Good day, and welcome to the CEVA, 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 question. To ask a question, you may press star then one on a 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 of Market Intelligence and Investor Relations. Please go ahead. Thank you, Betsy. Good morning, everyone, and welcome to CEVA's first quarter 2026 earnings conference call. Joining me today 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. 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 AGI 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 Ceva-Waves Links200 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 licensed this full solution, including modem software and RF, to a leading U.S.-based semiconductor company. Bluetooth 7 is expected to enable higher throughput and more advanced use cases, including multi-channel 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 broader 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 CEVA through higher licensing fees and greater royalty content, while also deepening integration and enabling multi-generation engagements. For the quarter, we expected 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 communications. During [audio distortion] our PentaG-NTN 5G -Advanced modem platform, sending our cellular portfolio into satellite communications. 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, [audio distortion] remote and underserved 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 U.S.-based MCU provider, augmenting its internal UWB capabilities. With our IP and 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 CEVA 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. Across 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 CEVA IP over the past two years. More broadly, customers are increasingly adopting more integrated system-level solutions from CEVA, expanding our value per design while strengthening long-term royalty and margin potential. In sensing, we continue to see growing traction for our spatial audio solutions as demand for immersive audio experience expands. During the quarter, Lenovo launched its latest ThinkPad headset, powered by our RealSpace spatial audio with head tracking, building on recent wins with consumer brands like Nothing and boAt. 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. IP and AI content per device is increasing as more products require local Connect, Sense, 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 AI processing alongside advanced wireless connectivity across increasingly complex connected systems. This is now translating into production. Renesas 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 passenger vehicle globally, marking our first mass volume automotive AI deployment. We believe this represents the beginning of a meaningful long-term royalty stream with growing AI content per device. We also announced a collaboration with NXP during the quarter, integrating our AI DSP and accelerator into their S32E2 and S32Z2 software-defined vehicle processors, further validating our position in automotive AI. In addition, our new NeuPro-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 advanced 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 wins across our connectivity portfolio. Turning now to royalties. We continue to see encouraging momentum across our diversified smart edge markets 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 smartphone. 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 platform, 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 continuing shift towards combo chips to further reinforce our strategy as customers integrated multiple CEVA 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 end markets. Against these tailwinds, first quarter royalties were impacted by typical seasonal softness in mobile, combined with near-term effects for memory availability constraints and challenged inventory in the lower tier segments. We view these mobile dynamics as largely timing related and expects 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. Thank you, Amir. I'll now review the financial results for the first quarter, which reflect the strong licensing performance and continuing execution Amir just outlined. Revenues for the first quarter increased 11% year-over-year to $27 million. The revenue breakdown is as follows: Licensing and related revenue increased 18% year-over-year to $17.8 million, reflecting 66% of our total revenues. Royalty revenues were $9.2 million, in line with last year, reflecting 34% of total revenues. Gross margins were 86% on GAAP basis and 87% on non-GAAP basis. Our total GAAP operating expenses for the first quarter were $28.4 million, just over the mid-range of our guidance. Total non-GAAP operating expenses for the first quarter, excluding equity-based compensation expenses, amortization of intangibles, and deal costs, were $23 million, just over the mid-range of our guidance. GAAP operating loss for the first quarter was $5.1 million as compared to GAAP operating loss of $4.4 million in the same quarter last year. Non-GAAP operating margins and income were 2% of revenues and $500,000. Net income was $1.9 million, compared to $2.1 million for the first quarter of 2025. Taxes were approximately $1.3 million. GAAP net loss for the first quarter was $4.5 million, and diluted loss per share was $0.16 as compared to net loss of $3.3 million and diluted loss per share of $0.14 for the first quarter of 2025. Non-GAAP net income and non-GAAP diluted earnings per share for the first quarter of 2026 were $1.1 million and $0.04 respectively, as compared to non-GAAP net income of $1.4 million and non-GAAP diluted earnings per share of $0.06 for the first quarter of 2025. With respect to other related data, we