Financial Data and Key Metrics Changes - The company reported first quarter revenue of $8.1 million, a 34% increase from $6.1 million in the same quarter of 2024, but a sequential decline of 27% [22] - Product revenue was $3.5 million, accounting for 44% of total revenues, representing a 42% year-over-year increase but a 26% sequential decline [22] - Licensing and other revenue was $4.5 million, up from $3.6 million year-over-year but down 28% from $6.3 million in the previous quarter [22] - Gross margin for the first quarter was 64.5%, down from 67.4% in the previous quarter and up from 63.9% year-over-year [24] - 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 increased by 42% year-over-year, driven by the rollout of Monarch two projects [6] - Licensing and services revenue grew by 28% year-over-year, primarily due to revenue recognition timing from the five gs Taurus license to Qualcomm [7] - The company expects CalliP2 shipments to ramp in the second half of 2025, particularly in telematics and security markets [9] Market Data and Key Metrics Changes - The total pipeline of advanced customer engagements and design wins reached approximately $480 million, with over half ($250 million) already in the design win phase [12] - The company secured nine new projects in Q1 from six customers, including four new ones, representing over $10 million in expected annual revenue at full production [13] Company Strategy and Development Direction - The company aims to continue moving design win projects into production and expand its design win pipeline in high-growth markets like security and fleet management [16] - The strategic priorities for 2025 include executing the REDCap and eREDCap product roadmap and leveraging RF chip opportunities acquired from the ACP acquisition [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in reaching operating income breakeven in 2026 while managing cash operating expenses below $10 million per quarter [18] - The company is closely monitoring potential new US tariffs but has not seen a direct impact on its business so far [19] - Management highlighted the positive market response to new technologies and ongoing discussions with customers for collaboration [10] Other Important Information - Cash and short-term deposits totaled $45.9 million at the end of Q1, down from $62.1 million at the end of 2024 [27] - The company anticipates total revenue in Q2 2025 to be in the range of $8 million to $9 million [28] Q&A Session Summary Question: Pipeline composition and revenue translation timeline - Management confirmed the design opportunity is around $230 million, with nine projects secured this quarter, and noted that revenue from some new deals is expected to begin in 2026 [34][38] Question: Product revenue acceleration visibility - Management indicated that while there is positive progress, the timeline for ramping to full production varies by customer, with some projects expected to generate revenue in the second half of the year [40][42] Question: RF transceiver opportunities in new markets - Management discussed the potential for $10 million per year in revenue from new RF transceiver opportunities, with a ramp to revenue expected in 12 to 18 months [46][47] Question: Licensing front and cash clarification - Management confirmed that they expect to start receiving royalty revenue from a Chinese partner in 2026 and clarified that $10 million in escrow from Qualcomm is expected to be released in September [50][53]

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]