Core Insights - Ceva, Inc. has been recognized as the 1 vendor in Wireless Connectivity IP, achieving a market share of 68% in 2024, significantly outpacing its closest competitor by more than 10 times [1] - The company’s leadership in wireless connectivity IP is attributed to its comprehensive portfolio that includes Bluetooth, Wi-Fi, UWB, 802.15.4, and cellular IoT solutions, which are essential for the development of smart edge devices [1][3] Industry Trends - The convergence of wireless connectivity, on-device AI, and sensor fusion is driving the demand for smart edge devices, particularly in consumer and industrial SoCs and MCUs [2] - Local data processing is becoming crucial for real-time decision-making, reducing latency, preserving privacy, and enhancing energy efficiency in smart edge applications [2] Company Strategy - Ceva aims to build on its leadership by offering a unified IP portfolio that integrates wireless, sensing, and AI capabilities, facilitating innovation in the AIoT landscape [3] - The Ceva-Waves™ family provides a comprehensive wireless connectivity IP portfolio optimized for seamless integration into SoCs and MCUs, supporting both single and multi-standard configurations [3] Product Offerings - The Ceva-Waves platform includes the Ceva-Waves Dragonfly, a fully integrated solution for LTE-M and NB-IoT connectivity, suitable for low-power applications like asset tracking and smart metering [3] - Ceva has expanded its offerings to include RF IP, launching its first Bluetooth 7 RF IP on TSMC 12nm, alongside support for IEEE 802.15.4, reinforcing its commitment to delivering complete wireless solutions [3] Company Overview - Ceva is dedicated to innovation in the smart edge, providing a broad portfolio of wireless communications, sensing, and Edge AI technologies that power over 19 billion smart edge products globally [4] - The company focuses on delivering high-performance, low-power silicon and software IP solutions to create a smarter, safer, and more interconnected world [4]

Core Viewpoint - Ceva, Inc. will announce its second quarter 2025 results on August 11, 2025, before the NASDAQ market opens, followed by a conference call to discuss the operating performance for the quarter [1] Company Overview - Ceva, Inc. is a leading licensor of silicon and software IP that enables Smart Edge devices to connect, sense, and infer data more reliably and efficiently [1] - The company offers a broad portfolio of IP, including wireless connectivity IPs (Bluetooth, Wi-Fi, UWB, and 5G platform IP), scalable Edge AI NPU IPs, and sensor fusion solutions [4] - Ceva powers over 19 billion smart edge products, including AI-infused smartwatches, IoT devices, wearables, autonomous vehicles, and 5G mobile networks [4] Conference Call Details - The conference call will take place at 8:30 a.m. Eastern Time on August 11, 2025, and will be accessible via dial-in numbers and a live webcast [2][8] - A replay of the conference call will be available from one hour after the end of the call until 9:00 a.m. Eastern Time on August 18, 2025 [3] Corporate Responsibility - Ceva emphasizes sustainability and environmental consciousness, focusing on environmental preservation, recycling, employee welfare, and privacy [6]

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]