CEVA Inc. (NASDAQ:CEVA) Q4 2017 Earnings Conference Call - Final Transcript
Feb 06, 2018 • 08:30 am ET
Good morning and welcome to the CEVA, Inc. Q4 and Year-end 2017 Earnings Conference Call. All participants will be in listen-only mode. (Operator Instructions). After today's presentation there will be an opportunity to ask questions. (Operator Instructions).
Please note this event is being recorded. I would now like to turn the conference over to Richard Kingston, VP of Market Intelligence, Investor and Public Relations. Please go ahead.
Thank you. Good morning everyone, and welcome to CEVA's Fourth Quarter and Annual 2017 Earnings Conference Call. Before we begin, I would like to inform you that the prepared remarks for this conference call will be filed as an exhibit to the current reports on Form 8-K at the conclusion of the call. I'm joined today by Gideon Wertheizer, CEO of CEVA; and Yaniv Arieli, CFO of CEVA. Gideon will cover the business aspects and highlights from the fourth quarter and year, and provide general qualitative data. Yaniv will then cover the financial results for the fourth quarter and year and also provide guidance and qualitative data for 2018.
(Forward-Looking Cautionary Statements)
With that said, I would now like to turn the call over to Gideon.
Good morning everyone, and thank you for join us today. CEVA delivered another year of record results with outstanding execution in licensing and solid progress in royalties. We ended 2017 with a stronger-than-ever foothold in the vibrant smart and connected universe, which progress I will elaborate shortly. Total revenue for the fourth quarter of 2017 came in above the upper range of our guidance at $21.6 million. The licensing environment continues to be healthy, with revenue of $9 million and 13 new agreements signed. All of the agreements were for non-handset baseband product, and five were with first time customer. Target markets for the new agreement include cellular IoT, which was particularly strong during the quarter with three new agreements; autonomous driving, 5G cellular backhaul, vision for mobile and consumer electronics, smart speakers, voice enabled headsets, and a variety of Bluetooth connected products.
With respect to autonomous driving, I would like to highlight that we concluded a strategic development agreement with a top tier car OEM for next generation AI processor of our NeuPro product line. This revolutionary AI technology is targeted for levels four and five autonomous driving systems, the most advanced, yet complex AI application in cars and in the embedded world in general. It is our first engagement directly with a car manufacturer, which grant us an intimate access to future AI-based application in autonomous cars. The NeuPro technology, which we unveiled at CES, is a new family of optimized AI processor, enabling processing of varieties of AI application on the device rather than in the cloud. This approach allows a faster response time and ensures better security and privacy. NeuPro is the world leader in performance and software for device-based AI application among which are face recognition, object classification, automatic speech recognition, workflow management, malware detection, and sensor fusion.
AI is being rapidly adopted