Q2 2024 CEVA Inc Earnings Call

Richard Kingston: Director of Photography, Michael Boukaya Production Manager, Michael Boukaya Art Director, Michael Boukaya Art Director, Michael Boukaya Art Director, Michael Boukaya © BF-WATCH TV 2021

Matthew Ramsay: Matthew Ramsay, John. Good day and welcome to the CEVA Inc.

Operator: Good day, and welcome to the CEVA Inc. second quarter 2024 earnings call. All participants will be in listen-only mode. Should you need assistance, please signal conference specialists by pressing the star key followed by zero. After today's remarks, there will be an opportunity to ask questions. To ask a question, you may press star then one on your touchtone phone. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Richard Kingston, Vice President of Market Intelligence, Investor, and Public Relations. Please go ahead.

Speaker Change: Good day, and welcome to the CEVA, Inc. 2nd Quarter 2024 Earnings Call.

Speaker Change: All participants will be in listen-only mode.

Speaker Change: Should you need assistance, please signal conference specialists by pressing the star key followed by zero. After today's remarks, there will be an opportunity to ask questions. To ask a question, you may press star then one on your touchtone phone. To withdraw your question, please press star then two.

Speaker Change: Please note this event is being recorded. I would now like to turn the conference over to Richard Kingston, Vice President of Market Intelligence, Investor, and Public Relations. Please go ahead.

Richard Kingston: Thank you, Jason, and good morning, everyone. Welcome to CEVA's second quarter 2024 earnings conference call. Joining me today on the call are Amir Panush, CEVA's Chief Executive Officer, and Yaniv Arieli, CEVA's Chief Financial Officer. Before handing over to Amir, I would like to remind everyone that today's discussion contains forward-looking statements that involve risks and uncertainties, as well as assumptions that, if they materialize or prove incorrect, could cause the results of CEVA to differ materially from those expressed or implied by such forward-looking statements and assumptions.

Matthew Ramsay: Thank you, Jason, and good morning, everyone. Welcome to CEVA's second quarter of 2024 earnings conference call. Joining me today on the call are Amir Panush, CEVA Chief Executive Officer, and Yaniv Arieli, Chief Financial Officer of CEVA.

Richard Kingston: Forward-looking statements include statements regarding our market positioning, strategy, and growth opportunities, market trends and dynamics, expectations regarding demand for and benefits of our technologies, our expectations and financial goals, and guidance regarding future performance, and our plans and expectations regarding our recently filed registration statement on form S3 and any potential future offering or capital raises and the use of proceeds therefrom. CEVA assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates.

Matthew Ramsay: Before handing over to Amir, I would like to remind everyone that today's discussion contains forward-looking statements that involve risks and uncertainties, as well as assumptions that, if they materialize or prove incorrect, could cause the results of CEVA to differ materially from those expressed or implied by such forward-looking statements and assumptions. Forward-looking statements include statements regarding our market positioning, strategy, and growth opportunities, market trends and dynamics, expectations regarding demand for and benefits of our technologies, our expectations on financial goals, and guidance regarding future performance, and our plans and expectations regarding our recently filed risks for registration statements on Form S-3, and any potential future offering or capital raises and the use of proceeds therefrom.

Richard Kingston: In addition, following the divestment of the intrinsics business, financial results from intrinsics were transitioned to a discontinued operation beginning in the third quarter of 2023, and all prior period financial results have been recast accordingly. We will also be discussing certain non-GAAP financial measures, which we believe provide a more meaningful analysis of our core operating results and comparison of quarterly results. A reconciliation of non-GAAP financial measures is included in the earnings release, which we issued this morning, and in the SEC filing section of our investor relations website at investors.ceva-ip.com. With that said, I'd like to turn the call over to Amir now, who will review our business performance for the quarter, review the year, and provide some insight into our ongoing business.

Speaker Change: Our expectations and financial goals and guidance regarding future performance and our plans and expectations regarding our recently filed registration statement on Form S3 and any potential future offering or capital raises and the use of proceeds therefrom.

Matthew Ramsay: CEVA assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates.

Matthew Ramsay: In addition, following the divestment of the intrinsic business, financial results from intrinsic were transitioned to a discontinued operation beginning in the third quarter of 2023, and all prior periods of financial results have been recast accordingly.

Speaker Change: In addition, following the divestment of the intrinsics business, financial results from intrinsics were transitioned to a discontinued operation beginning in the third quarter of 2023, and all prior period financial results have been recast accordingly.

Matthew Ramsay: We will also be discussing certain non-GAAP financial measures, which we believe provide a more meaningful analysis of our core operating results and comparison of quarterly results. A reconciliation of non-GAAP financial measures is included in the earnings release, which we issued this morning, and in the SEC filing section of our Investor Relations website at investors.ceva-ip.com.

Matthew Ramsay: With that said, I'd like to turn the call over to a mere now who will review our business performance for the quarter, review the year, and provide some insight into our ongoing business.

Speaker Change: With that said, I'd like to turn the call over to Amir now, who will review our business performance for the quarter, review the year, and provide some insight into our ongoing business.

Amir Panush: I'm here. Thank you, research, and good morning everyone, and thank you for joining us today. We are pleased to report an excellent second quarter that exceeded our estimates with strong licensing execution from our team worldwide, coupled with royalty growth driven by board market trends in IoT and robust smartphone shipments. We also surpassed the milestones of 18 billion cyber-powered smart-edge devices ship to date as our shipments volumes continue to accelerate rapidly in our IoT and markets. Our strategy to be focused on developing and licensing leading IPs that enable smart-edge devices to connect, sense, and infer data is effective and highly synergistic with the growing adoption of AI across every industry.

Amir Panush: Thank you, Richard. And good morning, everyone.

Speaker Change: Amir?

Amir: Thank you, Richard, and good morning, everyone, and thank you for joining us today.

Amir Panush: And thank you for joining us today. We are pleased to report an excellent second quarter that exceeded our estimates with strong licensing execution from our team worldwide, coupled with royalty growth driven by bold market trends in IoT and robust smartphone sharing. We also surpassed the milestones of 18 billion CEVA-powered smart edge devices shipped to date as our shipment volumes continue to accelerate rapidly in our IoT and mobile business. Our strategy of being focused on developing and licensing leading IPs that enable smart edge devices to connect, sense, and infer data is effective and highly synergistic with the growing adoption of AI across every industry.

Amir: Our strategy, to be focused on developing and licensing leading IPs that enable smart edge devices to connect, sense, and infer data, is effective and highly synergistic with the growing adoption of AI across every industry.

Amir Panush: We are seeing more and more licensing deals that are driven by customer needs to incorporate more processing power, more sensing capabilities, more wireless connectivity options, and highly efficient NPUs to run AI workloads on devices. No other IP company has the technology portfolio capable of addressing these three pillars required by every age AI enable device, and we are fully focused on maximizing our leadership position and extracting better economics per deal as a result. Licensing revenue was up 28% year over year, and our backlog heading into the third quarter is Alfie on the back of finding some very significant deals in the quarter.

Amir Panush: We are seeing more and more licensing deals that are driven by customer needs to incorporate more processing power, more sensing capabilities, more wireless connectivity options, and highly efficient NPUs to run AI workloads on devices. No other IP company has the technology portfolio capable of addressing these three pillars required by every age AI-enabled device, and we are fully focused on maximizing our leadership position and extracting better economics per deal as a result.

Amir: And we are fully focused on maximizing our leadership position and extracting better economics per deal as a result.

Amir Panush: Licensing revenue was up 28% year-over-year, and our backlog heading into the third quarter is healthy on the back of signing some very significant deals in the quarter. In particular, we signed new strategic agreements with two infrastructure OEM customers for their development of custom silicon that will enable the infrastructure that is essential for the successful deployment of hybrid AI. The future path of AI inference needs to be hybrid, with AI processing distributed between the cloud and edge devices, with more and more inferencing being performed on the end device for cost, security, privacy, and user experience reasons.

Amir Panush: In particular, we signed new strategic agreements with two infrastructure OEM customers for their development of custom silicon that will enable the infrastructure that is essential for the successful deployment of hybrid AM. The future path of AI inference needs to be hybrid with AI processing distributed between the cloud and edge devices, with more and more influencing being performed on the end device for cost, security, privacy, and user experience reasons. Generative AI has accelerated these requirements for a gen AI developers and providers utilize multiple gen AI models using a mix of computing the cloud, data centers and on device, depending on latency, connectivity, availability, security and privacy requirements.

Amir: In particular, we signed new strategic agreements with two infrastructure OEM customers for their development of custom silicon that will enable the infrastructure that is essential for the successful deployment of hybrid AI.

Amir Panush: Generative AI has accelerated this requirement, where Gen AI developers and providers utilize multiple Gen AI models using a mix of computing power in the cloud, data centers, and on-device, depending on latency, connectivity, availability, security, and privacy requirements. The communications infrastructure that enables hybrid AI is constantly evolving to improve performance and ensure the experience is seamless.

Amir: Generative AI has accelerated these requirements.

Amir: where Gen-AI developers and providers utilize multiple Gen-AI models using a mix of computing the cloud, data centers, and on-device, depending on latency, connectivity, availability, security, and privacy requirements.

Amir Panush: The communications infrastructure that enable hybrid AI is constantly evolving to improve performance and ensure the experience is seamless. Our customers have repeatedly chosen us for the long term roadmap due to our DSP leadership in computer efficiency and the volume we created together in past platforms. The step-up in performance we have delivered to these customers with our latest processor architecture has enabled us to extract more value per deal and will drive higher royalties per chip from the next generation products. Another notable licensing achievements in the quarter, we signed a strategic Bluetooth portfolio licensing deal with a top three US semiconductor analog company that is expanding from sensing to connectivity and AI.

Amir: The communications infrastructure that enables hybrid AI is constantly evolving to improve performance and ensure the experience is seamless.

