Arteris (NasdaqGM:AIP) FY Conference Summary Company Overview - **Industry**: Semiconductor IP - **Company**: Arteris IP - **Focus**: Data movement within semiconductor chips, utilizing network-on-chip (NoC) technology to enhance data processing, storage, and transfer capabilities [3][4] Core Business and Technology - **Products**: - Ncore: Cache-coherent product for processor subsystems - Non-coherent NoC IP: For data transport across chips - FlexGen: Automates NOC IP generation, improving design speed by 10x and reducing design length by up to 30% [9] - **Acquisitions**: - Magillem (2020): Enhances SoC connectivity and hardware-software integration - Cycuity (2023): Focuses on hardware security verification [14][15] Market Dynamics - **Increasing Complexity**: Driven by AI applications, chiplets, and the need for robust data movement solutions [5][6] - **AI Focus**: Approximately 50% of design starts are for AI applications, including automotive and data center solutions [10][11] - **Customer Base**: Over 230 active customers, including major global companies and startups [7][8] Financial Performance - **Third Quarter Highlights**: - Revenue growth of 18%, with a significant increase in remaining performance obligations (RPO) by 34% year-over-year, reaching approximately $105 million [19][20] - Positive free cash flow despite negative profitability due to deferred revenue model [17][18] - **Future Guidance**: - Projected revenue around $69 million for the upcoming year, with a target for license revenue growth in the high teens to low 20s percent [34] Growth Strategy - **R&D Investment**: Commitment to maintaining a robust R&D program, with plans to release one new product annually [13][30] - **Market Focus**: Targeting high-growth areas such as automotive, AI, and chiplet solutions [13][14] - **Inorganic Growth**: Potential for further acquisitions to enhance capabilities and market reach [22][23] Customer Relationships - **Retention Rate**: Over 90% customer retention, exemplified by a long-term relationship with Mobileye [12] - **Royalty Streams**: Diversification of royalty sources, with a significant portion now coming from automotive applications [26][27][28] Conclusion - Arteris is positioned for growth in the semiconductor IP market, leveraging its innovative technologies and strong customer relationships to navigate the complexities of modern chip design and data movement. The company is focused on maintaining financial health while investing in R&D and exploring strategic acquisitions to enhance its market position [14][34]

Financial Data and Key Metrics Changes - In Q3 2025, total revenue was $17.4 million, up 5% sequentially and 18% year-over-year, exceeding guidance [17] - Annual contract value plus royalties reached $74.9 million, a 24% year-over-year increase, marking a new record [18] - Remaining performance obligations were $104.7 million, representing a 34% year-over-year increase, surpassing the $100 million milestone for the first time [18] - Non-GAAP gross profit was $15.9 million, with a gross margin of 91% [18] - Non-GAAP operating loss was $3.5 million, in line with guidance [19] - GAAP net loss was $9 million, or diluted net loss per share of $0.21 [20] Business Line Data and Key Metrics Changes - AI applications accounted for over half of licensing dollars in Q3, indicating strong product adoption across multiple vertical markets [6] - FlexGen was deployed by multiple new customers, including in the automotive sector, highlighting its growing adoption [8][9] - The company saw increased adoption of chiplets for high-end automotive applications, with two of the top five EV automotive OEMs expanding their use of Arteris technology [11] Market Data and Key Metrics Changes - The semiconductor industry is shifting from traditional monolithic chips to chiplets for multi-die SoC architectures, particularly driven by AI workloads [10] - The company is experiencing a growing demand for advanced boundary nodes, particularly in the 5nm, 3nm, and 2nm processes [9] Company Strategy and Development Direction - The company aims to enhance its product portfolio and expand collaborations with major technology firms, as evidenced by partnerships with Altera and AMD [6][8] - Arteris joined the UALink Consortium to support the scaling of data center solutions, indicating a strategic focus on AI workloads [13] - Continuous innovation is a priority, with recognition received for its technology, including awards for innovative technology [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strong deal execution and the potential for accelerated interest from major customers [21] - The company anticipates that AI workloads will drive significant growth, with expectations that data center applications will represent 25%-35% of future business [47] Other Important Information - The company ended the quarter with $56.2 million in cash and no financial debt, indicating a strong balance sheet [20] - Free cash flow was positive at $2.5 million for the quarter, above guidance [20] Q&A Session Summary Question: Can you talk more about Altera? - Management indicated that there are further opportunities with Altera, as they continue to evolve and grow [24] Question: What led to AMD's increased usage of your product? - Management noted that AMD has multiple groups, and the expansion reflects their satisfaction with the initial collaboration [25] Question: How important is reliability and safety in your interconnects? - Management emphasized that reliability is crucial, as any issues can lead to significant delays and problems for customers [26] Question: What is the timing for licenses from the UALink Consortium? - Management stated that they are already involved in designs and following the consortium's protocol to support data center scale-up efforts [30] Question: What is the royalty growth expectation? - Management explained that there is typically a 3-6 year lag between design starts and mass production, but they are seeing early signs of royalty growth [34][36] Question: How many top tech companies are customers? - Management indicated that they have penetrated over 50% of the top 40 semiconductor and system electronics companies, with significant room for growth [39][40]

ASML Conference Call Summary - May 31, 2023 Industry Overview - The semiconductor industry is experiencing a mixed demand landscape, with a noted weakness in the memory market while logic segments, particularly automotive and industrial, remain strong [4][5] - ASML anticipates a 25% growth in top-line revenue for the year, driven by a 40% increase in EUV sales and a 30% increase in non-EUV sales [4][5] Key Insights on EUV and DUV - EUV bookings have decreased to $3.8 billion from a peak of $8 billion, attributed to the high average selling prices (ASP) of tools [7][8] - ASML has a backlog of $39 billion, which is approximately double the expected shipments for the year, indicating strong future demand despite current booking fluctuations [8][9] - The supply chain is expected to improve, which will help reduce lead times and potentially increase bookings in the upcoming quarters [10][11] Demand Dynamics - There is strong demand for mature logic nodes, driven by applications in distributed computing and electric vehicles, which are expected to sustain growth for years [15][16] - AI is seen as a long-term growth driver for leading-edge logic tools, although customers are currently in a cautious phase regarding capital spending [20][21] Supply-Demand Imbalances - The company reported a 20% undersupply in DUV systems, down from 30-50% in previous years, indicating an improvement in capacity and demand alignment [25][26] - Approximately 20% of ASML's backlog is attributed to China, with real demand noted for various semiconductor applications [28][30] Regulatory Impact - Recent U.S. export restrictions have had a limited indirect impact on ASML's backlog, estimated at around 5% [32][33] - The company remains optimistic about its ability to navigate these restrictions, particularly for mature immersion tools [36] Pricing and Margins - ASML is successfully negotiating higher ASPs to offset inflationary pressures, with expectations for continued improvement in gross margins [37][38] - The company has transitioned to an output-based service model for EUV tools, which is expected to enhance revenue predictability and margins [66][68] Future Outlook - ASML is preparing for the introduction of high-NA EUV tools, with initial shipments expected late this year and more significant production ramping up in 2025 [44][46] - The company anticipates that high-NA tools will complement rather than cannibalize low-NA tools, as they will be used for more critical layers in semiconductor manufacturing [50][51] Conclusion - ASML is positioned for growth in a dynamic semiconductor market, with strong demand across various segments and a robust backlog. The company is actively managing supply chain challenges and regulatory impacts while focusing on long-term trends such as AI and electric vehicles to drive future growth.