CEVA, Inc.

Good day, and welcome to the SEVA, Inc. First Quarter 2026 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 1 on a touch-tone phone. To withdraw your question, please press star, then 2. 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, Betsy. Good morning, everyone, and welcome to SEVA's first quarter 2026 earnings conference call. Joining me today are Amir Panoush, Chief Executive Officer, and Yaniv Ariyeli, 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. We will also be discussing certain non-GAAP financial measures, which we believe provide a meaningful analysis of our core operating results and comparison of quarterly results. Please see the earnings release we issued this morning for our reconciliations of our non-GAAP financial measures. Our earnings release can be found in the SEC filing section of our investor 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, and good morning, everyone. We are pleased to report a strong start to 2026. Building on our momentum from 2025, we exceeded our expectations on both revenues and non-GAAP EPS, including licensing and related revenues of $17.8 million, our strongest licensing quarter in three years, reflecting the strength of our pipeline, customer momentum, and future earnings power. This performance reflects strong executions and alignments with key market trends. including the convergence of edge AI and wireless connectivity, rising system complexity, and growing demand for integrated solutions that accelerate time to market. As the industry faces increasing constraints in scaling centralized AI compute, the reality of shifting towards running inference at the edge and leveraging local resources is becoming more critical. Against this backdrop, intelligence-connected device shipments are expected to exceed 40 billion units annually by 2030, reinforcing the value of our connect, sense, and infer strategy. In the quarter, we signed several multi-technology engagements and three strategically important deals that demonstrate our strategy is translating into results. Starting with connectivity. In early 2025, we introduced our SIVA Waves LINX 200 platform to deliver fully integrated, system-level wireless solutions across RF, basebands, and software, helping customers accelerate time to market. This quarter, we secured a major licensing win for a complete Bluetooth High Data Throughput, or HDT, solution, a foundational capability for the upcoming Bluetooth 7 standard. We license this full solution, including modern software and RF, to a leading US-based semiconductor company. Bluetooth 7 is expected to enable higher throughput and more advanced use cases, including multichannel audio, wireless video, XR and gaming peripherals, and AI-enabled edge devices. Our HDT solution is a key building block enabling this next generation of high-performance wireless and AI-enabled edge devices. This builds on our prior Bluetooth engagement with the same customer, which is now approaching high-volume production, and further expands our footprint through a more integrated RF, modem, and software platform engagement. This also reflects a border shift in the industry from internally developed connectivity to licensing-proven platforms. We believe that moving to a full-stack solution increases value per design for SIVA through higher licensing fees and greater royalty content, while also deepening integration and enabling multi-generation engagement. For the quarter, we expect it to deliver faster time to market and lower development risk, allowing them to focus on their core differentiation while leveraging our proven IP, ultimately driving a stronger return on investment for both parties. Turning now to 5G and satellite communication. During the our Pentagy NTN 5G advanced modern platform, sending our cellular portfolio into satellite communication. Non-terrestrial networks, or NTN, an emerging market expected to scale to billions of devices over the coming decade, as satellite connectivity becomes an integral part of global communications infrastructure, complementing and, in some cases, extending beyond traditional terrestrial 5G networks. This is being driven by a wide range of use cases, including direct-to-direct remote and undeserved area coverage, asset tracking, and industrial IoT, where ubiquitous, always-on connectivity is critical. It is also increasingly important for enabling more resilient and independent communications infrastructure. Customer response has been highly encouraging, with clear momentum building across our pipeline. Building on this, we expanded an existing customer relationship with a satellite OEM from DSP cores to a more integrated baseband processing solution. As with our Bluetooth HDT engagement, this reflects a deepening relationship with an existing customer and an expansion in the scope and value of our IP within their platform. In Ultra Wideband, during the first quarter, we introduced our next generation UWB platform and secured a new customer win with a major US-based MCU provider, augmenting its internal UWB capabilities. With our IPN combining its system expertise with our proven connectivity solution to accelerate development and reduce risk. This engagement also builds on a broader relationship with the customer, who has licensed multiple SIVA technologies over the past two years. We are seeing a transition in UWB towards higher-value industrial, automotive, and enterprise applications, driven by demand for precise, secure location awareness in use cases such as