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ARTERISIP Arteris Announces Financial Results for the Third Quarter 2021 and Estimated Fourth Quarter and Full Year 2021 Guidance November 30 , 2021 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 revenu ncreasing 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 TraceTM Design Data Intelligence Solution to ease compliance with semiconductor industry functional safety and quality standards • FlexNoC® Interconnect licensed by Eyenix for Al - enabled imaging / digital camera SoC • Announced 4D LIDAR pioneer Aeva as our 200th customer • FlexNoC® Interconnect licensed for use in SK Telecom SAPEON Al chips Estimated Fourth Quarter and Full Year 2021 Guidance : ACV + TTM royalties Revenue Non - GAAP operating loss ( % ) Free cash flow ( % ) Q4 2021 $ 48.5 - $ 50.0 $ 10.0 - $ 11.1 32 % -54 % ( 52 ) % - ( 37 ) % ( in millions , except % ) FY 2021 $ 48.5 - $ 50.0 $ 36.3- $ 37.5 40 % -50 % ( 35 ) % - ( 20 ) % 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 .