Financial Data and Key Metrics Changes - Total revenue for the quarter was $24.2 million, an increase of 10% year over year from $22.2 million [15] - Licensing revenue increased by 32% to $15 million, representing 62% of total revenues, compared to $11.4 million in the same quarter last year [15] - Royalty revenue decreased by 14% to $9.2 million, accounting for 38% of total revenue, down from $10.7 million in the same quarter last year [16] - 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 a diluted loss per share of $0.23 in the same quarter last year [18] Business Line Data and Key Metrics Changes - Licensing revenue was $15 million, with 11 deals concluded in the quarter, including strategic agreements in connectivity, sensing, and edge AI [6][15] - WiFi royalty revenue grew by 183% year over year, driven by a shift towards WiFi 6, which commands a higher average selling price (ASP) compared to previous generations [12][20] - Shipments of Bluetooth units were 233 million, up 15% from 202 million in the first quarter of the previous year [19] Market Data and Key Metrics Changes - Shipments by CEVA licensees during the first quarter totaled 420 million units, up 13% from the first quarter of the previous year [19] - Consumer IoT market shipments increased by 19% year over year, while industrial IoT shipments rose by 26% [19] - The company anticipates sequential growth in royalties due to the seasonality and expansion of CEVA-powered 5G smartphone modems [21] 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 [13] - CEVA is focused on expanding its market share in wireless communication IP and diversifying its royalty customer base [3][21] - The company is adopting a more cautious outlook for the rest of the year, lowering 2025 revenue guidance from a high single-digit range to a low single-digit range for growth over 2024 annual revenues [22] Management's Comments on Operating Environment and Future Outlook - Management noted that while there is no direct impact from tariffs, the indirect impact on consumer demand has increased uncertainty [22] - The company remains optimistic about the long-term potential of its royalty business despite a decline in overall revenue [11] - Management expressed confidence in navigating short-term volatility while focusing on being the IP partner of choice for smart edge devices [13] Other Important Information - The company reported a GAAP operating loss of $4.4 million, down from a loss of $5 million in the same quarter a year ago [17] - Total gross operating expenses for the first quarter were at the low end of guidance at $25.1 million [16] - The company has a cash balance of approximately $158 million as of the end of the first quarter [20] Q&A Session Summary Question: Can you say whether the ADAS win was with a tier one supplier? - Management confirmed that the design win was 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 seen with WiFi 6? - Management indicated that there is expected to be a significant uplift in ASPs as customers transition from WiFi 6 to WiFi 7, similar to the previous transition [28][30] Question: What competitive environment surrounded the ADAS win? - Management explained that the market is migrating to more advanced models using vision transformers, which require power-efficient solutions with low latency, areas where their technology excels [36] Question: Was the softness in the low-end smartphone market related to tariffs? - Management clarified that the softness was due to supply chain issues and not directly related to tariffs, and they expect a ramp-up in the second quarter [42][44] Question: Is there any impact on the licensing environment due to macro uncertainties? - Management stated that while there is cautious sentiment among customers, they have not seen a decrease in their licensing pipeline [76] Question: Are WiFi royalty units ramping up similarly to Bluetooth? - Management expressed optimism about the ramp-up of WiFi royalty units, noting that many customers are successfully integrating WiFi 6 technology into production [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]