Q2 2025 CEVA Inc Earnings Call

Speaker #1: Good morning and welcome to the CEVA.

Speaker #3: INC second quarter 2025 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal the conference specialist by pressing the star key followed by zero.

Speaker #3: After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then 1 on your telephone keypad, and to withdraw your question, please press star then 2.

Speaker #3: Please note today's event is being recorded. All right. Now, I'd like to turn the conference over to Richard Kingston, Vice President of Market Intelligence, Investor Relations.

Speaker #3: Please go ahead.

Speaker #4: Thank you, Rocco. Good morning, everyone, and welcome to CEVA's second quarter 2025 earnings conference call. Joining me today on the call are Amir Panush, Chief Executive Officer, and Yaniv Arieli, Chief Financial Officer of CEVA.

Speaker #4: 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.

Speaker #4: Forward-looking statements include statements regarding our strategy and growth opportunities, including with respect to expanding our NPU business into infrastructure and data center markets, market positioning, trends and dynamics, including with respect to increasing importance AI and integration of our AI into consumers' products.

Speaker #4: And to our customers' expectations regarding demand for and benefits of our technologies, and our revenues, and our financial goals and guidance regarding future performance.

Speaker #4: CEVA assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates. 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.

Speaker #4: A reconciliation of non-GAAP financial measures is included in the earnings release we issued this morning, and in the SEC filing section of our Investor Relations website.

Speaker #4: With that said, I'd like to turn the call over to Amir Panush, who will review our business performance for the quarter and provide some insights into our ongoing business.

Speaker #4: Amir?

Speaker #5: Thank you, Richard, and good morning, everyone. This quarter was marked by strong licensing execution across all our core offering pillars: Connect, Sense, and Inferr.

Speaker #5: We secured 13 license agreements, including five first-time customers and four OEM customers, highlighting the breadth and strength of our IP portfolio. We saw a healthy sequential rebound in our loyalty business, driven by increased shipments from our consumers and smartphone customers.

Speaker #5: In licensing, this quarter marked a pivotal moment for our AI business, as we entered the broad adoption phase for our edge AI NPUs.

Speaker #5: Following extensive evaluations, with leading customers, we secured four strategic high-impact NPU customer agreements, validating the market's readiness and our innovative market-leading NPU portfolio. This includes two new ponano deals, related to audio, in embedded applications, and two new poem deals, targeting two diverse use cases.

Speaker #5: AI is increasingly central to the next generation audio experiences in earbuds and hearing aids. It enables adaptive noise cancellation and personalized sound profiles. In smart speakers, it powers far-field voice recognition and context-aware processing, and in smartwatches, it expands voice commands and health diagnostics capabilities.

Speaker #5: These are just a few of the powerful capabilities that on-device AI can enable in the smallest, most power-constrained devices. This is why a broad base of our customers is integrating AI into their products.

Speaker #5: One of the new ponano agreements was signed with an existing high-volume connectivity customer, expanding into AI-powered audio. Reflecting the growing trends of customers integrating multiple CEVA IPs into a single chip.

Speaker #5: This approach boosts product capabilities, enhances deal economics, and increases loyalty per device. It also marks the second major connectivity customer, to adapt our edge AI NPUs in recent quarters.

Speaker #5: Reinforcing our strategy of deepening relationships through multiple IP agreements, we also signed a new NPU agreement with Ali Corporation, a leader in set-top box chipsets, to integrate new Ponano and new Poem into their next-generation video platforms.

Speaker #5: As AI becomes essential in set-top boxes and smart displays, our NPUs offer scalable, energy-efficient performance for advanced edge workloads. Another key deal was with a photonic computing company, developing a next-generation communication acceleration platform for cloud AI inference.

Speaker #5: Their high-throughput, low-latency systems require scalable NPUs, and our new poem paired with our AI software stack was selected for its ability to deliver multi-core performance within tight silicon and power constraints.

Speaker #5: As AI workloads grow more complex, traditional infrastructures face pressure to improve performance and efficiency. Our new POEM architecture is designed to address these challenges.

