Financial Data and Key Metrics Changes - The company reported first quarter revenue of $8.1 million, a 34% increase from $6.1 million in Q1 2024, but a sequential decline of 27% from Q4 2024 [21] - Product revenue was $3.5 million, representing a 42% year-over-year increase, but a 26% sequential decline [21] - Licensing and services revenue grew to $4.5 million, up from $3.6 million year-over-year, but down 28% sequentially [21][23] - Gross margin for Q1 2025 was 64.5%, compared to 67.4% in the previous quarter and 63.9% in Q1 2024 [23] - The net loss for Q1 2025 was $7.3 million, or $0.29 per diluted ADS, compared to a net loss of $2.4 million in Q4 2024 and $11.8 million in Q1 2024 [26] Business Line Data and Key Metrics Changes - Product revenue accounted for 44% of total revenues in Q1 2025, with a significant increase driven by Monarch two projects [21][6] - The company is seeing substantial progress in its Monarch two pipeline, with new projects in various sectors including metering and eHealth [7][12] - The design win pipeline reached approximately $480 million, with $250 million already in the design win phase [12][13] Market Data and Key Metrics Changes - The company is expanding its market reach with new projects in tracking, metering, eHealth, and other industrial segments [8] - The ACP acquisition is expected to accelerate the five gs ERADCA roadmap by approximately 18 months, providing a first-to-market advantage [10] - The geopolitical environment has created new opportunities for the company, differentiating it as a comprehensive cellular IoT provider outside of China [12] Company Strategy and Development Direction - The strategic priorities for 2025 include moving design win projects into production, expanding the design win pipeline, and capturing market share in high-growth areas like security and fleet management [16] - The company aims to achieve operating income breakeven in 2026 while managing cash operating expenses below $10 million per quarter [17] - The company is focused on executing its REDCap and eREDCap product roadmap to solidify its leadership in next-generation five gs IoT [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the direction of the business, citing a strong revenue pipeline and progress on key projects [29] - The company is monitoring potential new US tariffs but has not seen a direct impact on its business as of now [18] - Management anticipates that many new design win projects will begin production in the second half of the year [18] Other Important Information - Cash and short-term deposits totaled $45.9 million at the end of Q1 2025, down from $62.1 million at the end of Q4 2024 [27] - The company does not foresee the need for an equity raise in 2025 or 2026 based on its capital allocation plan [27] Q&A Session Summary Question: Can you confirm the pipeline composition and velocity of design opportunities? - Management confirmed that the design opportunity is around $230 million, with nine projects secured in the quarter, and emphasized a disciplined approach to measuring design wins [34][36] Question: What is the expected timeline for revenue from design opportunities? - Management indicated that revenue from some new deals is expected to begin in less than twelve months, particularly in high-velocity segments [39] Question: What is the comfort level regarding product revenue acceleration in the second half of the year? - Management expressed confidence in the progress of design projects but noted uncertainty around the timing of customer ramp-up [40][42] Question: Can you quantify the size and timeline of RF transceiver opportunities? - Management estimated that the RF transceiver market could generate around $10 million per year, with a ramp to revenue expected in 12 to 18 months [45][46] Question: What is the status of licensing agreements, particularly with the Chinese partner? - Management confirmed that the Chinese partner is advancing towards production, with expected royalty revenue beginning in 2026 [49][50] Question: Can you clarify the cash situation regarding escrow payments from Qualcomm? - Management confirmed a $10 million escrow payment expected to be released on September 30, along with additional government grant money [53]