CEVA - Earnings call transcript Q1 2022

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Operator

Good day, and welcome to the CEVA, Inc.

First Quarter 2022 Earnings Conference Call. [Operator Instructions]. After today's presentation, there will be an opportunity to ask questions. [Operator Instructions]. is event this note being recorded. Please now Richard Kingston, would Public like Intelligence, to to over Relations. conference the Vice and turn Investor I President Market of ahead. go Please

Richard Kingston

also and qualitive quarter as everyone. Thank business by for and forward-looking CEVA today implied aspects Yaniv cover year cover from statements. Officer such quarter Chief the data. Yaniv those highlights as they to if you, well involve of good contains prove quarter and the XXXX. Wertheizer, that conference from the morning, expressed and the note or Officer; and that and today's Chief discussion Betsy, assumptions CEVA's could of I'm the that provide and full Gideon assumptions. results for provide or cause guidance the first then first Please the Arieli, forward-looking results XXXX Executive joined statements to CEVA. materialize earnings with call. will general uncertainties I'll Welcome will incorrect, quarter by financial Financial materially first Gideon and start differ statements second risks forward-looking the

XXXX. the innovation, of year respect dynamics Forward-looking regarding including for with position edge full second and our financial to expectations of and our performance, benefits demand AI for XG and future and statements efforts and including technologies, expectations and market strategy, market statements include regarding quarter regarding guidance the

continue markets; technologies on speed new and and of new market I'll of the to associated success that continued could and our effect XG the the acceptance; license trends, Exchange our be as position our execute existing economy restrictions penetrating issues in customers, the call base include Intrinsix our the in industry pandemic, of dates. in including the a station of to and agreements; chain impact Commission. ability factors market extent into COVID-XX to the over products the incorporating of to as intense respective to of the and strong of filings with no factors markets and consolidation, smarter for the the the global business. of market results, extent to or the IoT restrictions and speak information For more the markets; Securities refer which said, our duration including their and scope ability to global IoT connected drivers growth us; ability length China, demand devices ability our successfully in statements expansion the CEVA our and achieve to for pandemic and chip CEVA's a supply the hand on other IPs cause difference generally; consumer our update with any maintaining and of please result now and Gideon. obligation forward-looking assumes information, that With integrate competition These

Gideon Wertheizer

basis, with first-time of Good Thank We driven thank revenue up you, by year-over-year smartphone execution. new XX strong, on XX% year-over-year a continue of the today. licensing everyone, Richard. morning, and record strong you us high million, $XX.X for XXXX X start shipment for $XX.X delivering agreements, joining environments a and which in better-than-expected and a XX% delivered with revenue, strong The were NRE licensing up quarterly to million with be customers.

a NeuPro customer AI our CEVA’s base with comprehensive for station DSP, of agreement with for generation targeting in the IP relationship a customers lead bolster new We key a OEM brief Edge DSP top-tier with technology new continue China. platform and automotive to signs market

station of a and key by and with which and ability platform PC, our on ours technologies quarter smart and wireless XX% and ship our product our customers by XG IoT to experience range IoT base broad supply to was these due the chain respective home, smartphones, ADAS, customer continue the revenue and among OEMs, We is and for lockdown top-tier markets AI targeting strong the applications, there demand product Low Edge base station Earth customers base in in up experienced came versus at shipment space, customers' revenue of we satellite year-over-year last Despite category (LEO) year. that headwinds, smartphone of as up are XXX last shipments, up $XX resulting XX% the in Royalties a constraints run Royalty were XG X% impacted better-than-expected from versus to gaining ODM to facing. million share In category station year. OEM million, Orbit record from a IoT CEVA-powered with China, communications.

