CEVA - Earnings call transcript Q4 2024

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Operator

Good day, and welcome to the Ceva Fourth Quarter and Year-End 2024 Earnings Conference Call. [Operator Instructions] I would now like to turn the conference over to Richard Kingston, Vice President, Market Intelligence and Investor and Public Relations. Please go ahead, sir.

Richard Kingston

Good morning everyone, and welcome to Ceva's fourth quarter and full year 2024 earnings conference call.

Joining me today on the call are Amir Panush, Chief Executive Officer; and Yaniv Arieli, Chief Financial Officer of Ceva.

assumptions Amir, contain like involve cause forward uncertainties such well statements to that remind risks looking the over materialize forward expressed as discussions they or to today's looking as from results handing of I incorrect, assumptions. differ to would everyone and or Ceva Before prove if materially could those that and statements by that implied

long including market include to pipeline with statements leaders, any strategy or regarding regarding to impacts positioning, respective demand speak super for trends and AI statements forward backlog benefits and the future obligation dynamics, as statements of model LLM, efficiency related of opportunities, looking Forward goals and from the and strategic our cycle, and performance. CEVA processing industry inference term Edge. our the cloud and our AI sales update in our looking the revenues language technologies advances to financial the regarding of and no Expectations and guidance growth dates. recent from which the assumes engagements shift information their large and

beginning of were financial In divestment results the Intrinsix Intrinsix discontinued been of recast transitioned have results XXXX quarter in operation to business, addition, from third and all a period financial the the following prior accordingly.

comparison now this provide Amir, We business earnings turn that measures will and ongoing business our also results. at of who the will of our meaningful we Amir? for website into XXXX. in provide release morning quarterly call more quarter and a insights believe of included and the measures, section the the certain performance investors.ceva-ip.com With Filings analysis our core and said, is year non-GAAP some we I'd be SEC for Relations review the non-GAAP like to to and over Investors results of discussing A which in our operating issued financial financial reconciliation

Amir Panush

joining growth, double-digit for Edge. for a thank Ceva, Welcome, expanded year with leadership and Thank year for profitability you, a and us marking revenue transformative was increased today. Smart execution Richard. you everyone, the market XXXX exceptional of

which our during the position on strategically to our XXXX growth Investor expectation while Our our Day end shared us keeping maximize for of exceed to long-term focused strategy, at value. us shareholder goals XXXX, we

core for dominant and sense we a have connectivity our our delivering Our pillars, in our solutions leadership inference of comprehensive partnering customers connect, and that of data technology challenges to most reinforcing Smart customer and offerings product IP devices XXXX, and base. position to technology success strategy infer both platforms business. In through enabling partners global closely are portfolio we their drive to while our expanding best-in-class send with continues growth. and the Edge, critical wireless around By Edge drive impactful at strengthened our our our key influence solve our

highly base of spans and industries large, further the are and customer strong engines tailwinds markets, by AI enhanced that diversified creating and life. everyday multiple Our growth end expansions industries licensing across royalty across multiple

I performance. achievements, overview provide key will quarter Before of our reviewing the first our year fourth and an

I'm For market pleased licensing to deliver revenue growth year-over-year to the another stronger quarter, royalties and and fourth quarter combining with expectations. both XX% report exceeding

particularly model more wirelessly, that inference significant sounds Edge. efficiency sense to and trend intersects calls, the earnings inference and at with highlighted environments our the our This towards training perfectly vision, to Edge. AI at connect costs As cycle super and will shifting reduce is on-device IPs, large of enabling lower enable investment at any we processing inference, in recent Edge real-time efficient industry-leading significantly by its believe requirements with related via memory affordable, recent language portfolio make AI motion faster momentum with perform fueled AI and device or more the the which decision-making and business advancements accessible, Edge. We enabling efficient

unlocking become intelligence. In on-device deals. quarter, key resource-intensive, for LLMs accelerate, to smaller real-time opportunities As and less several new the the cloud we centralized signed from Edge-based strategic will AI shift licensing processing

