Financial Data and Key Metrics Changes - Total revenue for the quarter was $24.2 million, up 10% year over year from $22.2 million [13] - Licensing revenue increased 32% to $15 million, representing 62% of total revenues compared to $11.4 million in the same quarter last year [14] - Royalty revenue decreased 14% to $9.2 million, reflecting 38% of total revenue, down from $10.7 million for the same quarter last year [15] - GAAP net loss for the first quarter was $3.3 million, with a diluted loss per share of $0.14, compared to a net loss of $5.4 million and diluted loss per share of $0.23 for the same quarter last year [17] Business Line Data and Key Metrics Changes - Royalty revenue was impacted by lower shipments of low-cost smartphone chips and a slower product ramp-up from an industrial customer [4][10] - WiFi royalty revenue grew 183% year over year, driven by a 12% increase in unit shipments, particularly in the consumer and industrial IoT markets [11][19] - Shipments of CEVA licensees during the first quarter were 420 million units, up 13% from the previous year, with notable increases in consumer IoT (up 19%) and industrial IoT (up 26%) [18] Market Data and Key Metrics Changes - The company noted strong demand in the Edge AI portfolio and continued expansion in wireless communication IP, despite a cautious outlook due to macroeconomic factors [20][21] - The overall performance and safety of ADAS systems are advancing rapidly, with significant advancements in AI technologies such as vision transformers [9] Company Strategy and Development Direction - The company aims to continue innovating for customers, deepen technology leadership, and build a strong future royalty stream while managing expenses [12] - The strategy focuses on accumulated and sustained value creation over time, with a long-term view on IP licensing success [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating short-term volatility while focusing on being the IP partner of choice for smart edge devices [12] - A cautious outlook for the rest of the year was adopted, lowering 2025 revenue guidance from a high single-digit range to a low single-digit range for growth over 2024 annual revenues [21][65] Other Important Information - The company is engaged in multiple discussions related to AI influencing using its Newport NPU family, including several automotive players for next-generation platforms [9] - The company expects sequential growth in royalties due to seasonality and expansion of CEVA-powered 5G smartphone modems in the second quarter and beyond [23] Q&A Session Summary Question: Can you say whether the ADAS win was with a tier one supplier or if it has secured a program at an automotive OEM? - Management confirmed it was a design win with a tier one supplier that has secured OEM customers, and it will be part of their next-generation platform [26][27] Question: Is there a similar increase in ASPs with WiFi 7 as there was with WiFi 6? - Management indicated that the transition from WiFi 4 to WiFi 6 saw a significant uplift in ASP, and they expect a similar trend with WiFi 7 as customers migrate to volume production [28][31] Question: What competitive environment surrounded the ADAS win? - Management noted that the market is migrating to more advanced models using vision transformers, requiring power-efficient solutions with low latency, which their technology excels at [36] Question: Was the softness in the low-end smartphone market related to tariffs or customer product transitions? - Management clarified that the slower start was due to supply chain activities and does not expect direct impacts from tariffs, anticipating a ramp-up in customer shipments [42][44] Question: Are there any impacts on the licensing environment due to macro and tariff uncertainty? - Management stated that while there is cautious sentiment among customers, they have not seen a decrease in their licensing pipeline and continue to close strategic deals [76][77] Question: Are WiFi royalty units ramping and tracking to follow the success of Bluetooth? - Management expressed optimism about the ramp-up of WiFi technology, with many customers integrating and ramping production, indicating a strong alignment with Bluetooth success [78]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $24.2 million, representing a 10% increase year over year from $22.2 million in Q1 2024 [13] - Licensing revenue increased by 32% to $15 million, accounting for 62% of total revenues, compared to $11.4 million in Q1 2024 [13] - Royalty revenue decreased by 14% to $9.2 million, reflecting 