Core Insights - Arteris, Inc. reported a record Annual Contract Value (ACV) plus royalties of $65.1 million in Q4 2024, reflecting a 16% year-over-year increase, driven by strong demand in AI-driven enterprise computing and automotive SoCs [2][6] - The company is well-positioned to capitalize on high-growth opportunities in Generative AI and Autonomous Driving, supported by a robust product pipeline and new customer acquisitions [2][5] Financial Highlights - Q4 2024 revenue reached $57.7 million, an 8% increase year-over-year [6] - Non-GAAP gross profit for Q4 2024 was $14.15 million, with a gross margin of 91% [35] - The operating loss for Q4 2024 was $7.1 million, an improvement from a loss of $9.2 million in Q4 2023 [6][35] - Full year 2024 net loss was $33.6 million, or $0.86 per share, compared to a net loss of $36.9 million in 2023 [6][35] Business Highlights - In 2024, Arteris signed 14 new customers, including two major automotive OEMs, and expanded its presence in key technology areas such as chiplets and microcontrollers [6][5] - The company announced design wins with GigaDevice and Menta for automotive microcontrollers and edge AI chiplet designs, respectively [6][5] - Arteris released FlexGen smart NoC IP, which can potentially enhance engineering productivity by up to 10 times while reducing power consumption [6][5] Guidance for 2025 - For Q1 2025, Arteris expects ACV plus royalties to be between $65.5 million and $67.5 million, and revenue to be between $15.7 million and $16.1 million [8] - Full year 2025 guidance includes expected revenue of $66.0 million to $70.0 million and a non-GAAP operating loss of $8.5 million to $12.5 million [8]

Core Viewpoint - Arteris Inc. will announce its financial results for Q4 and the full year of 2024 on February 18, 2025, after market close, followed by a conference call to discuss these results [1]. Company Overview - Arteris is a leading provider of system IP that accelerates system-on-chip (SoC) development, focusing on enhancing product performance while reducing power consumption and time to market [3]. - The company's network-on-chip (NoC) interconnect IP and SoC integration automation technology contribute to better SoC economics, allowing customers to innovate further [3]. Conference Call Details - The conference call will take place on February 18, 2025, at 4:30 PM ET, with live access available via a toll-free number for the U.S./Canada and an international toll number [1]. - A live webcast of the call will be accessible in the Investor Relations section of Arteris' website [1]. - A replay of the webcast will be available approximately two hours after the call and will remain accessible for about 30 days [2].

Core Viewpoint - Arteris, Inc. (AIP) has experienced a significant stock price increase, attributed to strong trading volume and positive market sentiment, with a notable 16.6% gain over the past four weeks [1] Financial Performance - The company is projected to report a quarterly loss of $0.10 per share, reflecting a year-over-year improvement of 44.4%. Expected revenues are $15.25 million, which indicates a 22% increase compared to the same quarter last year [2] - The consensus EPS estimate for Arteris has remained stable over the last 30 days, suggesting that stock price movements may not continue without changes in earnings estimate revisions [3] Industry Context - Arteris operates within the Zacks Internet - Software industry, alongside Calix (CALX), which saw a 1% increase in its stock price, with a 9.8% return over the past month [4][7] - The company is benefiting from strong demand in AI-driven enterprise computing and automotive SoC solutions, along with increasing adoption of its technology by leading global customers [5] Market Trends - Research indicates a strong correlation between earnings estimate revisions and near-term stock price movements, highlighting the importance of monitoring these trends for potential investment opportunities [6]

