Tensilica reports that its licensees have recorded shipments of over two billion Tensilica DPUs (dataplane processor units). Tensilica's licensees are now shipping at a run rate of approximately 800 million Tensilica DPU IP cores per year, which is more than a 50% increase over the run rate announced in June 2011, when the company reached its one billionth core shipment. Tensilica also announced that license revenue for the previous four quarters (ending June 30, 2012) has continuously surpassed that of other DSP IP licensing companies by an average margin of 25%. "IP companies get revenue from two sources: licensing and royalties," stated J. Scott Gardner, senior analyst at The Linley Group. "Licensing revenue is a leading indicator of future royalty revenue. Often it takes two to three years for royalties to come in after a new design license is signed. So this rise in licensing revenue bodes well for future royalty revenue for Tensilica." Tensilica attributes the growth in unit shipments to new designs ramping to volume production in smartphones, digital televisions, tablets, personal and notebook computers, and storage and networking applications. While Tensilica provides design tools that allow for fast click-button configuration or customization of processor cores, the company also offers standard DPUs/DSPs for audio and baseband signal processing. Tensilica's HiFi IP cores support over 100 optimized software packages and have now been licensed to over 50 companies. Tensilica's DPUs are also leading new baseband modem designs in multi-standard 3G/HSPA+, LTE and LTE-Advanced, DTV demodulation, advanced WiFi, and smart grid communications. Tensilica currently leads the market in the shipment of licensed IP cores designed for 4G LTE/LTE-A functions. Tensilica
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