first The connectivity licensing and offer customers is industrial top-tier for applications. will across company, of global IoT wide platform. note solutions to Wi-Fi our deal a which signed enable long-term with our has MCU partnership architecture a range a to agreement IoT This end-to-end

grow, to of different to integrate this core the solutions with complexity their the the and to connectivity MCU across for so standardizing companies efforts Wi-Fi targeting flavors into. portfolio, By does their customer standards need Wi-Fi of products architecture, on Wi-Fi platform market As connectivity markets. MCU streamline large continues number connectivity Wi-Fi key the benefiting differentiators from while deliver best-in-class end their on will Ceva-Waves IP multiple and focus that our

We use model. the our in-house The wireless will we're their U.S. technology share this market, in with our to long-term that second major XG agreement significant mobile where relates strategic leading a IP. deal anticipate agreement communication lead concluding to licensing of to market OEM expansion a

portfolio agreement partners, a and long-term we strategic long-term These our future the relationships royalty our in meaningful create a stream this with growth. By of the product lasting improve to more engagements industry long-term with roadmap, profitability. cornerstone expect types of We our come. aligning unlock our opportunities leaders serve and drive years to IP as

Edge to for strategic adding AI looking quarter, connectivity to DSPs and with this addition customers AI roadmaps and new from products. NPUs signing AI first-time the deals, both for their and add a and existing solve challenge to capabilities. Market sensing-related agreements of continue to new customer licensing X to NeuPro-Nano features including our these Edge AI products Edge their achieved Smart our milestones demand accelerate, product interest AI accelerate and important portfolio In key our

a are needs. Bluetooth positive, our existing an progress smallest, up the has Wi-Fi very and that consumer ADAS are we mobile MCUs in Our with in multiple Bluetooth include Edge from customers NPUs SoC the customer customers the solution platforms been use we embedded and power-sensitive their consumer most high-performance cases, overwhelming unified AI providing with NPU specific and the multi-engine cases our for use encouraged customers portfolio from engagements on front. Other and scales in to addresses required industrial extension Copilot, and other and making by deals a X end X for the quarter markets. and with multi-year Feedback

which signed a were of wireless with a Overall, customer also deals IoT OEM We our we a sensor first-time an for a cellular products with of with and customers OEMs. and XX software deal targeting platform designing chip. which quarter, software licensing mobile deal with X completed fusion communication the in were MotionEngine X

to quarter. Now for the royalties turning

excellent quarter quarter our the revenue delivering of royalty strongest momentum, our year continued our royalty We and year-over-year of fifth growth. consecutive

shipments from growing shipments saw year-over-year XXX% on our units market year-over-year achievements year-over-year notable strong XXX by powering we main up high Bluetooth We XX% all-time high RAN up shipments also These were first-time and increase Wi-Fi shipments have achieved shipments the record sequential IPs of million with units XXX in quarter. and we ever XG in royalty the smart end a of quarter, XX% in healthy year-over-year. Smartphone XG both phones. demand back were Bluetooth and low-end driven And single the our an milestone in surpassed shipments, and customers. million XG a Wi-Fi for

highlighting deliver for DSPs wearables, AI-related bars music, sound Our experiences for adopting excluding customer TVs our audio chips and royalty, this second AI gaming, was reflecting mobiles, to fusion highest for royalty powerful and cycle smart and recent grew other and in speakers as and sensor the new our our immersive year shipments movies calls. more shipments grew quarter to that watches, growth XX% ever multimedia. Likewise, are consuming have year-over-year earnings finish PCs, been sequentially in strong. year-over-year we Overall, the

across end from achieved a markets with pleased this array through We to multiple customers. diverse and multiple are strength particularly have of technologies

and For revenue end extensive expectations, were their XXXX, finished into XX% the agreements top-line the reaching million, XXXX. We our full of in X% XX growth, up our portfolio, XX who IPs products. was of integrating over those our year across $XXX.X OEMs licensing are IP year delivering million, with licensing strong, $XX we XXXX signed related deals exceeding