Core Viewpoint - Arteris, Inc. (AIP) is showing potential for a bullish breakout as it has reached a key support level and experienced a "golden cross" in its moving averages [1][2]. Technical Analysis - AIP's 50-day simple moving average has crossed above its 200-day simple moving average, indicating a bullish trend [1][2]. - The golden cross pattern suggests a potential bullish breakout, characterized by a short-term moving average surpassing a long-term moving average [2]. - The successful golden cross event consists of three stages: a price decline bottoming out, the shorter moving average crossing above the longer one, and maintaining upward momentum [3]. Recent Performance - AIP shares have increased by 20.8% over the past four weeks, indicating strong upward movement [4]. - The company currently holds a 3 (Hold) rating on the Zacks Rank, suggesting it may be poised for further gains [4]. - There have been two upward earnings estimate revisions in the last 60 days, with no downward revisions, contributing to a positive earnings outlook for the current quarter [4][5]. Technical Indicators - As of the latest data, AIP's 50-day simple moving average is at 7.494, while the 200-day simple moving average is at 7.536 [5]. - The trading volume for AIP is reported at 17.02, indicating active trading [5].

Core Insights - Arteris, Inc. has announced that GigaDevice has licensed its FlexNoC 5 interconnect IP to improve product performance, reduce power consumption, and accelerate time to market [1] - GigaDevice focuses on providing high-performance, reliable automotive-grade solutions that meet stringent industry standards [2] - The FlexNoC 5 interconnect IP is designed to manage the complexities of functional safety standards, offering high performance, flexibility, and scalability [3] Company Overview: Arteris - Arteris is a leading provider of system IP that accelerates system-on-chip (SoC) development, enabling higher product performance with lower power consumption and faster time to market [4] - The company's network-on-chip (NoC) interconnect IP and SoC integration automation technology enhance SoC economics, allowing customers to focus on innovation [4] Company Overview: GigaDevice - GigaDevice Semiconductor Inc. is a global fabless supplier established in 2005, providing a wide range of solutions in various fields including industrial, automotive, and IoT [5] - The company has achieved ISO 9001:2015 and ISO 14001:2015 certifications, indicating a commitment to quality and environmental management [5] - GigaDevice is focused on building a complete ecosystem with major product lines such as Flash memory, MCU, sensor, and power [5]

Core Viewpoint - AIP Realty Trust is set to acquire AllTrades Industrial Properties, LLC for up to US$78.7 million, aiming to enhance its portfolio of light industrial assets across the Sunbelt States of the U.S. [1][3] Transaction Details - The acquisition will involve cash payments covering AllTrades' indebtedness and transaction expenses, along with the issuance of preferred partnership units valued at 25% of the total purchase price [1] - The remaining purchase price will be contingent on the number of "Building Starts" approved, with payments structured over four anniversaries post-transaction closing [1][2] Approval and Conditions - The transaction is subject to customary closing conditions, including approvals from the TSX Venture Exchange and Trust unitholders, as well as a formal valuation and fairness opinion [2][13] - The Trust will seek a two-thirds majority approval from disinterested unitholders at a special meeting [13] Strategic Intent - The acquisition of AllTrades is expected to streamline AIP's expansion plans and fill a gap in the light industrial marketplace for high-quality facilities [3][5] - AIP Realty Trust aims to build a significant portfolio of AllTrades-branded light industrial assets, focusing on small businesses and trades in the U.S. [15] Related Transactions - AIP Realty Trust has completed a separate transaction with Plymouth Industrial OP, LP, raising US$2.2 million through the sale of preferred partnership interests to fund the AllTrades acquisition [4][9] - The proceeds from the Plymouth transaction will be used for working capital and costs associated with the AllTrades transaction [9] Governance and Oversight - Independent trustees have reviewed the AllTrades transaction, ensuring compliance with regulations and overseeing the approval process for individual Building Starts [10][11] - The transaction may be classified as a related party transaction due to the involvement of trustees who are also directors of AllTrades [11][12]

