Core Insights - The upcoming Bluetooth® release will introduce the Unified Test Protocol (UTP) Test Mode for Bluetooth® Low Energy, enabling over-the-air (OTA) controlled device testing, which simplifies testing for small and highly integrated devices [1][2][3] Group 1: Test Solution Development - Rohde & Schwarz and Ceva have developed the world's first test solution for the Bluetooth® OTA UTP Test Mode, which will be showcased at Embedded World 2025 [2][8] - The test solution utilizes Ceva-Waves Bluetooth® Low Energy IP and operates on the R&S CMW radio communication tester platform [2][4] Group 2: Advantages of UTP Test Mode - The UTP Test Mode allows for testing without a direct wired connection, which is particularly beneficial for encapsulated devices that cannot accommodate a control cable [3][6] - This mode unifies all Bluetooth® Low Energy and Bluetooth® Classic radio measurements, allowing them to be performed with a single test setup over the air [6][7] Group 3: Industry Impact - The introduction of the UTP Test Mode is seen as a significant advancement for testing next-generation consumer Bluetooth® products, enhancing ease of testing for manufacturers [5][7] - Rohde & Schwarz's R&S CMW platform is recognized as a standard in the industry, and the new test mode aligns with specifications from the Bluetooth® Core Specification Working Group [7][9] Group 4: Company Background - Rohde & Schwarz generated a net revenue of EUR 2.93 billion in the 2023/2024 fiscal year and employs over 14,400 people globally [9] - Ceva powers over 19 billion smart edge products, focusing on wireless connectivity and Edge AI technologies [11][12]

Core Insights - Ceva, in collaboration with Arm and SynaXG, has developed a customized 5G-Advanced solution that significantly enhances energy efficiency for 5G NR processing in wireless networks and satellites, achieving 10X better efficiency than traditional solutions and 20X more than FPGA-based alternatives [1][2][3] Company and Industry Overview - The new solution leverages Arm Neoverse N2 CPUs and Ceva's PentaG-RAN platform, integrating SynaXG's carrier-grade RAN software to redefine power efficiency for 5G infrastructure applications [2][4] - This collaboration aims to provide a low-risk pathway for existing and new players in the wireless infrastructure market to transition towards 5G-Advanced and eventually 6G [1][3] - The PentaG-RAN platform offers a complete L1 PHY solution with optimal hardware/software partitioning, delivering up to 20X savings in power and area compared to FPGA and COTS CPU alternatives [5] - The solution is designed to support both mmWave and sub-6-GHz networks, making it versatile for various 5G-Advanced system developments [5] - Ceva's technology portfolio includes a wide range of wireless communication IPs and Edge AI solutions, powering over 19 billion smart edge products globally [6]

Core Insights - Ceva, Inc. has announced the development of the ASUKA System-on-Chip (SoC) for Beyond 5G (6G) IoT terminals in collaboration with Sharp Semiconductor Innovation Corporation, utilizing the Ceva-PentaG2 5G platform IP [1][2][3] - The ASUKA SoC aims to provide a customizable alternative to traditional 5G SoCs, promoting accessibility and flexibility in cellular IoT communications [2][3] - The Ceva-PentaG2 platform is designed for lower-throughput applications, integrating advanced DSPs and accelerators for optimal signal processing while maintaining minimal power consumption [4] Company Overview - Ceva, Inc. specializes in silicon and software IP for Smart Edge devices, powering over 19 billion innovative products globally, including AI-infused smartwatches and autonomous vehicles [5][6] - The company focuses on delivering high-performance, low-power solutions that enable reliable data connectivity and processing [5] - Ceva's headquarters is located in Rockville, Maryland, with a global customer base supported by a team of experts in various design challenges [6]