Amir Panush: Our customers have repeatedly chosen us for the long-term roadmap due to our DSP leadership in compute efficiency and the value we created together in past platforms. The step-up in performance we have delivered to these customers with our latest processor architecture has enabled us to extract more value per deal and will drive higher royalties per chip from the next generation product. In addition, and other notable licensing achievements in the quarter, we signed a strategic Bluetooth portfolio licensing deal with a top three U.S. semiconductor analog company that is expanding from sensing to connectivity and AI.

Amir Panush: This customer is adding connectivity capabilities across its product offering and consolidating the Bluetooth product roadmap around civil IP going forward. We believe these customers have the potential to become a very high volume shipper of our IP in future years with a significant priority opportunity. This deal follows on from a deal with another US leading MCU player late last year, where we license our Wi-Fi 6 AP for their MCUs. We continue to uncover new opportunities within the US semiconductor industry across our entire portfolio of IPs. As we have stated previously, the US market forms an important power to our growth strategy, and these deals are clear indicators that our strategy for growth in the US is achieving.

Amir Panush: This customer is adding connectivity capabilities across its product offering and consolidating their Bluetooth product roadmap around CEVA's IP going forward. We believe these customers have the potential to become a very high volume shipper of our IP in future years. Therefore, we have a significant royalty opportunity.

Speaker Change: We believe these customers have the potential to become a very high volume shipper of our IP in future years. We have a significant royalty opportunity.

Amir Panush: This deal follows on from a deal with another U.S. leading MCU player late last year where we licensed our Wi-Fi 6 IP for their MCUs. We continue to uncover new opportunities within the US semiconductor industry across our entire portfolio of IPs. As we have stated previously, the U.S. market forms an important part of our growth strategy, and these deals are clear indicators that our strategy for growth in the U.S. is achieving success.

Speaker Change: This deal follows on from a deal with another U.S.-leading MCU player late last year, where we licensed our Wi-Fi 6 IP for their MCUs.

Speaker Change: We continue to uncover new opportunities within the U.S. semiconductor industry across our entire portfolio of IPs.

Amir Panush: over on, we signed 11 deals in the quarter, addressing AI solutions for industrial and consumer AI devices, next generation wireless infrastructure to enable ubiquitous AI, 5G satellites, 5G red cap, and Bluetooth connectivity for wearables and hearables. Five of the deals where we owe EM, and one deal was with the first time customer. Now turning to royalties, board market strengths across our smart edge customer base, including strong global smartphone shipments, resulted in royalty revenue growing 5% sequentially and 19% year over year. Shipments volume grew 24% year over year, driven predominantly by our customers, taking more market share in Bluetooth, Wi-Fi, and pseudo-LED in the growing industrial, healthcare, and consumer IoT markets.

Amir Panush: Overall, we signed 11 deals in the quarter addressing AI solutions for industrial and consumer edge AI devices, Next Generation Wireless Infrastructure to Enable Ubiquitous AI, 5G Satellites, 5G Red Cap, and Bluetooth Connectivity for Wearables and Earbuds. Five of the deals were with OEMs, and one deal was with a first time, Now turning to royalties.

Speaker Change: Next Generation Wireless Infrastructure to Enable Ubiquitous AI, 5G Satellites, 5G Red Cap, and Bluetooth Connectivity for Wearables and Hearables.

Speaker Change: Five of the deals were with OEMs, and one deal was with a first-time customer.

Amir Panush: World market trends across our smart edge customer base, including strong global smartphone shipments, resulted in royalty revenue growing 5% sequentially and 19% year over year. Shipments volume grew 24% year over year, driven predominantly by our customers taking more market share in Bluetooth, Wi-Fi, and cellular IoT in the growing industrial, healthcare, and consumer IoT market. Smartphones recovered well from Q1, and our large customer, addressing the low-to-mid-range market segment, is expanding its customer base with new design wins at Vivo and Xiaomi, among others.

Speaker Change: Now turning to royalties.

Speaker Change: Broad market strengths across our smart edge customer base.

Speaker Change: including strong global smartphone shipments resulted in royalty revenue growing 5% sequentially and 19% year-over-year.

Amir Panush: Smartphones recovered well from Q1, and our large customer addressing the low-to-mid-range market segment is expanding its customer base with new design wins at Zero and Xiaomi among others. Also, if not, we received the first royalties from our special Azure collaboration with Boat, India's number one, Syriables and Wearables OEM. And one of our largest Bluetooth customers reported the first shipments of their new Wi-Fi 6 and Bluetooth 5 combo chip aimed at high volume smart edge devices, including TWS Air Force earphones, smart watches, smart glasses, and smart hearing aids. Overall, the royalty momentum we are experiencing is underpinned by our strong licensing activities in the past three years.

Speaker Change: Smartphone recovered well from Q1, and our enlarged customer, addressing the low to mid-range market segment, is expanding its customer base with new design wins at Vivo and Xiaomi, amongst others.

Amir Panush: Also of note, we received the first royalties from our special audio collaboration with Vogue, India's number one wearables and wearables OEM. And one of our largest Bluetooth customers reported the first shipments of their new Wi-Fi 6 and Bluetooth 5 combo chip aimed at high-volume smart edge devices, including TWS earphones, smart watches, smart glasses, and smart hearing aids. Overall, the royalty momentum we are experiencing is underpinned by our strong licensing activities in the past three years.

Speaker Change: Also of note, we received the first royalties from our special audio collaboration with both India's number one seriables and wearables, OEM.

Speaker Change: And one of our largest Bluetooth customers reported the first shipment of their new Wi-Fi 6 and Bluetooth 5 combo chip.

Speaker Change: aimed at high-volume smart edge devices including TWS earphones, smart watches, smart glasses, and smart hearing aids.

Amir Panush: These customers are now starting to come to market with the latest chips powered by our IP, expanding our customer base across end markets. This will continue to be a strong tailwind for our royalty business for years to come, and we continue to partner closely with our customers to ensure they successfully reach the market with their increasingly intelligent and connected products. Now, taking a step back, it has become abundantly clear that AI is a key factor in driving our business, both directly and indirectly. As we have stated previously, there is no AI without sensing or connectivity.

Amir Panush: These customers are now starting to come to market with the latest chips powered by our IP, expanding our customer base across end markets. This will continue to be a strong tailwind for our royalty business for years to come. And we continue to partner closely with our customers to ensure they successfully reach the market with their increasingly intelligent and connected products.

Speaker Change: This will continue to be a strong tailwind for our royalty business for years to come, and we continue to partner closely with our customers to ensure they successfully reach the market with their increasingly intelligent and connected products.

Amir Panush: Now taking a step back, it has become abundantly clear that AI is a key factor in driving our business both directly and indirectly. As we have stated previously, there is no AI without sensing or connectivity. Every smart edge device requires sensing to take data from its surroundings, to which AI is then applied in order to inform decisions. And each of these devices needs to be connected to transfer this data to other devices, to the cloud or to the network. These three use cases are inextricably linked and provide incredible opportunities for Syriables to grow and flourish.

Amir Panush: During the second quarter, we launch two new IP products, then continue our AI and connectivity momentum. The first of these relates to AI for IoT devices. AI is increasingly finding its way into every device, no matter how small or power constrained. TinyML is the field of machine learning that will bring AI interesting to billions of devices in the coming years and represents a huge opportunity in AI beyond the cloud, which most of us are familiar with today. In fact, ABI Research forecast that tiny ML shipments in IoT devices are set to go at the Kager or 48% throughout the rest of the decade to reach almost $3.65 billion by 2030, all lining on the device.

Amir Panush: The first of these relates to AI for IoT devices. AI is increasingly finding its way into every device, no matter how small or power-constrained. In fact, ABI research forecasts that tiny ML shipments in IoT devices are set to grow at a Kegel of 48% throughout the rest of the decade to reach almost $3.65 billion by 2030. However, in order for this market to reach its potential, specialized neural processor units, or NPUs, are required to run the tiny ML networks in many of these devices in a power and cost-efficient manner.

Speaker Change: The first of these relates to AI for IoT devices.

Amir Panush: In order for this market to reach its potential, specialized neural processor units or NPUs are required to run the tiny ML networks in many of these devices in a power and cost-efficient manner. Leveraging our vast experience in AI, low power processing, and the ability to handle sensing workloads in parallel, we introduce a new NPI called Nuponano during the quarter. This NPU, which is the first fully programmable NPU to efficiently execute any complete end-to-end tiny ML application with an optimal balance of power, performance, and area, thanks to innovative features like CEVA Net Squeeze, which significantly reduces the memory footprint required for AI in these IoT devices.

Speaker Change: All vining on the device.

Speaker Change: In order for this market to reach its potential, Specialized Neural Processor Units, or NPUs, are required to run the tiny ML networks in many of these devices, in a power and cost-efficient manner.

Amir Panush: Leveraging our vast experience in AI, low-power processing, and the ability to handle sensing workloads in parallel, we introduced a new NPI called NU4nano during the project. This ensures Newport Nano fits the market's requirements for tiny ML-based AI workloads, from factory maintenance to consumer audio enhancements, and appeals to our broad customer base as they begin to plan to incorporate AI in their next-generation products. Newport Nano is currently in evaluation with customers, and we expect the first licensing deal to close this year and the first products in the market as soon as 2026.

Speaker Change: We have an optimal balance of power, performance, and area, thanks to innovative features like CEVA NetSqueeze, which significantly reduces the memory footprint required for AI in these IoT devices.

Amir Panush: This ensures Nuponano fits the market's requirements for tiny ML-based AI workloads, from factory maintenance to consumer audio enhancement, and appeals to our board customer base as they begin to plan to incorporate AI in their next generation products. Nuponano is currently in evaluation with customers, and we expect the first licensing deal to close this year, and first products in the market as soon as 2026. This is a significant opportunity for us to cross-sell this NPU into our existing customer base, where we already command leadership and are a trusted partner to more than 100 customers today. We believe that this area of AI is an untapped market and that we have the right solution to fool this opportunity.

