CEVA, Inc.

Good morning and welcome to the SEVA Inc. Second Quarter 2025 Earnings Conference Call. All participants will be in 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 telephone keypad, and if you withdraw your question, please press star then two. Please note today's event is being recorded. Now I'd like to turn the conference over to Richard Kirschman, Vice President, Market Intelligence, Investor and Public Relations. Please go ahead.

Thank you, Rocco. Good morning, everyone, and welcome to SEVA's second quarter 2025 earnings conference call. Joining me today on the call 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, 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 of AI and integration of our AI into consumers' products, into our customers' products, expectations regarding demand for and benefits of our technologies and revenues, and our financial goals and guidance regarding future performance. SEVA 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. 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 insights into our ongoing business. Amir?

Thank you, Richard, and good morning, everyone. This quarter was marked by strong licensing execution across all our core offering pillars, Connect, Sense, and Infer. 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 royalty business, driven by increased shipments from our consumers and smartphones customers. In licensing, this quarter marked by a pivotal moment for our AI business as we entered the broad adoption phase for our edge AI NPUs. Following extensive evaluations with leading customers, we secured four strategic, high-impact NPU customer agreements, validating the market's readiness in our innovative, market-leading NPU portfolio. This includes two Newport Nano deals related to audio in embedded applications and two Newport M deals targeting two diverse use cases. 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 diagnosis capabilities. These are just a few of the powerful capabilities that on-device AI can enable in the smallest, most power-constrained devices, which is why a broad base of our customers are integrating AI into their products. One of the Newport Nano agreements was signed with an existing high-volume connectivity customer expanding into AI-powered audio, reflecting the growing trends of customers integrating multiple SIVA IPs into a single chip. This approach boosts product capabilities, enhances deal economics, and increases royalty per device. It also marks the second major connectivity customer to adopt our Agile AI NPUs in recent quarters, reinforcing our strategy of deepening relationships through multiple IP agreements. We also signed a new NPU agreement with Ali Corporation, a leader in set-to-boxes chipsets to integrate Nupo Nano and Nupo M into their next-generation video platforms. As AI becomes essential in set-to-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. 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. As AI workloads grow more complex, traditional infrastructures faces pressure to improve performance and efficiency. Our new POEM architecture is designed to address these challenges, 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. In automotive, we secured two strategic agreements this quarter. One was a licensing deal with Qualcomm following the requisition of Autotox. a long-time SIVA customer. Our DSPs are integral to 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 SIVA leadership in next-generation automotive connectivity. The second deal involves our sensor fusion DSP for a US customer developing next generation 4D radar platform, which is gaining traction in ADAS and autonomous vehicles. Our automotive momentum continues to build. In Q2, a leading semiconductor began production of level 2, 3 SOCs using our vision DSPs and AI accelerators. And another top tier customer, is set to begin production on a SIVA-powered platform. These wins, along with the new ProAM design win at Nextchip and several others, position us for meaningful long-term royalty streams in automotive. 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, royalty declined by 5%, mainly attribute to the lackluster smartphone sales at the lower end of the market, where widespread softness has been reported by our peers and which we also experience. 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. Outside of mobile, our consumer IoT customers showed strong sequential and year-over-year growth in shipments, driven by record high cellular IoT and Wi-Fi 6 shipments. 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 towards the holiday season and our share grows at our US OEM smartphone customer. Last week, we also announced a major milestone, over 20 billion SIVA power 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. 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. Our board IP portfolio across Connect, Sense and Infer 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. The trust we have built over the past two decades give us a strong platform to scale our AI business and deepen our role as a strategic partner to the world's leading chip makers. We view the 20 billion shipments milestone not as a finish line, but as a launchpad for CIVA's next chapter, becoming the trusted IP powerhouse of smart edge era and delivering long-term value for our shareholders. I will now hand the call over to Yaniv for the financials.