Financial Data and Key Metrics Changes - Total revenue for Q3 2024 was $14.7 million, an 11% year-over-year increase, and at the midpoint of guidance range [21] - Annual contract value (ACV) plus royalties reached a record high of $60.5 million [21] - Remaining performance obligations (RPO) increased by 25% year-over-year to $78.4 million, also a record high [21] - GAAP gross profit was $13.3 million with a gross margin of 90%, while non-GAAP gross profit was $13.5 million with a gross margin of 92% [22] - GAAP operating loss was $7.9 million, an improvement from $8.5 million in the prior year [23] - Non-GAAP net loss was $3.1 million, or diluted net loss per share of $0.08 [24] - Free cash flow was positive at $1.1 million, marking the third consecutive quarter of positive free cash flow [25] Business Line Data and Key Metrics Changes - The majority of new designs in Q3 came from enterprise computing, followed by automotive, consumer electronics, and communications [11] - Nearly half of the license deals in dollar terms this year have enabled AI SoC development, more than doubling year-over-year [11] - The company is expanding its focus to include microcontroller chips, which are becoming complex enough to benefit from system IP technology [15][16] Market Data and Key Metrics Changes - The demand for AI-driven enterprise computing and automotive SoC solutions was a significant driver of business in Q3 [9] - The company has a strong presence in the Chinese automotive market, with notable customers like NIO adopting its technology [10][31] - Design activity in the Chinese EV market is robust, with ongoing projects across various global markets [40] Company Strategy and Development Direction - The strategy focuses on supporting mid- and high-end SoCs and expanding relationships with large customers [15] - The company aims to address a broader set of designs at large customers, including microcontrollers for various applications [16] - Recent product innovations include NoC Tiling to accelerate AI SoC design, which is expected to enhance customer engagement [12][42] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term opportunity, supported by a strong product pipeline and relationships with advanced electronics companies [17] - The company is encouraged by its top-line trajectory and effective cost management, leading to improved guidance for revenue and free cash flow for the full year [28] - Management acknowledged the challenges posed by market share shifts in the automotive sector but emphasized a strong presence in the market [31][34] Other Important Information - The company announced the addition of two seasoned individuals to its leadership team, enhancing its strategic capabilities [18] - The company is engaged with approximately half of the top 30 technology companies that design chips [45] Q&A Session Summary Question: Impact of China's automotive market on the company - Management indicated that the strategy is to capture as many projects as possible, and the presence in the Chinese automotive market is strong [31] - The company believes that despite market share shifts, it will benefit from ongoing projects in the automotive sector [31][32] Question: Contribution of enterprise computing design - Enterprise computing remains a significant revenue contributor, driven by AI elements across various verticals [37] Question: Design activity in the Chinese EV market - Design activity is robust globally, with significant activity in China, the U.S., and Europe [40] Question: Licensing deals in the microcontroller market - ASPs in the microcontroller market are typically lower, but the strategy focuses on capturing entire generations of microcontrollers to improve account yield [41] Question: Customer feedback on new NoC Tiling product - Initial feedback is positive, with significant customer interest, but revenue impact is expected to start next year [42]

Arteris, Inc. (AIP) came out with a quarterly loss of $0.08 per share versus the Zacks Consensus Estimate of a loss of $0.14. This compares to loss of $0.12 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 42.86%. A quarter ago, it was expected that this company would post a loss of $0.15 per share when it actually produced a loss of $0.11, delivering a surprise of 26.67%. Over the last four quarters, the company has surpassed ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-40960 Arteris, Inc. (Exact name of registrant as specified in its charter) Delaware 27-0117058 (State or o ...

ARTERIS IP Arteris Announces Financial Results for the Third Quarter 2024 and Fourth Quarter and Full Year 2024 Guidance CAMPBELL, Calif. - November 5, 2024 - Arteris, Inc. (Nasdaq: AIP), a leading provider of system IP which accelerates system-on-chip (SoC) creation, today announced financial results for the third quarter ended September 30, 2024 and provided fourth quarter and full year 2024 guidance. "We're excited to report a record $60.5 million in Annual Contract Value plus royalties, and our third co ...