on Let minutes perspective our connectivity position XXXX. position annually to reach proliferation. few vital as market It the few a me vendor the that CEVA to next fast-growing to to has Wireless by In last strategy. take is market drive for more and a is IoT and forecasted Ltd add is is as XX dominance IP. IP market billion units ARM with years, prime wireless CEVA emerged the

enable catalyze the full World for and Bluetooth PentaGX, pedestrian Conference foundation home, inherit, the ramp-up automotive, to malls. we between The run powerful base advanced demand a our base latest RU. the developing are PentaGX metalware, are and AI industries growing for communications, anti-barrier massive XG effectively of innovation additional Aricent sizable to wireless modem XG this built, radio UWB, wireless more. announced more hardware we new addressable as medical X cellular the protocol XG second-generation and into and of demanding along numbers XG have CEVA and broadband to efficient technologies network software. and baseband processor devices XG distributed we industrial XG market with and the satellite IoT CEVA PentaGX wireless and IoT cellular wearable LTE to XG virtualized connection to architecture such radio versus looking and highly double the energy of accustomed workloads for of broadband to with the where complex run. traditional class safety comprehensive IoT. markets the architecture. and event, by companies integrating and platform. ability of industrial for and support and in generation processing coprocessor, disaggregation constraints, station the incorporate An is intensifying unit for Mobile across looking Underpinned its associated European of multiple of main architecture lowers new solutions DSP to DSP, complexity attributes indisputable the of space comprehensive new than direct realize smartphone Our our to a station XG integrates is or XG unit OEMs is siding and are offer or access radio vehicles, wearables highly are enabling we and or the DU potential to most segments: the wearables smart Both semiconductor that XG, streamlines and WiFi,

earlier, cellular of our new noted agreement we of new open I announce the coming we the set next-generation will strategic run for class solutions. in for run This DSP virtualized stage with months. sizable OEM will architecture and the As the concluded for DSP have be that a our first top-tier a underlying technology proliferation architecture quarter and will and in

the on call, on operations with tera performance worthy per second edge, among market our quarter we new and the strategy, starting requirement prior from AI top by market Neu ABI our Edge in which XX we NeuPro which to X.X the focuses opportunity, sizable and broad fast-growing car pom mixed AI XG a surpass at Research addresses unveiled not and a forecasted scalable also AI AI smartphone XXXX. AI autonomous In We going made past outlined in of up processor to billion the reality, progress tops. architecture, Capitalized or the earnings more. units by application, space. our X,XXX this

with with of customer a that cockpit even signed the first form cars we strong software-defined well ADAS It targets entry events. China vibrant transformation of in earlier, in the electrification. the semiconductor in and lead automotive CEVA summary, financials, quarter and performance market noted intelligent continued the challenging market to a our leads the As in is macro of agreement architectures China. in to license the execute and face the first In

We have capability to execution and market the innovation. monetize technology the our reach the vision,

end to continue us in over impacted that While customer has lockdown our co-position the for our With outperform hand said, XXXX. China for demand product which the through market Yaniv call there, the the to show strength, to me financials. to let continues

Yaniv Arieli

was with and from of our revenues operations lower reviewing year. Thank record better XX% XX% chain of $XX.X is quarter I'll for basis million due in the a XXXX. by the million costs quarter's of reflecting some despite RAN constraints Intrinsix start XX% total non-GAAP our the The for XXXX. guidance. XX% amortization the Licensing, you, into of our and record margin million, the reflecting million quarter than Total compared on contributed NRE of $X.X and our investments. Non-GAAP million, of in up as quarter for million, of breakdown Chinese higher was $X.X high quarter first the associated gross Revenue follows: NRE compensation first lockdown acquisition customers. of basis. high, first XG XX% up impact $XX.X the the for the our end of the space million from margin compared per base of to $XX at assets same a million, of Base results Both was and first expected. Immervision as cost $X.X year-over-year $XX.X our supply the both $XX.X related $XX.X up equity-based for million excluded million in quarter royalty first allocation Royalty operating on in XXXX. last and revenue headwind XX% Gideon. of a revenues, revenues X% were further XX% the station of GAAP up expenses quarter revenue prior China expenses revenue Intrinsix R&D to revenues, IoT guidance to station the and from was $XX total gross a of quarter, quarterly approximately on

