Core Insights - Ceva and Nothing have announced a collaboration to integrate Ceva's RealSpace® Spatial Audio Software into Nothing's upcoming audio products, including the Nothing Headphone (1) [1][2][4] - This partnership aims to enhance the listening experience by providing cinematic 3D sound with dynamic head tracking, aligning with Nothing's design-first approach [4][5][6] Company Overview - Nothing, founded in London in 2020, focuses on creating innovative consumer technology that emphasizes design and user experience, having sold over 10 million devices and generated over $1 billion in lifetime revenue [7] - Ceva, Inc. specializes in silicon and software IP for smart edge applications, powering over 19 billion smart edge products globally, including advanced wireless communications and Edge AI technologies [9][10] Product Details - The Nothing Headphone (1) represents Nothing's first entry into the over-ear audio device market, aiming to deliver an immersive audio experience [1][2][4] - Ceva's RealSpace technology is designed for low power consumption and efficient integration into wireless audio devices, enhancing the overall audio experience [5][6] Strategic Goals - The collaboration is part of Nothing's mission to redefine user engagement with audio across music, movies, and games, leveraging Ceva's spatial audio technology [4][6] - Both companies aim to push the boundaries of audio technology, creating a more emotional and immersive listening experience for users [5][6]

Financial Performance - Ceva, Inc. reported Q1 2025 revenue of $24.2 million, representing a 10% increase year-over-year from $22.1 million in Q1 2024 [2][4] - Non-GAAP diluted EPS for Q1 2025 was $0.06, up from a loss of $0.05 in the same quarter last year [2][7] - GAAP gross margin for Q1 2025 was 86%, down from 89% in Q1 2024 [6] - GAAP operating loss for Q1 2025 was $4.4 million, an improvement from a loss of $5.0 million in Q1 2024 [6] - GAAP net loss for Q1 2025 was $3.3 million, compared to a net loss of $5.4 million in Q1 2024 [6] Licensing and Revenue Streams - The company concluded 11 licensing agreements in Q1 2025, including deals for Wi-Fi 7, edge AI NPU for automotive ADAS, and spatial audio software for wireless headsets [5][8] - Licensing and related revenue for Q1 2025 was $15.0 million, up from $11.4 million in Q1 2024 [4] - Royalty revenue for Q1 2025 was $9.2 million, down from $10.7 million in Q1 2024 [4] Product and Market Developments - Ceva-powered shipments reached 420 million units in Q1 2025, marking a 13% increase year-over-year [8] - The company highlighted the successful ramp-up of a leading U.S. OEM's in-house 5G modem that integrates Ceva's IP [5][8] - The adoption of Wi-Fi 7 and new licensees for edge AI and spatial audio IPs are expected to drive future royalty growth [5] Management Commentary - The CEO expressed satisfaction with the progress in the licensing business and emphasized the importance of customer engagements across the IP portfolio [5] - The CFO noted a shortfall in royalty revenue due to lower low-cost smartphone shipments and slower product ramp-up from an industrial customer [8]