Speaker Change: from factory maintenance to consumer audio enhancements and appeals to our broad customer base as they begin to plan to incorporate AI in their next generation products.

Speaker Change: Nupo Nano is currently in evaluation with customers and we expect the first licensing deal to close this year and first products in the market as soon as 2026.

Amir Panush: This is a significant opportunity for us to cross-sell this NPU into our existing customer base, where we already command leadership and are a trusted partner to more than 100 customers today. The second significant product launch in the quarter is CEVA WaveLynx, a new multi-protocol solution for wireless connectivity. Increasingly, devices require more than one wireless connectivity standard to get the best performance and enable all the features required. Our broad customer base of Bluetooth, Wi-Fi, and UWB customers are increasingly looking to license additional IPs from us and integrate them together in a single chip. Be it Bluetooth and Wi-Fi combo for smart home connectivity or Bluetooth and UWB for digital car keys, in our opinion, there is no other IT company capable of delivering this multi-standard wireless solution.

Speaker Change: This is a significant opportunity for us to cross-sell this NPU into our existing customer base, where we already command leadership and are a trusted partner to more than 100 customers today.

Amir Panush: The second significant product launch in the quarter is CEVA Waste Links, a new multi-protocol solution for wireless connectivity. The CEVA Waste Link 110, which is the first of link series, is already in development and integration with a lead OEM customer. Increasingly, devices require more than one wireless connectivity standard to get the best performance and enable all the features required. Our board customer base of Bluetooth, Wi-Fi, and UWB customers increasingly are looking to license additional IPs from us and integrate them together in a single cheat. Be it Bluetooth and Wi-Fi combo for smart home connectivity or Bluetooth and UWB for digital car keys.

Speaker Change: The second significant product launch in the quarter is CEVA WaveLynx.

Speaker Change: A new multi-protocol solution for wireless connectivity.

Speaker Change: The CEVA Waves Link 110, which is the first of the Link series, is already in development and integration with a lead OEM customer.

Speaker Change: Our broad customer base of Bluetooth, Wi-Fi, and UWB customers increasingly are looking to license additional IPs from us and integrate them together in a single chip.

Amir Panush: In our opinion, there is no other IT company capable of delivering this multi-standard wireless solution. Waves make this even easier for our customers and allows us to provide more IP per deal, leading to higher value per deal through license fees and royalties.

Amir Panush: Waves make this even easier for our customers and allow us to provide more IP per deal, leading to higher value per deal through license fees and royalties. In closing, I would like to take this opportunity to thank our teams for strong execution this quarter and our customers and partners for putting their trust in us. Together, we're bringing more and more CEVA power devices to market. We fully expect to deliver on our stated financial and business targets for the year and are committed to ensuring everyone sees and understands the value that CEVA brings as an AI-focused company through our smart edge, connect, sense, and infer value proposition. All of this, in turn, will unlock and create more shareholder value. Now, I will turn the call over to Yaniv for the final.

Amir Panush: In closing, I would like to take this opportunity to thank our teams for strong execution this quarter and to our customers and partners for putting their trust in us. Together, we're bringing more and more CEVA power devices to market. My belief in our people and technology grows every day, and the potential of our company is unlimited in the AI era. We have the right strategy to capitalize on our unique capabilities, and we are laser focused on our execution. We fully expect to deliver on our stated financial and business target for the year and are committed to ensuring everyone sees and understands the value that CEVA brings as an AI focused company through our smart edge, connect, sense, and infer value proposition.

Speaker Change: In closing, I would like to take this opportunity to thank our teams for strong execution this quarter, and to our customers and partners for putting their trust with us. Together, we're bringing more and more CEVA-powered devices to market.

Speaker Change: My belief in our people and technology grows every day and the potential of our company is unlimited in the AI era. We have the right strategy to capitalize on our unique capabilities and we are laser focused on our execution.

Amir Panush: All of this, in turn, will unlock and create more shareholder value.

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

Speaker Change: Now, I will turn the call over to Yaniv for the financials.

Yaniv Arieli: Thank you, Yaniv.

Yaniv Arieli: I will start by reviewing the results of our operation for the second quarter of 2024. Revenue for the second quarter was 28.4 million, up 24% compared to 22.9 million for the same quarter last year. Revenue breaks down in its funds. Licensing in a related revenue was 17.3 million, reflecting 61% of our total revenue, significantly increased 28% year over year and 51% sequential. Revenue was 11.2 million, reflecting 39% of our total revenue, increased 90% year over year and 5% sequential. Growth margins came better than our guidance: 90% of gap and 91% of non-gap basis compared to 85 and 86% on gap and non-gap basis, respectively, a year ago.

Yaniv: Thank you, Amir. I will start by reviewing the results of our operation for the second quarter of 2024.

Yaniv Arieli: Revenue for the second quarter was $28.4 million, up 24%, compared to $22.9 million for the same quarter last year. The revenue breakdown is a fault.

Yaniv: Revenue for the second quarter was $28.4 million, up 24% compared to $22.9 million for the same quarter last year.

Yaniv Arieli: Licensing and related revenue was $17.3 million, reflecting 61% of our total revenue, significantly increased 28% year-over-year and 51% sequentially. Royalty revenue was $11.2 million, reflecting 39% of our total revenue, increased 19% year-over-year and 5% sequentially. Gross margins came in better than our guidance, 90% of GAAP and 91% of non-GAAP bases compared to 85% and 86% on GAAP and non-GAAP bases, respectively, a year ago.

Yaniv: Licensing and Related Revenue was $17.3 million, reflecting 61% of our total revenue, significantly increased 28% year-over-year and 51% sequential.

Yaniv: Gross margins came better than our guidance, 90% of gap and 91% of non-gap basis compared to 85 and 86% on gap and non-gap basis respectively a year ago.

Yaniv Arieli: Total gap operating expenses for the second quarter were 25 and a half million dollars, and the higher end of our guidance do mainly to higher sales commission and employee related benefits. Total non-GAAP operating expenses for the second quarter excluding equity-based compensation expenses and amortizations of intangibles and related acquisition costs were 21.4 million dollars. Just above the higher end of our guidance for the same reasons I just mentioned. Non-GAAP operating margins and net income were 15% of revenues in 4.4 million dollars. Higher than the negative operating margin of 4% and operating loss of 0.8 million dollars reported for the first quarter of 2024, and the negative operating margin of 5% and operating loss of 1.1 million dollars recorded in the second quarter of 2023, respectively.

Yaniv Arieli: Total GAAP operating expenses for the second quarter were $25.5 million and the higher end of our guidance, due mainly to hire self-commissioned and employee-related benefits. Total non-GAAP operating expenses for the second quarter, excluding equity-based compensation expenses, amortizations of intangibles, and related acquisition costs, were $21.4 million, just above the higher end of our guidance, for the same reasons I just... Non-GAAP operating margins and net income were 15% of revenue and $4.4 million, higher than the negative operating margin of four percent, an operating loss of $0.8 million reported for the first quarter of 2024 and Respect.

Yaniv: Total GAAP operating expenses for the second quarter were $25.5M, and the higher end of our guidance do mainly lead to higher self-commission and employee-related benefits.

Yaniv: Total non-GAAP operating expenses for the second quarter, excluding equity-based compensation expenses, amortizations of intangibles, and related acquisition costs were $21.4 million, just above the higher end of our guidance, for the same reasons I just mentioned.

Yaniv: non-GAAP operating margins and net income were 15% of revenue and $4.4 million.

Yaniv Arieli: Gap operating loss for the second quarter of 24 was 35,000 dollars compared to a Gap operating loss of 5.3 million dollars for the same period in 2023. Gap and non-gap taxes were 1.6 million dollars in line with our guidance and affected by geographies of deals height. Gap that loss for the second quarter was 0.3 million dollars in the limited loss per share was 1 cent as compared to a net loss of 4.9 million dollars in the limited loss per share of 21 cents for the same period loss. last year. Non-gathlet income and diluted EPS for the second quarter of 2024 increased significantly to $4.2 million and 17 cents, respectively, as compared to an S-plus of 0.5 million and diluted last per share of two cents, reported for the same period last year.

Yaniv Arieli: Gap operating loss for the second quarter of 24 was $35,000, as compared to a gap in operating loss of $5.3 million for the same period in 2021. Gap and non-gap taxes were $1.6 million, in line with our guidance and affected by the geographies of deals signed. The net loss for the second quarter was $0.3 million, and the looted loss per share was $0.01 as compared to a net loss of $4.9 million and a looted loss per share of $0.21 for the same period last year. Shipped units by CEVA's licensees during the second quarter of 2024 were 461 million units, up 24% in the second quarter.

Yaniv: Gap and non-gap taxes were 1.6 million dollars in line with our guidance and affected by geographies of deal signed.

Yaniv Arieli: With respect to other related data, shift units by ceiling licensees during the second quarter of 2024 or 461 million units, up to 24% from the second quarter, 2023 report up to 461 million units reported. 79 million or 17% were for mobile hand-set models. We have in the 53 million units, more for consumer IoT device markets, up 28% from 276 million units in the second quarter of 2023. 28 million units were for industrial IoT markets, doubled from 14 million in the second quarter of 2023. Noted to shiftments were 266 million units this quarter, up 26% year-over-year.

Yaniv: Shipped units by CEVA's licensees during the second quarter of 2024 were 461 million units, up 24% from the second quarter 2023 reported ships.

Yaniv Arieli: 2023 Report, Of the 461 million units reported, 79 million, or 17% were for mobile handset motors. 28 million units were for industrial IoT markets, doubled from 14 million in the second quarter of 2023. Bluetooth shipments were 266 million units this quarter, up 26% year over year.

Yaniv: Of the 461 million units reported, 79 million, or 17%, were for mobile handset motors.

Yaniv: 28 million units were for industrial IoT markets, doubled from 14 million in the second quarter of 2023. Bluetooth shipments were 266 million units this quarter, up 26% year-over-year.