time Total these chip equity-based items $X.X the included X work OpEx our for excluding to may with operating million due occur I design associated any from $X.X First quarter. million, intangibles first specific high also tied million, approximately of the end of time for aggregated to items, just and $X.X million costs acquisition. compensation Intrinsix quarter, between discussed performed and acquired these same actual to amortization the expenses the just the reason over of expense shift were are line GAAP. in the guidance $XX.X for of

front, few the there tax in the developments were quarter. a On

subsidiary. with offset in than rate to valuation XXXX. GAAP million specific named income our quarter leading withholding XX% tax included associated and the enabling technologies corporate future in industry a -- CPR, of sensing the France, new revenues. our This investment automotive the of lower in We have for in-cabin -- public Israeli revaluation was IP on tax iSIGHT provider that other be solution our statutory in of implemented higher regulations Regime, the utilization Tax Box $X.X the tax a loss our went from fourth with formerly types of

As million market first loss of last the was operating on we income $X.X these per quarter diluted adjust to we up doubled of net year. $X.XX more will based loss than share for GAAP net Non-GAAP our and million to the continue share investment the XXXX. $X.X and last reported explained for $X.X per was a $X.X of shares. quarter, to diluted valuation from quarter the million first quarterly in million quarter of loss or compared loss down $X.XX

during quarter and EPS Our diluted income the non-GAAP net net was EPS of of $X.XX a $X.X of were XXXX And of XXXX of chips, and were handset sequentially baseband basement XXXX quarter for 'XX $X.X XX% diluted related quarter shipped and reflecting a for first fourth million of data. for CEVA first million of units respectively. million sequential chips shipped licensees by up the million the and respectively. a XX% quarter Other first XX XXX and the shipped units, for Shipped handset $X.XX, $XXX decrease XX% units record first income in were XX% a from from quarter or the Of units XXXX. units XXX year ago. increase million and million XX% $XXX million the

the were XXX% units million note, IoT quarter, and sequentially and record product in in quarter, XXX contributions. fusion, high and delivering station shipments sensor up Bluetooth the all-time million a WiFi record XX% year-over-year. with was XXX Of base cellular also IoT an units strong Our

were equivalents, of As balance million. $XXX securities and for cash, At balances, marketable XXXX, items. bank cash our the deposits the sheet end March

Our compared of at than the lower first XXXX days. DSO continue for the first to quarter days to XX norm quarter of be XX the

operations. we million During cash of $X.X generated the first from quarter,

Our total end and explained, XXX first Gideon in the assets 'XX. On was slightly is of are headcount million depreciation XXX strong, at and At end lower our are fixed fundamentals first business the record the which of of the December of amortization $X.X the of than quarter. was of $X.X purchase employees, our revenue million. our was engineers, XXX guidance, the as employees by yearly implemented which the quarter,

continue China This top-tier by by X customer, for guidance the the to revenue are throughout the in customers therefore contemplates to our range our to dominate of there key year. smartphone the lifted share recovery up restrictions a OEMs. gradually are wireless XXXX. We raising million our We space, million with -- stepping gains $XXX and as arising consistent million $XXX encouraged $XXX.X IT the are annual handset versus guidance annual relationship our Tier

XXXX, acquisition. Specifically to second XX% for for with GAAP-based $X.X OpEx second of forecasted compensation million non-GAAP to OpEx be quarter, quarter amortizations. expected million associated of $XX.X similar to our million. expenses total $X.X Intrinsic the to is the of basis, of for equity-based XXXX. the of approximately cost on operating be margin attributed the expected and in $X.X first to GAAP $X.X compensation, on the to amortization is the million to is for range be is second equity-based million quarter And aggregate expected million be $X.X for XX% of million quarter gross and for excluding and the $XX.X

count activity Our tax million revenue similar are expenses expected to be shares and for million Texas quarter Betsy, offset quarter. excluding second first and generated income XX taxes these for of new sources items, to to Share the XX% to the in taxes their the basis. French the to million. $XX quarter Net Israeli $X.X non-GAAP and expected approximately all OpEx, is associated lower second now for be interest in to our specific our on-GAAP you open be $XX session. is expected on from on range holding expected EPS the the be rate for calculation by future the is could utilization with million subsidiary. tax Q&A significantly

Operator

Thank you.