access, asset tracking, and indoor navigation. As the market expands, customers are increasingly choosing to license proven IP to accelerate time to market and reduce development risk. Because of these wins, a clear pattern is emerging. The Bluetooth NTN and UWB engagements we highlighted this quarter are all within existing customers who have expanded their use of SIVA IP over the past two years. More broadly, customers are increasingly adopting more integrated system-level solutions from SIVA, expanding our value-per-design while strengthening long-term royalty and margin potential. Incensing We continue to see growing traction for our special audio solutions as demand for immersive audio experience expands. During the quarter, Lenovo launched its latest ThinkPad headset, powered by our RealSpace special audio with head tracking, building on recent wins with consumer brands like Nothing and Bolt. Finally, in AI, we continue to execute on our strategy to enable efficient, scalable inference at the edge, with AI representing more than 20% of our licensing and related revenues, and the signing of two new licensing agreements in the quarter. We are seeing a structural shift towards hybrid AI, where inference is increasingly moving to the device, while more complex processing remains in the cloud or across connected systems. This right AI model, right place, right time approach enables real-time on-device decision-making while maintaining the flexibility to scale compute as needed. As a result, demand for highly efficient, ultra-low-power solutions is growing across wearables, automotive, industrial, and smart home applications. And IP and AI content per device is increasing as more products require local connect, send, and infer capabilities. We believe the rise of hybrid and agent-based AI will further accelerate the shift towards distributed intelligence at the edge, where devices need to locally sense, infer, communicate, coordinate, and act in real time while selectively leveraging cloud AI resources. This trend is expected to drive growing demand for efficient AGI processing alongside advanced wireless connectivity across increasingly complex connected systems. This is now translating into production. Renaissance R-car V4H platform, which integrates our AI DSP and accelerator, is now in production in the 2026 Toyota RAV4, one of the highest volume passengers vehicle globally, marking our first mass volume automotive AI deployment. We believe this represents the beginning of a meaningful, long-term royalty stream with going AI content per device. We also announced a collaboration with NXP during the quarter, integrating our AI DSPN accelerator into their S32E2 and S32Z2 software-defined vehicle processors, further validating our position in automotive AI. In addition, our Newport Nano NPU won a leading artificial intelligence award at Embedded World 2026, further emphasizing our leadership position. Our AI licensing pipeline remains strong, with multiple evaluation and investment negotiations underway across a broad range of end markets. Stepping back, overall, we signed 14 licensing agreements in the quarter, including two with OEMs. In addition to the deals I highlighted earlier, we secured a Wi-Fi 7 design targeting consumer IoT, a Wi-Fi 6 Bluetooth combo engagement with a leading edge AI SOC platform company, and multiple additional Bluetooth and Wi-Fi winds across our connectivity portfolio. Turning now to royalties. We continue to see encouraging momentum across our diversified smart edge market. with growth in IoT, industrial, and AI-driven applications. While total royalties were flat year-over-year, non-mobile royalties grew 8%, reflecting strengths across our smart edge markets, partially offset by softness in smartphones. Wi-Fi shipments reached an all-time high in the quarter, driven by record Wi-Fi 6 volumes, highlighting the continuing expansion of this market as customers ramp deployments across a broad range of devices. More broadly, Wi-Fi and Bluetooth continue to be durable, multi-year growth drivers. As customers scale current generation technologies, such as Wi-Fi 6 and Bluetooth 6, they are also developing next-generation platforms, including Wi-Fi 7 and Bluetooth 7. These overlapping cycles are expected to support sustained unit growth increase IP content per design, and long-term margin expansion. We expect the continued shift towards combo chips to further reinforce our strategy, as customers integrated multiple SIVA technologies into a single design, increasing value per device and driving stronger overall economics. AI-driven royalties also continue to grow, highlighted by our automotive AI deployment at Toyota and a ramping AI SOC for surveillance, representing early signs of the long-term contribution we expect from edge AI across multiples and markets. Against these tailwinds, first-quarter royalties were impacted by typical seasonal softliness in mobile, combined with near-term effects for memory availability constraints and challenge inventory in the lower tier segments. We view this mobile dynamics as largely timing-related and expect improvements as the year progresses, supported by inventory normalization and typical seasonality, along with what we anticipate will be stronger high-end smartphone royalties in the second half. Overall, this quarter reinforces our ability to execute on our strategy and increase value per design as we move towards more integrated, higher-value engagements. I will now turn the call over to Yaniv for the financials.