CEVA reports a marginal improvement in Q2 results

CEVA has reported its financial results for the second quarter ended June 30, 2015. The company reported revenue of $1.78bn for the quarter, a fall of 10.2% year-on-year. It also recorded adjusted EBITDA of $75m, a 25% improvement over the prior comparable period of 2014. Accordingly the company’s margin stood at 4.22%.

The decline in second quarter revenue to $1.78bn was largely the result of currency fluctuations. When these are stripped out revenue grew by 0.3%. This rise was driven by volume growth, partially offset by freight rates and fuel prices. In constant currency terms EBITDA fared even better, up by 31.7%. However the unadjusted figure was relatively flat at $52m, an increase of 1.96% over Q2 2014.

The Freight Management business delivered significant EBITDA improvement in Q2 which the company attributed to productivity increases, process improvements and effective transportation procurement. The business’ air freight volumes saw marginal growth in the quarter, up 0.7% year-over-year. CEVA attributed this result to a weakening Asia Pacific export market. Meanwhile ocean freight volumes were up 4.0% year-over-year, reflecting solid growth in Europe.

Contract Logistics maintained adjusted EBITDA margins of 5.5% in the second quarter. CEVA stated that the result was driven by an ongoing focus on underperforming contracts and effective warehouse space utilization. Contract Logistics revenue was up 0.9% year-over-year in constant currency.

“The benefits resulting from CEVA’s new operating model are accelerating,” said Xavier Urbain, CEO of CEVA. “As the second quarter illustrates, execution of our strategy is producing visible progress and increased profitability. We foresee significant upside potential by continuing this focus on operational excellence and efficiency for both our customers and ourselves. We continue to invest heavily in business development both on key accounts and small and medium-sized enterprises to drive top line growth.”