CEVA Inc's stock plummeted 6.55% during intraday trading on Monday, reversing sharply from pre-market gains that had seen the shares rise more than 8% following the release of its first-quarter financial results.

The semiconductor intellectual property provider reported Q1 revenue of $27 million, representing an 11% year-over-year increase and exceeding the IBES estimate of $26.1 million. However, investors focused on the company's deepening losses, with GAAP net loss widening to $4.5 million and diluted loss per share deepening to $0.16. The GAAP operating loss also expanded to $5.1 million, though non-GAAP operating income showed a slight improvement to $524,000.

The initial pre-market optimism, driven by the revenue beat and strong licensing growth, gave way to selling pressure as the market digested the concerning expansion of losses despite the top-line growth. The reversal highlights investor concerns about the company's profitability trajectory even as it achieves revenue milestones.