CAMPBELL, Calif., March 03, 2022 (GLOBE NEWSWIRE) -- Arteris, Inc. (Arteris or Arteris IP), a leading provider of network-on-chip (NoC) interconnect and other intellectual property (IP) technology that manages the on-chip communications in system-on-chip (SoC) semiconductor devices, today announced financial results for the fourth quarter and year ended December 31, 2021, and provided estimated first quarter and full year 2022 guidance.
"We’re excited to see our momentum continue in the fourth quarter, with our total number of Active Customers increasing from 179 to 192 across a broad base of applications including Machine Learning, Automotive and 5G,” said K. Charles Janac, President and CEO of Arteris IP. “As we look ahead we believe there are a number of tailwinds that help our business including the increase in SoC complexity making it increasingly difficult for our customers to develop system IP solutions in house, and the increasing number of IP blocks in SoC designs also increasing the value of IPD IP deployment software solutions. As a result, we are seeing a trend toward SoC system IP solutions being increasingly licensed from industry leading commercial vendors like Arteris IP."
Fourth Quarter 2021 Financial Highlights:
- Annual Contract Value (ACV) and trailing twelve months (TTM) royalties of $50.0 million, up 19% year-over-year
- Revenue of $11.4 million
- Remaining performance obligation (RPO) of $60.5 million, up 26% year-over-year
- Operating loss of $7.3 million or 64% of revenue
- Non-GAAP operating loss of $2.8 million or 24% of revenue
- Net loss of $7.8 million or $0.27 per share
- Non-GAAP net loss of $3.3 million or $0.12 per share
- Non-GAAP free cash flow of $2.9 million or 25% of revenue
Full year 2021 Financial Highlights:
- Revenue of $37.9 million, up 19% year-over-year
- Operating loss of $21.8 million or 57% of revenue
- Non-GAAP operating loss of $15.5 million or 41% of revenue
- Net loss of $23.4 million or $1.06 per share
- Non-GAAP net loss of $17.2 million or $0.78 per share
- Non-GAAP free cash flow of $(1.6) million or (4)% of revenue
Fourth Quarter 2021 Business Highlights:
- Announced pricing of our initial public offering for net proceeds of $71.1 million after deducting underwriting discounts and commissions and offering expenses, including the exercise of the underwriters’ overallotment option;
- Active Customers ended at 192 at the end of the year, representing a 28% year-over-year increase;
- We added 13 Active Customers during the fourth quarter, of which 12 are customers in machine learning/artificial intelligence and one is a customer in the automotive vertical;
- 21 customer Designs Starts in the quarter taking the total to 86 for 2021, increasing 51% year-over-year, across all major verticals; and
- At the end of the year, 26 of our customers are using both semiconductor IP and IP deployment solutions, including Mobilint and Sondrel which were added during the fourth quarter.
Estimated First Quarter and Full Year 2022 Guidance:
|Q1 2022||FY 2022|
|(in millions, except %)|
|ACV + TTM royalties||$50.5 - $52.5||$51.6 - $55.6|
|Revenue||$10.0 - $12.0||$47.0 - $51.0|
|Non-GAAP operating loss (%)||41.1% - 56.1%||25.6% - 40.6%|
|Free cash flow (%)||(38.0)% - (23.0)%||(25.9)% - (10.9)%|
The guidance provided above are forward-looking statements and reflect our expectations as of today's date. Actual results may differ materially. Refer to the "Forward-Looking Statements" below for information on the factors, among others, that could cause our actual results to differ materially from these forward-looking statements.
Non-GAAP operating income (loss), non-GAAP operating income (loss) margin, non-GAAP net income (loss), non-GAAP net income (loss) per share, non-GAAP free cash flow and non-GAAP free cash flow margin are non-GAAP financial measures. Additional information on Arteris’ historic reported results, including a reconciliation of these non-GAAP financial measures to their most comparable GAAP measures, is included in the financial tables below. A reconciliation of non-GAAP guidance measures reported above to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty of expenses that may be incurred in the future, although it is important to note that these factors could be material to Arteris’ results computed in accordance with GAAP.
Definitions of the other business metrics used in this press release including ACV, Active Customers and Customer Retention, Design Starts and RPO are included below under the heading “Other Business Metrics.”
Arteris will host a conference call today on March 3, 2022 to review its fourth quarter and full year 2021 financial results and to discuss its financial outlook.
|United States/Canada Toll Free:||877-407-9208|
A live webcast will also be available in the Investor Relations section of Arteris’ website at: https://ir.arteris.com/events-and-presentations
A replay of the webcast will be available in the Investor Relations section of the company’s web site approximately two hours after the conclusion of the call and remain available for approximately 30 calendar days.
Arteris IP (Nasdaq: AIP) provides system-on-chip (SoC) system IP consisting of network-on-chip (NoC) interconnect IP and IP deployment technology to accelerate system-on-chip (SoC) semiconductor development and integration for a wide range of applications from AI to automobiles, mobile phones, IoT, cameras, SSD controllers, and servers for customers such as Bosch, Mobileye, Samsung, Toshiba and NXP. Arteris IP products include the Ncore® cache coherent and FlexNoC® non-coherent interconnect IP, the CodaCache® standalone last level cache, and optional Resilience Package (ISO 26262 functional safety), FlexNoC AI Package, and PIANO® automated timing closure capabilities. Our IP deployment products provide intelligent automation that accelerates the development and increases the quality of SoC hardware designs and their associated software and firmware, verification and simulation platforms, and specifications and customer documentation. Customer results obtained by using Arteris IP products include lower power, higher performance, more efficient design reuse and faster SoC development, leading to lower development and production costs. For more information, visit www.arteris.com or find us on LinkedIn at https://www.linkedin.com/company/arteris.