Yaniv Arieli: Good question, Kevin. We call them separately if they use different technologies in order to keep pace of Wi-Fi, Bluetooth, sockets and UWB, we will call them multiple deals if the R&D plan to be combining a single product. On the product itself, the agreement is one agreement that includes all 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 and we’ll take into account that usually those chips are higher priced, ASPs would be higher. Our take 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.
Amir Panush: Yeah. To add on to Yaniv is basically, Kevin, what we announced is the Ceva-Waves Links, where we provide added value of those combined technologies if our customers need that support, and we 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 that.
Kevin Cassidy: Okay. Thanks for those details. And just in general, China has been a big market for you. And have the U.S. sanctions, is there — 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?
Amir Panush: First from regulation, actually, we haven’t seen any material change or any meaningful change this quarter or broadly 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 a 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.
Yaniv Arieli: Kevin, I’ll add to that. This is the first time in many years that we have seen sequential flattish revenue for many of our Chinese customers in the IoT space reported from Q4 to 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.
Kevin Cassidy: Okay. Great. Thank you.
Yaniv Arieli: Thank you.
Operator: [Operator Instructions] Our next question comes from Chris Reimer from Barclays. Please go ahead.
Unidentified Analyst: 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% to 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 the boAt and what kind of products are working with you there?
Yaniv Arieli: Hi, [Chris] (ph). 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% to 8% top-line growth. We did talk about flattish non-GAAP OpEx and gave a range of $93 million to $96 million for the year. We’re not changing that — 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. But 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 in licensing, royalties, each one of them have different trends and deals can from time to time get delayed.
But our plans are not changing from — 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 in non-GAAP and the same range of expenses on OpEx. And with more revenue flowing in, we should have the leverage to reach the — 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.
Unidentified Analyst: Got it.
Amir Panush: As for the partnership with boAt, so boAt is the #1 Indian hearable/wearable OEM in the marketplace, and we believe, they are #2 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, 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 hearable and wearable devices. They’ve just launched the first product using this type — all these three technologies combined in their device that I shared in the — in my remarks, and we will see that keep penetrating across the product line.
Unidentified Analyst: Got it. Okay. Thanks for that. That’s it for me.
Operator: There are no more questions in the queue. This concludes our question-and-answer session.
Amir Panush: Jason, I think, Kevin — David is there.
Operator: Sorry about that. Yes. Next question comes from David O’Connor from BNP Paribas. Please go ahead.
David O’Connor: Awesome. Good morning. Thanks for squeezing me in, guys. Maybe just one or two follow-ups on my side. So firstly, just the flattish revenues in China, customers Q4 to Q1, can you give us a bit more color, was that due to kind of units? Or was it just more content is your sense and 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 I have a follow-up.