quarter. XX with In agreements mobile customers the terms in XX long-term sense and with deals connect, from our our and X markets, our that technologies the to end indication including for a IPs multiple of consumer multiple with is remainder mobile, industrial the of licensed strategy the signed clear that anchor synergetic around the portfolio, portfolio target infer addressing customers offer our of markets a customers. of fourth broad IoT of XX targeting needs

million and achieved. strong year-over-year IoT strength milestone devices time delivered a to by we revenue Ceva-powered growth devices, was a highlight Bluetooth with a XXX billion records record of Wi-Fi royalties, XX% the smart these, XXX numerous we a cellular first year other units, XXX sensor powered powered record million DSPs, full few XXX number. Shipment devices, and board reach this phone marking To million Edge history Smart in X shipped record X.X billion our fusion accelerators the of and across software. terms AI In a record million our devices,

end by IoT mobile and consumer of followed In industrial at terms markets, royalties, of XX% was IoT XX%, at annual XX%.

continue licensing Also, grow production in on and of growth IoT that Looking strengthening our with to with royalties of getting the our a shipments ahead high-volume X royalty continued to mobile we to for deals cellular into anticipate into market we new our these and grow with back and shipments customers, and additional expect year-over-year. signing ramping Bluetooth Similarly, we mobiles X our number customers will XXXX, from Wi-Fi long-term Wi-Fi customers expect contribution coming the position markets. main dominant now.

XG XG the anchor back highlight and our in of mobile there I base terms and a this roadmap in and to are securing solidifying in connectivity, in few. In a completed the as infrastructure, In looking for our many would at domain generations cellular, solidified position IP next leader Ceva achievements year, position with several of we broadened our taking deals customer multiple step repeat Now short-range and terminal XG us this but long-term business milestones, IoT new customers areas. multiple in outstanding In MCU products. We our introduced with end wireless to our like service our and we who in significant This XG-related standardizing recently and a our Bluetooth global connectivity, product and roadmap. the with satellites the our leaders cases. enables connectivity broadband of areas deals customers and strategic are base mobile X markets adding across long-term on multiple for platforms diverse established key relationships cellular platforms while use multiple unified customer VXX, and platform. next-generation markets signed X Wi-Fi the for we for X

Ceva-Waves reaching software, with look design. This earbuds application their for in embedded better smartphone value combo Audio multi-protocol Spatial wireless we winning customers launched also handsets and our in handsets secure Links boAt with a OEM to our allows new combo family solution deal progress and solutions improved as production to deliver to solutions a need be business more who launched economics and SKUs We new royalties. significant made of and we earbud increasingly global XXXX. multiple sensing, In with to for us

with automotive driven semiconductors demand sensing leading our automotive DSPs Our entered of companies in year, processing. sound wearables, pre of advanced towards DSP audios the world's year-over-year speakers, the audio in ADAS and one and post also growth wireless for experienced by audio production end increased the strong home market and the

to and ahead. XXXX existing multiple and signed capabilities and per was lead licensing end demand, strategy Edge highly integrate Overall, strong adopt AI increased in looking for our deals year audio the playing next-generation another As and new for introduced role AI NPU we synergies larger for rapidly landmark economics customers to growth These a and AI embedded with constrained enabling it deal Edge evolve, AI to Spatial targeted cases solutions new for inference, voice with already Edge complex deals accelerating into pivotal years significant SoCs. sensing cycle. Ceva. a was and way demand XXXX our pushing their to with customers. market are both offerings, the our in experiences. In end we companies their in portfolio devices with other revenue Audio our continue are to believe a NeuPro-Nano, at and from year next-generation user royalties, AI power critical interest better drive refresh the for connectivity is which products, the synergistic will paving these

non-GAAP many execution hit while multiple results products fronts. innovative Our commitment to exceptional across XXXX our AI value. disciplined sets progress EPS and We shareholder creating NeuPro-Nano excellence Edge NPUs, the foundation beyond. milestones, The like R&D operational strong to for exciting and launched compared major doubling we an made have all XXXX a delivered and

employees worldwide, the one their efforts contributions. to of and testament each I'm deeply a our every them and to dedication, is and success incredible Our passion of for grateful

processing AI edge cost the by reduced driver ubiquitous This XXXX, power cloud generate lower in the growth need demand life. continues latency, unprecedented AI the for smart consumption, make shift to required to a pivotal edge driven for in for everyday from devices, for to shift the inference and savings is us. As

billion low leadership We on sensing Ceva-powered connectivity aimed our This powered, but edge all to of devices AI power, capable technologies software are at Not is committed democratizing at all of With in our are for are our DSPs the shipped maintaining are are enable devices. which low and majority strong of multiple which seamlessly the and protocols. that edge, in IPs way IPs power designed complemented battery-powered edge. and all inherently date, built by handling is of the devices and connectivity, to the only processors ensuring battery XX connected with AI our our of almost heritage smart leading we DNA. NPUs, connectivity

our continue greater on We multi-connect AI accelerators delivering customers economics focus value to enhancements. improving through software these and protocols, our by

our IP personally incredibly offer forefront ourselves for enabling in ensuring complete rather ecosystem, we just components, what's this drive that their integrated, the that for high-value approach am success and positioning offerings are than receive solutions By Edge revolution of I customers excited is Our ours. to Smart technological multiple domains. ahead Ceva. at the individual

the over to will for financials. I turn Now the call Yaniv

Yaniv Arieli

same revenues is for Licensing fourth quarter of and XXXX. operations $XX.X of reviewing quarter Thank million of to increased $XX.X as This XX% GAAP $XX.X year. the fifth on million as fourth increased to million fourth XX% on X% royalties. for quarter guided, sequential gross the revenue is revenue XX% $XX.X our the in year. basis. quarter for total last related and in margin a I'll results $XX.X now quarter to came non-GAAP breakdown million, the $XX.X XX% Revenue total increased for revenue for as million our compared and of reflecting of compared XXXX. Royalty million, basis the from XX% reflecting start up same the to the you, revenues, our by XX% growth year-over-year a follows: Javier. The last as Quarterly forecasted to

quarter units XXX in shipments And Cellular XXX from were volumes Non-GAAP was consumer Bluetooth earnings and XX% of handset fourth year-over-year. from share as units year. a share diluted as $X.X loss operating million by recognized the XX $X.X the ago. impacting of the year-over-year. the first execution diluted period $X.X operating modems. income $X.X $X.XX Strong million loss euro-denominated non-GAAP of income to X% a XXX% net value a reported net for $X.X same to XXX million loss increased of diluted in XXXX slightly royalties and for revenues million GAAP products $X.XX XXX% revenue million and IoT for year-over-year, operating XXX% units, were XX% or year. With fourth income expense $X.X share compared XXX million, up. of million, the Wi-Fi a Of of our loss products, and $X.X respectively, especially $X.X by products, income fourth range of to XXX intangibles the approximately income and respect XX year million. Total at costs million, to higher quarter, up of of and income quarter the XX% guidance XXX income reported million loss up operating fourth of increased million up record quarter affected the in and higher was significant shipments million $X.XX, XXXX. million was of shipments per net of to the our X compared geographics compensation diluted million profitability. Financial GAAP net net the over 'XX mobile units tax at last shipped royalty amortization Our $X.X were continue record Wi-Fi up IoT $X.XX in than and the up of operating fourth from royalty for were in our business for estimate in expenses and IoT for fourth assets, expenses $X.X units, our the quarter the guidance. licensees than equity-based the deals share of up revenues. GAAP units from receivables. total the French-related quarter fourth and fourth delivered GAAP GAAP XX% of in high and per $XX.X last units, for the by excluding higher significantly million, compared a per guidance of million, per dollar midrange and lower quarter euro million was were deal XXXX, from of non-GAAP units driven X%, XX of up for positive units GAAP Non-GAAP and was fourth quarter million income also than for year, the for million related the XX% for shipments. units quarter mid-range and operating of data, Ceva US same million expenses, to of industrial QX quarter, were margin for growth million $XX.X versus $X.X negative at fourth XX% monitoring a the quarter our XXXX, of the to taxes XXXX, of margins operating value by other net XX% were year-over-year. respectively. contributed of the were shipment Wi-Fi and due quarter during recorded ramp the were units the our was million $X.X reported, was of to 'XX This fourth XX% million. fall were of up quarter XX million quarter and last

in year, $X in were billion modem shipments for every the to equivalent up year-over-year. smart IoT-related cellular sold XX% shipments up low-end up units, units, and for XXX year-over-year shipments to Ceva-powered XX Annual offer feature and year-over-year devices expensive billion respectively, shipments reflecting As from year-over-year. Annual total XX% X.X audio mobile XXXX. year-over-year, more million million than of XX%, demand Wi-Fi, XXXX, sets were our second were unit which IoT-related Annual robust XX% all up XX% similar more which phones, XXX units, XX%, AI consumer phones. mid-range strong were IoT showed industrial shipments XX% XXXX. to growth

In terms royalty with uplift up economics. generations shipping year-over-year, highlights, newer of Bluetooth royalties were XX% of Bluetooth for contribution royalty better reflecting ASP

On annual initial above revenue our financial guidance the for the metrics, to increased X% year. X% XX%,

remained at $XX contributing operating last shareholders' and profit doubled and and XX%, doubled to and value. $X to non-GAAP $X.XX diluted and increased and all X% per more year, gross million Our earnings operating also share than non-GAAP to for demonstrating strong million margins income income net

approximately approximately for the deposits As balance were securities purchased and million. the In approximately fourth cash, XXX,XXX for $X.X $XXX December marketable quarter, Ceva's And cash we sheet, million. approximately bank XX,XXX year, as shares XXXX, the we for million. repurchased for balances, $X of shares XX, approximately equivalent

repurchase under are shares November program in for last of million the repurchase expanded X about today, of As has available year.

XX to similar was for the quarters. around the quarter prior of XXXX fourth days, DSO Our

million. depreciation fourth of the of and activities. was cash we amortization $X was purchase Ongoing our from During end people, headcount engineers. generated assets XXX $X.X XXX the whom million At quarter, quarter, of of $X fixed the operating was million were and

building for on we as for us -- Analyst achievements strong another and the blocks presented XXXX guidance. and execute Day project of first than our milestones. 'XX In to December Amir aspects. and longer-term progress execute achieved we that our XXXX as multiple to growth strategy our financial our business growth continue from Investor Now profitability Day. highlighted in important year better has XXXX, and managed we This plan enabled to our

seasonal to well with as to similar with expected in tailwinds market regards XX% We higher several prior and penetration to in X% have total lower the revenue positive pipeline Wi-Fi, technologies. On first to and promising XXXX, the for and our trends. the healthy backlog of IoT half, basis, annual a cellular over trends years prospects is half second year an grow and of growth and Bluetooth, as continued smartphone

revenues approximately On as we lower mobile levels, XXXX. With products consumer just IoT to specifically a revenues have we the and to or XX%, is $XX income guidance and and income approximately operating quarter range lower shipments our margins and typical discussed, increase for street expense EPS to expected at expense side, is by of by including year. Overall, of still at operating significantly season, we equity-based be XXXX. compensation basis XX% due for than of lower customer. amortization $XX.X GAAP seasonal the is our We intangibles. GAAP $XX.X royalty $X.X million for is fourth and a in we and the expected million well activities just operating million XX% for than we million we holiday OpEx and X% estimates, non-GAAP and quarter. anticipated top a on line margin a $XXX million expect bit forecasted Gross line be revenue overall is to million. excluding equity-based and of to expenses million with million to million to net than reported expected in associated for $X.X quarter an acquired Of non-GAAP forecast growth to quarter XX% approximately the our first million of OpEx and non-GAAP level grow of first on sequentially to expected intangibles XXXX to the with to to fourth overall design plan total the activities of for reported gain amortization $X anticipate costs increase be a be and higher basis, for the range to non-GAAP compensation than aggregate and quarter, million, acquired the lower increase of of non-GAAP of strategic by in million. business quarter for of of expense expense slightly post our X% be to just OpEx Revenue year-over-year significantly to is first cost From first as attributed fully $XX.X both diluted $X.X seasonality rate million expected growth next to acquisition. $X $X $X.X allocation the what the for $XX.X expenses the significantly lower