Speaker #5: Enabling intelligence workloads orchestration adaptive data routing and low-latency inference. We see significant opportunities to expand our NPU business into infrastructure and data centers markets.

Speaker #5: In automotive, we secured two strategic agreements this quarter. One was a licensing deal with Qualcomm, following the acquisition of Autotox. A long-time CEVA customer.

Speaker #5: Our DSPs are integral to our Autotox V2X solutions, now part of Qualcomm's Snapdragon Digital Chassis, supporting global V2X rollouts. With Autotox already in volume production, this collaboration is poised to accelerate global V2X rollouts while reinforcing CEVA's leadership in next-generation automotive connectivity.

Speaker #5: The second deal involves our sensor fusion DSP for a U.S. customer, developing a next-generation 4D radar platform, which is gaining traction in ADAS and autonomous vehicles.

Speaker #5: Our automotive momentum continues to build. In Q2, a leading semiconductor began production of Level 2 and Level 3 SoCs using our vision DSPs and AI accelerators.

Speaker #5: And another top-tier customer is set to begin production on a CEVA-powered platform. This win, along with the new Poem design win at Next Chip and several others, positions us for meaningful long-term loyalty streams in automotive.

Speaker #5: Now, turning to royalties, we saw good sequential growth across most of our markets, with royalties up 16% sequentially. On a year-over-year basis, royalties declined by 5%, mainly attributed to the lackluster smartphone sales at the lower end of the market.

Speaker #5: Where widespread softness has been reported by our peers and which we also experienced. With regards to the higher end of the smartphone market, our share is expected to grow at a leading US OEM using our technology in their in-house 5G modem.

Speaker #5: Outside of mobile, our consumer IoT customers showed strong sequential and year-over-year growth in shipment. Driven by record high cellular IoT and Wi-Fi 6 shipments.

Speaker #5: Overall, consumer IoT shipments were up 21% sequentially and 60% year-over-year. We expect that the sequential growth in royalty will continue throughout the rest of the year, as our customers build toward the holiday season and our share grows at our US OEM smartphone customer.

Speaker #5: Last week, we also announced a major milestone: over $20 billion in CEVA-powered devices shipped. This achievement places us among a very small and select group of elite IP companies, alongside the likes of Arm Holdings, to reach this scale.

Speaker #5: It reflects our position as a foundational technology leader in the mobile and IoT eras and positions us strongly for the smart edge era now underway.

Speaker #5: Our board IP portfolio costs Connect, Sense, and Inferr is increasingly sought after. As reflected in both our licensing and royalty performance. With AI now contributing meaningfully to licensing revenue, we are well positioned to become the NPU IP of choice across the semiconductor industry.

Speaker #5: The trust we have built over the past two decades gives us a strong platform to scale our AI business and deepen our role as a strategic partner to the world's leading chip makers.

Speaker #5: We view the $20 billion shipments milestone not as a finish line, but as a launchpad for CEVA's next chapter—becoming the trusted IP powerhouse of the smart edge era and delivering long-term value for our shareholders.

Speaker #5: I will now hand the call over to Yaniv for the financials.

Speaker #6: Thank you, Amir. I'll now start reviewing the results of our operations for the second quarter of 2025. Revenue for the second quarter was $25.7 million, down 10% compared to $28.4 million for the same quarter last year.

Speaker #6: The revenue breakdown is as follows: Licensing and related revenue totaled $15 million, representing 59% of our total revenue for the quarter. This reflects a 13% year-over-year decline, primarily due to the catch-up in licensing revenue recognized in the second quarter of '24, following a slip in the first quarter of last year.

Speaker #6: Licensing revenue for the first half of 2025 reached $30.1 million, a 5% increase compared to $28.7 million for the same period in 2024. This growth reflects the strength and stability of our expanded IP portfolio, the growth opportunity in AI licensing, and the solid execution by our global sales organization.

