CAMPBELL, Calif., Nov. 30, 2021 (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 third quarter ended September 30, 2021 as well as estimated fourth quarter and full year 2021 guidance.

“We continued our strong momentum in the third quarter with revenue increasing 39% year-over year. Demand for our products within the machine learning and automotive sectors remains strong as semiconductor manufacturers accelerate their designs for autonomous driving applications,” said K. Charles Janac, president and CEO of Arteris IP. “Demand for Arteris solutions continues to strengthen as increasing complexity of SoC creation, combined with tighter time-to-market requirements creates the need for best-in-class solutions. We remain excited about the significant opportunity ahead and believe Arteris is well positioned to drive increasing customer value in the years to come.”

Third Quarter 2021 Financial Highlights:

• Annual Contract Value (ACV) and Trailing-twelve-month (TTM) royalties of $45.6 million, up 21% year-over-year
• Revenue of $9.0 million, up 39% year-over-year
• Remaining performance obligation (RPO) of $50.6 million, up 48% year-over-year
• Operating loss of $4.5 million or 50% of revenue
• Non-GAAP operating loss of $4.0 million or 44% of revenue
• Net loss of $5.0 million or $0.24 per share
• Non-GAAP net loss of $4.4 million or $0.21 per share
• Non-GAAP free cash flow of $(4.5) million or (50)% of revenue

Third Quarter 2021 Business Highlights:

• Announced pricing of our initial public offering for gross proceeds of $80.5 million, including the exercise of the underwriters’ overallotment option
• Ended the quarter with 179 active customers, increasing 72% year-over-year
• 22 designs starts in the third quarter, increasing 69% year over year, across all major verticals
• Launched the Arteris® Harmony Trace™ Design Data Intelligence Solution to ease compliance with semiconductor industry functional safety and quality standards
• FlexNoC® Interconnect licensed by Eyenix for AI-enabled imaging / digital camera SoC
• Announced 4D LiDAR pioneer Aeva as our 200th customer
• FlexNoC® Interconnect licensed for use in SK Telecom SAPEON AI chips
  

Estimated Fourth Quarter and Full Year 2021 Guidance:

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 loss, non-GAAP operating loss margin, non-GAAP net loss, non-GAAP net loss per share, free cash flow and 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, customers and customer retention, design starts and RPO are included below under the heading “Other Business Metrics.”

Conference Call

Arteris will host a conference call today on November 30, 2021 to review its third quarter 2021 financial results and to discuss its financial outlook.

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.

About Arteris

Arteris IP provides 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, Baidu, 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. 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