CAMPBELL, Calif., Nov. 08, 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 third quarter ended September 30, 2022 as well as estimated fourth quarter and full year 2022 guidance.

“We’re excited by our results for the third quarter, including both Annual Contract Value plus Trailing-Twelve-Month Royalties of $53.2 million, up 17% year-over-year and the achievement of a major company milestone with over three billion systems shipped with SoCs connected by Arteris System IP," said K. Charles Janac, President and CEO of Arteris IP. “While there are macro-economic uncertainties, including the latest US Commerce Department regulations with respect to China, we believe that Arteris is well positioned as our customers are continuing to innovate in areas such as automotive, machine learning and 5G, driving the need for increased use of commercial System IP.”

Third Quarter 2022 Financial Highlights:

• Annual Contract Value (ACV) and Trailing-twelve-month (TTM) royalties of $53.2 million, up 17% year-over-year
• Revenue of $12.6 million, up 41% year-over-year
• Remaining performance obligation (RPO) of $59.3 million, up 17% year-over-year
• Operating loss of $7.8 million or 61% of revenue
• Non-GAAP operating loss of $4.2 million or 34% of revenue, compared to a Non-GAAP operating loss of $4.0 million in the year-ago period
• Net loss of $7.7 million or $0.23 per share
• Non-GAAP net loss of $4.2 million or $0.13 per share
• Non-GAAP free cash flow of $(5.7) million or (45)% of revenue

Third Quarter 2022 Business Highlights:

• Added 10 Active Customers in the third quarter across some of our core market verticals, including a deal with a major international electric vehicle manufacturer, and a deal with a space-oriented customer;
• We announced an expanded partnership with Arm to help speed up automotive electronics innovation, leveraging Arm processors and Arteris System IP to enable a variety of high-performance automotive semiconductors;
• 21 confirmed design starts in the third quarter, including in automotive, consumer, and mobile infrastructure;
• We announced our collaboration with SiMa.ai, which integrates the Arteris FlexNoC interconnect IP into the SiMa.ai Machine Learning System-on-Chip (MLSoC) for implementing AI/ML computing at the edge;
• We achieved a major company milestone of reaching over three billion systems shipped with SoCs connected by Arteris System IP since inception; and
• We strengthened our management team with the addition of Christel Mauffet-Smith as our new Executive Vice President of Global Sales.

Estimated Fourth Quarter and Full Year 2022 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 section titled "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 gross profit, Non-GAAP gross margin, 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, active customers, confirmed design starts and RPO are included below under the heading “Other Business Metrics.”

Conference Call

Arteris will host a conference call today, November 8, 2022, to review its third quarter 2022 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.