Speaker #6: Loyalty revenue for the quarter was $10.7 million, reflecting 41% of total revenues. A 16% sequentially increase but a 5% decrease year-over-year. First half of 2025 royalty revenue totaled $19.9 million, compared to $21.8 million, in 2024.

Speaker #6: The year-over-year decrease reflects a slower start in the handset market during the first half of '25. However, we anticipate sequential growth in the second half of the year, with particularly strong momentum in the fourth quarter.

Speaker #6: Gross margins came in line with guidance, 86% on a GAAP basis and 87% on a non-GAAP basis, compared to 90% and 91% on GAAP and non-GAAP respectively a year ago.

Speaker #6: Total GAAP operating expenses for the second quarter were $26.6 million, above the high end of our guidance. Due mainly to higher employee-related benefit provisions, after a slower first quarter result and associated adjustments.

Speaker #6: We're also continuing to build on our strategic investments in AI, strengthening our leadership position and fueling future growth. Total non-GAAP operating expenses for the second quarter, excluding equity-based compensation expenses and ortization of intangibles and related acquisition costs, were $21.6 million, also just above the high end of our guidance for the same reasons I just mentioned.

Speaker #6: Non-GAAP operating margins and income were 3% of revenue and $0.8 million. Operating margins of 15% and operating income of $4.4 million were recorded in the second quarter of last year, respectively.

Speaker #6: GAAP operating loss for the second quarter was $4.5 million, as compared to a GAAP operating loss of $35,000 for the same period last year.

Speaker #6: GAAP and non-GAAP taxes were 1.1 million dollars, just below our guidance, and affected by the geographies of deals signed. GAAP net loss for the second quarter was 3.7 million dollars, and the alluded loss per share was 15 cents, as compared to a net loss of 0.3 million dollars and the alluded loss per share of 1 cent for the same period last year.

Speaker #6: Non-GAAP net income and alluded income per share for the second quarter of '25 was 1.8 million, and 7 cents, respectively. Better than forecasted. In the same period last year, net income 4.2 million, and the uded net income per share was 17 cents.

Speaker #6: With respect to other related data, shipped units by CEVA's licensees during the second quarter of 2025 were 488 million units, up 16% sequentially and up 6% from the second quarter of 2024 reported shipments.

Speaker #6: Of the 488 million units reported, 55 million units or 11% were for mobile handset modems. 409 million units were for consumer IoT markets. Up 16% from 353 million units in the second quarter of '24.

Speaker #6: 24 million units were for industrial IoT markets, down 16% from 28 million units in the second quarter of last year. Bluetooth shipments were 254 million units in the quarter, down 5% from 266 million in the second quarter of '24.

Speaker #6: Cellular IoT shipments were at an all-time record high of 66 million units, up 66% year-over-year. Wi-Fi shipments reached 62 million units, up 80% from 35 million units a year ago.

Speaker #6: Wi-Fi 6 shipments reached a new record high and were up 113% year-over-year, as we continue our Wi-Fi 6 customer ramp-up in the consumer and industrial markets.

Speaker #6: Overall, good sequential growth in royalties and shipments in many of our customer end markets, while softness was evident in the smartphone segment and some areas of industry.

Speaker #6: As for the balance sheet items, as of the end of June this year, CEVA's cash, cash equivalents, marketable securities, and bank deposits were approximately $157 million.

Speaker #6: In the second quarter of this year, we were more active in our buyback program and repurchased 300,000 shares for approximately $6.2 million. As of today, around 725,000 shares are still available for repurchase under the repurchase program, as expanded in November of last year.

Speaker #6: Our DSOs for the second quarter were 42 days lower than the norm and lower than prior quarters. During the second quarter, we generated 1.2 million dollars from cash of cash from operation activities, ongoing depreciation and amortization was 1.1 million dollars, and the purchase of fixed assets were 0.7 million.

Speaker #6: At the end of the second quarter, our headcount was 435,000 people, of whom 354,000 are engineers. Now for the guidance: our licensing pipeline and potential deal flow, especially around edge AI prospects, look healthy entering into the third quarter and the second half of the year.

