, partially offset by cash proceeds from exercise of stock-based awards.

Previous wording

Out of total cash, cash equivalents, bank deposits and marketable securities of $158.8 million, $129.7 million was held by our foreign subsidiaries. Our intent is to permanently reinvest earnings of our foreign subsidiaries and our current operating plans do not demonstrate a need to repatriate foreign earnings to fund our U.S. operations. However, if these funds were needed for our operations in the United States, we would be required to accrue and pay taxes to repatriate these funds. The determination of the amount of additional taxes related to the repatriation of these earnings is not practicable, as it may vary based on various factors such as the location of the cash and the effect of regulation in the various jurisdictions from which the cash would be repatriated.

Current wording

Out of total cash, cash equivalents, bank deposits and marketable securities of $158.4 million, $133.3 million was held by our foreign subsidiaries. Our intent is to permanently reinvest earnings of our foreign subsidiaries and our current operating plans do not demonstrate a need to repatriate foreign earnings to fund our U.S. operations. However, if these funds were needed for our operations in the United States, we would be required to accrue and pay taxes to repatriate these funds. The determination of the amount of additional taxes related to the repatriation of these earnings is not practicable, as it may vary based on various factors such as the location of the cash and the effect of regulation in the various jurisdictions from which the cash would be repatriated.

Previous wording

During the first three months of 2024, we invested $12.7 million of cash in marketable securities with maturities up to 36 months from the balance sheet date. In addition, during the same period, marketable securities were sold or redeemed for cash amounting to $18.9 million. All of our marketable securities are classified as available-for-sale. The purchase and sale or redemption of available-for-sale marketable securities are considered part of investing cash flow. Available-for-sale marketable securities are stated at fair value, with unrealized gains and losses reported in accumulated other comprehensive income (loss), a separate component of stockholders’ equity, net of taxes. Realized gains and losses on sales of investments, as determined on a specific identification basis, are included in the interim condensed consolidated statements of loss. The amount of credit losses recorded for the first three months of 2024 was immaterial. For more information about our marketable securities, see Note 7 to the interim condensed consolidated financial statements for the three months ended March 31, 2024.

Current wording

During the first six months of 2024, we invested $30.0 million of cash in marketable securities with maturities up to 33 months from the balance sheet date. In addition, during the same period, marketable securities were sold or redeemed for cash amounting to $31.9 million. All of our marketable securities are classified as available-for-sale. The purchase and sale or redemption of available-for-sale marketable securities are considered part of investing cash flow. Available-for-sale marketable securities are stated at fair value, with unrealized gains and losses reported in accumulated other comprehensive income (loss), a separate component of stockholders’ equity, net of taxes. Realized gains and losses on sales of investments, as determined on a specific identification basis, are included in the interim condensed consolidated statements of loss. The amount of credit losses recorded for the first six months of 2024 was immaterial. For more information about our marketable securities, see Note 7 to the interim condensed consolidated financial statements for the three and six months ended June 30, 2024.

Previous wording

Cash used in operating activities for the first three months of 2023 was $5.1 million and consisted of net loss of $4.9 million, adjustments for non-cash items of $5.0 million, and changes in operating assets and liabilities of $5.2 million. Adjustments for non-cash items primarily consisted of $1.4 million of depreciation and amortization of intangible assets, and $3.9 million of equity-based compensation expenses, offset with $0.3 million of unrealized foreign exchange gain. The decrease in operating assets and liabilities primarily consisted of an increase in trade receivables of $3.8 million, an increase in prepaid expenses and other assets of $2.2 million (mainly as a result of payment of a yearly design tool subscription), and an increase in deferred taxes, net of $0.9 million, partially offset by an increase in deferred revenues of $0.8 million, and an increase in accrued payroll and related benefits of $0.7 million.

Current wording

Cash used in operating activities for the first six months of 2024 was $5.0 million and consisted of net loss of $5.7 million, adjustments for non-cash items of $9.3 million, and changes in operating assets and liabilities of $8.6 million. Adjustments for non-cash items primarily consisted of $2.0 million of depreciation and amortization of intangible assets, and $7.5 million of equity-based compensation expenses. The decrease in operating assets and liabilities primarily consisted of an increase in trade receivables of $5.0 million, an increase in prepaid expenses and other assets of $2.2 million (mainly related to unbilled receivables of $2.1 million classified as “other long-term assets” in the Interim Condensed Consolidated Balance Sheets), and a decrease in accrued payroll and related benefits of $2.0 million (mainly as a result of a yearly bonus payments), partially offset by a decrease in accrued interest on bank deposits in the amount of $0.4 million.