Market Position and Growth - Company commands 67% of the wireless connectivity market share based on IP design revenues in 2023, with a total addressable market projected to reach $5 billion by 2027[192]. - In 2024, approximately 2 billion smart edge products shipped with the company's IP, contributing to a total of over 19 billion since 2003[192]. - Company achieved year-over-year revenue growth of 10% in 2024, exceeding the initial expectation of 4% to 8%[201]. - Licensing and related revenues are expected to expand into new markets and use cases for industrial IoT and consumer IoT devices in 2025, with overall revenue growth projected at 7%-11%[201]. - The company anticipates significant market share expansion in wireless communication IP due to a long-term licensing agreement with a leading U.S. OEM for a 5G modem[196]. - The addressable market for Bluetooth, Wi-Fi, UWB, and cellular IoT is expected to exceed 16.5 billion devices annually by 2029[197]. - The NeuPro-Nano family of AI NPUs is projected to power over 50% of TinyML shipments by 2030, representing billions of devices annually[202]. Revenue and Financial Performance - Total revenue for 2024 was reported at $106.9 million, a 10% increase compared to 2023[232]. - Royalty revenues grew by 18% year-over-year, with a record shipment of 2 billion Ceva-powered units in 2024[233]. - Licensing and related revenue for 2024 was $60.0 million, a 4% increase from 2023, with 43 licensing agreements signed, down from 53 in the previous year[237]. - Royalty revenues increased to $46.9 million in 2024, reflecting a 17.8% year-over-year growth, with a record shipment of 2 billion Ceva-powered units[240][241]. - The five largest royalty-paying customers contributed 61% of total royalty revenues in 2024, compared to 58% in 2023[243]. Cost and Expenses - The cost of revenues as a percentage of total revenues decreased from 12.5% in 2022 to 11.9% in 2024, resulting in a gross profit margin increase from 87.5% to 88.1%[230]. - Research and development expenses increased significantly to 67.0% of total revenues in 2024, up from 58.3% in 2022[230]. - Total operating expenses for 2024 were $101.7 million, a 2.5% increase from 2023, primarily due to higher allowances for credit losses[251]. - Sales and marketing expenses increased to $12.6 million in 2024, a 14.3% rise from 2023, driven by higher commission and salary expenses[256][257]. - General and administrative expenses for 2024 increased to $16.9 million, reflecting a year-on-year change of 13.2% compared to 2023[258]. Cash Flow and Investments - Cash provided by operating activities in 2024 was $3.5 million, consisting of a net loss of $8.8 million and adjustments for non-cash items of $20.0 million[282]. - Net cash used in investing activities in 2024 was $2.4 million, compared to net cash provided of $10.8 million in 2023 and net cash used of $15.1 million in 2022[286]. - The company invested $48.9 million in cash in bank deposits and marketable securities during 2024, compared to $42.0 million in 2023[280]. - The company believes its cash and cash equivalents, along with cash from operations, will be sufficient to fund operations for at least the next 12 months[290]. Market and Credit Risks - The company is primarily exposed to fluctuations in U.S. interest rates, which may impact fixed interest investments negatively if rates rise[300]. - The company monitors cash and cash equivalent balances systematically and adjusts as appropriate to mitigate credit risk[297]. - No credit loss was recognized during 2024 despite unrealized losses in the investment portfolio[298]. - The company holds corporate bonds and has the ability to hold these investments until recovery of temporary declines in market value[298]. Miscellaneous - The "Connect" technology segment accounted for 84% of total revenues in 2024, up from 78% in 2022[236]. - The company derived 15% of total revenues from UNISOC in 2024, indicating a concentration of revenue from a limited number of customers[234]. - The allowance for credit losses increased to $2,626 million in 2024 from $288 million in 2023, reflecting specific credit loss provisions[225]. - The company recorded tax expenses of $6.0 million in 2024, down from $10.2 million in 2023 and $18.1 million in 2022[266].