[Operator session. question-and-answer the begin now will We Instructions].

go Cassidy today Please from question with comes Securities. first The Kevin Rosenblatt ahead.

Kevin Cassidy

Congratulations Yes, great on thank you quarter. for taking my questions. a

season Just the -- are the guess government has gradual that been shutdowns I their in topic and maybe from this on expecting they that China that policy? all you change earnings the saying customers of a you're you your improvement. that see getting Are are

Gideon Wertheizer

pointed when shut that you down. something place. comes to happen Government. see lockdown for the in is Hi, policy almost and in releases. manufacturing When our we Shanghai lidar Kevin, that that customer, said, things prepared the it areas people our go few as to you you work remarks, are is cannot in basically not control the still can government what There thank area customer

product to chip the no Nobody and is that. is there get point for there. assemble So

that's -- in -- The the in areas, don't that getting we there from technology in to demand industrial that in in wireless and things mind IoT high the sort the are there. a they is new driven, Keep don't we're that So decline our is that see goes demand. demand. all of areas, applications indication

things So will once recover back post we that they to can. believe get work, they

Kevin Cassidy

great. Okay,

is have you're little funnel I the has changed important on, opportunities what destruction. of the opportunities. during quarter? great -- your demand and bit about acquisition your no Can of working might So a you that maybe talk And think Intrinsic extremely

Gideon Wertheizer

Yes.

infrastructure. up dynamics activities with the or a overall the see one the the Number U.S., happening are two semiconductor what we that very and is at defense defense aspects there think back there is Intrinsic. both from well in ambitions the building the of it the Europe ramp of position the see a solid market. as to you the need in is I in investment, side, as And

So this terms see of to in we implied Intrinsic engagement.

doing promote are that propose IP a umbrella to thing new the integrated that other to we CEVA solutions. or The model under business of call is now we customer

and lot there design, because chip engineers. we are just not digital take combination the basically in feedback, movement some CIP respect. we see about but complicated let's are and from build basically, we IP getting one we the say, pretty component, in getting we'll rather proposition our result, processors. And OEMs of So see design the we this a mixed-signal, scarce capability and and the design, resources to and the interest RF, U.S., also the both we resources is to SoC, Intrinsic a that -- take and elevate core, the customers in semiconductors And lack of a of good the particular the

level taxeme trusted partnership with not overall, the is a acquisition So Intrinsic of a next relationship. customers to just the customer supplier and more of

Kevin Cassidy

Thank Great. you.

Gideon Wertheizer

you, Thank Kevin

Operator

question Capital. Suji ahead. DeSilva Please go comes with ROTH Next from

Suji DeSilva

thanks. Hi, well. as Congratulations

Yaniv. So Gideon, and

up seeing following or Intrinsic licensing hold? Kevin's starting take Or kind on you maybe to more maybe model to the here, will take of, extension question, quarters to guess, kick shift I in? business Is some are upfront? So that efforts the that

Gideon Wertheizer

the we it's you're in Suji, mean you to that QX it IP you, is business. of upfront of focus intrinsic that in last that it's size of customers because By going deal, and see year, way, time want first components on gradually is to remind last see We solution, the the our and relationship. that IP in the that was we royalties, COGS deal integrated integrated And should of a of into we to large side signed different the are eventually, as quarter the end higher should But by process deal. ongoing. production. chip which which it a The quarter. goes IP the project the road see second in it the as soon the then more royalties as side promote down overall, now goes larger you first when believe that deal both a flow I in see

every that we is That's goal. think the able first NeuPro already And talk a to So able new while quarter, part have surrounding with design every started. in being we so to from be something I that of will deal. the or IP a about the once

Suji DeSilva

IoT helpful. ones Can auto WiFi, very half Of this maybe sensor that the which talk all about they're you cellular second positioned grow areas of the in That's great. fusion, opportunity Okay, have the to know growing. IoT. are year? most I in

curious, any are is Just all inflect of starting Or at they them to growers? steady all?