38% of total revenue, down from $10.7 million in the same quarter last year [14] - GAAP net loss for Q1 2025 was $3.3 million, with a diluted loss per share of $0.14, compared to a net loss of $5.4 million and a diluted loss per share of $0.23 in Q1 2024 [17] Business Line Data and Key Metrics Changes - Royalty revenue from WiFi increased by 183% year over year, driven by a 12% increase in unit shipments, particularly in the consumer and industrial IoT markets [10][19] - Shipments of Bluetooth units were 233 million, up 15% from 202 million in Q1 2024 [18] - Cellular IoT shipments increased by 31% year over year to 48 million units [18] Market Data and Key Metrics Changes - Shipments in the consumer IoT market rose by 19% to 337 million units, while industrial IoT shipments increased by 26% to 30 million units [18] - The overall market for low-cost smartphones experienced a slowdown, impacting royalty revenue expectations [19] Company Strategy and Development Direction - The company aims to continue innovating for customers, deepen technology leadership, and build a strong future royalty stream while managing expenses [12] - The focus remains on expanding market share in wireless communication IP and diversifying the royalty customer base [2][12] Management's Comments on Operating Environment and Future Outlook - Management expressed a cautious outlook for the remainder of the year, lowering 2025 revenue guidance from a high single-digit range to a low single-digit range for growth over 2024 [21] - The company anticipates sequential growth in royalties due to seasonality and the expansion of CEVA-powered 5G smartphone modems [20] Other Important Information - The company reported a cash balance of approximately $158 million as of March 2025 [19] - Total gross operating expenses for Q1 were at the low end of guidance at $25.1 million [14] Q&A Session Summary Question: Can you clarify the significance of the AI NPU ADAS win? - The design win is with a tier one supplier that has secured OEM customers, indicating potential for multiple platforms [26] Question: Is there an increase in ASPs with WiFi 7? - The transition from WiFi 6 to WiFi 7 is expected to bring a significant uplift in ASPs, similar to the previous transition [28] Question: What is the competitive environment around the ADAS win? - The competitive landscape includes a shift towards advanced models using vision transformers, with CEVA's technology excelling in power efficiency and low latency [34][35] Question: What caused the softness in the low-end smartphone market? - The slowdown was attributed to supply chain issues and is expected to recover as customers ramp up production [41][42] Question: How is the licensing pipeline looking? - The licensing pipeline remains strong, with no significant postponements in deals despite macroeconomic concerns [46][76] Question: Are there any impacts from tariffs on licensing? - There is no direct impact from tariffs, but customers are exhibiting cautious behavior due to uncertainty in the market [75][76] Question: How are WiFi royalty units tracking? - WiFi royalty units are ramping up successfully, with many customers integrating technology into production [78]

Revenue Performance - Total revenue for Q1 2025 was $24.2 million, a 10% increase from $22.1 million in Q1 2024[3] - Licensing and related revenue for Q1 2025 was $15.0 million, up from $11.4 million in the same quarter last year[3] - Royalty revenue for Q1 2025 was $9.2 million, down from $10.7 million in Q1 2024[3] Profitability Metrics - GAAP gross margin for Q1 2025 was 86%, compared to 89% in Q1 2024[5] - GAAP net loss for Q1 2025 was $3.3 million, an improvement from a net loss of $5.4 million in Q1 2024[5] - Non-GAAP net income for Q1 2025 was $1.4 million, compared to a non-GAAP net loss of $1.3 million in Q1 2024[7] Business Development - Eleven IP licensing agreements were concluded in the quarter, including significant deals in Wi-Fi 7 and edge AI technologies[4] - The company powered 420 million devices in the quarter, a 13% increase year-over-year[6] - The CEO highlighted successful implementation of IP in a leading U.S. OEM's in-house 5G modem launched during the quarter[4] Revenue Challenges - The CFO noted a shortfall in royalty revenue due to soft low-cost smartphone shipments and slower product ramp-up from an industrial customer[8] Balance Sheet Highlights - Total current assets increased slightly to $216,985 thousand from $216,341 thousand, reflecting a growth of 0.3%[27] - Unbilled receivables rose to $25,731 thousand, up 21.7% from $21,240 thousand[27] - Total liabilities decreased to $40,859 thousand from $42,392 thousand, a reduction of 3.6%[27] - Retained earnings decreased to $7,359 thousand from $11,193 thousand, a decline of 34.5%[27] - Total stockholders' equity increased to $269,132 thousand from $266,556 thousand, showing a growth of 1.0%[27] - Cash and cash equivalents increased to $18,814 thousand from $18,498 thousand, a rise of 1.7%[27] - Marketable securities and short-term bank deposits decreased to $139,534 thousand from $145,146 thousand, a decline of 3.9%[27] - Trade receivables decreased to $15,088 thousand from $15,969 thousand, a drop of 5.5%[27] - Total assets increased to $309,991 thousand from $308,948 thousand, reflecting a growth of 0.3%[27] - Operating lease liabilities decreased to $2,829 thousand from $2,963 thousand, a reduction of 4.5%[27]

Financial Performance - Ceva, Inc. reported Q1 2025 revenue of $24.2 million, representing a 10% increase year-over-year from $22.1 million in Q1 2024 [2][4] - Non-GAAP diluted EPS for Q1 2025 was $0.06, up from a loss of $0.05 in the same quarter last year [2][7] - GAAP gross margin for Q1 2025 was 86%, down from 89% in Q1 2024 [6] - GAAP operating loss for Q1 2025 was $4.4 million, an improvement from a loss of $5.0 million in Q1 2024 [6] - GAAP net loss for Q1 2025 was $3.3 million, compared to a net loss of $5.4 million in Q1 2024 [6] Licensing and Revenue Streams - The company concluded 11 licensing agreements in Q1 2025, including deals for Wi-Fi 7, edge AI NPU for automotive ADAS, and spatial audio software for wireless headsets [5][8] - Licensing and related revenue for Q1 2025 was $15.0 million, up from $11.4 million in Q1 2024 [4] - Royalty revenue for Q1 2025 was $9.2 million, down from $10.7 million in Q1 2024 [4] Product and Market Developments - Ceva-powered shipments reached 420 million units in Q1 2025, marking a 13% increase year-over-year [8] - The company highlighted the successful ramp-up of a leading U.S. OEM's in-house 5G modem that integrates Ceva's IP [5][8] - The adoption of Wi-Fi 7 and new licensees for edge AI and spatial audio IPs are expected to drive future royalty growth [5] Management Commentary - The CEO expressed satisfaction with the progress in the licensing business and emphasized the importance of customer engagements across the IP portfolio [5] - The CFO noted a shortfall in royalty revenue due to lower low-cost smartphone shipments and slower product ramp-up from an industrial customer [8]

Financial Data and Key Metrics Changes - The company reported a quorum of 18,860,260 shares present, representing a significant level of shareholder engagement [7] - The election of directors received overwhelming support, with at least 99% of shares voting in favor of the motions [13][14] Business Line Data and Key Metrics Changes - The meeting included discussions on the approval of amendments to employee stock purchase and equity incentive plans, indicating ongoing adjustments to employee compensation structures [15][22] Market Data and Key Metrics Changes - No specific market data or key metrics were discussed during the meeting [0] Company Strategy and Development Direction and Industry Competition - The company is focused on maintaining strong governance through the election of directors and the approval of compensation plans, which reflects a commitment to aligning management interests with shareholder value [10][26] Management's Comments on Operating Environment and Future Outlook - Management did not provide specific comments on the operating environment or future outlook during this meeting [0] Other Important Information - The company ratified the selection of Ernst and Young Global as independent auditors for the fiscal year ending December 31, 2025, which is a standard practice to ensure financial oversight [30] Q&A Session Summary Question: Were there any discussions on the company's future strategies? - There were no specific discussions or questions regarding future strategies during the meeting [0] Question: What was the outcome of the director elections? - The elections resulted in all nominated directors being approved with significant majority votes, indicating strong shareholder support [13][14] Question: Were there any concerns raised by shareholders? - No concerns were raised during the meeting, and all motions passed with overwhelming support [0]