Core Insights - Ceva, Inc. has launched new high-performance baseband vector DSPs, the Ceva-XC21 and Ceva-XC23, targeting advanced 5G and 6G applications, featuring scalable architecture and AI support [1][4] Group 1: Product Features - The Ceva-XC23 DSP offers a performance boost of up to 2.4 times and a 2.3X efficiency improvement compared to the previous Ceva-XC4500 [3] - The Ceva-XC21 DSP is designed for low-power, cost-sensitive applications, providing up to 1.8X performance and efficiency improvements while requiring up to 48% less area compared to the Ceva-XC4500 [2][5] - Both DSPs are built on the scalable, multi-thread Ceva-XC20 architecture, ensuring code compatibility with existing Ceva-XC customers [5] Group 2: Market Applications - The Ceva-XC21 targets cellular IoT modems, NTN VSAT terminals, eMBB, and uRLLC applications [2] - The Ceva-XC23 is aimed at regenerative NTN satellite payloads, high-end user equipment, and infrastructure baseband processing [3] Group 3: Company Vision and Impact - Ceva aims to deliver innovative solutions for smart edge devices, powering over 19 billion products globally, including AI-infused smartwatches, IoT devices, and 5G mobile networks [9]

Financial Data and Key Metrics Changes - Revenue for Q4 2024 increased by 21% to $29.2 million compared to $24.2 million in Q4 2023 [35] - Licensing and related revenue rose by 33% to $15.7 million, accounting for 54% of total revenues [36] - Royalty revenue increased by 9% to $13.5 million, representing 46% of total revenues [36] - Non-GAAP operating income for Q4 was $4.5 million, with non-GAAP operating margins at 15% [39] - GAAP net loss for Q4 was $1.7 million, a significant improvement from a net loss of $8.1 million in Q4 2023 [39] Business Line Data and Key Metrics Changes - Licensing agreements signed in 2024 totaled 43, with 11 deals involving OEMs integrating CEVA's IPs into their products [21] - Royalty shipments reached 623 million units in Q4, marking a 38% increase year-over-year [40] - Wi-Fi shipments grew by 110% year-over-year, while Bluetooth shipments increased by 41% [18][41] - Annual royalties grew by 18%, with total unit shipments reaching 2 billion, a 22% increase year-over-year [22][42] Market Data and Key Metrics Changes - Consumer IoT accounted for 53% of annual royalties, followed by mobile at 32% and industrial IoT at 16% [23] - Smartphone shipments increased by 27% year-over-year, driven by demand for low-end 4G and 5G smartphones [19] - The market for Wi-Fi connectivity is expected to grow significantly, with CEVA's technology being integrated into various IoT applications [12] Company Strategy and Development Direction - CEVA's growth strategy focuses on partnering with customers to address critical technology challenges through a comprehensive IP portfolio [8] - The company aims to maintain leadership in wireless connectivity while expanding its AI product offerings [9] - CEVA is positioned to benefit from the AI super-cycle, with a focus on enabling AI inference processing at the edge [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the ongoing shift from cloud-based AI processing to edge devices, which is expected to drive demand for CEVA's technologies [31] - The company anticipates continued growth in Wi-Fi, Bluetooth, and cellular IoT shipments, supported by new licensing agreements [24] - For 2025, CEVA projects revenue growth of 7% to 11%, with a stronger second half of the year [48] Other Important Information - CEVA achieved an all-time high in royalty shipments, surpassing 600 million units for the first time in a single quarter [18] - The company repurchased approximately 375,000 shares for about $8.5 million in 2024 [45] - CEVA's cash and cash equivalents were approximately $164 million as of December 31, 2024 [44] Q&A Session Summary Question: Opportunities for MPU integration in MCUs - Management confirmed that there is a growing trend for MCU players to integrate AI capabilities alongside wireless technology [56] Question: Details on U.S. mobile OEM's 5G modem royalty revenues - Management indicated that the timing and ramp-up of royalty revenues depend on the customer, and they are excited about the opportunity [59] Question: Impact of AI developments in China on CEVA's opportunities - Management noted that innovations in AI, including smaller models, are expected to enhance the demand for edge devices [66] Question: Growth expectations for Wi-Fi penetration - Management expects significant growth in Wi-Fi as customers transition to Wi-Fi 6, with strong demand across various IoT markets [72] Question: Relative growth rates of cell phone modem revenue versus Wi-Fi - Management stated that while they are optimistic about growth across all product lines, specific growth rates are difficult to predict [84] Question: Customization in new licensing deals - Management clarified that current licensing deals do not involve customization, focusing on off-the-shelf technology [99] Question: NeuPro solution deals in the quarter - Management confirmed that there were two deals related to AI applications involving NeuPro and DSP technologies [102]