Yaniv Arieli: Celular IoT shiftments were 40 million units, up 92% year-over-year, and our Wi-Fi shiftments were 35 million units, up 21% year-over-year. Overall, the strong water across all our end markets, and the third consecutive quarter of year-over-year IoT revenue growth, is for the balance unit. And in December 30, 2024, Seema's cash, cash, the marketable, the balance unit, and the cash securities, and then the deposit were approximately 158 million dollars. In the second quarter of 2024, we purchased approximately 100,000 shares for approximately two million dollars, and as of today, around 553,000 shares are available for repurchase under the repurchase program as expanded in November of last year.

Yaniv Arieli: Seller IOT shipments were 40% at 40 million units, up 92% year over year, and our Wi-Fi shipments were 35 million units, up 21% year over year. Overall, a strong quarter across all our end markets and the third consecutive quarter of year-over-year royalty revenue. In the second quarter of 2024, we purchased approximately 100,000 shares for approximately $2 million. And as of today, around 553,000 shares are available for repurchase under the repurchase program, which was expanded in November of last year.

Speaker Change: Seller IOT shipments were 40 million units, up 92% year-over-year.

Speaker Change: And our Wi-Fi shipments were 35 million units, up 21% year-over-year. Overall, a strong quarter across all our end markets, and the third consecutive quarter of year-over-year royalty revenue growth.

Speaker Change: It's for the Balanced United.

Speaker Change: And as of today, around 553,000 shares are available for repurchase under the repurchase program as expanded in November of last year.

Yaniv Arieli: Our DSO for the second quarter is 59 days, same as the first quarter. During the second quarter, we generated $2.4 million of cash from operating activities. Ongoing in depreciation was $1 million and purchase of fixed assets was $0.6 million. Also this morning, we filed a Universal Shelf Registration Statement on Form S3 with the SEC, which if and when declared effective will permit CEVA to offer and sell from time to time in one or more offerings up to 150 million dollars of common stock, preferred stock, that security is warranties or any contribution combination of these, We believe that having an S3 on file is good corporate housekeeping, and will provide us with a tool to further enhance our financial flexibility and opportunistically access additional capital to fund acquisition or other businesses opportunities or strategic initiatives should they arise, present.

Yaniv Arieli: Our DSOs in the second quarter is 59 days. Seema's first quarter, during the second quarter we generated $2.4 million of cash from operating activities. Ongoing in depreciation was $1 million, and purchase of six assets was $0.6 million. At the end of the second quarter, our head count was 434 people, of which 359 are engineers.

Speaker Change: Ongoing in depreciation was $1 million and purchase of six assets was $0.6 million.

Speaker Change: At the end of the second quarter, our head count was 434,000.

Speaker Change: people of which 359 are engineers.

Yaniv Arieli: Also this morning, we filed a universal shelf registration statement on Form S-3 with the SEC, which if and when declared effective will permit Seema to offer and sell from time to time in one or more offerings, up to $150 million of common stock, preferred stock, debt. We believe that having an S-3 on file is good corporate housekeeping and will provide us with a tool to further enhance our financial flexibility and opportunistically access additional capital to fund acquisition or other business opportunities or strategic initiatives should they arise. At present, we do not have any impending transactions that would require us to draw down the shelf.

Speaker Change: Also this morning, we filed a Universal Shelf Registration Statement on Form S-3 with the SEC.

Yaniv Arieli: We do not have any impending transactions that would require us to draw down the balance. Now for the guidance for the third quarter and 2024. Our annual growth plans are progressing well. And we're working hard to achieve even better results than originally forecast. As Amir stated earlier, we have a healthy pipeline of potential deal flow for a wide range of technologies and markets. Our non-GAAP operating income is expected to be similar to the second quarter and in the range of 20.7 to 21.7 million.

Speaker Change: At present, we do not have any impending transactions that would require us to draw down the shelf.

Yaniv Arieli: If we decide to raise capital in the future offering, using the shelf registration statement, CEVA will describe the specific details of that future offering in a prospectus supplement that is filed with the SEC.

Speaker Change: If we decide to raise capital in the future offering using the shelf registration statement, CEVA will describe the specific details of that future offering in a prospective supplement that is filed with the SEC.

Yaniv Arieli: Now for the guidance for the third quarter and 2024 overall. Our annual growth plans progress well, and we're working hard to achieve even better results than originally forecasted. As Amir stated earlier, we have a healthy pipeline of potential deal flow for a wide range of technologies and markets, and as such, we expect overall revenues for the year to be at the mid-to-high end of our 4-8% guidance. Coupled with our cost control measures and focus, we are within reach to more than doubling our non-GAAP operating margins and profits for 2024 over 2023. And close to doubling our non-GAAP fully diluted EPS, which is higher than originally forecasted.

Speaker Change: And as such, we expect overall revenues for the year to be at the mid to high end of our 4% to 8% guidance.

Speaker Change: And close to doubling are non-GAP fully diluted EPS, which is higher than originally forecast.

Yaniv Arieli: Specifically for the third quarter, total revenue is expected to be in the range 26 to 28 million dollars. Growth margin is expected to be similar to the second quarter, approximately 90 percent on GAAP basis and 91 percent on non-GAAP basis, excluding an aggregate 0.2 million dollars of equity-based compensation expenses and 0.1 million amortization of acquired intangible. Our gap optics is expected to be in the range of 24.8 to 25.8 billion dollars in line with our annual plans. Of the anticipated total operating expenses for the third quarter, 3.9 million is expected to be attributed to equity-based compensation expenses, and 0.3 million for their amortization of acquired intangibles, and 0.2 million expenses associated with getting the second edition.

Speaker Change: Specifically for the third quarter, total revenue is expected to be in the range of 26 to 28 million dollars.

Speaker Change: Excluding and aggregating $0.2 million of equity-based compensation expenses and $0.1 million amortization of acquired intangibles.

Yaniv Arieli: Our non-GAAP optics is expected to be similar to the second quarter and in the range of 20.7 to 21.7 million dollars. That interest income is expected to be approximately 1.2 million dollars.

Speaker Change: Our non-GAAP office is expected to be similar to the second quarter and in the range of $20.7 to $21.7 million.

Matthew Ramsay: Taxes are expected to be approximately 1.9 million dollars, and our share count is expected to be approximately 25.3 million. It's Jason; we could open the Q and A session.

Matthew Ramsay: Thank you.

Unknown Executive: We will now begin the question-and-answer session. To ask a question, you may press star, then one on your touch-tone phone. If you're using a speaker phone, please pick up your handset before pressing the keys. To withdraw your question, please press star, then two.

Speaker Change: Thank you. We will now begin the question and answer session. To ask a question, you may press star then 1 on your touch-tone phone. If you are using a speakerphone, please pick up your handset before pressing the keys.

Unknown Executive: At this time, we'll pause momentarily to assemble our roster.

Kevin Cassidy: Our first question comes from Atransi from TD County. Please go ahead. Thank you very much. Guys, I wanted to, maybe Amir, you could spend a little bit of time. You did more in the script today about some new technologies that your company is rolling out, and it seems like just starting to license broadly. I wanted to ask a little bit about wavelength. And maybe you could spend a little bit more time talking about that. It seems like this is Bluetooth, Wi-Fi, and UWB multimodal stuff. Was this a customer or broad-based customer ask for you to do multimodality?

Speaker Change: Our first question comes from Matt Ramsay from TD Cowan. Please go ahead.

Matt Ramsey: Thank you very much.

Matt Ramsay: Guys, I wanted to, maybe Amir you could spend a little bit of time, you did more in the script today about some

Matt Ramsay: new technologies that your company is rolling out and it seems like just starting to license broadly. And I wanted to ask a little bit about

Speaker Change: She's another very interesting person to talk to to talk about

Speaker Change: Was this a customer or broad-based customer ask for you to do multimodality? Does it include any potential to do sort of?

Amir Panush: Does it include any potential to do sort of mesh technologies on top of things that might communicate one-to-one? I know there's some markets in IoT where there's demand for either Bluetooth or Wi-Fi to hook into commercial devices. And then there's mesh networks to connect nodes together. UWB is one technology, but I wondered if you had anything that was more of a mesh networking technology that would be in that roadmap longer term. Thanks. Yeah, thanks a lot, Matt. So I would start with, definitely we already trained very, very heavily with Wi-Fi, Bluetooth, and more recent than last year or more with UWB.

Amir Panush: So, definitely we already have a leadership position with each of the technologies. As we engage deeper and deeper with our customer base, what we definitely see is the need for a multi-protocol IP. And early on, some of those customers basically license just one technology; then they added other technologies for us. But still, lots of the integration and the combination of that IP, where for the customers to go and handle and manage. And the link solution is actually brings that combination already so-called pre-qualified and pre-optimized. As such, the customers has much easier integration and faster deployment of combined technologies and IP.

Unknown Executive: such that the customers have much easier integration and faster deployment of combined technologies and IT. Also, as we do that, we provide them with enhanced performance because we control each technology and the combination of them using a similar spectrum or the same spectrum. And so overall, at the end, it brings them both a time-to-market advantage as well as a performance advantage. Now, on top of that, historically, what we have done very successfully, in addition to the Silicon IP, we provide the complete software stack for Bluetooth, Wi-Fi, and so on, and more recently for UWB. So definitely that comes into play as well as the overall LYNX proposal to that extent.

Unknown Analyst: Got it. That's really helpful.

Amir Panush: Also, as we do that, we provide them enhance performance because support we control each technology and the combination of them using similar spectrum or the same spectrum. And so overall, they bring them both the time-to-market advantage as well as the performance advantage. Now, on top of that, we historically, what we have done very successfully, in addition to the silicon IP, we provide the complete software stack, like Bluetooth, Wi-Fi, and so on, and more recently for UWB. So, definitely, that comes into play as well as the overall links, proposal, as that extent.

