thank you and welcome everyone to the land semiconductors first water 2026 earnings call with me today are yorm zanger chief executive officer and guy nathanson chief financial officer earlier today we issued a press release that is available on the investor relations section of our website under investors.volent.com as a reminder today's earning call may include forward-looking statements and projections which do not guarantee future events or performance these statements are subject to the safe harbor language in today's press release please refer to our annual report on form 20s filed with the fec on february 25 2026 for a discussion of the factors that could cause actual results to differ maturity from those expressed or implied we do not undertake any duty to revise or update such statements to reflect new information subsequent events or changes in strategy we will be discussing certain non-gap measures on this call which we believe are relevant in assessing the financial performance of the business and you can find reconciliation of these metrics within our earnings release with that I I will now turn the call over to Yohan.

Thank you, Mikey. Hello, everyone, and thank you for joining us. During our last call, we discussed how microeconomic conditions and slow pace of technology adoption could affect our business in 2026. And our first quarter was in line with our expectations. Nevertheless, we are pleased to report that our revenues exceeded the top end of our guidance at $16.9 million. Gap gross margin for the first quarter came at 62.2%, well above the guidance. Our adjusted EBITDA was a loss of $5.5 million, a smaller than anticipated loss compared to our guidance. I'd like to highlight some of our key achievements in Q1, and I'll start with audio video. We continue to see strong adoption of one of our newest chips, the BS3000, as the industry trends towards highest resolution video. As a reminder, this chip is the only one on the market that can extend uncompressed HDMI my 2.0 or over widely used category cables in q1 we saw additional products hit the market based on this chip one exciting example came from a leading av manufacturer extron which released to the market new metric switches built for premium collaboration spaces devices, what they are calling the DTP3 CoursePoint 42 series. Our chip is a cornerstone technology underpinning this product supporting uncompressed video, audio and controls up to 330 feet. This is great use for Valence as the BS3000 is the most advanced HD-based chip we offer and is a pillar of the growth of opportunity in our core audio-video market. We are also seeing healthy traction with our newest BS6320 chip. As a reminder, this is the first and only high-performance USB 3.2 extension solution built on a dedicated chip. Continuing the momentum, in Q1 we saw another major A-B manufacturer release to the market a product based on the BS 6320 we are encouraged by the continued adoption of this innovative chip as we move further into 2026 both chips features notably at our booth during key first quarter events CS in January and ISE in February across both events our customers and partners were into the attic about our technology demonstrations and the innovations our chips can enable innovations like multi-camera extension over a single cat cable single box extension of uncompressed 4k video and USB 3 streamlined infrastructure is supporting multiple cameras and sources and full room conferencing set up with USB C to USB C extension we look forward to replicating the success of those events at additional audio video focused show around the world including the upcoming infocom international show in las vegas i'd like to turn now into the automotive industry our opportunity in automotive is dominated by the va 7000 sheet set which offers high performance connectivity of cameras and radars used in ATAS and autonomous driving. The VA7000 is the first chipset on the market to comply with the MiPA5 standard. Our ability to promote this chipset hinges not only on its clear technological advantages for OEMS, but also in the compliance with this standard. As you know, the automotive industry has been actively working to move away from proprietary solutions driven by concerns around vendor lock-in and supply chain uncertainty. The defining characteristic of a true standard is interoperability, that API-compliant components from different suppliers can work together seamlessly. In Q1, we demonstrated exactly that at AutoChina, a valence de-senalizer connected to A5-senalizers from two other service vendors. This marks the first pre-company demonstration of any interoperable service connectivity solution anywhere in the world, for any service standard. This is not just technical milestones, it directly reinforces one of the core value propositions of our A-Fi offering, eliminating vendor lock-in, reducing supply chain risk, and enabling a more flexible multi-vendor ecosystem for the OEMs. Of course, we continue to participate in several other evaluation processes at various stages with multiple OEMs. With that, I would like to turn the call to Guy to discuss our financial performance in more detail.

