Arteris, Inc, a prominent provider of system IP driving advancements in system-on-chip (SoC) development, disclosed its financial results for the third quarter (Q3) ending September 30, 2023. Subsequent to the announcement, Arteris Inc.’s stock experienced a significant decline in trading.
At the time of this publication, Arteris Inc stock (SIP) has witnessed a decline.
Arteris Inc
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“Customer demand remained robust in the third quarter, with Annual Contract Value plus Trailing-Twelve-Month Royalties totaling $57.3 million, marking an 8% year-over-year increase,” stated K. Charles Janac, President and CEO of Arteris. “With a majority of the leading 10 semiconductor firms now in initial engagements with Arteris, the industry’s shift towards commercial System IP products is gaining traction. Many of these manufacturers have historically relied on in-house System IP solutions. However, as the intricacies of SoCs continue to mount, including the integration of AI capabilities in future designs, the value proposition of Arteris’ commercial offerings is becoming increasingly evident,” Janac concluded.
Arteris Q3 Results – Financial Highlights:
– Annual Contract Value (ACV) and Trailing-Twelve-Month (TTM) variable royalties reached $57.3 million, reflecting an 8% year-over-year surge.
– Revenue totaled $13.3 million, marking a 5% year-over-year increase.
– Remaining performance obligation (RPO) stood at $62.5 million.
– Operating loss amounted to $8.5 million, equivalent to 63.7% of revenue.
– Non-GAAP operating loss was $4.5 million, constituting 34.3% of revenue, compared to a loss of $4.2 million in the corresponding period last year.
– Net loss was $8.2 million or $0.23 per share.
– Non-GAAP net loss was $4.2 million or $0.12 per share.
– Non-GAAP free cash flow was $(3.1) million or (23.7)% of revenue.
Arteris, Inc. remains optimistic about its trajectory for the remainder of 2023, and anticipates continued growth in customer engagement and product adoption within the semiconductor industry. The company’s strategic focus on commercial System IP offerings positions it favorably amidst the escalating complexities of SoC development, particularly with the integration of artificial intelligence capabilities in future designs.
