Good day and welcome to the CEVA Incorporated First Quarter 2024 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 remarks, there will be an opportunity to ask questions. To ask a question, you may press star then one on your touch-tone 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, Market Intelligence, Investor, and Public Relations. Please go ahead. Thank you, Jason. Good morning, everyone, and welcome to CEVA's First Quarter 2024 Earnings Conference Call. Joining me today on the call are Amir Panush, Chief Executive Officer, and Yaniv Arieli, Chief Financial Officer of CEVA. 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. Forward-looking statements include statements about our market positioning, strategy, and growth opportunities; market trends and dynamics; CEVA's ability to execute on backlogged deals in the second quarter and to reach total revenue target for the year; expectations regarding demand for and benefits of our technologies; and our expectations on financial goals and guidance regarding future performance. CEVA assumes no obligation to update any forward-looking statements or information which speak as of their respective dates. In addition, following the divestment of the Intrinsix business, financial results from Intrinsix were transitioned to a discontinued operation beginning in the third quarter of 2023, and all prior period financial results have been recast accordingly. 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 investor relations website at investors.ceva-dsp.com. With that said, I'd like to turn the call over to Amir, who will review our business performance for the quarter, review the year, and provide some insight into our ongoing business. Amir? Thank you, Richard. Good morning, everyone, and thank you for joining us today. CEVA delivered first quarter results that reflected solid royalty trends with good year-over-year growth, while licensing was lower than we anticipated. Some deals we expected to close in the first quarter were delayed. I continue to be very encouraged by our diversified licensing pipeline and stronger backlog. We closed a significant multi-million dollar deal with a strategic customer in the beginning of the second quarter, and there is strong demand for our next-generation IPs that are currently in development and are being licensed by early adopters who are looking to gain an advantage in the market. I will elaborate more on our expectations for our licensing business for the rest of the year shortly. First, looking at the licensing business we concluded in the quarter in more detail, we continue to expand our leadership in Smart Edge IP, completing 11 licensing deals across all of our key target markets, namely consumer, automotive, industrial, and infrastructure. These deals range from Bluetooth connectivity for wearables and IoT, 5G RedCap and Cellular V2X, Wi-Fi for access points, UWB for consumer devices, and audio for smartphones. Most significantly in the quarter, I'm very pleased to report that we signed deals for our next-generation Bluetooth 6 and Wi-Fi 7 IPs. Design activity around our Wi-Fi 7 IP is experiencing strong traction with both new and established wireless players, and represents a positive catalyst of our licensing activities in 2024 and beyond. In the quarter, we concluded a Wi-Fi deal with a strategic customer who is already in mass production with a combo chip based on our Wi-Fi 6 and Bluetooth 5 IPs. This customer has managed to successfully compete with the largest incumbents in the wireless combo chip space for consumer, enterprise, and automotive, and is now beginning to design their next-generation Wi-Fi 7 chips to gain further market traction for the broad consumer devices that will require Wi-Fi 7 connectivity, including smartphones, tablets, laptops, wearables, and smart home devices. In terms of market size, ABI Research forecasts that Wi-Fi 7 chipset shipments will exceed 1.7 billion units annually by 2028. As we have stated previously, due to its technical complexity, our Wi-Fi 7 IP commands a higher license fee and royalty rate than previous generations of Wi-Fi, which in turn drives ASP growth and enables us to drive more value per customer. Moreover, the large market size entices new entrants to the Wi-Fi market, while the complexity of the technology poses challenges to many of the existing wireless players to develop this technology internally. As the only IP company in the market today offering licensable Wi-Fi 7 technology and the ability to license it together with our Bluetooth and UWB technologies, we are in an excellent position to repeat our success in the Wi-Fi 6 market for Wi-Fi 7. In Bluetooth, we have added a new Bluetooth 6 customer in the quarter, who is a first-time customer for CEVA and a world leader in wireless audio. This customer decided to take advantage of our IP to accelerate their product development for the next generation of Bluetooth audio. Although the Bluetooth 6.0 standard is not yet ratified, we are among a small number of leaders and the sole IP licensing company that has the expertise and skills to develop next-generation wireless technologies ahead of the market and ahead of the standard itself. We have successfully achieved this for a number of generations of both Bluetooth and Wi-Fi standards and have built