shipped 458 million units of CEVA powered devices, up 9% for the first quarter of 2025. Of the 458 million reported, 46 million units or 10% were for mobile handset modems, down from 49 million units in the first quarter last year. 394 million units were consumer IoT devices, up from 337 million units for the first quarter last year. 18 million units were for industrial IoT products, down from 34 million units in the first quarter last year. However, [associated in] industrial IoT royalty revenues were up 19% year-over-year. Reflecting a better mix of higher ASP product shipments, including 5G wireless infrastructure and automotive AI. Bluetooth shipments were 206 million units in the quarter, down from 233 million units in the first quarter of last year. Cellular IoT shipments were 66 million units, up 38% year-over-year. Wi-Fi shipments were a record 91 million units, up 158% year-over-year. As for the balance sheet items, our cash equivalent balances, marketable securities and bank deposits were approximately $260 million, providing strong financial flexibility. We remain focused on disciplined capital allocation, including continued investments in our roadmap and a selective approach for strategic M&A opportunities that can accelerate our growth. Our DSOs for the first quarter of 2026 was 59 days. During the first quarter, we used $4.9 million of cash in operating activities. Ongoing depreciation and amortization was $0.9 million. Purchase of fixed assets was $2.3 million, including approximately $1 million related to leasehold improvements. At the end of the first quarter, our head count was 430 people, of whom 348 were engineers. Now for the guidance. As Amir highlighted, we delivered a strong start for the year, supported by continuing enhancements to our IP portfolio, solid licensing execution and growing fundamental for future royalty expansion. From a financial perspective, we continue to view 2026 as a year of growth across multiple dimensions. Reflecting our first quarter performance, we're upgrading our annual outlook towards the higher end of our previously communicated range. For the full year, we now expect total revenue growth to be at the top end of our 8%-12% range over 2025, with a typical seasonality profile of lower growth in the first half and stronger growth in the second half, subject to memory pricing dynamics and supply conditions. On the expense side, we maintain focus on cost discipline and operating leverage, while continuing to manage foreign exchange headwinds with the strengthening of the euro and the Israeli shekel against the U.S. dollars. Overall expenses, cost of revenues and OpEx combined are expected to increase approximately 8% over 2025. As we continue to invest to support growth, we expect a portion of the incremental revenue to be translated to the bottom line, driving continued improvement in non-GAAP operating income, net income and EPS. Based on our performance to date and current business momentum, we now expect non-GAAP operating margins and non-GAAP net income to increase by 40%-50% year-over-year, which is above our prior expectations. Guidelines for the second quarter of 2026. Revenues are expected to be in the range of $26 million-$30 million, reflecting continued growth both sequentially and year-over-year. Gross margin is expected to be 87% on GAAP basis and 88% on non-GAAP basis, excluding an aggregate $0.2 million of equity-based compensation expenses and $0.1 million of amortization of acquired intangibles. GAAP OpEx for the second quarter of 2026 is expected to be similar to the first quarter and in the range of $27.7 million-$28.7 million. Of our anticipated total OpEx for the second quarter, $5.3 million is expected to be attributed to equity-based compensation expenses, $0.1 of amortizations of acquired intangibles, and $0.1 million of costs associated with business acquisitions. Non-GAAP OpEx is also expected to be similar to the first quarter and in the range of $22.2 million-$23.2 million. Interest income is expected to be approximately $1.7 million. Taxes for the second quarter is expected to be approximately $1.5 million. The share count for the second quarter of 2026 is expected to be approximately 28 million shares for GAAP and 29.7 million shares for non-GAAP. Betsy, we could now take questions, please. We will now begin the question-and-answer session. To ask a question, you may press star then one on the touch-tone phone. If you're using a speaker phone, please pick up your handset before pressing the keys. If anytime your question has been addressed and you would like to withdraw your question, please press star then two. At this time, we'll pause mometarily to assemble our roster. The first question today comes from Ruben Roy with Stifel. Please go ahead. Ruben, your line is open. You may ask your question now. Sorry, guys. I was on mute somehow. Hi Amir. Hi Yaniv. Congrats on the nice start to the year. I guess to start, Amir, on the Bluetooth HDT win, I'm not sure if you guys had RF wins previous, but it seems to me like that would be a nice step up in your value per design strategy that you've been talking about. Can you maybe just talk a little bit more about what you're doing for the RF? Also, I guess as part of that, is that sort of an architecture that you can replicate across other areas of the business eventually, Wi-Fi, ultra-wideband, et cetera? Anything you talk about in terms of the royalty rate relative to your traditional Bluetooth licenses. Thank you. Roy, first, thanks a lot for the congratulation. Definitely this is a very important win for us. As you pointed out, this is a win that offers full system solution all the way, so-called, from the antenna up to the full stack and the software, including our own internal developed RF, which is an investment that we've put in the last year or two to really build those systems up. The key value here is really that our customers, they can get the full solution. They don't need to do more of the pre-testing validation of those things, and we provide them that as a full solution. Time to market and ability to be successful in the market is much higher. Even more so with this customer and overall other customers, what we see, that really helps them to drive more and more at so-called the make versus buy decision and move away from so-called internal development to a complete solution based on our technology. We are very happy with that win with the RF, and we expect more of those wins to come through the year and then of course in the next few years. The other piece that you pointed out, this is definitely a technology that we are planning to expand beyond the Bluetooth HDT. We have multiple other wireless technology with digital IP and the same strategy we are going to basically deploy and apply in the marketplace. More and more integrated solution, complete system around our leadership in wireless connectivity. We are super excited about this momentum and that what can build for the future. Last piece that you point on the royalty, as I mentioned in the previous calls, at the end of the day, royalty comes back to what value we bring to our customers. In this case, because it's not just the whole different components of the system, it's the fact that it's fully integrated. Our customers definitely appreciate it, and we see meaningfully higher royalty than so-called one plus one is more than two. That will help us to drive much more royalty growth in the future with overall very strong flywheel across our wireless connectivity technology. That's great. Thank you, Amir, for all the detail. I guess if I could ask a quick follow-up just on sort of the way the year is playing out. You continue to expect a stronger second half, and I think you gave us a lot of, you know, sort of data points and, you know, kind of visibility into how you're thinking about that. You do have, you know, some, you know, factors coming into play. You mentioned memory pricing and, you know, overall, you know, sort of macro, you know, sort of dynamics going on. Either Amir or Yaniv, can you maybe just give us a little bit of detail on what you're hearing from customers relative to some of those, you know, impacts that we might see as we kind of go through the year? I think, you know, memory pricing has started to impact some of the end markets. We're hearing from PC guys, et cetera, you know, talk about potential impacts there. Any additional detail on how you're thinking about the second half versus the first half and what you're hearing from customers would be great. That's all I have. Thank you. Yeah, definitely. One thing first, I would say just if we look at this quarter, as we started the year, I'm extremely encouraged by the fact that even though so-called mobile hasn't been that strong, considering the challenge with memory allocation and the so-called inventory utilization, we still deliver really great results driven by, one, very good execution across the licensing and solution-based offering. Second, we see a very good momentum overall in the broader IoT. Going back to what you asked about the memory [audio distortion] that if we look at the IoT, it's [audio distortion] that is less impacted by that. We have a great access across very diversified set of customers, use cases and products and technologies. I think overall we can do so-called better than others in terms of potential impact from memory allocation. Specifically on mobile, with the inventory drawdown that happened this quarter and maybe to some degree through the first half, it probably will put us in a good spot as we go to the second half, which on top of that, of course, what we expect is increased market share in the premium tier. I think overall we are well-positioned going through so-called the challenges overall in the marketplace. It goes back to how we execute basically driving our licensing and ensuring that our customer is happy with the ramp-up of our technologies. Ruby, maybe we'll add one more thing. Historically, if you look at the volumes of shipments of our royalties, our customer shipments in the second half of every given year in the last three years, you'll see about a 40% increase. Every year there is some issues, whether it's pricing or inventory or now memory. With that said, the trend was mainly around 40% sequential growth second half versus first half. We are building that in also in our growth specs for 2026. Got it. Thank you, Yaniv. Thanks, Amir. Thank you. Yeah. Thank you, Roy. The next question comes from Suji Desilva with Roth Capital. Please go ahead. Hi, Amir. Hi, Yaniv. Congratulations on the progress here. Thank you. Amir, maybe we can talk about As you came in, you talked about Sense, Connect and Infer, and maybe today you could give us an update on that in terms of the example of traction at the same customer, two of those or three of those versus just one. That would be helpful to understand. Definitely, Suji. I think several names that we mentioned in the past, including this time, we see them basically licensing multiple technologies from us. It can be multiple technologies across Connect, but also we have more and more across multiple technologies of Connect and Infer, and in some cases, the whole three, Connect, Sense and Infer. So this is, we see that progression going very well, and we expect more as we keep driving those technology into the marketplace. Definitely what drive the best line flywheel or success with our customers is very high appreciation of our wireless connectivity portfolio and on top of that, our investment