Amir Panush: And for your specific question on the match networking, we definitely have assets and capabilities. And this is another path for us to increase, and then they devalue of what we offer and the economics of the deals as we work with the leaders, others in the market. The link specifically is actually that combination, the first one, the one ten links, is already available and we are already a customer that license and actually go through the complete integration. So we are very advanced in terms of the availability of these combined technologies.

Speaker Change: And that combination of the first one the 110 links.

Speaker Change: Already available and we are already a customer that license and actually go through the complete integration and so we are very advanced in terms of the availability of that Oh. These combined technologies.

Unknown Analyst: Um, I guess my follow-up pretty big upside in the printed quarter, but I was surprised that you didn't bump up the annual by more than that. Are there things, meaning you feel like licensing deals that might have been pulled forward out of Q4? I was just surprised, given the momentum, that the annual didn't go up a bit more. So just trying to understand the shape of the year.

Speaker Change: Got it.

Unknown Executive: I guess my follow-up question, any of you guys, sounds pretty encouraging for trends going forward, and obviously with the results you printed and the guidance here.

Speaker Change: That's really helpful. I guess my follow up.

Speaker Change: And you guys sounds pretty encouraging for trends going forward and obviously with.

Speaker Change: The results you printed in the guidance here.

Unknown Executive: Pretty big upside in the printed quarter, but I was surprised that you didn't bump up the annual buy more than that. Are the things mean you feel like licensing deals that might have been pulled forward out of Q4? I was just surprised, given the momentum, that the annual didn't go up a bit more, so just trying to understand the shape of the year.

Speaker Change: I'm, a pretty big upside in the printed quarter, but yeah.

Speaker Change: I was surprised that you didnt bump up the annual by more than that or are there things I mean do you feel like licensing deals that might have been pulled forward out of Q4.

Speaker Change: I was just surprised given the momentum that the annual didn't go up a bit more so just trying to understand the shape of the year.

Yaniv Arieli: Thanks. Well, you know, we had a plan in the beginning of the year which was a growth year, both top line and specifically doubling of the operating margins and then quite significant EPS growth plans. We are tweaking it higher, both on the upper and the top line with the mid to higher range guidance. We think that the operating leverage and margins could be probably better than to the twice 2023 and obviously that will implement and we said almost double and eighteen cents EPS that we talked about. We recorded last year; we're not there yet, but that's the plan.

Speaker Change: Well you know we have.

Speaker Change: The plan at the beginning of the year.

Speaker Change: Which was a growth year both top line.

Speaker Change: And specifically doubling the operating margins in <unk>.

Speaker Change: Quite significant EPS growth plans.

Amir Panush: So in our line of business, the operating level is a much, much faster way to look at the company and to understand the IP opportunities and the profitability opportunities for an IP company. I think that's what we're highlighting today, and that will be the original plan for the year. But it is, and that seems better today after posting a very strong second quarter. And if you look at the momentum, if you look at the world, the first half, compared to prior year, we're up across all the industry and all the markets that we operate in, probably volume 25% or so in the first half of the year.

Amir Panush: So you said the economics are there for posting in a good year, but of course we want to take it one step at a time and see how the second half brings out. I would say overall, as we look at Q1 and Q2 combined as the first half, so first half came stronger than so called we expected, and we are very encouraged with the delivery of both the licensing as well as the royalty. If we compare the royalty first half of 24 versus 23, definitely we see a stronger market condition as well as really great execution of our customer base and the rent of our company.

Yaniv Arieli: Amir, if you want to... I would say overall, you know, as we look at Q1 and Q2 combined as the first half, so the first half came stronger than we expected, and we are very encouraged with the delivery of both the licensing as well as the royalty. If we compare the royalty first half of 24 versus 23, definitely we see a stronger market condition as well as really great execution of our customer base and the ramp of our new technologies.

Amir Panush: As we look into the second half overall with that projection, we're looking at second half that is the stronger and the first half we have that we are looking at the me too high targets of our revenue range and much more or more possibility than previously focused at the bottom line for the second half of the complete year. So all together we believe we're in a good condition. We are very encouraged with the result of Q2, we encourage with the backlog and the deals that we see for Q3 coming, and we are executing to our plan. That's really what it is.

Yaniv Arieli: As we look into the second half, overall, with that projection, we are looking at a second half that is stronger than the first half. We have that, and we're looking at the mid to high targets of our revenue range, much more so-called possibility than previously focused on the bottom line for the second half of the complete year. So altogether, we believe we're in good condition. We are very encouraged by the result of Q2, encouraged by the backlog and the deals that we see for Q3 coming, and we are executing on our plan. That's really what it is.

Unknown Analyst: Congratulations on the progress. Thanks, guys. I appreciate it.

Unknown Executive: Thank you.

Kevin Cassidy: Our next question comes from Kevin Cassidy from Rosenblatt Securities. Please go ahead. Yeah, thanks for taking my question. Yes, congratulations on the progress. I'm just wondering on the Wi-Fi shipment that you're having right now, how's that split up by generation? You know, I guess I'm looking for us. You know, do we still have the higher priced Wi-Fi 6 and Wi-Fi 7 to come in the royalty line? Yeah, we don't provide a specific breakdown, but still, the majority of that volume or a significant portion of that volume is Wi-Fi 4. So, definitely we have a significant upside coming in the coming year and two and beyond that in terms of royalties for Wi-Fi in terms of Wi-Fi 6 and then after that Wi-Fi 7.

Unknown Executive: Yeah, we don't provide a specific breakdown, but still, the majority of that volume, or a significant portion of that volume, is Wi-Fi 4. So definitely, we have a significant upside coming in the coming year and two and beyond that in terms of royalties for Wi-Fi and in terms of Wi-Fi 6, and then after that, Wi-Fi 7. Also, previously, in the previous running call, we mentioned that today it's a so-called client or station Wi-Fi, and we'll also have the uplift coming with access points coming to market for so-called Wi-Fi access.

Amir Panush: And also previously in the previous learning code, we mentioned that today it's a it's so-called client or station Wi-Fi, and we'll also have the uplift coming with access points coming to market so-called Wi-Fi access points. It will lift also the overall royalty and the average royalty per unit. I would also say that it enhances; we were also seeing an interesting trend of more 5G phones that our customers are powering compared to past years, and that also is usual as a higher ESP. So that's also a nice contributor. The unwield is going forward. Yeah, this is a very encouraging side that we've seen this quarter.

Amir Panush: We have our lead customers launching one more dear funds in the market using a 5G technology and powered also with our technology.

Amir Panush: Okay, great. And yeah, go ahead and wave Link also. Is that and will that all be Wi-Fi 6 and Wi-Fi 7? Maybe that's an obvious question, but I just want to make sure that this is all going to be leading edge, or does anybody need to go back for maybe lower price or smaller die size. It's really Wi-Fi 6 and Wi-Fi 7. Okay, great.

Unknown Executive: It's really Wi-Fi 6 and beyond, Kevin, yeah.

Chris Reimer: All right, thank you. Our next question is a follow-up excuse me. It comes from Chris Rimer from Barclays. Please go ahead. Hi, thanks for taking my questions, and congratulations on the strong results. I was wondering if you could return to your comments around the profitability. What kind of items are driving that aside from the higher revenues and how sustainable is that? Excellent question. Chris, thanks.

Operator: Our next question is a follow-up, excuse me, it comes from Chris Reimer from Barclays. Please go ahead.

Chris Reimer: Hi, thanks for taking my questions and congratulations on the strong results. I was wondering if you could return to your comments around profitability. What kind of items are driving that aside from higher revenues, and how sustainable is that?

Yaniv Arieli: Excellent question Chris, thanks. So you know when Amir joined a year ago and we built our plans and presented them in an analyst day last December, one of the key factors in any IP company but especially for CEVA was to handle the expenses differently than we have in the past and we refocused some of the R&D efforts and product lines that were not necessarily that profitable, that they did not have the right ROI and by managing the expenses and the R&D investments and to some degree we're talking about pretty flattish overall expenses of the company for 2024 over 2023 and then as you said with higher revenue and top line and the fixed amount of expenses but those investments did come out and present new technologies like we talked about in the prepared remarks, of AI and connectivity technologies.

Yaniv Arieli: So, you know, when I'm here joined a year ago, let me build our plans and presented them, and I'll stay last December. One of the key factors is in any IP company, but especially for SEMA, was to handle the expenses differently than we have in the past. And you refocus some of the R&D efforts and product lines that were not necessarily that profitable, but did not have the right ROI. And by managing the expenses and our investment said to some degree, we're talking about pretty flatish overall expenses of the company for 2024 over 2023. And then, as you said, with higher revenue and top line in the fixed amount of expenses, but those investments did come out and present new technologies like we talked about in the prepared remarks of AI and the connectivity technologies.

Yaniv Arieli: So, we're still innovating, and we're still coming up with new solutions, but the combination of higher revenues with less expensive resources, flat expenses, are causing the overall improvements in both the operating level and the bottom line. Chris, with that, that's the expectation as we go to the second half as well. Overall, we have the right talent, capabilities, and the right investment in the places that we want to invest, and they're basically supporting the product line today and the roadmap. I'm confident that we can control the expenses and keep it to the track of what we put together.

Yaniv Arieli: So we're still innovating, and we're still coming up with new solutions, but the combination of higher revenues with less expense increase or flat expenses is causing overall improvements in both the operating level and the bottom line.

Yaniv Arieli: Yeah, Chris, with that, that's the expectation as we go to the second half as well. Overall, we have the right talent, capabilities, and the right investment in the places that we want to invest in, and basically supporting the product line today and the roadmap. I'm confident that we can control the expenses and keep it on track with what we put together.

Chris Reimer: Great. Thanks.

Speaker Change: We have the right talent capabilities and the right investment in the places that we want to invest in.

Speaker Change: Basically supporting the product line to them then the roadmap.