an unrivaled position as the industry leader and trusted partner for wireless IP over many years. We have more than 100 customers and billions of devices shipped. Finally, on licensing, in relationship to the licensing pipeline for the remainder of the year and our ability to extract more revenue per deal, I would like to share a few thoughts and data points. CEVA is one of the few select companies that have the technical capabilities, talent, and unique know-how to develop wireless sensing and edge AI IP to the level required by most demanding customers. I firmly believe that we can command higher licensing fee and royalties for our leading-edge products, and many of our ongoing customer discussions reinforce this belief. While a few deals that we had anticipated closing in the first quarter were delayed to later quarters, those deals remain in our sales pipeline, and some have already been signed since the first quarter's release. Our value proposition around the three major Smart Edge use cases, Connect, Sense, and Infer, is clear and well understood by our customers and partners. In addition, we have already closed a meaningful multi-million-dollar deal in the second quarter with a strategic customer for a next-generation IP that we are currently developing. I will update you more on this deal in the next earnings call, but wanted to share that this deal reinforces our strategy to extract higher value for our technology due to our unrivaled technical leadership and the ROI gains that can be achieved when partnering with us. We believe this, in turn, will serve to increase shareholder value through higher revenues, margins, and profits over time. We are laser-focused on this value-add strategy, leveraging our strong broad portfolio of Smart Edge IP offerings. Turning now to royalties, we are pleased with our start of the year with a robust quarter, showing an impressive 33% revenue growth year-over-year and just a 14% seasonal sequential decline compared to a 28% sequential decline a year ago. We saw shipments volume up 25% year-over-year, an increase in every end market we serve, as restocking continued across the broad IoT markets. Smartphone units, while up year-over-year, were down quite sharply from the fourth quarter, a similar trend to what we saw last year. Also, the infrastructure market remained soft, reflecting low Capex for 5G networks globally. From conversations with our customers, we expect smartphones to improve in the second quarter and throughout the year. Overall, the first quarter shipments increased our confidence that we are well positioned to grow our royalty business in 2024, augmented during the year by new customer ramps deploying our portfolio of wireless IPs for consumer and industrial devices, and our embedded application software for spatial audio in the headphones and sensor fusion software for intelligent robots. Now, some commentary regarding developments in the quarter. In the first quarter, we also invested further in cementing our market leadership, expanding our product offerings, and strengthening our ecosystem. We announced a new UWB wireless IP for consumer devices, one that builds on our success in UWB solution for automotive, and which we already licensed successfully to a customer this quarter. UWB is primed for takeoff in the consumer market, as the majority of smartphone OEMs are now integrating this technology into their latest devices, which is a precursor to mass market deployment in endpoint devices. ABI Research forecasts that the global market of UWB-enabled device shipments will grow at a compound annual growth rate of 14% over the next five years, from 435 million units in 2023 to nearly 1.3 billion units by 2028. We are ideally positioned to leverage this market opportunity as it develops, already having a mature IP available for licensing and the ability to license it integrated with our Bluetooth Low Energy IP. In terms of our ecosystem, we announced a new partnership with Arm targeting 5G Advanced infrastructure and non-terrestrial networks (NTN), aimed at lowering the barriers to entry for developing products targeting these two large markets. NTN, or satellite communication, is a hotbed of innovation these days, and together with Arm, we can deliver the processing power required by satellite companies and new entrants to bring 5G Advanced networks to orbit, enabling the promise of global broadband connectivity and a host of new use cases on Earth that can leverage truly ubiquitous connectivity. We continue to gain market share in wireless connectivity with an unrivaled portfolio of wireless IP, spanning the most common standards like Bluetooth, Wi-Fi, and 5G through to emerging standards like UWB and Matter. Connectivity is no longer considered a feature for electronic devices. Moreover, it's a very foundation of innovation that allows AI to be deployed and accessed by edge devices. Without connectivity, there is no AI. We're incredibly proud of our central role in the industry, enabling the connectivity in more than 1 billion devices annually that allows them to interact with AI and improve our daily lives. On sensing and inference, we continue to experience strong demand for our software and hardware products targeting these use cases. Our generative AI NPU scalable IP portfolio with market-leading