Gideon Wertheizer

say would two AI wireless, place. hotspot. all that I the wireless over Suji, Yes. are the I'm saying and And it's

upcoming technologies, new XG, XG, in we Bluetooth. WiFi, -- The unique IoT. And XX the XX X in the in XG, cellular that will up open see XG lot late have We use is IoT and standard to UWB cases. side, a release and release the interest offer of

call, Some is so which every will device communicate of can narrowband the IoT is displace this with block and for and vehicle RedCap, wearable additional them a And about cellular get mentioned usage link, side basically putting safety. in model. think there which a smartphone the I of kind you

we in automotive. access XG, industrial. point upcoming interested. talk as smart see facto home, customers -- So WiFi, de in about even standard a the audio these standard lot see And And are people of and that Metaverse. China, for UWB is also are place all the it for the in over QX UWB we in see you

and dominant said as and are over remarks, interest position the space this wireless So and prepared is IP I a terms wireless of in the we all in in arm in is CPI. place, the potential that

and success the guy wanted the people that do the have. we because when are go-to to We stories the pod, comprehensiveness

that's these form forward, to us the product the the vacant and that light the build addressing related. a going we with to people other well previous was outlook, -- we that I. strong AI, I area generation mentioned it announced not We And different The as pond will do. this in challenge every an which simple the make new make is than we more we SoC And have applications. believe now develop Edge the with technology way to people for more what new camera are processor look see problems And are not Edge software and that in generic of requirement the And something AI we that's is coming just in just it these itself. holistically but AI, to the on factors.

Suji DeSilva

I’ll man. Gideon. queue. in you, Thanks, back Thank Okay. get the

Gideon Wertheizer

Thank you.

Operator

next with The Chris ahead. from Barclays. Reimer go Please question comes

Chris Reimer

you some on give mentioned things getting just of questions. you the guidance on covered quarter. China shipping? Can about the confident more restrictions. be some of the the Gideon, raising the that, of believe the I or into the thank Hi, in Congratulations terms as you the that of you an little is a out color my mentioned that Can taking for problems increase. for give a may that's with revenues, follow-up, on you and impacting more business guidance? how then And some things going

Yaniv Arieli

Sure.

try Chris. me out, to Let help

-- the at From at the we've on covered million, Gideon is what a the we to X the a for on guidance beginning $X.XX of and much had all it guidance higher would $X.XX strong the new we X think up, last obviously, we we earlier, been due year so to perspectives. perspective, right licensing doing start the what XX% last higher it QX. than The talked beginning the years. a than year, you're I for business from in about years, China, look have perspective, mind year year. X-plus alongside I XX.X%. of closed to Last took So first, from much

the internal to customer run front China continuing each does from the new on local in over country changed of course, in nor has are are nothing technologies, new travel the and sector and Teams to The go and companies country, country but virtual license Zoom technology our the rest to face-to-face of licensing without a to customer the teams, team -- there capabilities technologies, in world. So of licensing the meeting. there no less lockdowns, from that when on

licensing saw lot usual. as the in they deals quarter, under Unfortunately, XX So record that are you licensing, the business deals the out X lockdown. are in in a China, China, of of

and of their offices but the facilities. that there's part home of work licensing, that demand, from and we design interest. quite this still not saw as from Same own remote one and and strong really So the that In to last good That's is year, be both contrary, changed. done side year and China hasn't in the numbers continue there.