Thank you, Yaron. I will start with our first quarter of 2026 results and then provide our outlook for the second quarter of 2026. We achieved quarterly revenues of $16.9 million which exceeded our guidance of between $16.3 million to $16.7 million. This compared to revenues of 19.4 million dollars in q4 2025 and 16.8 million donors in q1 2025 the cross industry business or cib accounted for 11 million dollars or approximately 55 percent of total revenues while automotive contributed 5.9 million dollars or approximately 35 percent of total revenues this quarter this compares to q4 2025 revenues of 13.9 million dollars from cib and 5.5 million donors from automotive which represented approximately 70 percent and 30 percent of total revenues respectively it also compares to q1 2025 revenues of 11.7 million dollars from the cib and 5.1 million dollars from automotive representing 70 percent and 30 percent of total revenues respectively q1 2026 gross profit was 10.5 million dollars compared to 11.7 million dollars in the fourth quarter of 2025 and compared to 10.6 million dollars in the first quarter of 2025 Q1-2026 gross margin was 62.2% compared to our guidance of between 57% to 59%. This compared to a Q4-2025 gross margin of 60.5% and Q1-2025 of 62.9%. On a segment basis, Q1 2026 gross margin from the cross-industry business was 70.8% and gross margin from automotive was 46.2%. This compares to a Q4 2025 gross margin of 66.4% and 45.9%, respectively, and a Q1 2025 gross margin of 69.1% and 48.4%, respectively. The increase in the gross margin of the FAB compared to Q4 2025 was mainly due to product mix. Non-GAAP gross margin in Q1 was at 65.2%, which compares to 63.9% in Q4 2025 and 66.7% in Q1 2025. Operating expense in Q1 2026 totaled $19.4 million, compared to $20.9 million at the end of Q4 2025 and $20 million in Q1 2025. Riches and development expense in Q1 totaled $10.3 million, compared to $11.1 million in Q4 2025 and $10.6 million in Q1 2025. FG&A expense in Q1 were $9.4 million, compared to $10.1 million in Q4 2025 and $9.3 million in Q1 2025. That net loss in Q1 was $8.3 million, compared to a net loss of $8.8 million in Q4 2025 and a net loss of $8.3 million in Q1 2025. Adjusted EB9 Q1 was a loss of $5.5 million, below the guidance range of a loss between $7.9 million and $7.5 million. This compares to an adjusted EBITDA loss of $4.3 million in Q4 2025 and an adjusted EBITDA loss of $4.3 million in Q1 2025. Gap loss per share in Q1 was $0.08 compared to a gap loss per share of $0.09 for Q4 2025 and a gap loss per share of $0.08 for Q1 2025. Non-gap loss per share in Q1 was 5 cents, compared to a loss per share of 4 cents in Q4 2025 and a loss per share of 3 cents in Q1 2025. The difference between gap and non-gap loss per share was mainly due to stock-based compensation and depreciation and amortization expense. Now turning to the balance sheet, We ended Q1 with cash, cash equivalents, and short-term deposits, totaling $86.1 million. And note that this compares to $92.6 million at the end of Q4 2025 and $112.5 million at the end of Q1 2025. Our working capital at the end of the first quarter was $91.3 million, compared to $95.7 million at the end of Q4 2025 and $119.8 million at the end of Q1 2025. Our inventory as of March 31st, 2026 was $10.9 million, an increase from $10.1 million on December 31st 2025 and 10.9 million dollars on merge 31st 2025. Now I would like to provide our guidance for the second quarter of 2026. We expect Q2 revenues to be in the range of 17.2 to 17.6 million dollars. We expect gross margin for Q2 to be in the range of 60 percent to 62 percent and we expect adjusted EBITDA loss in Q2 to be in the range of $4.9 to $4.4 million loss. As a reminder, our full-year guidance is unchanged, between $75 to $77 million. Before turning the call back to Yoram, I would like to take a moment to share that I will be leaving Valenz on July 13 to pursue new opportunities. I would like to take this opportunity to thank the exceptional team of Valence for professionalism and education. Valence has incredible technology that is in the high demand across industries. And I'm confident that Yoram and the executive team will take the company to new heights. I'll now turn the call back to Yoram for his closing remarks before opening the coin for Q&A. Thank you, Ray.

On a personal note, I'd like to thank you for your significant contribution to Valence over the recent years. I enjoyed working with you, and I hope our paths cross again in the future. I will note that the company has initiated a search for a replacement, and we look forward to welcoming them to the team in due course. I believe that Valence is well positioned for success, leveraging our superior technology and robust balance sheet focusing on our core markets and committed to driving meaningful growth opportunities as we move further into 2020 states and beyond. With that, I'll now open the call to answer your questions. Operator?

Thank you. We will now begin the question and answer session. If you would like to ask a question, please press star 1 in your telephone keypad. If you would like to withdraw your question, simply press star 1 again. Your first question Jim comes from a line of Quinn Bolton from Needham & Company. Your line is open.