Core Insights - The upcoming Bluetooth® release will introduce the Unified Test Protocol (UTP) Test Mode for Bluetooth® Low Energy, enabling over-the-air (OTA) controlled device testing, which simplifies testing for small and highly integrated devices [1][2][3] Group 1: Test Solution Development - Rohde & Schwarz and Ceva have developed the world's first test solution for the Bluetooth® OTA UTP Test Mode, which will be showcased at Embedded World 2025 [2][8] - The test solution utilizes Ceva-Waves Bluetooth® Low Energy IP and operates on the R&S CMW radio communication tester platform [2][4] Group 2: Advantages of UTP Test Mode - The UTP Test Mode allows for testing without a direct wired connection, which is particularly beneficial for encapsulated devices that cannot accommodate a control cable [3][6] - This mode unifies all Bluetooth® Low Energy and Bluetooth® Classic radio measurements, allowing them to be performed with a single test setup over the air [6][7] Group 3: Industry Impact - The introduction of the UTP Test Mode is seen as a significant advancement for testing next-generation consumer Bluetooth® products, enhancing ease of testing for manufacturers [5][7] - Rohde & Schwarz's R&S CMW platform is recognized as a standard in the industry, and the new test mode aligns with specifications from the Bluetooth® Core Specification Working Group [7][9] Group 4: Company Background - Rohde & Schwarz generated a net revenue of EUR 2.93 billion in the 2023/2024 fiscal year and employs over 14,400 people globally [9] - Ceva powers over 19 billion smart edge products, focusing on wireless connectivity and Edge AI technologies [11][12]

Core Insights - Ceva, in collaboration with Arm and SynaXG, has developed a customized 5G-Advanced solution that significantly enhances energy efficiency for 5G NR processing in wireless networks and satellites, achieving 10X better efficiency than traditional solutions and 20X more than FPGA-based alternatives [1][2][3] Company and Industry Overview - The new solution leverages Arm Neoverse N2 CPUs and Ceva's PentaG-RAN platform, integrating SynaXG's carrier-grade RAN software to redefine power efficiency for 5G infrastructure applications [2][4] - This collaboration aims to provide a low-risk pathway for existing and new players in the wireless infrastructure market to transition towards 5G-Advanced and eventually 6G [1][3] - The PentaG-RAN platform offers a complete L1 PHY solution with optimal hardware/software partitioning, delivering up to 20X savings in power and area compared to FPGA and COTS CPU alternatives [5] - The solution is designed to support both mmWave and sub-6-GHz networks, making it versatile for various 5G-Advanced system developments [5] - Ceva's technology portfolio includes a wide range of wireless communication IPs and Edge AI solutions, powering over 19 billion smart edge products globally [6]

Core Insights - Ceva, Inc. has announced the development of the ASUKA System-on-Chip (SoC) for Beyond 5G (6G) IoT terminals in collaboration with Sharp Semiconductor Innovation Corporation, utilizing the Ceva-PentaG2 5G platform IP [1][2][3] - The ASUKA SoC aims to provide a customizable alternative to traditional 5G SoCs, promoting accessibility and flexibility in cellular IoT communications [2][3] - The Ceva-PentaG2 platform is designed for lower-throughput applications, integrating advanced DSPs and accelerators for optimal signal processing while maintaining minimal power consumption [4] Company Overview - Ceva, Inc. specializes in silicon and software IP for Smart Edge devices, powering over 19 billion innovative products globally, including AI-infused smartwatches and autonomous vehicles [5][6] - The company focuses on delivering high-performance, low-power solutions that enable reliable data connectivity and processing [5] - Ceva's headquarters is located in Rockville, Maryland, with a global customer base supported by a team of experts in various design challenges [6]

Core Insights - Ceva, Inc. has announced the development of the ASUKA System-on-Chip (SoC) for Beyond 5G (6G) IoT terminals in collaboration with Sharp Semiconductor Innovation Corporation, utilizing the Ceva-PentaG2 5G platform IP [1][2][3] - The ASUKA SoC aims to provide a customizable alternative to traditional 5G SoCs, promoting accessibility and flexibility in cellular IoT communications [2][3] - The Ceva-PentaG2 platform is designed for lower-throughput applications, integrating advanced DSPs and accelerators for optimal signal processing while maintaining minimal power consumption [4] Company Overview - Ceva, Inc. specializes in silicon and software IP for Smart Edge devices, powering over 19 billion innovative products globally, including AI-infused smartwatches and autonomous vehicles [5][6] - The company focuses on delivering high-performance, low-power solutions that enable reliable data connectivity and processing [5] - Ceva's headquarters is located in Rockville, Maryland, with a global customer base supported by a team of experts in various design challenges [6]

