CEVA(CEVA)2024-02-14 19:25Financial Data and Key Metrics Changes - For Q4 2023, total revenue was 30.3 million in Q4 2022, with licensing and related revenues at 12.3 million, reflecting a year-over-year growth of 13% in royalties [23][24] - Full year 2023 total revenue was 8.1 million, compared to a net income of 0.34 [24][25] Business Line Data and Key Metrics Changes - Licensing revenue for the full year was 39.8 million, down 12% year-over-year, with mobile and 5G RAN-related royalties down 22% [16][17] - Notable growth in royalties from Bluetooth, Wi-Fi, and cellular IoT business lines, with cellular IoT royalties reaching an all-time high, up 47% year-over-year [27] Market Data and Key Metrics Changes - Consumer IoT accounted for 41% of royalties, mobile for 36%, and industrial IoT for 23% [17] - In Q4 2023, shipped units by CEVA licensees were 453 million, up 21% from Q4 2022, with significant growth in cellular IoT shipments, which were up 82% year-over-year [26] Company Strategy and Development Direction - CEVA has realigned its business to focus on three fundamental use cases for smart edge devices: connect, sense, and infer, targeting mega end markets such as consumer, automotive, industrial, and infrastructure [7][8] - The company aims to achieve a long-term revenue growth of 8% to 12% CAGR over the next four years, focusing on expanding into new markets and use cases [29][30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the semiconductor industry's recovery in 2024, despite short-term challenges in industrial and automotive markets [21][22] - The company anticipates meaningful royalty revenues from automotive SoCs starting in 2024, driven by new licensing agreements [13][17] Other Important Information - CEVA's cash and cash equivalents as of December 31, 2023, were $166 million, with a share repurchase program in place [28] - The company has implemented cost control measures to maintain overall expense levels flattish in 2024 [30] Q&A Session Summary Question: Guidance for the first quarter and full year - Management expects a revenue decline of 2% to 6% sequentially in Q1 2024, with licensing expected to be higher than Q4 2023 [34][35] Question: Automotive ADAS win details - The deal involved an existing customer who integrated CEVA's AI software compiler into their ADAS chips, enhancing flexibility for their customers [39][40] Question: Trends in licensing and customer programs - Management noted that while 2023 saw inventory corrections causing delays, Q4 2023 showed strong engagement with 17 deals signed across various product categories [44][45] Question: Revenue outlook for consumer IoT and industrial IoT - Management indicated that both segments are expected to contribute positively to revenue growth in 2024, with industrial IoT showing significant potential [49][53] Question: Long-term outlook for mobile market - The mobile market has consolidated, and while growth is uncertain, there are opportunities in low-cost feature phones and other segments [55][57]