and expansion in the AI or Infer overall portfolio. The other things that as we pointed out, Lenovo with the headset this quarter, we announced that, basically they've been using or start ramping with our RealSpace or 3D spatial audio technologies, and they are also a wireless connectivity, basically customer through the semi guys that are delivering those solutions to them. Okay. No, appreciate that, Amir. Great. In the connectivity specifically, Bluetooth is already well penetrated. Can you update us on where Wi-Fi is in the attached curve going up in terms of attached? Will UWB follow a similar path or is that more of a [niche] technology? Thanks. Yes. On the Wi-Fi, Yaniv can point more into the specific numbers, but we're extremely encouraged with the ramp that we've seen first through all 2025 and now continuing and even more in Q1 2026, where we reach all record high volume this quarter, and we expect that to continue with a very nice ramp moving so-called from the more legacy Wi-Fi into Wi-Fi 6. Then within a year or two, we'll start seeing the transition into Wi-Fi 7, plus lots of the combos of the Wi-Fi and Bluetooth. Overall, from a pattern and penetration in the marketplace, we expect as we mentioned on other calls, right, that the Wi-Fi shipments will reach a very high volume above the 500,000,000 and more as we keep progressing, and then basically augment very nicely our penetration with Bluetooth plus the combos. In terms of UWB, this is, I would call it overall a newer technology. There are lots of very good indication in the marketplace from use cases and with that, the potential demand for the technology. We've seen more penetration right now in smartphone from there into different type of edge devices for location-based, for access and control. We are very encouraged with that. Now we just got a major license deals with a U.S. customer and there will be more to follow. Overall from a volume penetration, I say we are highly penetrate with Bluetooth. We are getting to the same level with Wi-Fi and the next to follow will be UWB. Okay, great. Thanks, Amir. Only color that I would add to that, Suji, is we talked about, Amir mentioned the combo chips. If you look at the Bluetooth Wi-Fi combo chip year-over-year, the volume has doubled. We haven't opened that number up yet. We'll do it in due time. Some of the reason also that we mentioned that the Bluetooth is going down because we are counting those combo chips is combo and not Bluetooth necessarily. There is no issue in the market. It's just our count and ASPs for those combo chips are higher than the individual Wi-Fi or Bluetooth solutions in the past. Yaniv, you're counting those in Wi-Fi units? Is that what you're saying? The combo of Bluetooth and Wi-Fi units, yeah, double year-over-year for Q1. Okay, great. Thank you. Thank you. Sure. The next question comes from Samik Chatterjee with JP Morgan. Please go ahead. Great. Thanks for taking my questions and congrats on the strong results here. Maybe just another follow-up on Wi-Fi. The 91 million number that you had there, it's pretty strong considering a seasonal downtick into 1Q. Can you just outline if there was anything in terms of a new customer, volume, et cetera, ramping into 1Q that drove that seasonality? From this sort of 1Q base, should we expect to see a similar pickup into the second half that you've historically seen, from first half to second half perspective in Wi-Fi? Thank you. I have a follow. Yeah. Samik, this is a great question. Actually the ramp or the volume in Q1 of our Wi-Fi shipment is not related to seasonality, as you pointed out. It's really the migration of multiple customers adopting our technology. Either migration from Wi-Fi 4 to Wi-Fi 6, or many of them actually new customers that start ramping with the Wi-Fi 6. I will remind everyone that we talked about more than 30 licenses, agreements that we have made in the last two, three years of Wi-Fi technology. Those basically customers are now coming more and more into production. That momentum we expect to continue, and actually we should expect second half to be stronger than the first half, both based on the seasonality plus basically more and more new customers and new program basically ramping in volume for Wi-Fi. Wi-Fi, we are really still in the ramp up in terms of market penetration and our customers basically ramping their portfolio and their product line. Got it. Got it. it. Got it. just maybe- It's true by the way, Samik, both to industrial and consumer. We are really doing well on both fronts with our Wi-Fi technology. Okay. Just my quick follow-up. Any updates on how you're thinking about capital allocation, particularly in relation to M&A, given that it's a pretty strong year, you'll generate more cash, how are you thinking about sort of the alternatives in front of you, including if, yeah, you do pursue M&A, what would be the more sort of targeted technology areas that you would look for? Thank you. Yeah, definitely. This is a key important item within what we're so-called looking to execute and our overall strategy to scale up the company, looking into an M&A options for us. The focus there will be around so-called technologies that complement our success in the smart edge era. We have more focus on IP overall in order to build the scale. You know, we talk about connections and infer within those technologies and augmented technologies. I think that's what we are really targeting, hopefully we'll be able to talk about it as we progress through the year. Thank you. Thanks for taking my questions. Thank you. Yeah. Thanks, Samik. The next question comes from Gary Mobley with Loop Capital. Please go ahead. Hi, guys. Thanks for taking my question. Looking specifically at the Ceva-Waves Links, the RF subsystem there, I