on So now the also quarter we're And royalty up moving last to we front. year. a came royalty the with to front, compared better

we royalty $XX our the months record probably in are customers is overall were access it's to our first in lower or It's in referred supply build base big quarter. has didn't last to to stations. the the because that that get there from million a think And year-over-year our things, you markets we of up reports not X.X the in base down were specific industry-related. the and from been we $XX our around CEVA-related have market, catch believe maybe we demand for to seen will even China devices I we So the royalties had segments And anticipated, our that scheme But stations than million. This But for that's base customers. is is XG do up world. demand the so saw business, the some like were mind XX% some in that happening of that revenues our lot XX% and the China. station the in customers a the what full in or what what that consumer factor of of lockdowns with

problem being think time. such for the I of closed these some So a that is having long really facility

up see down was correction saw As everybody soon pace. fast. the in when ago locked because China China in years was and robust X second the that around quite quarter quarter first We was the picking -- may reopen, we

we or us, So But area right or crystal exact consumer of and these now recognized. demand we the in, digital of said, China. they're earlier, numbers had have ball without whether pandemic timing. the probably that said around a don't as that better that we in is all electronics both the Gideon for set products with are still But could have the

strong what that's So we're convey. although some they to trying difficulties. business there, that's I think are is facing -- still

Chris Reimer

Thanks. And if you could. how at are -- anything do changed? I How more, one Has M&A looking you the just pipeline?

Gideon Wertheizer

when We to valid comes it's us. are a M&A, -- it strategy for

would successful growing looking We by do to terms our the business. in order aspects one, are right on the for sell We extremely are to options. company. did one We acquisitions, in don't in see I all fit company ambitious reluctance to of it find or any We different years by change say, different last, X in us. and of them

Chris Reimer

for me. queue. back in I’ll all Thanks. great. the That's get Okay,

Gideon Wertheizer

you. Thank

Operator

question comes Matt ahead. next Please with go Cowen. from The Ramsay

Unidentified Analyst

the Oakland know that if questions. But more seems there I in good for past to it think And no, probably I the Hey, I quickly. at the the Intrinsic. Sean you NRE -- wanted about in from talk for quarter, Matt. This strong. ASPs ASP license past is on my Thanks in the morning. there's taking than look

to split ASP then there? what's in Thanks. royalty that maybe the And So driving license you little lower Or in called speak could NRE there Is you mix? on else that side, shipments. something just baseband maybe the out record the Bluetooth, is the a between versus line?

Yaniv Arieli

it years always doesn't too licensing, sense. much On that make question. said Good for Sure. we've

up behind with not there's number, You too come logic it. a much but

If you take the licensing number and divide deals. it by XX

recognize front. amount service-oriented, that you Some up so deals that don't are

to are line. those of are you XX divided a that the few by XX in deals one deals, not So they those revenue really the because of not relevant revenue

or So you deliver sometimes of start-ups, before customer the accounting actually because pays don't you. rules the

that pipeline necessarily if over nice now with you larger a doesn't numbers if strong reflect is well. up wider it's different of years, a technologies, a the same it's it's for up. number, the we've The the of -- single portfolio managed get use, to services not that come products, result going So range again, a but then are a think multimillion-dollar I and deal as

So of think, combination expensive few wireless years technology What X, that these talked are different device. WiFi higher $XX.X is maybe could XG type leading-edge we the and are, of we say deals and a last in being and million, now than I ago factors. more as lucrative Bluetooth of for quarter than WiFi, WiFi all a a obviously, and type deals side, about priced course, salaries

more we So type have little crew to the that's newer AI, on that's color. out, years up charge offering the and with of that about old. nicer come X for the more technology-driven licensing the And front comes of Gideon types the technology ASPs technologies and to higher than deals. bit you give we like more a technology overall or these X It's the really we talked

volume. The with On And even existing scheme the that ASPs have not customer ASPs joining but the higher not slightly is are large going royalty customer a are with that than the customers usually front, Bluetooth just new surprisingly, in. is customers, royalty a hare. down, reasoning flat, even newer the but and very we the more more