Speaker Change: I am confident that we can control the expenses and keep it to the track with what we put together.

Unknown Analyst: And maybe just one on competition. You called out some areas where CEVA has the only ability in connectivity. How would you say CEVA is placed from a competitive position right now in terms of versus a year ago or two years ago?

Speaker Change: Yeah.

Chris Reimer: Great, thanks.

Speaker Change: Great Thanks and.

Amir Panush: And maybe just one on competition. You called out some areas where CEVA is the only, has the only ability in the connective connectivity. How would you say CEVA is pleased from a competitive position right now in terms of versus like a year ago or two years ago? Yeah, I think that overall the strength of our wireless connectivity portfolio and the access in the markets, coupled with the sense, the sense and the infer capabilities, we are uniquely positioned from a competitive landscape. That doesn't mean that we don't have competitors for each of the specific IPs, but overall, from portfolio and specifically wireless connectivity, is a complete offering across the different technologies with the scale.

Speaker Change: Maybe just one on competition you called out some areas where.

Speaker Change: CEVA is the only.

Speaker Change: <unk> has the only ability in the in the connective connectivity.

Speaker Change: Or would you say she was placed from a competitive position right now in terms of versus like a year ago or two years ago.

Amir Panush: I think that overall, the strengths of our wireless connectivity portfolio and access in the market are coupled with the sense and infer capabilities. We are uniquely positioned from a competitive landscape. That doesn't mean that we don't have competitors for each of the specific IPs, but overall, from the portfolio and specifically in wireless connectivity as a complete offering across the different technologies with scale, we are positioned very well.

Speaker Change: I think that the overall the strength of our wireless connectivity portfolio and accessing the markets coupled with defense.

And then the FERC capability.

Speaker Change: Uniquely positioned from a competitive landscape that doesn't mean that we don't have competitors for each of the specific IP, but overall from portfolio and specifically in wireless connectivity is a complete offering.

Speaker Change: Of course, the defense technologies, we have the scale.

Amir Panush: And we are positioned very well.

Speaker Change: We don't believe we are positioned very well.

Chris Reimer: Great, thanks. That's it for me.

Unknown Analyst: Great, thanks. That's it for me.

Great. Thanks, that's it for me.

Suji De Silva: Thank you. The next question comes from Suji De Silva from Roth Capital. Please go ahead.

Speaker Change: Thank you.

Operator: The next question comes from Suji DeSilva of Roth Capital. Please go ahead.

Speaker Change: The next question comes from Tsuji into Silva from Roth Capital. Please go ahead.

Suji De Silva: Hi, I'm Mira. I need congratulations on the progress here. Can you talk about the, can you guys hear me? Yeah, we just said things. Sure, yeah, congrats on the progress here.

Suji DeSilva: Hi Amir, Yaniv, congratulations on the progress here. Can you talk about the...

Unknown Executive: Yeah, we just said thanks. Sure. Yeah, congrats on the progress here. So the hybrid AI edge compute platform, can you give us a sense of what's driving your customers to develop in-house IP custom silicon versus the solutions that are available in the marketplace?

Amir Panush: So the hybrid AI edge compute platform, can you give us a sense of what's driving your customers to develop in-house IP custom silicon versus the merchant solutions that are available in the marketplace? Yeah, when you look at what is out there, many of our customers, what they see is that they need a better or better or different type of trade-offs between the performance, the KPIs and feature set, as well as the cost structure to fit the specific IP that they need into their device. So yeah, they can go and buy so-called off-the-short solution, but to the most part, there doesn't really so-called fit the bills of what they need to go and build.

Amir Panush: Yeah, when you look at what is out there, many of our customers, what they see is that they need a better or better or different type of trade-off between performance and the KPIs and feature set, as well as the cost structure to fit the specific IP that they need into their device. So yeah, they can go and buy a so-called off-the-shelf solution, but to the most part, that doesn't really fit the bills of what they need to go and build. And that's where they approach us.

Amir Panush: And that's where they approach us. And we have an IP that is we discussed about new point a few quarters back. And now with Nano, we are building that to be a very scalable in terms of capabilities. So customers can work with us and so called not necessarily customize that but really set the capabilities of our technology and the different building blocks such that it will fit the exact bills of what they want to go and build. And that flexibility and the right fit to what they want to go and get out of their product differentiation is not something that they can do off the shelf.

Amir Panush: And we have an IP that, as we discussed with New Poem a few quarters back, and now with Nano, we are building that to be very scalable in terms of capability. So our customers can work with us and so-called, not necessarily customize that, but really set the capabilities of our technology and the different building blocks such that it will fit the exact bill of what they want to go and build.

Amir Panush: And that flexibility and the right fit to what they want to go and get out of their product differentiation is not something that they can do off the shelf, and the other thing is in terms of lower costs of getting access to the technology when they go and build it on their own and use their own so-called volume capabilities, and access to different suppliers that can give us also different flexibility and lower the cost of ownership.

Amir Panush: And that I think is the in terms of lower cost of getting access to the technology when they go and build it on their own and use their own so called volume capabilities and access to different suppliers that can give us also the different flexibility and lowering the cost of ownership.

Suji De Silva: Okay, all right, thanks, Amir.

Suji DeSilva: Okay. All right. Thanks, Amir.

Amir Panush: And then my other questions on the link product, the connectivity product. Is that traction today with smartphone OEMs, or are you seeing opportunity in non-smart phone OEMs? Curious where the opportunity today in the pipeline is for that product? It's significantly across so-called the border IoT. All the different devices that we talked about where we have our Bluetooth technology or Wi-Fi technology. That's where we see a lot of interest and already licensing this as well as future potential. So, you know, if you talk about all the different kinds of hearable wearable devices, industrial IoT, all the smart connected devices around us, outside handsets and tablets, more and more of those devices, they need multi-protocols and support even for audio and those type of use cases.

Amir Panush: And then my other question is about the Link product, the connectivity product. Is there traction for that today with smartphone OEMs, or are you seeing opportunity in non-smartphone OEMs? Curious where the opportunity is today in the pipeline for that product.

Amir Panush: It's significantly across the so-called border IoT and all the different devices that we talked about where we have our Bluetooth technology or Wi-Fi technology, and that's where we see lots of interest and already licensing deals as well as future potential. So, you know, if you talk about all the different kinds of hearable, wearable devices, industrial IoT, all the smart, connected devices around us, outside handsets and tablets. More and more of those devices need multi-protocol support, even for audio and those type of use cases, but it needs to be extremely power and cost efficient. When you provide it, combine IP together, it can become much more cost and power efficient as well as, again, time to market for our customers.

Suji De Silva: But it needs to be extremely power and cost efficient. When you provide it, combine IP together; it can become much more cost and power efficient, as well as again time-to-market for our customers. Okay, very helpful here. Thanks. Thanks, Suji.

Suji DeSilva: Okay, very helpful, Amir. Thanks.

Unknown Executive: You're welcome, Suji.

Martin Yang: The next question comes from Martin Yang from Oppenheimer. Please go ahead. Thanks for thinking of a question. I want to be highlight the one of the licensing which you referenced on the call on the leading US semiconductor company. Historically, you're licensing as well as where you always wait heavily towards APAC. Are you taking incrementally seeing, inherently, stronger activity from US-based customers for both licensing and royalty, and how do you think about resource allocation if you are seeing the US customers getting more active?

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

Martin Yang: Hi, thanks for taking the question. I want to maybe highlight one of the licensing topics that you referenced on the call on leading your semi-company. Historically, your licensing, as well as royalty, always weighed heavily towards APAC. Are you seeing increasingly stronger activity from U.S.-based customers for both licensing and royalty, and how do you think about resource allocation if you are seeing U.S. customers getting more active?

Amir Panush: Yeah, that's a very good question. Actually, this tights very well to the other question that I got specifically on the links border line, on the AI's border line, as well as I would add wireless communication related to satellites. This technology and the way that we enhance our products offer and roadmap actually resonates more and more and fits very well to the so-called large US semiconductor companies where they need either a more than one so-called wireless protocol and that combination is really what they're looking for. And then we see more potential for our business in the US and with that also we see the actual momentum there as well as the wireless communication for satellites and those type of markets that are expanding in the different regions and very, very specifically in the US.

Amir Panush: Yeah, that's a very good question. And actually, this ties very well to the other question that I got specifically on the Lynx product line and the AI product line, as well as, I would add, wireless communication related to satellites. This technology and the way that we enhance our product offer and roadmap actually resonates more and more and fits very well with the so-called large U.S. semiconductor companies where they need more than one so-called wireless protocol, and that combination is really what they're looking for.

Amir Panush: And then we see more potential for our business in the U.S., and with that, we also see the actual momentum there, as well as the wireless communication for satellites and those types of markets that are expanding in the different regions and very, very specifically in the U.S. And last but not least, with the transition from algo-based to running AI at the edge, running neural networks for all the different use cases, from tiny ML to the more sophisticated And this is exactly where the semiconductor industry in the U.S. is heading.

Amir Panush: And last but not least, with that transition from 알고-based to running AI, the H, running the new networks, all the different use cases from tiny ML to the more sophisticated ADAS and other large language models running on the edge of the hybrid AI. And this is exactly where the semiconductor industry in the US is heading, and we are coming; we have a very good fit of RIP. I think we are serving better those type of customers for execution and access as well as the product offering that we have, and that we will see continuous trends or further trends of our business in the US.

Amir Panush: And we are coming with a very good fit of RIP. So I think we are serving those types of customers better from execution and access, as well as the product offering that we have. And we have confidence that we will see a continuous trend or further trends in our business in the U.S. From resource allocation and support, of course, as we see that the business is growing, we will address it to make sure that we are continuing our momentum, positive momentum. But overall, with the larger umbrella of expenses, as I mentioned, we definitely expect to control our expenses to the plan that we have, and we are tracking that and executing to that plan very nicely

Martin Yang: Got it. Thank you for the answer, Amir.

