CEVA Group plc Results for the First Quarter Ended 31 March 2011

HOOFDDORP, Netherlands, May 13, 2011 /PRNewswire-Asia/ --

• EBITDA increased 36.5% year-on-year -- delivering euro 71 million in the Quarter
• Revenue of euro 1,686 million, up 13.3% year-on-year
• Group launches innovative end to end global supply chain solution

CEVA Logistics, a leading global supply chain management company, has today reported further strong revenue and EBITDA growth for the first quarter of 2011.  The Group also announces the launch of its innovative end to end global supply chain solution for large multinational customers.

First Quarter ended 31 March 2011 (at actual exchange rates)

Note 1: EBITDA excludes the impact of specific items which are significant non-recurring items such as restructuring, integration costs, and certain legal expenses.

Commenting on the results, John Pattullo, CEO said: "I'm delighted with our strong performance.  These results prove the benefits of the structural changes we made in 2010 and have positioned us well for continued future growth and development."

CEVA has entered 2011 in a strong position following the sequential improvements demonstrated in 2010.  This momentum has continued with revenue increasing 13.3% over the prior year at euro 1,686 million and, most pleasingly, EBITDA continuing to show improvements at euro 71 million for the Quarter -- an increase of 36.5% on the same period in 2010. 

The Group saw strong results in both air and oceanfreight -- freight volumes increased, particularly the trans-Atlantic lanes, and margins improved year-on-year.  Following the earthquake and tsunami, the Group experienced some reduction in outbound volumes from Japan; however they do not expect this to be material to performance in 2011. 

Contract Logistics and Freight Management each performed well and geographically the Group has delivered good results around the world in terms of both revenue and profit, particularly in Asia Pacific.  The business experienced growth in CEVA's key market sectors of Automotive, Consumer and Technology, as well as Industrial.  During the First Quarter they achieved over euro 528 million of new business wins with a record performance in March.  

Launch of Supply Chain Solutions

Today, CEVA has announced the creation of a new organization within CEVA, Supply Chain Solutions, and launched its latest SMART Solution, SMART End to End.  CEVA's Supply Chain Solutions organization has been created in response to the changing and evolving needs of large, global customers and includes 185 employees and five control towers around the world. As customers have shifted to sourcing, manufacturing and distributing products on a global basis the complexity of managing their supply chains has increased, while high performance and total cost remain key criteria. The Supply Chain Solutions team will use the experience and expertise that already exists within CEVA to consolidate different structures, organizations and resources to further strengthen their global team and upgrade their End to End Solutions -- a key part of the CEVA story -- to drive strategic advantage for CEVA's customers throughout their supply chains.

Outlook

The Group remain convinced that its well defined business model of selling integrated logistics and freight management solutions to sophisticated global customers will drive continued success. This is against a backdrop of healthy markets where the Group sees general activity levels growing at six to eight per cent.

CEVA - Making business flow

CEVA Logistics, one of the world's leading supply chain companies, designs and implements industry leading solutions for large and medium-size national and multinational companies. Approximately 50,000 employees are dedicated to delivering effective and robust supply chain solutions across a variety of sectors and CEVA applies its operational expertise to provide best-in-class services across its integrated network, with a presence in over 170 countries. For the year ending 31 December 2010, the Group reported revenues of euro 6.8 billion. For more information, please visit www.cevalogistics.com

SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT of 1995:

The statements included in this news release, and other statements that are not historical facts, may contain forward-looking statements. In addition to the assumptions specifically mentioned in the above paragraphs, there are a number of other factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements. These factors include, but are not limited to,  the actual effects of recent and future regulatory changes and technological developments, globalization, levels of spending in major economies, the economic downturn in Asia, Europe and the US, including the economic downturn in the automotive sector, levels of marketing and promotional expenditure, actions of competitors and joint venture partners, employee costs, future exchange and interest rates, changes in tax rates, unexpected costs of future business combinations or dispositions and other factors detailed in risk factors and elsewhere in CEVA most recent Annual Reports. Further information concerning the Company and its business, including factors that potentially could materially affect the Company's financial results, is contained in the Company's annual and quarterly reports, available on the Company's website. Should one or more of these risks or uncertainties materialize or the consequences of such a development worsen, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those forecasted or expected. CEVA disclaims any intention or obligation to update publicly or revise such statements, whether as a result of new information, future events or otherwise.

For more information contact: