Shares in chip design firm ParthusCeva slumped more than 20 per cent yesterday following publication of results that were below market expectations.

The company, which employs about 100 staff in its Dublin design team, reported a net loss of $1.1 million (€850,000) in the third quarter, down from a profit of $32,000 for the second quarter this year.

This amounts to a net loss per share of six US cents in the third quarter, compared to a profit of two cents in the second quarter.

ParthusCeva was created in late 2002 following the merger of the Ceva division of the US-Israeli company DSP Group and the Irish company Parthus. Therefore, it does not have comparable results for the year 2002.

ParthusCeva, which develops intellectual property that powers the chips for mobiles and consumer electronics goods, generated $9.3 million revenues in the third quarter 2003, compared to $9.1 million in the prior quarter.

Revenues were slightly below Davy Stockbrokers' expectations, although ParthusCeva generated $1.2 million royalty payments, ahead of an expected $900,0000.

ParthusCeva's results were hit by an unexpected $1.4 million restructuring charge caused by post-merger charges, stock write-offs and the closure of its Northampton office in Britain.

Excluding this restructuring charge, net income in the quarter was $268,000.

In a conference call with analysts, ParthusCeva management said it would seek to streamline its product range further and generate more efficiency.

It also announced a licensing deal with US technology firm VIA Telecom for its TeakLite digital signal processing technology.

Its shares recovered towards the end of trading to close down $1.51 cents at $7.55 on the Nasdaq yesterday, a fall of 16.67 per cent.