Amir Panush: From resource allocation and support, of course, as we see that the business is growing, we will address it to make sure that we are continuing our momentum, positive momentum. But overall, with the larger umbrella of expenses I mentioned, and we definitely expect to control our expenses to depend if we have, and we are tracking that and executing to that plan very nicely.

Martin Yang: Thank you for your answer, Amir. Another question on smartphones. Can you give us your updated review? I'll look for a smartphone for a year. Are you getting maybe a little bit more optimistic? What's your general view on the market and your exposure? Yeah, I would say overall first, smartphone, if you compare 2024s versus 2023s in a healthier condition after significant inventory corrections are called that cleared, not all the way, but to a high degree. And so we expect 2024 to perform better than 2023 in terms of smartphone demand. And specifically, our customers in the low mid range are healthy and doing quite well.

Amir Panush: Another question on smartphones. Can you give us your updated view on your outlook for smartphones for the year? Are you getting maybe a little incrementally more optimistic? Or what's your general view of the market and your exposure?

Martin Yang: Yeah, I would say overall first smartphone if you compare 2024 versus 2023 is in a healthier condition after significant inventory correction so-called that cleared not all the way but to a high degree and so we expect 2024 to perform better than 2023 in terms of smartphone demand and specifically our customers in the low-mid range is healthy and doing quite well and we are supporting them and happy with that success and on top of that as we mentioned and that transition that the customer is moving to 5G with more success their success in the marketplace launching phones based on 5G technology will probably drive additional tailwind for us as we go further into 25 and beyond and so only it's healthier condition for smartphone and we expect overall that our smartphone business in 24 will do better than 2023 and but it's also not to the height of what or the volume that we saw at the peak of the COVID time but it's much better than 2023.

2024 to perform better than 2023 in terms of smartphone demand and specifically our customers in the low mid range.

Speaker Change: Is health and doing quite well.

Amir Panush: And we are supporting them and happy with that success. And on top of that, we mentioned that transition that the customers moving to 5G with more success, their success in the marketplace, launching funds based on 5G technology will probably drive additional tailwind for us as we go further into 25 and beyond. So only a healthier condition for smartphone. We expect overall that our smartphone business in 24 will do better than 2023. But it's also not to the hype of what or the volume that we saw the peak of the COVID time. But it's much better than 2023.

Speaker Change: And we are supporting them and happy with that success and on top of that are we mentioned that transition of the customer is moving to <unk> with more success their success in the marketplace matching funds based on <unk> technology, when it probably drive additional tailwind for us as we go further into 'twenty five and beyond.

Speaker Change: So I'll volunteer a healthier condition for smartphone we expect overall that our smartphone business in 24 will do better than 2023.

Speaker Change: And but it's also not to the high performance or the volume that we saw at the peak of the Covid time.

Speaker Change: But it's much rather than in 2020.

Unknown Executive: Got it.

Martin Yang: Got it. Thank you. That's it for me.

Speaker Change: Got it. Thank you that's it for me.

Unknown Executive: Thank you.

Unknown Executive: That's just for me. Thanks.

Speaker Change: Thanks.

David O'Connor: The next question comes from David O'Connor from BNP Paribas. Please go ahead. Great. Good morning. Thanks for taking my questions. Just one quick one on my side. And we're just going back to the new Pro Nano. What does the competitive landscape look like for the new Pro Nano? And are you guys a lot more bullish on the nano version now than the kind of previous new pro IPs you offered? And if you can just give us an update on where we stand on those existing new pro IP that you like. Thank you.

Operator: The next question comes from David O'Connor from BNP Paribas. Please go ahead.

Operator: Thanks. The next question comes from David O'Connor from BNP Paribas; please go ahead. Great. Good morning. Thanks for taking my questions. Just one quick one on my side.

Speaker Change: The next question comes from David O'connor from BNP Paribas. Please go ahead.

David O'Connor: Great. Good morning, Thanks for taking my questions. Just one one quick one on my side are maybe just going back to the Newport nano what what does the competitive landscape look like for for Newco nano and I.

Speaker Change: Are you guys a lot more bullish on the nano portion, though when the kind of previous Nucor Ip's you offered and that you can just give us an update on where we stand on those existing pool of IP that you license. Thank you.

Amir Panush: Yeah. So first, specifically for nano. We are uniquely positioned in terms of the offering that we have with nano where basically we are taking our strong capabilities understanding of DSP and how to run so called pre post processing of the different regions that are needed. Happened with the need to run efficiency new networks or AI at the edge. And we combine those two capabilities and basically into one single IP. And that's where we have unique proposal and opportunities in the marketplace. In terms of the co the competitive landscape, I would say you have the tradition also called DSP offering there.

Amir Panush: Yeah, so first, specifically for Nano, we are uniquely positioned in terms of the offering that we have with Nano, where basically we are taking our strong understanding of DSP and how to run so-called pre-post processing of the different algorithms that are needed, coupled with the need to run efficiency in neural networks or AI at the edge. And we combine those two capabilities, basically into one single IP. And that's where we have unique proposals and opportunities in the marketplace.

Speaker Change: Yeah, So first specifically for nine a M.

Speaker Change: We are uniquely positioned in terms of the offering that we have we've nano where basically we are taking our strong capabilities understanding of DSP in house to launch of course post processing of the different algorithms that don't need it happened the way they need to on efficiency in your own networks or AI at the edge and we.

Speaker Change: And those two capabilities and basically into one single IP.

Speaker Change: And that's where we have unique.

Speaker Change: Proposal and opportunities in the marketplace.

Speaker Change: In terms of the chronicle the competitive landscape I would say you have the traditional so called DSP offering there you have the traditional or the more recent.

Amir Panush: You have the traditional or the more recent. Very targeted and tweak so called accelerators. We are taking a different approach of combining the two and providing very high problem for already as well as different type of functional. So we see very good demand and interest in this technology as we just launched it about few weeks ago. In terms of this versus the higher end of our portfolio, new point, new point, I wouldn't say it's one that is better than the other. It's really the having a comprehensive portfolio. Of course, all the product line if we look at the different so called MCU companies out there and companies provide a comprehensive AI processing capabilities, they needed to cost their complete segments, product segments and cheers.

Speaker Change: Yeah, very targeted and tweak so called accelerators, we are taking a different approach of combining the two and providing very high program, along with IP as well as a different type of functionalities.

Amir Panush: And so we see very good demand and interest in this technology as we just launched it about a few weeks ago. In terms of this versus the higher end of our portfolio, NuPoM, I wouldn't say it's one that is better than the other. It's really having a comprehensive portfolio where we can offer the same customers with the same software stacks and basically the underlying so-called Silicon IP across all the product lines.

Speaker Change: So we see very good demand and interest in this technology as we just lunch at a few weeks ago in terms of a fad this versus the higher end of our portfolio Newport on your plan I wouldn't say, it's one that is better than the other it's really that having a comprehensive portfolio.

Speaker Change: We can offer to the same customers we have the same software stacks and basically the underlying so called Silicon IP.

Amir Panush: If we look at the different so-called MCU companies out there and companies that provide comprehensive AI processing capabilities, they need to cross their complete segments, product segments, and tiers. And that's where we are really looking to fit that in. From none of the tiny ML all the way to the high-end LLMs that are needed. Maybe I would add one thing that, you know, they're down in the new market.

Speaker Change: Across all their product line, if we look at the difference of car MCU.

Speaker Change: MCU companies out there and companies that provide a comprehensive AI processing capabilities. They needed. The costs. There are complete there are segments product segments and tiers, and that's where we are really looking to fit it in from non off the tiny Atlanta, all the way to the high end at NMS that don't need it.

Amir Panush: And that's where we are really looking to fit that in from none of the tiny ML all the way to the high end LMS that are needed. Yeah, well, that one thing that you know the value in the new market that we're targeting. So for us, it's not just a different technology that we came up with and increasing our offering, but it's completely new market opportunities for much smaller devices and use cases. So for us, it's an add-on, and a lot of our connectivity customers that have to be Bluetooth Wi-Fi may be similar in the future can use and take advantage of this new product line with the nano for their specific needs and new product.

Amir Panush: Maybe I would add one thing that, you know, the Nano is a new market that we are targeting. So, for us, it's not just a different technology that we came up with and increased our offering, but it's completely new market opportunities for much smaller devices and use cases. So, for us, it's an add-on, and a lot of our connectivity customers that have today Bluetooth, Wi-Fi, maybe cellular in the future, can use and take advantage of this new product with Inanna for their specific needs and new products. So that's also an interesting angle to understand that we're now tackling not just the mainstream but also a much bigger opportunity for smaller devices.

Speaker Change: Maybe I would add one thing that you know on the downloaded the new markets that.

Speaker Change: We are targeting so for us it's not just a different technology that we came up with an increasing our offering but it's completely new market opportunities for a much smaller devices and use cases.

Speaker Change: For us it's.

Speaker Change: It's an add on and a lot of borrowing.

Speaker Change: Connectivity customers that have the Bluetooth Wi Fi and maybe some of them are in the future.

Speaker Change: You can use and take advantage of this new product line with the nano for their specific.

Speaker Change: Needs.

Speaker Change: Uhm.

Amir Panush: So that's also an interesting angle to understand that they're now faculty, not just the mainstream, but also a much bigger opportunity for smaller devices.

Speaker Change: Products.

Speaker Change: That's also an interesting angle to understand that we are now tackling ill just the main stream, but also a much bigger opportunity.

Speaker Change: For smaller devices.

Gus Richard: The next question comes from Gus Richard from Northland. Please go ahead. Yes, thanks for taking the questions. Congratulations on the strong results. On the new pro nano, you know, where does the software stack stand and, you know, are you developing your customers developing it? If you're supplying it, you know, are you going to be able to monetize it, and is it a limiter to getting designs into the market? Yes, we definitely provide a software stack to be able to round the difference of new and networks of the models that are needed as part of the Tiny ML ecosystem.