Hey, everyone. This is Neil Young. I'm for Quinn Bolton. Thanks for letting us ask some questions. So a quick question I wanted to ask was, could you touch on what drove the quarter-over-quarter decline in CIB? And within auto, how much of the strength was sustainable and demand versus, you know, timing, inventory, or customer ordering patterns? was the auto upside still largely driven by Mercedes, you know, or are you starting to see contribution from AFI, ecosystem activity, mobile eye-related programs, or any other customers? And then I have a follow-up.

Thanks for the question. So I'll start off by addressing the CID result. When we kind of shed our guidance for the quarter, we said that we anticipate that there's going to be somewhat slowness in Q1 due to seasonality and a very strong Q4. That was actually the case. I want to reiterate that, you know, the guidance for the year is still remaining strong. so it has nothing to do with the demand and the anticipated growth in CAB over the year. Regarding the automotive that you said regarding Mercedes is actually true, it has to do with the demand from Mercedes related to their sales and therefore the uptake comes from Mercedes. Regarding the A5 projects, those are going to kind of factor in in 2027. I just want to make a comment that those projects are advancing well aligned with the timeline, so we feel very confident that those wins would obviously impact us.

Great. Thanks. And then I did want to ask about the full-year guide. So you got in 2Q to 17.4 at the midpoint, you know, puts first half revenue at $34.3 million. And you're talking about the full-year guide, midpoint of 76. I would say that implies a meaningful step up in the second half. I guess, what gives you the confidence in a second half ramp? And, you know, how should investors think about the acceleration? Should it primarily come in CIB, continued automotive strength? And any comment would be helpful. Thanks.

So let me reiterate, the top of 2026 is going to be the first half, our confidence in that has to do with the design wins and then designing into our customers' products. We have visibility to launch of those products throughout the year and therefore the confidence is going to drive the growth in Q2.

My apologies. Your next question comes from a line of Rick Schaefer from Oppenheimer. Your line is open.

Hi, this is Waymok on the line for Rick. Thanks for taking the question, and best of luck to your next endeavor. For my first question, I wanted to follow up on CIB. It looks like it was down, and you mentioned it looked like it was going to be some digestion due to some demand that was told into floor 2. So how do you feel about the digestion so far? and 1Q, do you think that it is bottomed? Do you expect the correction to put into 2Q, or do you see CID returning to growth in 2Q?

So, if I kind of heard your question, you're speaking about growth with CID. CID would grow in 2Q, as we anticipate the company to grow according to the guidance provided for Q2, and it would accelerate during Q3 and Q4 even further. We kind of see around 5% growth for CAB across the year. So, yeah, the growth is there, and it's going to be reflected in the upcoming quarters.

Appreciate it. Thank you for that. As for my follow-up, your A5 technology was selected by NIPI as the standard for automotive connectivity. and there's been a lot of talks about across the industry on physical AI and I noticed that the MIPI Alliance, they launched their physical AI birds of feather group for humanoids and they listed you guys as a member. So I was wondering if you can talk about your involvement with this and are you aiming to establish the same goal of using your connectivity standards for physical AI?

So, thank you for the question. So, as you know, Valencia is a company that believes in standards in order to free the industry to interoperate between different vendors and actually prevent lock-in with one specific vendor. So, we've been promoting this with AFA for quite some time. And we have reported that we've done interoperability tests in O2China just to prove the strength and the power of actually driving standards. Participate in different forms that this is an initial view and whatnot. Our EVP of products, Edo Corrin, is chairing this committee. Great, thank you.

If you'd like to ask a question, press star 1 in your telephone keypad. Your next question comes from a line of Dave Storms from Stonegate. Your line is open.

You mentioned that product, actually. Is this durable given the consolidated?

A product mix, I think that generally speaking, is in line with what we said a few months ago about the long-term goals of this DAB. A slight increase in the last quarter is in line with our long-term goals.

And then maybe just a macro question. Are tariffs maybe still the main headwinds they're facing, or do some of these conflicts in Iran pose additional, you know?

You know, this has been going on for a while now, so I don't think being, you know, commentating on tariffs is something that, you know, we could add value to this discussion. Obviously, supply chain is being a challenge due to increase of demand for AI and memory in silicon. I just want to make sure that the message comes across. We don't see any risk in our ability to meet our targets for the year, and therefore, you You know, it's basically staying on top of the demand for our products and supplying the demand that is being created by our customers for the year and for the coming years.

There are no further questions at this time. I will now turn the call back over to Yoram Selinger for closing remarks.

Thank you all for joining us today for our first quarter of 2026 and your continued support and interest in a less-tenning conductor.

Hope to meet you again in our next earning call.

This concludes today's conference call. Thank you for your participation. You may now disconnect.