performance is undergoing intense evaluation with a number of customers that we have identified as strategic design partners for this technology, and we will update you as this deal comes to fruition. Our embedded application software, particularly around spatial audio, is also experiencing significant traction, and we reached an important milestone in this quarter with the first headset integrating our RealSpace spatial audio and head tracking software, going on sale to the public. The Nirvana Eutopia headphones from India's number one wearables and hearables OEM boAt also feature our Bluetooth and audio AI DSP, making this product a perfect illustration of our Connect, Sense, and Infer strategy, where we can provide multiple IPs to a single product and work directly with the OEM to bring the product to market. Overall, we are very excited about our product lineup targeting Smart Edge devices. Our dialogue with customers is very open, and we understand the recurring pain points that our customers share with us when discussing their Smart Edge roadmaps. With AI set to transform every industry and technology, semiconductors and OEMs need to define their strategies, not just to deal with the inference workload, but also how to connect their devices and enable them with the ability to use sensors for voice, sounds, vision, and motion. With these three use cases being addressed in every Smart Edge device, from smart MCUs all the way to autonomous vehicles and 6G virtual RAN equipment, companies will not be able to compete in the Smart Edge era. We are ideally positioned to fill the knowledge and R&D gaps at companies that lack the ability to excel in all of these areas. Our portfolio of IP for Connect, Sense, and Infer use cases is highly synergetic with a broad range of semi and OEM customers across multiple industries, including the high-volume MCU players, where we already have significant traction for our connectivity's IPs and the TWS and wireless headphone markets, where we estimate our Bluetooth customers to have between 45% and 50% market share today, excluding Apple products. We intend to fully exploit our leadership in wireless connectivity to offer additional IP for sense and infer as the use cases for smart edge devices grow, driving larger licensing deals and higher royalty fees per unit. In summary, we have begun 2024 with royalty-bearing shipments up across all the end markets we serve, and we have a solid pipeline of new customers set to reach production as the year progresses. In licensing, the first quarter was challenged with a few license. Pardon me, ladies and gentlemen. It appears we have lost the connection to our speaker. Stand by while we reconnect. We thank you for your patience. Pardon me, ladies and gentlemen. We have reconnected with the speakers. You may proceed. Sure. Did Amir finish his prepared remarks before we got disconnected? No, I think the best thing to do is just repeat the summary paragraph. That's it. Okay. Perfect. Okay. Thanks, Richard. Thanks. In summary, we have begun 2024 with royalty-bearing shipments up across all the end markets we serve, and we have solid pipelines of new customers set to reach production as the year progresses. In licensing, the first quarter was challenged with a few licensing agreements delayed until later in the year, but overall, the quality of licensing deals signed and the overall demand for our next generation IPs is very encouraging. We have the portfolio of technologies that meet some of the critical pain points of semiconductors and OEMs for their smart edge roadmaps, and I'm confident that we can meet our total revenue targets for the year, and we have built a healthy backlog, which reinforces my belief on this. Overall, I remain very positive that 2024 will be a growth year for CEVA and will set up us to reach our longer-term revenue, margin, and profitability targets. I look forward to meeting with many of you at conferences and roadshows during the quarter. Now, I will turn the call over to Yaniv for the financials. Thank you, Amir. And sorry about this. I will now start with a review of the results of our operations for the first quarter of 2024. Revenue for the first quarter was $22.1 million as compared to $26.3 million for the same quarter last year. The revenue breakdown is as follows: licensing and related revenue was $11.4 million, reflecting 52% of our total revenue as compared to $18.2 million for the same quarter last year. Royalty revenue was $10.7 million, reflecting 48% of our total revenue as compared to $8 million for the same quarter last year. This represented an impressive 33% revenue growth year-over-year and just a 14% seasonal decline compared to a 28% seasonal decline a year ago. Gross margin was 89% on GAAP and 90% on non-GAAP basis compared to 87% and 88% on GAAP and non-GAAP basis, respectively, a year ago. Total GAAP operating expenses for the first quarter were $24.5 million at the lower end of our range. Total non-GAAP operating expenses for the first quarter, excluding equity-based compensation expenses, amortization of intangibles, and deal costs, were $20.7 million below the mid-range of our guidance due to specific cost monitoring and controls, as we talked about in prior earnings call. GAAP operating loss for the first quarter of 2024 was $5 million