Speaker Change: Very helpful. Thanks, guys.

Speaker Change: Thank you David.

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

Speaker Change: The next question comes from Gus Richard from Northland. Please go ahead.

Gus Richard: Yes, thanks for taking the questions. Congratulations on the strong results on the Nupro Nano.

Gus Richard: Yes, thanks for taking my questions. Congratulations on the strong results on the new pro nano.

Amir Panush: You know, you know, where does the software stack stand? And, you know, is it, you know, are you developing your customers developing it? If you're supplying it, you know, are you going to be able to monetize it? If you just, and is it a limiter to getting designs into the market?

Speaker Change: Yeah.

Speaker Change: You know, where where does the software stack stand and.

Speaker Change: Is it.

Speaker Change: Are you developing your customers developing it if youre supplying it are you going to be able to monetize it. If you just and is it a limiter to getting.

Speaker Change: Designs into the market.

Amir Panush: Yeah, we definitely provide a software stack to be able to run the different so-called neural networks or the models that are needed as part of the TinyML ecosystem. And having said that, we have customers, of course, they want to tune it, customize that to their own capabilities. And we have a business model where we are flexible and support customers based on their needs, and we see it's actually very successful in the marketplace in terms of the access that our customers can get. They have a starting point that is, for the most part, complete, and they can go launch their products. But if they want to add more capabilities on top of that or customize that,

Speaker Change: Yes, we definitely provide a software stack to be able to on the defense or call neuron networks on the models that are needed as part of the Chinese.

Speaker Change: Ecosystem, and having said that as customers of course, they want the Q&A to customize that have their own capabilities.

Amir Panush: Having said that, we have customers as, of course, they want to tunit customize that as their own capabilities. We have a business model where we are flexible and support the customer space on their needs. And we see it's actually very successful in the marketplace in terms of the access that our customer can get. They have a starting point. It is to the most part complete, and they can go launch their products. But if they want to add multiple basis on top of it or customize that, we support it as well.

Speaker Change: We have a business model, where we are flexible and support the customers based on their needs.

Speaker Change: Ma'am.

Speaker Change: And we say, it's actually very successful in the marketplace in terms of the access with our customer that can get have a starting point.

Speaker Change: As to the most part complete and they can go launch their products, but they want to add more capabilities on top of it to customize that.

Speaker Change: We support it as well.

Gus Richard: Got it. That's helpful.

Gus Richard: Got it. That's helpful. And then on the wavelength, you know, the difficulty in wireless and sometimes the transceiver, and you're doing multi-protocols. You know, can you talk about how that is supported for your customers? Is that an external chip, you know, are you, do you have transceiver partners, and just a little bit of color around that part of the solution for your customers.

Speaker Change: Got it that's helpful and then on the.

Amir Panush: And then on the wave link, you know, the difficulty in wireless is sometimes the transceiver, and you're doing multi protocols. You know, can you talk about how that supported for your customers is that next journal chip? You know, do you have transceiver partners and just a little bit of color around that part of the solution for your customers?

Speaker Change: Wavelength.

Speaker Change: The <unk>.

Speaker Change: Difficulty in wireless is sometimes the transceiver and you're doing multi protocols.

Speaker Change: Can you talk about how that supported for your customers is that an external chip.

Speaker Change: Are you do you have transceiver partners.

Speaker Change: And just a little bit of color around that that part of the solution for your customers.

Amir Panush: You know, you know, you know, you know, you know, you know, you know, you know, you know, you know, you know, you know, you know, you know. Yes, so the way that we work with customers, we, as I mentioned, also with the software stack, we provide them the flexibility. We have partners that offer that they can offer the software transfer or the radio technology and then combine as a predestive solution. We offer that to our customers as well as they can get a more comprehensive access from us to what we then based on their needs.

Speaker Change: Yeah.

Amir Panush: Yeah, so the way that we work with customers, as I mentioned also with the software stack, we provide them with flexibility. We have partners that can offer the so-called transceiver or the radio technology, and then combined as a pre-tested solution, we offer that to our customers, as well as give them more comprehensive access from us to work with them based on their needs.

Speaker Change: Yes, so and the way that we work with customers. We as I mentioned also the software stack will provide them. The flexibility we have partners that offer that they can offer their so called the transceiver or the radio technology on that.

Speaker Change: Hum combined as a pre tested solution, we offer that to our customers as well as they can get a more comprehensive access philosophy to work with them based on their needs.

Amir Panush: Okay, and again, is there some customization depending on what transceiver is being used, or, you know, is it a standard IP block that doesn't work with any customer's transceiver? Yes, as you go more to the software, the radio or the analog domain, there are some more adjustments that need to be made for the specific process node or geometry or technology that the customer is using. But to the most part, as we're looking into this technology and the combination for the different market segments, there is a so-called mainstream type of a process node that would make sense to our customers and can be both power and cost efficient to be competitive in the marketplace.

Gus Richard: Okay, and again, is there some customization depending on what transceiver is being used to work, you know, as a standard IT block that can work with any customer's transceiver?

Speaker Change: Oh, okay.

Speaker Change: Again is there.

Speaker Change: Some customization depending on.

Speaker Change: What transceiver is being used to work.

Speaker Change: CAGR IP block that can work with Andy.

Speaker Change: Customers transceiver.

Amir Panush: Yeah, as you go more to the so-called radio or the analog domain, essentially, there is somewhat more adjustment that needs to be made for the specific process node, or geometry, or technology that the customer is using. And, but to the most part, as we look into this technology and the combination for the different market segments, there is a so-called mainstream type of process now that would make sense to our customers and can be both power and cost efficient to be competitive in the marketplace.

Speaker Change: Yeah, and as you go more to the so called the radio on the analog domain definitely there is a sound.

Speaker Change: Somewhat more adjustment that needs to be made for the specific process node audio material technology that the customers using <unk> and back to the most part as we look into this technology and the combination for the different market segments. There is there.

Speaker Change: So called mainstream type of a process along that would makes sense to our customers and can be both power and cost efficiencies to be competitive in the marketplace.

Amir Panush: And as we come with those with that capabilities and offerings as an IP company, we're always looking basically towards the future and offering that technology that can be very competitive for our customer base. So with that, we have support that really finds access, and then if the customer needs more than that, we can support.

Amir Panush: And as we come with those capabilities and offering as an IP company, we're always looking basically towards the future and offering technology that can be very competitive for our customer base. So with that, we have so-called predefined access. And then if the customer needs more than that, we can...

Speaker Change: As we come away with that capabilities and offerings as an IP company, we're always looking for basically.

Gus Richard: Got it. Thanks so much.

Speaker Change: Towards the future and offering that technology that can be very competitive for all our customer base.

Speaker Change: So we have that we have so productivity defines access and then if the customer need more than that we can support.

Unknown Executive: Thank you so much.

Speaker Change: Got it thanks, so much.

Unknown Executive: Thank you very much.

Chris: Thank you Chris.

Richard Kingston: This concludes our question and answer session.

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

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

Richard Kingston: I would like to turn the conference back over to Richard Kingston for any closing remarks. Thank you, Jason. And thank you, everyone, for joining us today for your continued interest in SEVA. As a reminder, the prepared remarks for this conference call are filed as an exhibit to the current report on Form 8-K and accessible through the investor section of our website.

Richard Kingston: Thank you, Jason, and thank you, everyone, for joining us today and for your continued interest in CEVA. As a reminder, the prepared remarks for this conference call are filed as an exhibit to the current form of the current report on Form 8K and are accessible through the investor section of our website. With regard to upcoming events, we will be participating in the following conferences: Oppenheimer's 27th Annual Technology, Internet, and Communications Conference, August 12th to 14th, virtually.

Richard Kingston: Thank you, Jason and thank you everyone for joining us today and for your continued interest in CEVA.

Speaker Change: As a reminder, the prepared remarks for this conference call are filed as an exhibit to the current form current report on form 8-K and accessible through the investors section of our website.

Richard Kingston: With regards to upcoming events, we will be participating in the following conferences: Oppenheimer, 27th Annual Technology Internet and Communications Conference, August 12th, the 14th, virtually. The 5th Annual Need and Semiconductor and Semicap Virtual Conference, August 21st, 22nd. Jeffries Semiconductor, IT Hardware and Communications Technology Summit, August 28th in Chicago. And Jeffries Israel Tech Track, 2024 Conference, September 10 to 12 in Tel Aviv, Israel. Further information on these events and all events we will be participating in can be found on the investor section of our website.

Speaker Change: With regards to upcoming events, we will be participating in the following conferences.

Speaker Change: Oppenheimer, 27th annual Technology, Internet and Communications Conference August 12 to 14th virtually.

Richard Kingston: The 5th Annual Needham Semiconductor and Semicap Virtual Conference, August 21st-22nd Geoffrey's Semiconductor IT Hardware and Communications Technology Summit, August 28th in Chicago, and Geoffrey's Israel TechTrek 2024 Conference, September 10-12 in Tel Aviv, Israel. Further information on these events and all events we will be participating in can be found on the investors section of our website.

Speaker Change: The fifth annual Needham semiconductor and semi cap a virtual conference August 'twenty, one 'twenty two.

Operator: Thank you. That concludes the call. This conference is now concluded. Thank you for attending.

Speaker Change: Jefferies semiconductor <unk> hardware and communications Technology Summit August 28th in Chicago, and Jefferies. Israel Tech Trek 2024 Conference September 10 to 12 in Tel Aviv Israel.

Speaker Change: Further information on these events in all events, we will be participating and can be found on the investors section of our website.

Richard Kingston: Thank you.

Unknown Executive: That concludes the call. Thank you, and goodbye.

Speaker Change: That concludes the call thank you and goodbye.

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

Operator: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

Speaker Change: The conference has now concluded. Thank you for attending today's presentation you may now disconnect.

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You may now disconnect. Thank you. .

Speaker Change: [music].

Speaker Change: Yes.

Speaker Change: [music].