does Bluetooth So than keeping that million the catalyze the needle royalties. you're units that the XXX no that doubt flat even the quarter saying better on a side. ASPs And move with

were that. overall maybe how exciting and think factor, due royalty a earlier rest base things. the is some IoT, group to station the the asked or overall of do see So for is nice Bluetooth we you the about year higher and A this I of for us,

the for start One Wi-Fi more to combo exciting if Bluetooth of seeing devices even equal will we you we they're and of are X, start WiFi, type and see technologies And it's that X, in X not Bluetooth. the much one-and-one more is today. the we is WiFi Bluetooth demand be necessarily market, ASPs -- could chip expensive -- but ASP add-ons X to than because chips more

of factors customers these a factor part now that's covered. that right perspective. ASP worthwhile an to and our hope winning our the a that the So a powering it, that's into I on log XXX composite Bluetooth mentioning from the perspective. perspective, Wi-Fi biggest probably bit and are of side. quarter from to ASP something start from I account devices contributor. And million percent take X the adding And

Unidentified Analyst

that? Are into for you about market. starting quarter. it see mean, thing? talk helpful. already but segueing is that you're end on from or of was maybe talk licenses potentially you that into WiFi it of how this signed about a thinking type is I royalties XXXX, to continued Or the going you last that, royalties? longer, thinking year those into obviously, licenses? XXXX ‘XX be you That's the depends ’XX if could solid or pretty you. in Maybe to are of how flowing ’XX picture, bigger flowing about the off line you And you've about Auto And royalties. year, a just Thank the or ‘XX time

Gideon Wertheizer

certifying more So, general, which late most stringent this design in connectivity, -- let's the is and the of the -- mass between that that in, much XG, because much months. I we're WiFi, process is in more see than, whole deals to certification important, say, first believe a XX half say, there we of integrated. XX last in a we'll much shorter In is first that and for production cycle XXXX shorter much going is the have year, the we take a it connectivity see it's bigger chip to operators, UWB, sign to with let's proposition XG. early are Bluetooth,

the but software. just not also will hardware, We provide the

months XX something XX is mass to cycle the from So between production...

Unidentified Analyst

helpful. lot, a Super guys. Thanks

Gideon Wertheizer

you. Thank

Operator

comes next Martin ahead. Please The from Oppenheimer. with question go Yang

Martin Yang

and taking morning, good thank the questions. you Hi, for

the quarter, activities can is or associated inventory trend first from with and sustainable not whether that's come in how talk any that where did maybe Looking about the replenishment by strength Thank that you customers. Bluetooth to our you.

Gideon Wertheizer

gaming look TWS, diversity market of applications. this year next a Bluetooth also. close shipments, powerful in it a now terms headset are X and relates Mimi to to whether Well, of is the in And different that's standard That's of market. it's is market do in it. What we market, growing units in for getting customer seeing the Metaverse VR, to terms now billion very of the general in space, into the

that locations. all on your to we growing. purpose Bluetooth for Bluetooth that audio standard sustainable provide question, working the customer next-generation will know is extremely The beyond about it's the technologies So help use and to that

that's to think than all the going to different market be place, the over the bigger going trackers be So about that's even audit.

talking billion of units overall, year So a Bluetooth X about to grow. you're annually expected is and

Martin Yang

Understood. My next question is AI on your comment.

think of camera are or do get for So for will mostly And are first most do what market you Edge adopted applications? this segment have think where generation, newer applications? the implementations you that implying you camera-related besides AI you