Previous wording

Cash used in operating activities for the first three months of 2024 was $7.3 million and consisted of net loss of $5.4 million, adjustments for non-cash items of $4.6 million, and changes in operating assets and liabilities of $6.5 million. Adjustments for non-cash items primarily consisted of $1.0 million of depreciation and amortization of intangible assets, and $3.6 million of equity-based compensation expenses. The decrease in operating assets and liabilities primarily consisted of an increase in trade receivables of $3.0 million, an increase in prepaid expenses and other assets of $3.2 million (mainly as a result of payment of a yearly design tool subscription), a decrease in deferred revenues of $0.5 million, and a decrease in accrued expenses and other payables of $1.0 million, partially offset by an increase in accrued payroll and related benefits of $0.5 million and an increase in trade payables of $0.4 million.

Current wording

Cash used in operating activities for the first six months of 2023 was $9.9 million and consisted of net loss of $10.7 million, adjustments for non-cash items of $10.7 million, and changes in operating assets and liabilities of $9.9 million. Adjustments for non-cash items primarily consisted of $2.8 million of depreciation and amortization of intangible assets, and $8.1 million of equity-based compensation expenses. The decrease in operating assets and liabilities primarily consisted of an increase in trade receivables of $0.7 million, an increase in prepaid expenses and other assets of $2.0 million (mainly as a result of payment of a yearly design tool subscription in the first quarter of 2023, and an increase in applicable French research tax credits), an increase in deferred taxes, net of $0.4 million, a decrease in trade payables of $0.9 million, a decrease in accrued expenses and other payables of $1.2 million, and a decrease in accrued payroll and related benefits of $5.5 million (mainly as a result of a yearly bonus payments), partially offset by an increase in deferred revenues of $0.6 million.

Previous wording

Net cash provided by investing activities for the first three months of 2024 was $5.1 million, compared to $6.5 million of net cash provided by investing activities for the comparable period of 2023. We had a cash outflow of $12.7 million and a cash inflow of $18.9 million with respect to investments in marketable securities during the three months of 2024, as compared to a cash inflow of $6.6 million with respect to investments in marketable securities during the first three months of 2023. We had a cash outflow of $0.9 million and $0.1 million during the first three months of 2024 and 2023, respectively, from purchase of property and equipment. For the first three months of 2024, we had a cash inflow of $0.5 million in connection with the sale of Intrinsix, and a cash outflow of $0.8 million for the acquisition of the Greek-based company.

Current wording

Net cash provided by investing activities for the first six months of 2024 was $8.2 million, compared to $14.4 million of net cash provided by investing activities for the comparable period of 2023. We had a cash outflow of $30.0 million and a cash inflow of $31.9 million with respect to investments in marketable securities during the six months of 2024, as compared to a cash outflow of $2.5 million and a cash inflow of $17.7 million with respect to investments in marketable securities during the first six months of 2023. For the first half of 2024, we had proceeds of $8.0 million from bank deposits, as compared to proceeds of $4.0 million from bank deposits for the comparable period of 2023. We had a cash outflow of $1.5 million and $1.2 million during the first six months of 2024 and 2023, respectively, from purchase of property and equipment. For the first six months of 2024, we had a cash inflow of $0.5 million in connection with the sale of Intrinsix, and a cash outflow of $0.8 million for the acquisition of a Greek-based company. For the first six months of 2023, we had a cash outflow of $3.6 million for the acquisition of the VisiSonics business.

Previous wording

Net cash provided by financing activities for the first three months of 2024 was $0.3 million, as compared to $1.7 million of net cash provided by financing activities for the comparable period of 2023.

Current wording

Net cash used in financing activities for the first six months of 2024 was $1.7 million, as compared to net cash provided by financing activities in the amount of $1.7 million for the comparable period of 2023.

Previous wording

In August 2008, we announced that our board of directors approved a share repurchase program for up to one million shares of common stock pursuant to Rule 10b-18 of the Exchange Act, which was extended by an additional 7,100,000 shares collectively across further approvals in 2010, 2013, 2014, 2018, 2020 and 2023. During the first three months ended March 31, 2024, we repurchased 56,872 shares of common stock at an average purchase price of $22.48 per share for an aggregate purchase price of $1,278. There were no repurchases of our common stock during the three months ended March 31, 2023. As of March 31, 2024, we had 643,128 shares available for repurchase.

Current wording

In August 2008, we announced that our board of directors approved a share repurchase program for up to one million shares of common stock pursuant to Rule 10b-18 of the Exchange Act, which was extended by an additional 7,100,000 shares collectively across further approvals in 2010, 2013, 2014, 2018, 2020 and 2023. During the first six months ended June 30, 2024, we repurchased 157,303 shares of common stock at an average purchase price of $20.83 per share for an aggregate purchase price of $3,276. There were no repurchases of our common stock during the six months ended June 30, 2023. As of June 30, 2024, we had 542,697 shares available for repurchase.

Previous wording

During the first three months of 2024, we received $1.6 million from the exercise of stock-based awards, as compared to $1.7 million received for the comparable period of 2023.

Current wording

During the first six months of 2024, we received $1.6 million from the exercise of stock-based awards, as compared to $1.7 million received for the comparable period of 2023.