as compared to GAAP operating loss of $2.6 million for the same period in 2023. GAAP and non-GAAP taxes were $1.7 million above our estimates due to the geographies of deals signed. GAAP net loss for the first quarter of 2024 was $5.4 million, and diluted loss per share was $0.23 as compared to net loss of $2.7 million and diluted loss per share of $0.12 for the same quarter last year. Non-GAAP net loss and diluted loss per share for the first quarter of 2024 were $1.3 million and $0.05, respectively, as compared to net income of $1.2 million and diluted income per share of $0.05 reported for the same quarter last year. With respect to other related data, shipped units by CEVA's licensees during the first quarter of 2024 were 371 million units, up 25% from the first quarter 2023 reported shipments. The 371 million units shipped, 61 million units, or 16% were for mobile handset modems. 283 million units were for consumer IoT products, up from 250 million units for the first quarter of last year. 27 million units were for IoT products, up from 18 million for the first quarter of 2023. Bluetooth shipments were 202 million for the quarter, up 6% year-over-year. Cellular IoT shipments were 36 million units, up 24% year-over-year. Wi-Fi shipments were 31 million units, up 50% year-over-year. As Amir mentioned earlier, shipments were up year-over-year across all our end markets, and total royalty revenues, excluding mobile handset modems, was the highest quarter since third quarter of 2022, surpassing $8 million. As for the balance sheet items, as of March 31, 2024, CEVA's cash, cash equivalent balances, marketable securities, and bank deposit were approximately $159 million. In the first quarter of 2024, we purchased approximately 57,000 shares for approximately $1.3 million. As of today, around 643,000 shares are available for repurchase under the repurchase program as expanded back in November of last year. Our DSOs for the first quarter was at 58 days, back to its normal levels and higher than the prior quarter's 32 days. During the quarter, we used $7.3 million cash from operation activities. Ongoing depreciation and amortization was $1 million, and the purchase of fixed assets was $0.9 million. At the end of the first quarter, our headcount was 433 people, of whom 356 are engineers. Now, for the guidance of the second quarter of 2024, the CEO stated earlier, "We have signed a number of deals at the start of the second quarter and also have good visibility into the second quarter potential deal flow for a wide range of technologies and markets." On royalties, we expect year-over-year growth in the second quarter, and are monitoring the timing of new product introduction from our customers. All in all, we forecast sequential growth in overall revenues for the second quarter of 6%-16%, primarily from licensing. Gross margin is expected to be similar to the first quarter, approximately 88% on GAAP-based and 90% on non-GAAP-based, excluding an aggregate of $0.2 million of equity-based compensation expenses and $0.1 million of amortization of acquired intangibles. GAAP OpEx for the second quarter is expected to be in the range of $24.5 million-$25.5 million, slightly higher than the first quarter and in line with our annual plans. Of our anticipated total operating expense for the second quarter, $3.8 million is expected to be attributed to equity-based compensation expenses and $500,000 for the amortization of acquired intangibles. Our non-GAAP OpEx is expected to be at the same level as the first quarter, in the range of $20.2 million-$21.2 million. We'll continue to monitor our expenses closely and look for ways to further improve our operating efficiency. Net interest income is expected to be approximately $1.3 million. Taxes for the quarter are expected to be approximately $1.7 million, and the share count for the second quarter is expected to be around 25 million shares. Jason, you could open the Q&A session, please. Thank you. We will now begin the question-and-answer session. To ask a question, you may press star then one on your touch-tone phone. If you're using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press star then two. This time, we'll pause momentarily to assemble our roster. And our first question comes from Matt Ramsey from TD Cowen. Please go ahead. Thank you very much, everybody. Good afternoon. Good morning. I have a few questions. I guess as the first one on licensing, guys, it's totally normal for deals to sort of flip around across quarterly boundaries. I know you mentioned in the script there were some deals that you might have expected to sign that got pushed a little bit. It didn't sound super clear to me whether all of those things that flipped out of Q1 were just kind of across the quarterly boundary and going to get done in Q2 or if they might have been flipped a little bit longer than that. If it's the latter, maybe you could just kind of talk about what's going on in the environment that might be delaying a few of the deals longer than would be typical. Thanks. Yeah. Thanks so much. I would say first, some of the deals, as we also mentioned in the preliminary remarks, is that we already signed in Q2, and then we expect also some of the other deals to still sign in Q2, which is but also, there are some deals that got delayed more