Speaker #6: We have demonstrated strong licensing execution in 2025, notably achieving five sequential quarters with about $15 million or above in licensing revenue. Loyalty revenue historically is stronger in the second half of the year due to seasonality, a new product deployment, and shipment ramps ahead of the holiday season.

Speaker #6: We're encouraged by the strength of many of our customers and end-market demand, particularly around our cellular IoT and Wi-Fi 6 product lines. We also anticipate growth in smartphone royalties in the second half of the year, driven by share gains at a U.S. OEM smartphone customer using our technology for their in-house 5G modem.

Speaker #6: As such, we're adjusting our overall revenue guidance growth, as discussed in the prior earnings call. We continue with our long-term investments in AI and other new technologies.

Speaker #6: To enrich our IP portfolio, along with continued focus on expenses, we're reiterating our belief that we will reach a double-digit percentage increase of non-GAAP net income and fully diluted non-GAAP EPS relative to 2024.

Speaker #6: As for the third quarter, total revenue is expected to be between $26 million to $30 million. Gross margin is expected to be 1% higher than the second quarter, approximately 87% on a GAAP basis and 88% on a non-GAAP basis.

Speaker #6: Excluding an aggregate of $0.2 million of equity-based compensation expenses and $0.1 million of amortization of acquired intangibles, GAAP OpEx is expected to be at a similar level to the second quarter, in a range of $26 million to $27 million.

Speaker #6: Of the anticipated total OpEx for the third quarter, $4.7 million is expected to be attributed to equity-based compensation expense, $0.2 million for amortization of acquired intangibles, and $0.1 million for expenses related to business acquisitions.

Speaker #6: Non-GAAP operating expenses are also expected to be quite similar to the second quarter, in the range of $21 million to $22 million. Net interest income is expected to be approximately $1.3 million, taxes for the third quarter are expected to be approximately $1.8 million, and the share count for the third quarter is expected to be 25.8 million shares.

Speaker #6: Rocco, you could now open our Q&A session, please.

Speaker #7: Yes, sir. If you'd like to ask a question, please press star, then 1. If your question has already been addressed and you'd like to remove yourself from the queue, please press star, then 2.

Speaker #7: Today's first question comes from Kevin Cassidy, Rosenblatt Securities. Please go head.

Speaker #8: Yes, thanks for taking my question, and congratulations on the great results. You know, as you get an increase in your licensing in NPUs, with this adjustment, you know, it's a higher valued IC.

Speaker #8: So, would we expect that in the future, royalty revenues would have higher leverage or see an acceleration?

Speaker #4: Hi. Good morning, Kevin. And thanks for the question. Yeah, definitely. As we discussed also previously, right now we see great momentum with overall licensing.

Speaker #4: Our NPUs, I personally, with the management team, are very encouraged about how we see the prospect of winning those deals. But looking into the long term, as you pointed out on the royalty side, those deals definitely have better economics.

Speaker #4: The complexity of the technology and the needs of the technology are higher than our so-called average typical royalty that we have today. With that, we're expecting the royalty to have a meaningful increase, definitely per unit, as those devices will be deployed in the marketplace.

Speaker #8: Okay. Great. And maybe just as a timing for that, is I guess as the time from licensing to royalty longer with this more complex design and also because the AI market is moving so fast, would we expect that the tail for the royalty, you ow, meaning the product life cycle, is that going to shorten compared your past, especially wireless customers?

Speaker #4: Yeah. So typically, Kevin, what we see is that the time between, so-called when we license the technology, until we start getting royalty reports or the royalty is between 18 to 24 months.

Speaker #4: And in this case, I would say the valuation sometimes takes longer, but actually the time for our customer to take it into production is similar in consumer.

Speaker #4: It can be even shorter than 24 months. It can be 18 months. And a little bit more complex systems in infrastructure and so on can be 24 months or so.

Speaker #4: Overall, I would say our customers, as you pointed out, AI is moving quickly, and customers really need to deploy that as soon as possible from their perspective.