count OpEx the levels. is interest be $XX expected $XX non-GAAP below just to open you the for be can are million Q&A quarter Our million to is be fourth also XX.X in expected for shares. $X.X be first the the million, quarter range share Operator income to Taxes to of expected the and Net to approximately approximately XXXX session. $X.X million quarter first million. is expected

Operator

Today's [Operator Securities. question Instructions] Kevin first of Rosenblatt comes Cassidy from

Kevin Cassidy

year. for Congratulations the ending quarter and great good year on the

the on question my MCUs. Just

to integrated the talking and about to Edge, AI have more moving need the more we're NPUs. As of processors

with license there maybe opportunity integrated or only wireless, your MCU MCUs. NPU but in these general, MCU for the is market, player the into an not to So get the OEM just players in for agreement your with the

Amir Panush

across sensor MCU for MCUs NeuPro-Nano the to as different alongside goes MCU nicely thanks addition highlighted top-tier definitely. for connectivity deals But license Amir. this that definitely, This is to a that, players. and wireless those other basically our In wireless question. we as Kevin, our licensed the very in technology case, Yes, technology mentioned, board the customers. our we in Yes, we

all we of from the needs the of marketplace investment, that us So that is technology overall, connectivity to what see AI level can them with a AI of what need we adding ourselves integrate player definitely a different have that capabilities, we there to as type and to deliver MCU the in technologies trend and players from level the well. come to enable see and MCU as more market. just different that is and now gaps that more And

Kevin Cassidy

start you time? looks if how run wonder in-house the could mobile I kind like on and any OEM detail royalty what the And of over and provide with U.S. increases rate of XG your revenues maybe when modem it their

Amir Panush

of we continue them deals. to royalty we the prepared set these the that as licensed to and kind that timing report, we that's opportunities to up any from and expand have this excited it's grow the their including others [indiscernible] better we and other their with are other about specific remarks volume, other for get tone the in we're fact ramp-up well. and one, excited customers beyond said with Has when than and customers, the and customers technologies, we'll a true those their idea

So it's and years. of an it couple for the to next exciting opportunity, we're forward looking

Operator

Desilva Capital. our next And with Suji question comes from ROTH

Sujeeva De Silva

as strong well. on the Congratulations from me 'XX calendar

the Edge Maybe talk and So footprint potential for recently up expanding about helping could activity opportunity. of infer picking a you've this. little maybe the you you could you kind accelerate your seen DeepSeek talk opportunity bit the model in China LLMs, China see about if AI is news about if the lower and DeepSeek around

Amir Panush

Western first innovating market world really regional the One, really the as great China for AI a this the as innovation, domain. the on here. comments the Two we and U.S. opportunity in see And both us well across is lot globe. so-called different

devices, In is have run of run What and with a we drive anticipating means terms about looking LLMs a of the to Edge. much the that while, can power a type enabling new locally. this that are were for footprint basically we can exactly models talked which and what optimized more will come, lower out, smaller that model coming for the Smart

different lower LLMs higher different type Edge cost run type of to accelerator see be devices as and that drive to of to around structure enable we to and volume So adoption provide definitely across the the us able great an and devices. accessibility

globally and the to very I the activities are at increase we AI the overall, of velocity progress us, happy specific more case. seeing if of and run this see the and our as NPUs that further with for And well demand as what is even we were -- look Edge. our with this interest on innovation overall, models So is to we and that, of would portfolio ability say today