towards the next quarter after that. And as part of the overall evaluation, that takes longer in some cases, especially for the more complicated system that our customers need to evaluate sometimes all the way into the hardware capabilities of their own system. Got it. So it sounds like nothing atypical or different in the environment, just kind of normal course of business type stuff. Is that fair? That's fair. I would say that the one thing that we highlight more specifically for this quarter was the strategic deal with a customer that we already have, a multimillion-dollar deal that we expected to close in this quarter, in Q1. The evaluation of the technology, the agreements on both the technology and the commercial agreements was all set within the quarter, but the process signature of the customer took longer than anticipated, and this deal was already closed. So because of the timing and the magnitude of the deal, we mentioned that specifically. Got it. No, thanks for all that. I guess for me, on to some maybe more important technology questions. I wanted to ask about sort of two emerging technologies that you guys seem to be investing in a lot and are well-positioned for. I guess the first one is Wi-Fi 7, and the second one is UWB. So on Wi-Fi 7, maybe you could give us a little bit more on expected pace of adoption of the technology and both the licensing and royalty economics look like for your company relative to Wi-Fi 6. And UWB, I'd be sort of interested in hearing about what the breadth of different relationships and, I guess, what the pipeline looks like for UWB deals, both breadth and timing because these are both sort of exciting new technologies. I'm kind of interested to hear where you guys are in the progression on each one. Thank you. Yeah, definitely. Actually, I'll start with the Wi-Fi and take even a step back before Wi-Fi 7. Even with Wi-Fi 6, in terms of royalty overall, we are still early in the cycle of our customer transitioning from Wi-Fi 4 to Wi-Fi 6 in the high volume. So we expect it to be a very good tailwinds as we go through the rest of the year on the royalty side. In terms of licensing, definitely, we are extremely encouraged to see some of our existing customers as well as new customers start licensing Wi-Fi 7. This deal specifically, as you mentioned, as we signed this quarter, was about a customer that were already licensed in the past Wi-Fi 6 and Bluetooth from us, extremely encouraging to see the trust that we have in the marketplace and the performance that we achieved to our customer that they repeat and come back to us. Penetration of Wi-Fi 7 in terms of licensing and developments of those technologies is really right now ramping up quite nicely through 2024. It started as an access point. Now we see it more also on the client side. It is high performance, high throughput type of technology. So the propagation starts more from the high end, and then over time, will propagate lower in terms of the different tiers of the market. But also, for us, the transition from Wi-Fi 4 to Wi-Fi 6 and Wi-Fi 7, it's a great tailwind in terms of the average deal size as well as the average royalty that we get per device because we really provide more value, more sophistication, and time-to-market advantage to our customers. So overall, this is a very strong trend, and we're encouraged to see also the Wi-Fi volume increase very nicely year-over-year this quarter. Going to the UWB questions, definitely, Qualcomm announcements and coming to market with a UWB combo chip with UWB technology for the mobile devices. This is a very important precursor for the UWB to penetrate beyond automotive into the consumer. Most of the previous deals that we talked about were in the automotive. Now, this quarter, we have a very nice deal in the consumer space. We definitely see the Qualcomm announcement, the penetration into mobile phones, and overall, the understanding of more of the use cases of UWB and FiRa 2.0 certification body also really ratifying their solution and putting a very good tailwinds for the demand in the marketplace. Having said that, overall, I would say UWB technology penetration rate is going to be, on average, smaller or lower than what you typically see with the more incumbent Bluetooth or Wi-Fi technologies out there. The other piece, of course, for UWB, a lot of demand for UWB with Bluetooth technology and in the more high-end devices, even with Wi-Fi as a combo. Again, we are well-positioned to take advantage of that trend. No, thank you for all the details, Amir. I'll jump back into queue. Thanks, guys. Thank you. The next question comes from Kevin Cassidy from Rosenblatt Securities. Please go ahead. Yeah, thanks for taking my question. Just as you're writing more licenses, I guess, or coming up with agreements with licenses that include more technology, as you mentioned, the strategies to sell sensing, connectivity, and the processing, is that considered one license now, or just is there going to be a change as the value of the license goes up and there'll be fewer numbers when you report each quarter, or are they still going to be considered separate licenses but just in one design? Good question, Kevin. We count them separately. If they use different technologies in order to keep pace with a Wi-Fi, a Bluetooth stack, and