CEVA (Nasdaq: CEVA) reported earnings on July 31. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), CEVA beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped. Non-GAAP earnings per share dropped significantly. GAAP earnings per share shrank significantly.

Margins contracted across the board.

Revenue details
CEVA logged revenue of $12.8 million. The eight analysts polled by S&P Capital IQ looked for revenue of $12.0 million on the same basis. GAAP reported sales were 5.7% lower than the prior-year quarter's $13.6 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.

EPS details
EPS came in at $0.15. The nine earnings estimates compiled by S&P Capital IQ forecast $0.13 per share. Non-GAAP EPS of $0.15 for Q2 were 21% lower than the prior-year quarter's $0.19 per share. GAAP EPS of $0.10 for Q2 were 33% lower than the prior-year quarter's $0.15 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.

Margin details
For the quarter, gross margin was 91.5%, 110 basis points worse than the prior-year quarter. Operating margin was 14.2%, 940 basis points worse than the prior-year quarter. Net margin was 17.0%, 860 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $13.1 million. On the bottom line, the average EPS estimate is $0.17.

Next year's average estimate for revenue is $51.6 million. The average EPS estimate is $0.64.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 185 members out of 193 rating the stock outperform, and eight members rating it underperform. Among 48 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 45 give CEVA a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on CEVA is outperform, with an average price target of $19.71.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.