Sujeeva De Silva

Wi-Fi, 'XX. then if wondering hit And the driver that's kind if for seems I'm penetration would hits growth -- or going drive it whether similar steady a on where like growth of if an S in a 'XX, strong is will Bluetooth be could curve just it which is penetration Wi-Fi on penetration today of to end And that S be it an be to helpful. markets curve should Wi-Fi your to we touch will the you kind increase? expect

Amir Panush

Yes.

we in Wi-Fi years. Wi-Fi transition So in XX to from X, We midst now that are really different than the licensed right customers last of the more few X. to X the

in of Wi-Fi And as really and acceleration terms capacity this alluded IoT helps start on to So we really devices. and the that the for all the transition the Edge, unit at strongest but use XXXX was proliferation, well increase year in the us is as with And shipment X, of already the the as is further the and the utilization Wi-Fi different in so-called the of we even acceleration. higher Wi-Fi markets growth. expect throughput, throughput well a strong end as technology submarkets. This see Analyst terms you the XXXX. the in growth XXXX, not seeing spectrum of Already to where volume only the to is as terms cases Day IoT ASP as data standard the that very we penetration increase per definitely across that asked of of X also better about

Wi-Fi moving really are the of customer we X. the this our to and of So base -- in is mid acceleration really in transition the

Yaniv Arieli

we X.X In chip. also year, units would took a combo to started I of and as took a Remember, bit a It XXXX to ago, years reached almost activity billion in million the maybe XXX years Bluetooth Wi-Fi devices. years about more for XXXX, included ramp history. the we've year, Wi-Fi. licensing license XX% when add the And deals Bluetooth little this Bluetooth. we and a few And of reached few up. X about it this

years the starting Wi-Fi Anywhere XXXX as few to saw see to of very, XXX really X.X type billion in for between we and in pick is to is very of Bluetooth couple some years. opportunity just Wi-Fi for years. of combo we the with Bluetooth So the chips in opportunities in ourselves the exciting up where that higher next growth next a the couple want million devices ASPs

Sujeeva De Silva

And, Bluetooth and just Wi-Fi. as to clarify, you it you a combo, count if saw

Amir Panush

That's correct.

Operator

next Our comes from Richard question today Northland. with Auguste

Auguste Richard

Congratulations on results. great

your of or terms of the will you be phone done expectations, your that relative Just your to year than cell grow Wi-Fi expect that? and would Just modeling outstrip helpful. for rates revenue in modem growth faster Wi-Fi, sort do you've

Yaniv Arieli

we of known the I Yes. the industry, each in and of royalties, royalties is to wish business play players trends. we those half the our we would industries understand have what know here, but answer We in. the

be of build a any many, We But missing from. It player. model models information first be the of don't many which to our ball. then years. ball sometimes And And some we piece our very is batch seen we basis. last we that exactly that Wi-Fi good new as have a don't and for year could and us time automotive or have for starting player, really to after customers gives with play, first AI crystal have crystal the the shift late until that of we or to as many the soon starts, longer-term But our could have that new could on build ramp-up a handset added volume relationship an them. is we it what the timing

the of looking say with of the seasonality lot IoT the of industrial up that's second is consumer a year. good earlier reason case. into usually QX Hard for that if or any historically half IoT But if it's to or customer been enough less the a loaded, the XXXX. markets in pick moving change in some exactly QX QX, So or or customers big could pieces whatever

you tell So the pieces, looks I can't February in that and market positive, will strongest what a today lot XXXX. moving quite for but end up of

Amir Panush

said, with expect that, lines shipments Bluetooth, we Wi-Fi, literally royalty and RAN. seen mobile, across product in growth extremely XXXX I potentially encouraged overall, what we also that in our in the and all addition to volume markets. across the XXXX our we XG that significant IoT would add even cellular Yaniv in continuing With growth are had of and

in slower the positive forward. so-called that it's really the see us in that generally second moving for see we than we overall, acceleration strong half speaking, So mind, With really first half second and the half.

