CEVA (CEVA) FY Conference Transcript

CEVA (CEVA) FY Conference Summary Company Overview - CEVA is an IP licensing company, similar to ARM, focusing on technology licensing and earning royalties for each unit sold [3][4] - The company enables three primary use cases: Connect, Sense, and Infer, with a strong emphasis on wireless connectivity, DSP capabilities, and AI accelerators [3][4][6] Core Offerings - CEVA's technology supports a wide range of wireless connectivity including Wi-Fi, Bluetooth, cellular, IoT, and 5G [3][4] - The company has enabled over 20 billion devices, with an annual shipment of approximately 2 billion devices [4] - CEVA's Smart Edge technology integrates connectivity, sensing, and inference capabilities into edge devices [6][7] Market Segmentation and Growth Outlook - CEVA targets six end markets: PC, mobile, automotive, wireless infrastructure, consumer IoT, and industrial IoT [13] - The mobile segment is expected to see significant growth, with a new large U.S. mobile OEM adopting CEVA's technology for their 5G modem [14] - CEVA is currently shipping over 1 billion Bluetooth devices annually, with growth anticipated in Wi-Fi and cellular IoT [15] - The company holds approximately 15% market share in mobile, with expectations to exceed 20% [16] Competitive Landscape - CEVA faces competition primarily from the "make versus buy" decision of customers, with limited direct competition in wireless communication IP [19][20] - The company aims to become the de facto standard for wireless communication, similar to ARM's position in the CPU market [20] Growth Drivers - Short-term growth drivers include increased licensing for next-generation Bluetooth and Wi-Fi technologies [23] - Long-term growth is expected from the transition to smart devices with AI inference capabilities, moving from cloud-based to hybrid models [24] - CEVA anticipates growth in the automotive sector as their Vision AI DSP technologies ramp up in production [27][28] Software Portfolio and Integration - CEVA provides a complete software stack alongside its silicon IP, enhancing interoperability and user experience [31][32] - Investments in embedded software applications for sensor fusion and contextual awareness are aimed at differentiating CEVA's offerings [32] Geographic Strategy and Tariff Impact - CEVA benefits from localization trends, as it does not ship final products and thus is less impacted by tariffs [39][42] - The company serves both Western and Eastern markets successfully, with an increasing demand for IP [40] Financial Performance and Margins - CEVA maintains gross margins above 85%, with a focus on high-margin IP business [44][45] - The company is committed to organic and inorganic growth, with potential M&A opportunities to expand its IP portfolio [48][50] Conclusion - CEVA is positioned for significant growth in the coming years, driven by its strong market presence in mobile and wireless technologies, innovative software solutions, and strategic geographic positioning. The company aims to maintain high gross margins while expanding its IP offerings to meet the evolving needs of its customers [49][51]