Core Insights - Ceva reported strong financial performance in Q4 2024, with total revenue of $29.2 million, exceeding analysts' expectations of $27 million, and adjusted EPS of $0.11, reflecting a 10% year-over-year increase [1][3][6] Financial Performance - Total revenue increased by 21% year-over-year from $24.2 million in Q4 2023 to $29.2 million in Q4 2024 [3][6] - Adjusted EPS rose to $0.11, up from $0.10 in the same quarter last year [3] - Royalty revenue reached $13.5 million, a 9.8% increase from $12.3 million in Q4 2023 [3][6] - Licensing revenue surged by 33% to $15.7 million, driven by strategic deals in the 5G modem technology sector [6] - The company recorded shipments of 623 million Ceva-powered units, marking a 38% growth [6] Operational Challenges - Ceva reported a GAAP net loss of $1.7 million for the quarter, an improvement from the $8.1 million loss in the prior year [7] - GAAP gross margin declined to 88% from 91% a year earlier, attributed to increased engineering efforts for key projects [7][8] Strategic Focus - The company is expanding its IP portfolio to address growing demands in AI, 5G, and IoT, enhancing its market position through new licensing agreements and strategic partnerships [5][10] - Ceva's diversified IP portfolio is leveraged across key markets, particularly in Asia Pacific and Europe, to maintain competitive advantage [8] Future Outlook - Management remains optimistic about growth, emphasizing ongoing investment in R&D to enhance technological offerings in AI and connectivity [9][10] - The focus on expanding in high-growth markets like AI, 5G, and IoT is expected to support continued revenue growth and diversification [10]

Revenue Growth - Total revenue for Q4 2024 was $29.2 million, a 21% increase year-over-year from $24.2 million in Q4 2023[7] - Total revenue for the full year 2024 was $106.9 million, an increase of 10% compared to $97.4 million in 2023[13] - Royalty revenue for Q4 2024 was $13.5 million, up 9% year-over-year, marking the fifth consecutive quarter of royalty revenue growth[5] - Royalty revenue for the full year 2024 was $46.9 million, an 18% increase from $39.9 million in 2023[13] - The company anticipates continued growth in licensing and royalties, with total revenues expected to exceed $110 million for the full year 2025[36] Unit Shipments - A record 623 million Ceva-powered units were shipped in Q4 2024, representing a 38% increase year-over-year[5] - A total of 2 billion Ceva-powered smart edge devices were shipped in 2024, including record shipments of 1.1 billion Bluetooth devices[14] Earnings and Profitability - Non-GAAP diluted earnings per share for Q4 2024 were $0.11, compared to $0.10 in Q4 2023, reflecting a year-over-year increase[11] - Operating income for Q4 2024 was $74, a significant improvement from a loss of $2.8 million in Q4 2023[39] - Net loss from continuing operations for Q4 2024 was $1.7 million, compared to a loss of $8.1 million in Q4 2023[36] - Non-GAAP net income for Q4 2024 was $2.7 million, up from $2.4 million in Q4 2023[38] - GAAP net loss for 2024 was $8.8 million, a reduction from a net loss of $18.4 million in 2023[15] Expenses - Research and development expenses for Q4 2024 totaled $16.9 million, a decrease from $18.1 million in Q4 2023[36] - Equity-based compensation expenses included in total operating expenses were $3.9 million for Q4 2024, compared to $4.1 million in Q4 2023[39] Financial Position - Total assets increased to $308,948 million in 2024 from $304,085 million in 2023, representing a growth of 1.9%[41] - Current assets rose to $216,341 million in 2024, up from $209,371 million in 2023, an increase of 3.4%[41] - Trade receivables, net, significantly increased to $15,969 million in 2024, compared to $8,433 million in 2023, marking an increase of 89.5%[41] - Total current liabilities increased to $30,529 million in 2024, up from $26,887 million in 2023, reflecting a rise of 13.1%[41] - Total liabilities grew to $42,392 million in 2024, compared to $39,744 million in 2023, an increase of 6.6%[41] - Stockholders' equity increased to $266,556 million in 2024 from $264,341 million in 2023, a growth of 0.8%[41] - Retained earnings decreased to $11,193 million in 2024, down from $20,167 million in 2023, a decline of 44.6%[41] - Additional paid-in capital rose to $259,891 million in 2024, compared to $252,100 million in 2023, an increase of 3.1%[41] - Cash and cash equivalents decreased to $18,498 million in 2024 from $23,287 million in 2023, a decline of 20.5%[41] - Treasury stock improved to $(3,222) million in 2024 from $(5,620) million in 2023, indicating a reduction in treasury stock by 42.5%[41] Licensing and Market Strategy - In 2024, Ceva concluded 43 licensing deals, including 11 with OEMs and 9 with first-time customers[14] - The company is focusing on expanding its market presence and investing in new product development to drive future growth[36]