Market Position and Growth - Company commands 67% of the wireless connectivity market share based on IP design revenues in 2023, with a total addressable market projected to reach $5 billion by 2027[192]. - In 2024, approximately 2 billion smart edge products shipped with the company's IP, contributing to a total of over 19 billion since 2003[192]. - Company achieved year-over-year revenue growth of 10% in 2024, exceeding the initial expectation of 4% to 8%[201]. - Licensing and related revenues are expected to expand into new markets and use cases for industrial IoT and consumer IoT devices in 2025, with overall revenue growth projected at 7%-11%[201]. - The company anticipates significant market share expansion in wireless communication IP due to a long-term licensing agreement with a leading U.S. OEM for a 5G modem[196]. - The addressable market for Bluetooth, Wi-Fi, UWB, and cellular IoT is expected to exceed 16.5 billion devices annually by 2029[197]. - The NeuPro-Nano family of AI NPUs is projected to power over 50% of TinyML shipments by 2030, representing billions of devices annually[202]. Revenue and Financial Performance - Total revenue for 2024 was reported at $106.9 million, a 10% increase compared to 2023[232]. - Royalty revenues grew by 18% year-over-year, with a record shipment of 2 billion Ceva-powered units in 2024[233]. - Licensing and related revenue for 2024 was $60.0 million, a 4% increase from 2023, with 43 licensing agreements signed, down from 53 in the previous year[237]. - Royalty revenues increased to $46.9 million in 2024, reflecting a 17.8% year-over-year growth, with a record shipment of 2 billion Ceva-powered units[240][241]. - The five largest royalty-paying customers contributed 61% of total royalty revenues in 2024, compared to 58% in 2023[243]. Cost and Expenses - The cost of revenues as a percentage of total revenues decreased from 12.5% in 2022 to 11.9% in 2024, resulting in a gross profit margin increase from 87.5% to 88.1%[230]. - Research and development expenses increased significantly to 67.0% of total revenues in 2024, up from 58.3% in 2022[230]. - Total operating expenses for 2024 were $101.7 million, a 2.5% increase from 2023, primarily due to higher allowances for credit losses[251]. - Sales and marketing expenses increased to $12.6 million in 2024, a 14.3% rise from 2023, driven by higher commission and salary expenses[256][257]. - General and administrative expenses for 2024 increased to $16.9 million, reflecting a year-on-year change of 13.2% compared to 2023[258]. Cash Flow and Investments - Cash provided by operating activities in 2024 was $3.5 million, consisting of a net loss of $8.8 million and adjustments for non-cash items of $20.0 million[282]. - Net cash used in investing activities in 2024 was $2.4 million, compared to net cash provided of $10.8 million in 2023 and net cash used of $15.1 million in 2022[286]. - The company invested $48.9 million in cash in bank deposits and marketable securities during 2024, compared to $42.0 million in 2023[280]. - The company believes its cash and cash equivalents, along with cash from operations, will be sufficient to fund operations for at least the next 12 months[290]. Market and Credit Risks - The company is primarily exposed to fluctuations in U.S. interest rates, which may impact fixed interest investments negatively if rates rise[300]. - The company monitors cash and cash equivalent balances systematically and adjusts as appropriate to mitigate credit risk[297]. - No credit loss was recognized during 2024 despite unrealized losses in the investment portfolio[298]. - The company holds corporate bonds and has the ability to hold these investments until recovery of temporary declines in market value[298]. Miscellaneous - The "Connect" technology segment accounted for 84% of total revenues in 2024, up from 78% in 2022[236]. - The company derived 15% of total revenues from UNISOC in 2024, indicating a concentration of revenue from a limited number of customers[234]. - The allowance for credit losses increased to $2,626 million in 2024 from $288 million in 2023, reflecting specific credit loss provisions[225]. - The company recorded tax expenses of $6.0 million in 2024, down from $10.2 million in 2023 and $18.1 million in 2022[266].