Speaker #4: So, we do expect the royalty to take the same as typically in consumers to some degree, maybe even slightly faster. In terms of the tail, that again depends on what system it goes to.

Speaker #4: If it goes to the typical consumer devices, we should expect that the same cycle. If it goes more to the infrastructure side, then the tail is much longer, whether it's automotive, whether it's wireless infrastructure, whether it's more on cloud enterprise support, and so on.

Speaker #8: I see. So the end market is more important. Great.

Speaker #4: Yeah.

Speaker #8: Okay. Thank you.

Speaker #7: Thank you, Kevin.

Speaker #4: Yeah. Thanks a lot, Kevin.

Speaker #7: Thank you. And our next question today comes from Susie De Silva at Roth Capital. Please go ahead.

Speaker #9: Hi, Amir. How are you, aniv? Congratulations on reaching 20 billion units. I'd be curious what that number was when Yaniv joined the company. the yeah, the royalty, the royalty stream being stronger in the fourth, second half, fourth quarter.

Speaker #9: I I presume, you know, your lagship smartphone customers are a key part of that. I'm wondering if that number or that contribution would be going up in '26 as the flagship customer continues to mix in its in-house modem, or do you have any visibility there?

Speaker #4: Yeah. I would say, first to you, we haven't gotten anything for '26 yet. So it's not that we are going to comment on the specifics on that.

Speaker #4: But generally speaking, our expectation is that we we see the the success of our technology penetrating as as that as the customer technology keeps wrapping up.

Speaker #4: And definitely, we're assuming that for the second half of this year. And for '26 and beyond, of course, as we get closer, we will be le to share more.

Speaker #8: But Susie, I would add, even if you exclude that US customer, historically, Q4 has been the strongest on the high-volume low-cost smartphones. For many, many years, it's not something new.

Speaker #8: Q1 is the slowest quarter and the slowest start for the year. Then it ramps up, with Q4 always being the strongest. So, even historically, we have pretty good data to back that up.

Speaker #8: unless something that we don't anticipate will will happen for this year. That's where the confidence is coming from. On the record.

Speaker #9: That sounds like a good tailwind there. And then on AI, congrats on the progress there. You talk about sort of scaling AI, hitting kind of a scale point.

Speaker #9: Is that software tools, ecosystem? Can you give us the elements of what gives you sort of a scaled opportunity in the edge AI? And, you know, maybe you can talk specifically about what data center might be for you guys as an interesting avenue that you guys might be charting out to.

Speaker #9: Thanks.

Speaker #4: Yeah, definitely. Susie, thanks. So first, from I would say the applicability of our NPUs and why we are very encouraged with the interest and the momentum that we see in the market from a scalability point of view that you asked.

Speaker #4: There are two aspects to that. One, from the hardware IP, the silicon IP capabilities, we are really providing very scalable platforms going from hundreds of jobs all the way to hundreds of TOPS.

Speaker #4: And the type of product line. And actually, our customers can tune and fine-tune that to their own requirements. And we have, with that, a very good fit to what they need.

Speaker #4: On top of that, from a software perspective, we really give them the complete SDK or software stack to support it. And one that is quite easy to integrate into their own system and to support their own customers.

Speaker #4: So on both fronts, the silicon IP and the software IP that comes on top of that, the scalability that we provide resonates extremely well with our customer base.

Speaker #4: And that's why this quarter we really got four deals: two more, I would say, on the lower end of the spectrum, so-called new Ponano, and two on the higher end of the spectrum, the new Poem.

Speaker #4: Within that, actually, as we pointed out, this quarter, we are starting to see interesting fit of our so-called edge NPU solution. Where everything is about low power, very efficient utilization, high performance, and also small size.

Speaker #4: Becoming applicable also for inference on the cloud. This is not really to replace every socket like a GPI and GPUs, but it's where you need to complement with NPUs to run the additional arithmetic and to support the very high bandwidth 3D DDR that typically is used in those systems.