Core Insights - Ceva, Inc. has announced that WUQI Microelectronics has licensed its Ceva-Waves Wi-Fi 6 High-Performance STA IP platform for the WQ9201 Wi-Fi/Bluetooth combo chip, targeting consumer electronics like smartphones and tablets [1][3] - The WQ9201 chip has received the 2024 "China Core" Excellent Technology Innovation Product Award, highlighting its industry recognition [1] - The Ceva-Waves Wi-Fi 6 IP provides WUQI with a compact and low-power hardware modem and MAC accelerator, enabling high throughput and stable wireless transmission [2][3] Company Overview - Ceva, Inc. specializes in silicon and software IP for smart edge devices, focusing on wireless connectivity, sensing, and Edge AI technologies [6][7] - WUQI Microelectronics is a fabless semiconductor company that designs connectivity and edge AI chips, with a product portfolio that includes SoCs for Wi-Fi and Bluetooth [5][6] - Both companies aim to enhance wireless connectivity in consumer electronics, with Ceva's technology enabling WUQI to deliver a competitive Wi-Fi 6 solution [3][4]

Core Insights - Ceva, Inc. has appointed Amir Faintuch as an independent director on its Board of Directors, expanding the board to eight members, with seven being independent [1][2][3] - Amir Faintuch brings extensive experience from leading semiconductor companies, which is expected to provide valuable insights for Ceva's growth and strategy in the smart edge AI sector [3] Company Overview - Ceva, Inc. specializes in silicon and software IP that enhances the connectivity, sensing, and data inference capabilities of smart edge devices [1][4] - The company offers a broad portfolio of IP solutions, including wireless connectivity technologies (Bluetooth, Wi-Fi, UWB, and 5G), scalable Edge AI NPU IPs, and sensor fusion solutions [4] - Ceva's technologies are integrated into over 18 billion smart edge products, including AI-infused smartwatches, IoT devices, wearables, autonomous vehicles, and 5G mobile networks [4] Leadership and Strategy - Amir Faintuch currently serves as the CEO of Volumez and has held senior positions at GlobalFoundries, Intel, and Qualcomm, contributing to his expertise in technology and business [3] - The addition of Faintuch to the board is seen as a strategic move to enhance leadership and drive the company's next phase of growth in the smart edge AI era [3]