Summary of Conference Call Notes Industry Overview - The conference call focuses on the **campus networking equipment** industry, specifically the **enterprise WLAN** and **campus switching** markets, as reported by **650 Group**. Key Points WLAN Market Insights - The **enterprise WLAN market** (indoor + cloud managed) experienced a **13% year-over-year growth** in **2Q25**, up from **9% in 1Q25**. This growth is attributed to the ongoing upgrades to **WiFi 7** and **6E** technologies [1][4] - The **revenue** for the enterprise WLAN (indoor) market reached **$2.1 billion** in **2Q25**, with **WiFi 7** contributing **$468 million** (up **882% year-over-year**) and **WiFi 6E** generating **$595 million** (up **11% year-over-year**) [4][10] - **WiFi 7**'s share of the total enterprise WLAN (indoor) market increased to **22%** in **2Q25**, compared to **17% in 1Q25**. Conversely, **WiFi 6E**'s share decreased to **28%** from **32%** [5][15] Campus Switching Market Insights - The **campus switching market** saw a **9% year-over-year growth** in **2Q25**, up from **5% in 1Q25**, driven by demand for refreshing aging equipment and supporting increased data traffic [2][9] - Cisco continues to dominate the enterprise switching market with a **52% share**, while **HPE** holds **12%**, and **Huawei** increased its share to **9%** [9][21] Future Projections - **650 Group** anticipates a deceleration in the enterprise WLAN market growth to **8% year-over-year** in **C3Q25** and **7% in C4Q25** [1][8] - The enterprise switching market is expected to slow down to **1% year-over-year growth** in **C3Q25** and decline by **5% year-over-year** in **C4Q25** [2][9] Company-Specific Updates - Updates to the **Cisco Systems, Inc. (CSCO)** model reflect recent **10-K disclosures** and seasonal adjustments for **F2Q26E** [3] - CSCO's **EPS estimates** for **F2026/27/28** have been lowered by an average of **1%** due to the latest disclosures and typical seasonality [23] Risks and Opportunities - **Upside risks** include trends such as hybrid work, multi-cloud network architecture adoption, and the broader rollout of WiFi 6/6E and 5G [27] - **Downside risks** involve competition from major Chinese providers like **Huawei**, margin degradation due to a shift towards cloud customers, and pricing pressures from commoditization [27] Investment Thesis - CSCO is recognized as the global market share leader in networking equipment, with a comprehensive platform across various categories. Despite facing market share losses due to competition, CSCO's extensive offerings position it as a trusted provider [28] Additional Important Information - The **cloud-managed WLAN revenue** was approximately **$396 million**, reflecting a **14% year-over-year increase** [4] - Cisco's leadership in the WLAN market is evident with a **35% share**, followed by **HPE Aruba** at **16%** and **Huawei** at **10%** [12]

Core Viewpoint - The article discusses how a metal box can enhance the speed of data migration between mobile phones by blocking external electromagnetic interference and optimizing internal electromagnetic coupling between the devices [1][3]. Group 1: Technical Explanation - The metal box can block external electromagnetic interference, allowing for tighter near-field electromagnetic coupling between the phone antennas, which increases the effective antenna area and reduces external interference signals [1]. - The OPPO ColorOS team mentions that dynamic optimization at the protocol layer can automatically adjust to higher frequency bandwidths under less interference, particularly with the latest WiFi 7 communication protocol [3]. Group 2: Methods to Improve Data Migration Speed - Using public Wi-Fi can lead to bandwidth congestion, which slows down the migration process. It is recommended to check the number of devices connected to the same network [5]. - Wi-Fi interference can be minimized by understanding the characteristics of different Wi-Fi frequencies. For instance, 2.4GHz Wi-Fi can be interfered with by devices like microwaves and Bluetooth, while 5GHz Wi-Fi has weaker wall penetration and requires proximity to the router for optimal speed [6][9]. - High CPU load during data migration can cause the phone to overheat and throttle performance, which can slow down the process. Additionally, low battery levels may lead to automatic performance restrictions [9].

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]

Summary of the Conference Call for 卓胜微 (Zhuosheng Microelectronics) Company Overview - **Company**: 卓胜微 (Zhuosheng Microelectronics) - **Industry**: Semiconductor, specifically focusing on wireless communication and short-range communication chips Key Points and Arguments Financial Performance - In Q1 2025, the company reported revenue of 756 million yuan, a year-on-year decrease of 36.47% [3] - Net profit attributable to shareholders was a loss of 46.62 million yuan, a decline of 124% year-on-year [3] - The gross margin for the period was 31%, down 11.76% year-on-year and 34% quarter-on-quarter [3] - The company expects significant performance improvement in the second half of the year, projecting full-year results to exceed the previous year [2][9] R&D and Production Capacity - R&D expenses in Q1 2025 were 178 million yuan, a decrease of 33.94% year-on-year, primarily due to reduced costs after the 12-inch production line reached mass production [4] - The 12-inch wafer utilization rate has reached over 80%, with expectations to approach full capacity by year-end [4][12] - The company has initiated expansion projects and is in the process of increasing equipment to enhance production capacity [13] Product Development and Market Position - The AlphaMiner series has achieved a fully domestic supply chain and is expected to see mass shipments in 2025 [7] - WiFi 7 products have begun large-scale shipments, with expectations for significant year-on-year growth [7] - The company is actively expanding into IoT applications, including smart home and automotive electronics [7] Competitive Landscape and Challenges - The company faces intense market competition and has noted that the recent tariff policy changes have created psychological impacts on the industry [11] - Competitors like Skyworks and CONVANO are expected to struggle in the Chinese market, while 卓胜微 has competitive advantages in PA modules [11] - The company is addressing patent issues with a major Korean client, which has affected product shipments but is confident in resolving these disputes [27][29] Strategic Focus and Future Directions - The company is focusing on enhancing its manufacturing capabilities and integrating advanced technology platforms to improve efficiency and product offerings [8] - Plans to expand into AI robotics, smart driving, and other intelligent device sectors are underway [8] - The company aims to maintain a strong R&D investment to ensure long-term competitiveness in the semiconductor industry [10] Market Outlook - The company anticipates that the revenue from its key product lines, including LPM and WiFi 7, will contribute significantly to growth in 2025 [26] - The overall market for video and communication technologies is expected to evolve, with potential consolidation among major operators in China similar to the U.S. market [18] Miscellaneous - The company maintains a strong focus on technology innovation and collaboration with clients to enhance product differentiation and market competitiveness [17] - Despite short-term fluctuations in financial performance, the company believes in the long-term value of its technology and strategic positioning [30] This summary encapsulates the essential insights from the conference call, highlighting the company's current status, challenges, and future strategies in the semiconductor industry.