Earnings Guidance and Profitability Outlook
Q: Why didn't you raise annual guidance more despite strong Q2?
A: We had a plan to grow revenue and double operating margins, and we're tweaking it higher with mid- to high-range guidance. Operating margins could be better than twice 2023, and EPS could almost double last year's $0.18. We're taking it one step at a time. Royalties in the first half are up 25% over last year across all industries.

Profitability Drivers and Sustainability
Q: What's driving profitability besides higher revenues, and is it sustainable?
A: We refocused R&D and product lines, managing expenses differently. We're keeping overall expenses flat from 2023 to 2024, investing in the right areas. The combination of higher revenues with flat expenses is improving operating margins and the bottom line. We're confident we can control expenses and execute our plan.

Smartphone Market Outlook
Q: Are you more optimistic about the smartphone outlook?
A: Yes, 2024 is in a healthier condition after significant inventory correction. We expect 2024 to perform better than 2023 in smartphone demand. Our customers in the low and mid-range are healthy and doing well. The move to 5G will drive additional tailwinds into 2025 and beyond.

Growing Royalties from Wi-Fi and 5G
Q: Do we have higher-priced Wi-Fi 6 and Wi-Fi 7 royalties to come?
A: While the majority of volume is still Wi-Fi 4, there's significant upside coming with royalties from Wi-Fi 6 and beyond. Access points will also uplift royalty and average royalty per unit. In handsets, we're seeing a trend of more 5G phones, which have higher ASPs.

Increased Business with U.S. Customers
Q: Are you seeing stronger activity from U.S. customers?
A: Yes, our technology resonates with large U.S. semiconductor companies, especially in AI at the edge and wireless communication for satellites. We're seeing momentum and potential growth in the U.S. market, and we'll allocate resources to support this while controlling expenses.

NeuPro-Nano AI IP Competitive Positioning
Q: How does NeuPro-Nano stand competitively, and are you more bullish on it?
A: We are uniquely positioned by combining DSP capabilities with efficient neural network processing into one IP. This offers flexibility and functionality not available off-the-shelf. We're seeing strong demand for NeuPro-Nano, and it's part of a comprehensive portfolio from TinyML to high-end AI models.

WaveLink Multi-Protocol IP and Mesh Networking
Q: Was WaveLink a customer request for multi-modality and mesh networking?
A: Yes, as we engaged with customers, we saw a need for multi-protocol IPs. The Link solution brings combined technologies pre-optimized, easing integration and improving time-to-market and performance. We also have assets and capabilities in mesh networking. The first product, the 110 Links, is already available and licensed by customers.

Traction of Link Product Outside Smartphones
Q: Is the Link product gaining traction with non-smartphone OEMs?
A: Yes, it's significant across IoT devices where we have Bluetooth and Wi-Fi technology. There's lots of interest and licensing deals in hearables, wearables, industrial IoT, and smart devices. Multi-protocol support is needed, and combining IP makes devices more cost and power efficient.

WaveLink Using Wi-Fi 6 and 7
Q: Will WaveLink use Wi-Fi 6 and Wi-Fi 7?
A: Yes, it's really Wi-Fi 6 and beyond.

Customer In-House IP Development
Q: What's driving customers to develop in-house IP custom silicon vs merchant solutions?
A: Customers need better trade-offs between performance, features, and cost that off-the-shelf solutions don't provide. Our scalable IP allows them to customize capabilities to fit their exact needs, offering flexibility and cost efficiency not available elsewhere.

Competitive Positioning
Q: How is CEVA's competitive position now?
A: Our strength in wireless connectivity and Sense and Infer capabilities uniquely positions us. While we have competitors for specific IPs, our comprehensive portfolio across technologies gives us scale and a strong market position.

Software Stack for NeuPro-Nano
Q: How is the software stack for NeuPro-Nano developed and monetized?
A: We provide a software stack for running neural networks as part of the TinyML ecosystem. Customers can tune or customize it, and we have a flexible business model to support their needs. This approach is successful in the marketplace.

Support for Multi-Protocol Transceivers
Q: How is the transceiver supported for multi-protocol wireless IP?
A: We provide flexibility by partnering with transceiver and radio technology providers to offer pre-tested solutions. Customers can also get comprehensive access from us based on their needs. Adjustments may be needed for specific process nodes, but we offer competitive technology for our customer base. ,