know the highlight that you put in front of us today is more of a system level license agreement, you know, including the RF. If I'm not mistaken, that RF subsystem might be unique to a specific manufacturing process node, TSMC 12 nm specifically. Can you speak to how you might, you know, move forward in broadening that, I guess the scope of the RF subsystem across different process nodes and different [foundries] and how that might affect the overall licensing for Waves Links? Yeah, Gary, great question. Yeah, the Links200 that we announced previously was around 12 nm TSMC. Overall, what we are executing our strategy is actually to go beyond one process node or one foundry. Also, I think we are well-positioned with the access that we have in the market from the number of customers that have licensed our digital IP technology to have very good sense of where the roadmap is heading in terms of the process node needs as well as the type of foundries that they are looking to partner with. Yeah, we are not going to support all different options out there and permutation, and definitely some customers will build with their own RF. I'm very confident that we can so-called go and support the majority or the significant portion of where the market is heading in terms of the process need and the foundry. We'll have so-called multiple options there, but we are not going to cover the whole spectrum. For my follow-up, I want to ask in general about the license pipeline. You know, how does it look, you know, compared to maybe a year ago? If you can give us an update as to what might be recurring in license revenue and what percent still remains, you know, one time in nature. There are several so-called fundamental trends that encourage us, and we feel good with the perspective of our licensing business. One, we see more and more customers, repeating customers coming again, going from one generation to the next. The other one is more customers are coming to license multiple technologies, either by adding additional technology or just from the start go looking for multiple technology. The last piece is what we are highlighting this quarter is really coming a licensing solution, which at the end of day brings more value to our customers and help us so-called to have better economics of the deals, including the licensing portion. When we take all those three into account, overall, we feel good, we feel confident with where we are in terms of the pipeline, our ability to execute our licensing business. I think the last few quarters have shown that, including this quarter. I would say overall, we look at the year as a good growth year in licensing, and the pipeline really supports it well. Thank you. Thank you, Gary. The next question comes from Josh Buchalter with TD Cowen. Please go ahead. Hey, guys. Thanks for taking my question and congrats on the results. Maybe I wanted to start big picture. You know, we're seeing sort of a lot of positivity in the CPU space as compute resources are moving, you know, increasingly away from or in addition to like being complemented by outside of the AI server rack. I mean, could you maybe reflect on where we are on the embedded side in that adoption curve and specifically any updates or major momentum on the MPU side from the quarter we could you wanted to highlight? Thank you. Yeah. Great question, Josh. First from a so-called the momentum of CPU, this is what we have been talking about for the last few quarters, about so-called the hybrid AI model, and things are more moving into the edge. This is very encouraging to see that that's really happening in the market, and also other players in the market are able to basically execute to that and show that progress. We need to keep in mind that when we look at our Connect, Sense, and Infer, IP portfolio, it actually complements extremely well CPU, whether that's CPU based on that architecture or the other RISC-V architecture. We are really indifferent to that, and we can support both. That puts us in a good position. On the NPU specifically, that's where we are building up, again, a portfolio of NPUs that goes along any kind of CPU architecture. I think that's where we also uniquely position, focusing on the NPU technology itself as accelerator to the CPUs that are out there. The more CPU drives more adoption of AI at the edge, the more opportunities we will see with our NPUs. Although all those things are encouraging so-called activities and potential tailwinds for us as we progress through the year and next year. Thank you for the color there. Then maybe, you know, I could follow up on the second half outlook. You know, a lot of companies have flagged potential cuts in the second half from the memory headwinds. Have you guys seen anything yet that's impacted your customers? Then I was also hoping you could maybe walk through what are the expectations that you have in your second half outlook for, you know, the large North American smartphone customer that has, you know, some of your IP on their modem. Thank you. Sure. You know, we built some of our expectations by top-down or, with knowing that the markets in the second half with the seasonality of Christmas and the ramp up for introduction of new products around that timeframe is strong. We'll need to see how the market deals with the memory pricing and shortages. Right now, we haven't heard anything specific from our customers other than what we have seen in the mobile space, on the low-tier phones, that we have seen and other companies have talked about Qualcomm Arm in the first quarter of the year with mentioning the recovery going forward. I don't think we have seen anything yet. I think the market has its way to overcome some of the hurdles when we get to the high season. We have built all that