Auguste Richard

by quick of language reasoning like And models seem AI. need opportunity be to large both? for positioned And and is sounds or just it you compute, a it, models to going Is does are kind between Sort Or one model? matter? reasoning reasoning -- do think language more models then how about be and dominated memory. of the it the thought. capture The and Or the market more just to models Edge not on bifurcating evolves? LLMs? as Got you there question the an

Amir Panush

Yes.

see the from and the tiers capabilities of technology. the expectation as the our first So demand technologies, we'll markets, of multiple

the the high-end on accelerators way or to TOPS requirements AI GOPS you so ADAS way that some simple PC, So all on. so-called all sophisticated complete the that that AI that the operation the hundreds to course, to SoCs LLM automotive and see our be can in of goes be Edge the the all power be on to to NPUs with is cost more able mobile From of can from run more strategy size-wise still and of typically way can able mid-tier hundreds very deliver the for of simple, of the to perspective, the portfolio sophisticated we see the MCUs, models and the low of our will systems be the Edge. low-tier efficient support

Edge. And excited and that our will with fabrication see are definitely about it. happening we on super So we support that, the portfolio And technology this.

Operator

[Operator Instructions] next with from Barclays. Chris Our question Reimer comes

Chris Reimer

wanted the of we and you the Congratulations that was any more come just that? do have bit. on you with any to I deals be a forward, going the this new margin new quarter about customization whether going gross due little some ask little of last licensing to quarter would quarter. know kind include margin they you mentioned to might the quarter licensing about customization that spoke the of and strong also I I'm just pressuring the are see in in next that of But on wondering, a deals? seasonality, any gross lower. Or visibility the that

Yaniv Arieli

Yes, great question.

we almost to the no, There customers our and space is very any a last deliver was answer So happy continue all few off-the-shelf are is type quarters quarter modem are immediately. These this deal, XXXX. large a don't and that year's we to for technologies from to left offer already have have customization. mobile into going

for seasonality. leftovers notch a the change just margin. usually are QX, bit from the of QX, a still because the the deal royalties QX started little deal it's because So of pick that new to why in most those quarter now and will up happen work the the of we That are signed, lower just but year. lowest the and in gross it's Also from now royalties not a QX in over but will the XXXX,

Chris Reimer

earlier just And there the regarding that the you it. on X Got did solution, quarter? say deals were NeuPro

Amir Panush

AI one deal both we one and DSP application. the In quarter, NeuPro our of for the deal had of

Operator

from is And Securities. Kevin our next a question Cassidy Rosenblatt of follow-up

Kevin Cassidy

ask I'm a follow-up, sorry, didn't for to mean sorry. I

Richard Kingston

for at problem session. to I'd No the ladies all. concludes turn this back to question-and-answer remarks. conference the like over gentlemen, And closing and Amir Panush

Amir Panush

today. you of behalf us thank On Ceva for you. Thank team, joining

growth compelling to a and IPs We shareholder are enable successful devices Edge strong of that drive to year. the proud royalty off in our have ability year-over-year our are roadmap data, connect, a value With in we to sense businesses, era. Edge and long-term innovative in infer capping confident smart licensing delivered

year. and with Richard, happy throughout industry events to wrap wish it upcoming at you forward the you and hand look and continue conferences I As I into connecting of to rest will XXXX, to I we many over of your families the year. prosperous up. you a

Richard Kingston

Thank you, everybody. you, Amir. Thank

the and Spain; Investors Loop participating all Barcelona, XX can March of Dana will Point, the As XXth on March we Conference, website. our exhibit and events to filed March be found be XXXX you, reminder, be website. conference these to the a ROTH and from are remarks our section accessible Mobile on Xth Investors in the Sixth report section Annual Xrd in Annual New Further we X-K call participating Conference, information Capital's Investor will upcoming in following the XX Thank of With an as California. regards prepared events Congress in for conferences: current through and XX to World events, the Form this in and York; on goodbye.

Operator

all conference today's Thank you. We This you thank concludes attending today's presentation. call. for

have a wonderful now and may You your lines, disconnect day.

CEVA (CEVA) 13 Feb 252024 Q4 Earnings call transcript