Gideon Wertheizer

-- or a AI, question. data people happens need people was traffic talk people it's so the people use when more Edge or of a familiar last initial in light how good terms, they use about goes in camera, detect ADAS, to things it strange the distinct this the camera using or it applications. to got the behavior. camera, start detect When you pedestrian AI by, between activity you That's put or Edge the as the that like you you so -- center. years, take related that other X you AI time to use to just make -- The about AI, AI of talk surveillance

network performance. So in for can use optimizing it you XG, the

the processing, general, when metrics to data use language So AI in power optimize voice comes natural and recognition. it you people by can how smartphone collecting knowing specifically use to it,

in same any thing. come the for for application say, people to is workload, the not use using for past, They for think that CPU wrote people just AI, use in use, are everything will customers trying that to seeing need use customers We CPUs relates it we general. This they out just of is is new And AI are AI This is for a to drove workloads sensing camera. this what with for for prom us you things that's software. that AI not AI lot certain platform It's to this don't do. they it to… goes Newport any any the for tasks. about Same for need. that

Martin Yang

the color. you Thank for

Yaniv Arieli

excitement Bluetooth company Bluetooth Last they're year, or WiFi add one the talked supplier wireless today. and into One going actual your add connectivity to connectivity. the we in replacing the the with is that and the that last technology, is I'll Martin, wins an Chinese the of is there the in semiconductor about one an prior we design that thing and for cellular OEM Don't year, going was ship space. talked Giga forget their to of more -- us connectivity an market. that OEM, our we part this about size two own space with doing do incumbent handset, and are question,

also of for we So IoT the not done in just just growth the that with the opportunity technology than handsets more have years. of and devices, that's part back Bluetooth, have part in but that we many modems

Martin Yang

Makes sense. you. Thank

Yaniv Arieli

Thank you.

Operator

next Gus Richard with Please ahead. from Northland. comes The question go

Gus Richard

all if but questions. don't royalty has there your old in X having to Yes. be for without of revenue in Thanks and numbers for recognize the Any think arrears. apologize recognize taking you had FASB-XXX used just you? Or together, all do I royalties period, how color for reports estimate time customers the your you the the -- reports get you your advance royalty period you changed a I royalties and along, In And in by quarter would wondering, that I'm not, the revenue put to helpful. and to ask when my get days, in current you reporting? this. to then came

Gideon Wertheizer

and that the welcome people we and of There's FTC I China insight much all did And get all our change as and system; Gus. the sports, don't our and this use close will their as more question, were we especially customers. lives make their request can't it so did numbers We quarter, when the can for up Excellent It the is all shut to the companies to you're to in mean easier. doubt rules. write complex. down call were get specifically come try most no to we much business. first, the work to Yes.

Some gave us estimate. a verbal

on time when this a in that prior whether still theme did offices, usual a managed bit more us assumption quarters did companies that business office. not to their That's translate report best as they gave for challenging for prior that with they report, quarter an compared of the draft portion but And do was into a and the or we Some and the around that were to best to are to those quarter, the not think we could it's the the than report people it royalties. a well final the did the us. where big estimates

Gus Richard

QX Got earnings? up it. from do and And you just any when inter-accuracies QX true

Gideon Wertheizer

quarter, that's customers we final Usually, Yes, are we The next always for always -- in know it years. and the it throw -- update case. The report. these many the that always production. ones up

are, So there are up be no And the they quarter. will big surprises. if traded they following in

Gus Richard

Thank it. much. helpful. Got so you Very

Gideon Wertheizer

Thank Gus, you.

Operator

any remarks. our question-and-answer would to conference like for back the session. I Richard This Kingston concludes to closing turn over

Richard Kingston

you all interest for your us in joining CEVA. for Thank and continued and today you, thank

Aviv; With to participating an will as section As are X-K exhibit the XXrd June AI the Annual XXth conference website. for Investors conferences: Tel the and X on Summit TMT Israeli in filed of accessible through Rosenblatt May Technology York; X our be and this New upcoming and regards Conference, June Cowen's XX remarks following Conference events, in call Conference, XX. reminder, the and May – Oppenheimer Form we a X prepared XX Securities to June in report current of The to the June Annual investor Age

For events our website. Investors Thank all will on on these can information of found and you, goodbye. events the further and be be in we participating section

Operator

today's you for now Thank attending presentation. has conference concluded. The

You may disconnect. now

CEVA (CEVA) 10 May 222022 Q1 Earnings call transcript