in, including the North American OEM that, you know, doesn't share its internal plans and doesn't share exactly the timing of introduction of new products, whether they're based on their own modem or not. We have our own estimates that we have built in this model. The rest will look and get the royalty reports on a quarterly basis, and based on that, they'll be able to report. Historically, the more we have added the combo chips like we talked about today with higher ASPs, the more that we have the automotive AI, NXP and Renesas helping us this year, which weren't around last year with royalty contribution, the more 5G networks that started the year very strong, then the OEM opportunities in the U.S., it looks like a stronger and promising second half. This is the reason we took our guidance to the top range of the previous annual guidance of the 8%-12%. Thank you. Thank you, Josh. The next question comes from Madison DePaola with Rosenblatt Securities. Please go ahead. Hi, this is Maddie calling up on behalf of Kevin Cassidy. I was just wondering which end markets are expressing the most interest for in the NeuPro? Say that again, Maddie. Sorry. Which end markets are expressing the most interest in the NeuPro? In the NeuPro. Yeah. Madison, it's broad-based, I would say, where we see it in automotive, we see it in some industrial application, we see it also in smart home and consumer application. If we look at the 10 + more deals that we so-called licensed last year, it's really across all those four markets that I mentioned. I can't point to one that is much more than the others very significantly. It's nicely distributed and wide-based. We mentioned also last quarter, a PC OEM, so we are in the PC market consumer. Again, smart homes, surveillance, and automotive, industrial. Yeah. Okay. Thank you. You're welcome. Thank you. The last question today comes from Martin Yang with Oppenheimer. Please go ahead. Hi. Thank you for taking my question. My first question is on the Bluetooth radio. Is there any plan or intention to extend that IP to other connectivity products, notably Wi-Fi? Yeah, Martin, good questions. Definitely. We started and announced this product first. At the end of the day, we have very strong capabilities across the spectrum of wireless connectivity technology. The intention and the plan is definitely to expand this to so-called a full solution offering across our wireless connectivity portfolio. Starting with Bluetooth, as you mentioned, the next natural thing will be Wi-Fi and then also UWB and our other technologies. Definitely that's the plan. Overall, also this quarter we announced on the satellite side that we're also moving more into complete so-called baseband solution, not just so-called offering the components like DSP accelerators, but really the whole, the whole baseband subsystem. That resonates very nicely with customers, especially customer that wants to make a decision moving from make to buy, 'cause they need to rely on more so-called ready-to-go solution to help them with time to market and success overall. Thanks, Amir. A follow-up on your answer. You mentioned that satellite communication, is that primarily still in on market deployment regarding smartphone with satellite-based messaging capabilities, or are you seeing any more emerging applications of that? We're actually seeing much more potential on the emerging applications as well. If we look at the different types of OEM out there, they're basically moving to provide more and more as a service. Part of the service, they need a complete solution end-to-end. We are offering the wireless communication both from the terminal side as well as from the satellite side. They will build a so-called a complete end-to-end offering with the service. That service is really to be able to have ubiquitous type of connectivity, whether it's for industrial use cases or logistical use cases and so on, or even places where there is very little coverage of wireless infrastructure and they want to provide that augmentation. Those are all about system well beyond just mobile. Got it. Thank you. Thank you, Martin. Yeah, thanks a lot, Martin. This concludes our question and answer session. I would like to turn the conference back over to Amir Panush for any closing remarks. Thank you. In closing, we believe CEVA is well-positioned as the industry continues to evolve towards physical AI, where connectivity, sensing, and inference converge at the edge. Our expanding portfolio, combined with our strategy to deliver more integrated system-level solutions, is enabling us to increase our value per customer and strengthen our long-term royalty model. We remain focused on executing our strategy, deepening customer relationships, and driving sustainable growth. Thank you for your continued support. Richard, I will hand over to you to wrap it up. Thank you, Amir. As a reminder, the prepared remarks for this conference call are accessible through the investor section of our website. With regards to upcoming events, we will be participating in the following conferences: Oppenheimer 27th Annual Israeli Conference on May 18th in Tel Aviv, the JP Morgan 2026 Global Technology, Media and Communications Conference May 20th in Boston, Massachusetts, TD Cowen's 54th Annual Technology Media and Communications Conference May 27th in New York, Stifel Cross Sector Insight Conference June 2nd in Boston, the 6th Annual Rosenblatt Technology Summit, The Age of AI, June 10th, being held virtually, and the 16th Annual Roth London Conference June 16th - 18th in London, England. Further information on these events and all events we will be participating in can be found on the investor section of our website. Thank you and goodbye. The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.