CEVA, Inc.

Good day and welcome to the SEVA Inc. first quarter 2025 earnings conference call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, 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 and Investor Relations. Please go ahead.

Thank you. Good morning, everyone, and welcome to SEVA's first quarter 2025 earnings conference call. Joining me today are Amir Panoush, Chief Executive Officer, and Yaniv Ariely, Chief Financial Officer of SEVA. 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 SEVA to differ materially from those expressed or implied by such forward-looking statements and assumptions. Forward-looking statements include statements regarding our strategy and growth opportunities, market positioning, trends and dynamics, including with respect to significantly expanding market share in wireless communication IP and to momentum in diversifying our royalty customer base. Expectations regarding demand for and benefits of our technologies and revenues. Expectations regarding technology innovations, including timeline to revenue generation, our sales pipeline and backlog, and our financial goals and guidance regarding future performance. DIVA assumes no obligation to update any forward-looking statements or information which speaks 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. 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 Investors Relations website. With that said, I'd like to turn the call over to Amir, who will review our business performance for the quarter and provide some insight into our ongoing business. Amir?

Thank you, Richard. Welcome, everyone, and thank you for joining us today. In the quarter, we delivered solid progress in our licensing business, reinforcing our long-term growth strategy, and expanding our customer engagement across all of our targeted use cases. Connect, Sense, and Insert, enabling Edge AI. Wealthy revenue fell short of expectations due to a combination of soft, low-cost smartphone shipments and an industrial customer who had a slower product ramp-up than in the prior year. However, by implementing cost control measures, we mitigated some of the revenue impact and achieved profitability close to non-GAAP EPS consensus. Importantly, our design wins this quarter not only strengthened our long-standing partnerships with key connectivity customers, but also expanded our footprint with new customers, embracing our sensing and AGI IPs, laying a strong foundation for future growth. Total revenue for the quarter came in at $24.2 million, up 10% year-over-year. Licensing revenue was $50 million, with 11 deals concluded in the quarter, including a number of notable strategic deals, which I will elaborate on now in the context of the three use cases that underpin our business. Connectivity serves as the foundational pillar of Edge AI, enabling seamless communication between devices and data centers. For this use case, we have solidified our market leadership position by securing several strategic agreements with multiple key Bluetooth and Wi-Fi customers, reinforcing our position in their long-term roadmap. One of our current highest volume customers, who has a well-established global customer base, and who is already shipping in volume single and multi-protocol combo chips based on several Bluetooth and Wi-Fi 6 IPs, has selected our Wi-Fi 7 IP for its next-generation products, demonstrating their trust and long-term partnership with us. In addition to this customer, we also signed a new long-term Wi-Fi 6 deal with another high-volume customer, a Bluetooth 6 Wi-Fi 6 combo deal with a top 10 MCU vendor. A next-generation Bluetooth deals with two of our leading audio customers as they continue to expand their connectivity offerings based on CIVA's market-leading technology. The second pillar enabling Edge AI is the sensing use case, which includes inputs and outputs that help devices better understand their surroundings. and deliver enhanced user experiences, such as improved audio performance. For this use case, we secured multiple deals, most notably an agreement for our real-space special audio software, which will be integrated into professional headsets and other audio devices from a leading PC OEM. This marks a significant milestone as it validates the quality and robustness of our special audio software solution. After sensing data about the environment, inferencing such data enables devices to better interpret their environment and proactively suggest appropriate courses of action. For this use case, we signed an important deal for our high-performance NupoM Edge AI NPU with Nextchip, a Korean automotive semiconductor for the next-generation Ada solutions. Let me explain a bit more about this use case and why we were selected. The overall performance and safety of Ada systems continue to rapidly advance thanks to cutting-edge advancements in AI, such as vision transformers. Vision transformers are a way for AI to analyze an image holistically, as opposed to traditional convolution neural networks that analyze images pixel by pixel. This brings significant benefits and superior performance for ADAS vision systems, including object recognition, segmentation, and free space detection in complex scenes. The Neopore AMP supports for vision transformers coupled with its ability to process multiple video streams and AI models all in parallel make it ideal for next-generation ADO systems. We are currently engaged in multiple discussions related to AI inferencing using our Neopore NPU family, including several automotive players for their next-generation platforms, that require processors, upgrades to support these latest AI advancements and techniques. In royalties, while overall revenue declined for the reasons previously mentioned, shipments volume remains strong, and we remain very positive about the long-term potential of our royalty business. Also, we have several notable achievements that highlight other royalty drivers for the business. In this regard, I'm pleased to share that we received the first royalty report from a leading US OEM using our technology in their in-house 5G model. As I discussed on our last earning calls, we anticipate this customer will significantly expand our market share in wireless communication IP and generate a meaningful long-term royalty stream in the years to come. Additionally, Our Wi-Fi royalties grew 183% year-over-year from a 12% increase in unit shipments. This growth was driven by a favorable product mix shift towards Wi-Fi 6, which commands a higher royalty ASP compared to previous generations. This is a strong indicator that our Wi-Fi 6 customers are continuing to gain traction, particularly in the consumer and industrial IoT markets. All in all, our first quarter licensing performance and continued momentum in diversifying our loyalty customer base reinforce the success of our transformation into a highly diversified IP powerhouse. We serve a broad range of end markets with a portfolio of high-value products and solutions that enable any smart edge device to connect, send, and infer data. As a reminder, success in the IP licensing business is measured over a horizon of several years. The innovations and technologies our engineers are designing today will reach commercial products and begin to generate royalties within three to five years. This long cycle view underpins how we think and manage our business and shape our strategy focus on accumulated and sustained value creation over time. Our priorities remain clear. Continue innovating for our customers, deepen our technology leadership, and building a strong future loyalty stream while managing expenses with discipline. I'm confident in our ability to navigate the short-term volatility while focusing on our mission to be the IP partner of choice for companies building smart edge devices that connect, send, and infer data. Now, I will turn the call over to Yaniv for the financials.