Speaker #4: It's great to see the applicability up in there. That adds for us additional markets to support and to go after. But of course, the core of our solution is how to make it very optimized for edge.

Speaker #4: Which become also applicable in some cases for cloud inference AI as well.

Speaker #9: Okay. Appreciate the clarification. Amir, thanks.

Speaker #7: Thank you, Susie.

Speaker #8: And our next question today comes from Chris Reimer at Barclays. Please go ahead.

Speaker #10: Yeah. Thanks for taking my questions. And congratulations on the strong results. I was wondering if you could talk a bit about the pipeline? You mentioned last quarter that you had several new products coming to the market.

Speaker #10: Are they already working? And you have anything else coming new looking toward end of the year?

Speaker #7: Sure. So, on AI, I think Amir highlighted that this is a pivotal point in our business for a time. We've been talking about AI for the last year.

Speaker #7: We came out with new products in mid-last year and at the end of last year, featuring AI solutions for both the higher-end and lower-end markets and use cases.

Speaker #7: So, that's something that the traction was record high for us in licensing in the second quarter. But we have seen a deal per quarter over the last three quarters before that.

Speaker #7: So obviously, we are trying and will try to get that in the market and in front of different customers. We are conducting multiple evaluations on these technologies as we speak.

Speaker #7: So, that is a very strong add-on to our portfolio. On top of the typical connectivity—different Wi-Fi, Bluetooth, audio solutions, and the rest of the portfolio—I think we are continuing to invest and come up with new features and new technologies all the time.

Speaker #7: The AI is an interesting add-on. As we've talked about in the past, in different cellular IoT segments of the market, we are finally seeing the benefits and royalties with the record high volume shipments of Wi-Fi 6, which is not necessarily new in licensing.

Speaker #7: We're seeing its great results with the record high also in the second quarter in volume. So it's the same mix. Of enhancing our portfolio of licensable technologies, on one hand, and over time, the royalties kick in and help us from different markets and new customers that are starting to ramp up.

Speaker #10: Got it. Yeah. And just looking at shipments, there's a nice uptick this quarter. You did mention the addition of the customer in the U.S.; the smartphone expected shipments are projected to go up.

Speaker #10: But how should we be looking at some of the other segments? Do you have any color on other segments of the market that may be shipping higher?

Speaker #4: Yeah. Maybe I'll give a good overview of each of the end markets that we are looking at. So I'll start actually with the smartphone segment, which has been slower than we expected in Q1 and Q2, so-called the first half.

Speaker #4: These two, we expect to have a very strong, so-called sequential growth in the second half of the year. But overall, smartphones, generally speaking, I would say it's flattish to a little bit soft overall.

Speaker #4: But we are gaining market share with that, we're expecting a very strong sequential growth in the second half of the year. The rest of the market, the consumer IoT, and the infrastructure, and all the other markets that we are supporting, actually has been doing very well.

Speaker #4: And we expect additional sequential growth in the second half. That’s also what we see: our Wi-Fi 6 is ramping very, very strongly.

Speaker #4: So that's a strong tail for us in the second half. As well as the cellular IoT that we pointed out in this earnings as well.

Speaker #10: Okay, yeah. Thanks. That's good color. That's it for me.

Speaker #7: Thank you, Chris.

Speaker #8: And as a reminder, if you'd like to ask a question, please press star then 1. Our next question comes from Martin Yang at Oppenheimer.

Speaker #8: Please go ahead.

Speaker #11: Hi. Thank you for taking my question. I want to ask about Bluetooth. You know, that product has been growing pretty consistently year-over-year in the past few quarters.

Speaker #11: What contributed to this quarter's decline on a -over-year basis? Anything on customer or market dynamics worth pointing ?

Speaker #7: It wasn't something specific this quarter.

Speaker #4: That I will point to on the Bluetooth for you. I would say, generally speaking, we expect good sequential growth for our Bluetooth technology in the second half as well.

Speaker #4: There is a shift that is coming right now to adopt Bluetooth 6.0 more in production. Of course, we are licensing already Bluetooth 7.0, which will drive significant growth for us in '26 and '27.