a UWB, we'll count them as multiple deals if they are indeed planned to be combined in a single product. On the product itself, the agreement is one agreement that includes whatever type of technologies the customer would like to license and partner with us for. Of course, if it's integrated in a single chip, the royalty will be applied on the entire chip price, either as a percentage of the chip or cents per chip. We'll take into account that usually those chips are higher priced. ASPs would be higher. Our take rate of that, whether it's cents or percentage, would be higher because of the knowledge and the expertise and the advantage we're bringing to the table by combining multiple technologies. Yeah. And to add on, Yaniv, thanks. It's basically, Kevin, what we announced as the CEVA-Waves Links where we provide added value of those combined technologies if our customers need that support and would like to license that. Overall, I would say, as we look historically into our deals and connectivities, as we propagate into the more advanced releases of the technology from Bluetooth 4.0 to all the way now in the future, 6.0, adding Wi-Fi and going for Wi-Fi 6 and 7, then the combination, we really see on average that the deal size is growing as well as the potential royalty that comes with it. Okay. Thanks for those details. Just in general, China has been a big market for you. And how have the U.S. sanctions—is it getting worse for you, or are there fewer new designs starting in China? Maybe just give us the landscape of what's happening in China. First of all, regarding regulation, actually, we haven't seen any material change or any meaningful change this quarter or borderline quite recently. So no, no impact at all in terms of any change. I would say still, China is an important market for us in terms of lots of innovation in the semiconductor industry and overall for all the different type of technologies. We're actually encouraged to see that this quarter, I would say, overall, the market condition in China, I think, has stabilized, and there is very good innovation and demand for technology. I think from the royalty report that we provided, on average, our customer base are doing quite well in the market. So this is also a very positive indication for us as we will continue through the year. Kevin, I'll add to that that this is the first time in many years that we've seen sequential, flat-ish revenue for many of our Chinese customers in the IoT space reporting from Q4- Q1, not a down quarter like it usually was, but really a flat or even a stronger quarter in some cases. So it was very encouraging. Okay. Great. Thank you. Thank you. Maybe just. Again, if you have a question, please press star, then one. Our next question comes from Chris Reimer from Barclays. Please go ahead. Hi. Thanks for taking my questions. Can you talk just a little bit about the path to achieving the year-end guide? I believe you were projecting 4%-8% top-line growth back in 4Q. If you could just kind of remind us how sequentially that should take place. And then on the partnership side, if you could talk about the kind of exposure you have with your partnerships, especially with boAt, and what kind of products are working with you there. Hi, Chris. I'll start with the first part, and Amir will take over for the second. So we did guide in the beginning of the year, 4%-8% top-line growth. We did talk about flat-ish non-GAAP OpEx and gave a range of $93 million-$96 million for the year. We're not changing those two numbers today. We also said at the beginning of the year that the second half will be stronger than the first year. So with all that said, nothing has really changed in our plans. Yes, we talked about the deal being delayed, a few deals being delayed. We also mentioned that some of those deals were signed in Q2, so maybe it's just some shift between those two quarters. The way we're seeing it with a pretty strong Q1, much stronger than historical seasonality trends and growth in all the different product volumes on a year-over-year basis, which is also something quite remarkable. We haven't seen that for a long time. We're feeling well with the rest of the year. Licensing, royalties, each one of them have different trends, and deals can from time to time get delayed. But our plans are not changing not from the expense point of view of trying to manage this carefully. The guidance for second quarter is exactly the same, 90% gross margins and Non-GAAP, and the same range of expenses on OpEx. With more revenue flowing in, we should have the leverage to reach our targets. That's the way we see it today. Obviously, things could change, but this is what we are focused on achieving for 2024. Got it. As for the partnership with boAt, so boAt is the number one Indian hearables and wearables OEM in the marketplace, and we believe they are number two to Apple worldwide. We have a very, very good partnership with them, working with them directly as an OEM. We offer them basically a combination of the silicon that they're using that within there is the IP, our connectivity IP, as well as the DSP AI IP. And on top of that, we provide them a software IP to run 3D spatial audio for hearables and wearables devices. They've just launched the first product using all these three technologies