CEVA Holdings today reported net income in the second quarter of 2013 of $197 million, up from $106 million in the second quarter of 2012.
The gain was partially driven by a debt exchange transaction and the reversal of accrued interest expenses of $93 million that had been waived as part of the recapitalization completed in May 2013, according to the non-asset-based supply chain management company.
Quarterly revenue decreased by 6.2 percent from $2.29 billion in 2012 to $2.15 billion in 2013, fueled by lower freight management volume, CEVA said. Revenue from the freight management division declined 11.7 percent, mainly because of lower air freight volume, and revenue from contract logistics dropped by 1.4 percent (adjusted for the impact of disposals), as a strong performance in the U.S. was offset by the impact of several contracts that were terminated as part of CEVA’s cost reduction program. In addition, the company experienced lower volume in several markets, notably in parts of Europe.
“I am pleased to report that the steps we are taking to restructure the company’s balance sheet and address its cost base are already delivering strong results,” said Marvin O. Schlanger, CEVA’s CEO, in a written statement. “We will continue to focus on increasing our sales to take advantage of our stronger position.”