Speaker #4: So overall, it's very healthy for us. It can be a little bit the mix of our customers and for this quarter, but nothing more than that.

Speaker #7: Yeah. In general, Martin, it was about a quarter of a million devices. Which is not that bad because annually, last year, we powered 1.1 billion devices.

Speaker #7: And again, Q1 and Q2 tend to be slower than the second half of the year. So I think that number will pick up in the next two quarters.

Speaker #4: And on that one also, generally speaking for our top customers, we see them they've been doing well this quarter, and we expect good sequential growth in the second half as well.

Speaker #11: Thank you. And in the context of overall annual guidance, do you think overall Bluetooth would give you year-over-year growth for the year on units?

Speaker #7: Well, it's hard to guess. This is why we don't give annual guidance on specifically licensing on royalties. There's so many moving parts. There's so many different markets.

Speaker #7: There's so many different use cases, from hearing aids to watches and to a lot of IoT devices. It's very difficult to know all that. In general, if you look at the last couple of years, the answer is yes.

Speaker #7: We've grown Bluetooth year-over-year. We've grown Wi-Fi significantly year-over-year. Cellular IoT took a long time—many, many years—to pick up, but in the last two years, we're seeing tremendous growth in that market.

Speaker #7: So I think the answer should be yes. Without having a bottom-up type of analysis, but from a top-down perspective and considering the customer use cases and the customers that come back and license newer generations of each of these technologies, we are seeing a lot of good momentum there.

Speaker #4: Yeah. But just to add on that, if you look at actually the first half of the year for 2024, that was for 2025, sorry, that has been a growth over 2024.

Speaker #4: So, in the first half, the Bluetooth volume growth is already there, and we expect to keep seeing an increase year-over-year for our Bluetooth shipments for the full year.

Speaker #11: Which is also true for Wi-Fi and cellular IoT. First half of this year, was higher than the first half of last year for all of these three different markets and technologies.

Speaker #11: So a sign for next quarter. Thank you, Yaniv.

Speaker #7: Yeah. Sure.

Speaker #11: Thank you, Amir.

Speaker #4: Okay. Thank ou.

Speaker #7: Thank you. This concludes today's question-and-answer session. I'd like to turn the conference back over to Amir Panush for any closing remarks.

Speaker #4: Yeah. Thank you. On behalf of the CEVA team, thank you for joining us today. We continue execute on our strategy to democratize edge AI to our portfolio of technologies that enable connectivity, sensing, and inference.

Speaker #4: Our strong licensing performance, expanding royalty base, and milestones of over $20 billion in devices shipped underscore the trust our customers place in us as a foundational technology provider.

Speaker #4: We're seeing AI adoption accelerating across consumer, industrial, and automotive markets, and our IP portfolio is more relevant than ever. We are well positioned to drive long-term growth and shareholder value.

Speaker #4: We look forward to meeting many of you during the third quarter at investor conferences. Reach out. I will hand it over to you to wrap it up.

Speaker #11: Thank you, Amir. As a reminder, the prepared remarks for this conference call are filed as an exhibit to the current report on Form 8K and accessible through the Investor section of our website.

Speaker #11: With regards to upcoming events, we will be participating in the following conferences: the Oppenheimer 28th Annual Technology Internet and Communications Conference, August 13th being held virtually, the Rosenblatt Virtual Tech Summit, August 19th being held virtually, 6th Annual Needham Virtual Semiconductor and Semicap One-on-One ference, August 20th, the Jeffrey Semiconductor IT Hardware and Communications Technology Conference, August 26th in Chicago, the Evercore Semiconductor IT Hardware and Networking Conference, August 27th in Chicago, TD Securities Technology Growth Cap Summit, September 4th in New York, and Jeffrey's Tech Trek 2025, September 11th in Tel Aviv, Israel.

Speaker #11: For information on these events and all events we will be participating in, please visit the Investor section of our website. Thank you and goodbye.