Guidance and Path to Growth
Q: How will you achieve your 4%-8% top-line growth guidance?
A: Despite some deal delays, our plans remain unchanged. We guided 4%-8% top-line growth, with the second half stronger than the first. With a strong Q1 exceeding historical seasonal trends and year-over-year growth in product volumes, we're confident in meeting our targets. We continue to manage expenses carefully and maintain our Q2 guidance.

Licensing Deal Delays
Q: Are licensing delays affecting your outlook?
A: Some deals expected to close in Q1 were delayed but have since been signed in Q2. While evaluations for complex systems are taking longer, this is normal. A significant multimillion-dollar deal expected in Q1 was delayed due to the customer's signature process but has now closed. Our overall outlook remains positive.

China Market Conditions
Q: How are U.S. sanctions impacting your China business?
A: We've not seen any material regulatory changes affecting us this quarter. China remains an important market with significant innovation. We're encouraged that market conditions have stabilized, and our customers are performing well. Notably, some Chinese customers reported flattish revenue from Q4 to Q1, which is stronger than usual seasonal trends.

Wi-Fi 7 and UWB Adoption
Q: What's the outlook for Wi-Fi 7 and UWB technologies?
A: We're early in the transition from Wi-Fi 4 to Wi-Fi 6, which we expect to be a strong tailwind for royalties this year. Customers are now licensing Wi-Fi 7, including those who previously licensed Wi-Fi 6 and Bluetooth from us. Wi-Fi 7 adoption is ramping up through 2024, starting with access points and expanding to client devices. The transition to Wi-Fi 6 and 7 increases our average deal size and royalties. For UWB, Qualcomm's market entry boosts demand, especially in consumer devices beyond automotive. While UWB's penetration rate will be smaller than Bluetooth or Wi-Fi, we're well-positioned to benefit from its integration in high-end devices.

Higher-Value Deals and Royalties
Q: How do higher-value deals affect royalties and licensing?
A: Multimillion-dollar deals are becoming more common, significantly larger than past deals which were often under $1 million. Integrating multiple technologies like Wi-Fi, Bluetooth, and UWB increases deal sizes and allows us to charge higher royalty rates or per-chip charges. Providing more value and sophistication leads to higher percentages of the chip price.

boAt Partnership
Q: Can you discuss your partnership with boAt?
A: boAt is India's number one hearable and wearable OEM and potentially number two globally after Apple. We have a strong partnership, providing them with silicon that includes our connectivity IP and DSP/AI IP, along with software IP for 3D spatial audio. They've launched their first product using these combined technologies, and we expect this to expand across their product line.

Combined Technology Licensing
Q: Are combined technology licenses considered one or multiple licenses?
A: We report them separately to track technologies like Wi-Fi, Bluetooth, and UWB. If different technologies are used in a single product, we consider them multiple deals. However, the agreement includes all technologies integrated into a single chip, and royalties are applied to the entire chip price, reflecting higher ASPs due to the added value.

China Revenue Details
Q: What drove flat revenues in China from Q4 to Q1?
A: Typically, Q1 sees lower volumes due to seasonality, but this quarter we saw 25% year-over-year unit growth. Some customers, including those shipping worldwide, reported flat or stronger shipments sequentially. This is likely due to inventory build-up and strong channel fill, indicating a robust start to the year.