combined in their device that I shared in my remarks. And we will see that keep penetrating across the product line. Got it. Okay. Thanks for that. That's it for me. Thank you, Chris. Thanks a lot, Chris. There are no more questions in the queue. This concludes our question-and-answer session. Jason, I think Kevin--- David is there. Oh, sorry about that. Yes. Next question comes from David O'Connor from BNP Paribas. Please go ahead. Awesome. Good morning. Thanks for squeezing me in, guys. Maybe just one or two follow-ups on my side. So firstly, just the flat-ish revenues in China customers Q4- Q1, can you give us a bit more color? Was that due to kind of units, or was it just more content? Is there a sense that that was inventory replenishment in those end markets or just new products coming to the market at those higher ASPs that you talked about? And maybe follow up. Yeah. Usually, the seasonality in IoT devices, mobile has been the case for many, many years that Q1 is lower in volume and new phone introductions than the fourth quarter and the Christmas holiday season. What we saw this quarter with 25% unit growth year-over-year, and sequentially, some of our customers, which maybe are Chinese customers, but they're shipping on a worldwide basis. And Amir mentioned earlier in headsets, earbuds, we are probably 45%-50% worldwide market share or technologies embedded in, excluding Apple. So in some of these devices and the overall IoT devices that were shipped, we saw flat-ish units. We didn't see a decline, and that's probably from inventory buildout and filling the channels with a pretty strong start for the year. Does that answer your question? Yeah. That's very helpful. And then maybe just one on the kind of higher value deals that you're signing and licensing and the higher royalty rates. Can you give us any kind of framework how to think about those kind of higher royalty rates versus your kind of classic rates? And And also the licensing deal, can you help as well kind of give us just a sense of kind of how big they are versus your classic kind of licensing deals? I know every deal is different, but just kind of how to think about that from a kind of numbers perspective. That'll be helpful. Thanks, guys. Yeah. Not sure we could help that much. I mean, when we talk about multimillion-dollar deals, these are bigger deals and larger deals in volume than we had in the past. So it could be a few million dollar for a specific deal. Depends on the technology and the market segment. Maybe historically, in the past, those were a few hundred thousand for a single use, up to $1 million. And today, depending on that technology and how many technologies we integrate into an agreement, it could be much higher numbers than that. Maybe that's a little bit of the flavor. And same goes with ASP. The percentages, if it's multiple technologies, are higher than just a standalone Bluetooth deal that we licensed five years ago, maybe. I think that's what we're referring to, that the more content we add to these agreements, multiple technologies, newer technologies that come into play. That's true across the newer Wi-Fi, Bluetooth, UWB, as well as the AI, and then the software packages that we have and offerings that we have today. We are able to charge higher percentages of the chip price at the end of the day or higher ASPs, higher cents per chip. And maybe, David, just to. That's very helpful. Thank you. Yep. Just to comment on Yaniv's comments regarding the royalty in China. Generally speaking, for this quarter, we are really encouraged, actually, with our customers worldwide and as well as in China in terms of their volume shipment. Part of that is the tailwinds that we discussed last year, where we see basically Wi-Fi penetrating more and more. We see the combination of the different technologies, the higher ASP with those different product mix that goes to market, as well as more and more new customers that are ramping either Bluetooth or Wi-Fi and in the future UWB technologies, as well as the now-being IoT or 5G RedCap. So all in all, for this quarter, which typically is in consumer market seasonally lower than Q4, we have seen really great year-over-year growth, as well as on a quarter-over-quarter basis, a very strong demand from our customer base. Awesome. Thanks, guys. Thank you. This concludes our question-and-answer session. I would like to turn the conference back over to Richard Kingston for any closing remarks. Great. Thank you all for joining us today and for your continued interest in CEVA. As a reminder, the prepared remarks for this conference call are filed as an exhibit to the current Form 8-K and accessible through the investor section of our website. With regards to upcoming events, we will be participating in the following conferences: Oppenheimer 25th Annual Israel Conference, May 26th in Tel Aviv; TD Cowen 52nd Annual TMT Conference, May 29th in New York; the Mizuho Technology Conference, June 12th in New York; and Rosenblatt's 4th Annual Virtual Tech Summit, June 13th, 2024. That'll be held virtually. Further information on these events and all events we will be participating in can be found on the investors section of our website. Thank you and goodbye. Conference has now concluded. Thank you for attending today's presentation. You may now disconnect.