Apple’s Future 5G Modem will be Based on Siva
Siva from Herzliya will provide its signal processor for Apple’s fifth-generation cellphone modem. The company reports on the results for the last quarter of 2019. Siva‘s CEO, Gideon Wertheizer, said that during the past quarter, she signed a “strategic agreement to deliver a very large signal processor to a smartphone modem for internal modem development” Techtime found out This is an Apple company, which decided to develop its own mobile modem for its devices, following a long dispute with Qualcomm.
To do so, in July 2019, it acquired most of Intel’s modem division for an estimated $ 1 billion. Apple has acquired about 2,200 of the division’s employees and all of Intel’s intellectual property in the field of smartphones. The deal allows Intel to continue developing modems for non-smartphone applications, such as PCs, IoTs, and autonomous cars.
Siva was the DSP processor provider for Intel’s cellular modems (IP), and was therefore one of the companies to benefit from the two-year dispute between Apple and Qualcomm. The market was expecting it to gain from Intel’s deal, so as soon as the deal was reported, Siva’s share price jumped about 14%. Investor estimates now appear to be correct. Given that Wertheizer has defined the agreement as “strategic,” it appears to be a long-term agreement. Long positioning the company in the best place it can be in the smartphone market.
In other segments, too, the report shows a snapshot of a company in the business phase: Sales in the fourth quarter grew by 32% compared to the same quarter in 2018, reaching a record $ 28.3 million. Sales in 2019 grew by 12% to About $ 87.2 million Revenue from sales of chipset design and development tools grew 18% to a record $ 47.9 million, and royalties increased 5% to $ 39.3 million.
In all, during the fourth quarter, Siva signed 21 new agreements for chip design technologies. There were 6 agreements for the provision of smart sensing technologies and 15 agreements for the provision of connectivity technologies. 10 of the signed agreements were with new clients. Wertheizer said the new agreements generated revenue of about $ 14.8 million.
At the start of trading on Nasdaq, Siva‘s share jumped 17%, giving the company a market cap of $ 767 million, compared to a market value of $ 657 million yesterday. The company has no debt and currently has cash, marketable securities and bank deposits of approximately -150 million.
Apple's Future 5G Modem will be Based on Siva - /10
Siva from Herzliya will provide its signal processor for Apple's fifth-generation cellphone modem. The company reports on the results for the last quarter of 2019. Siva's CEO, Gideon Wertheizer, said that during the past quarter