Core Insights - Silvaco Group, Inc. announced that Wavetek has adopted its Victory TCAD™ solution for developing next-generation Gallium Nitride (GaN) devices aimed at high-performance connectivity applications in 5G, Wi-Fi, and IoT markets [1][2] Company Overview - Silvaco is a provider of TCAD, EDA software, and SIP solutions that facilitate semiconductor design and digital twin modeling through AI software and innovation [5] - The company is headquartered in Santa Clara, California, and has a global presence with offices in North America, Europe, Brazil, China, Japan, Korea, Singapore, and Taiwan [5] Technology and Applications - The Victory TCAD solution enables Wavetek to design and optimize high electron mobility transistors (HEMT) and pseudomorphic HEMTs (pHEMT) to meet the rising demand for high-efficiency, high-frequency GaN devices [2][3] - Silvaco's platform supports a variety of advanced technologies including RF, Power, Photonics, CMOS, Memory, and Display, which helps semiconductor companies accelerate R&D cycles and reduce time-to-market [3][4] Strategic Importance - The accurate GaN-based device models provided by Silvaco's Victory TCAD solution allow for rapid prototyping and robust device performance evaluation prior to fabrication, which is critical for achieving performance and reliability targets in next-generation RF and power applications [2][3]

Core Insights - Silvaco Group, Inc. has announced a strategic R&D collaboration with Fraunhofer Institute for Silicon Technology (ISIT) to accelerate the development of next-generation Gallium Nitride (GaN) devices using Silvaco's Power Devices Solution for Design Technology Co-Optimization (DTCO) [1][3] Company Overview - Silvaco is a provider of TCAD, EDA software, and SIP solutions that facilitate semiconductor design and digital twin modeling through AI software and innovation [4] - The company serves various markets including display, power devices, automotive, memory, high-performance computing, foundries, photonics, IoT, and 5G/6G mobile markets for complex SoC design [4] - Silvaco is headquartered in Santa Clara, California, with a global presence across North America, Europe, Brazil, China, Japan, Korea, Singapore, and Taiwan [4] Collaboration Details - The partnership will utilize Silvaco's design tools such as Victory TCAD™, Utmost IV™, and SmartSpice™ for DTCO in power and sensor device development [2] - The collaboration aims to enhance Fraunhofer ISIT's capabilities in developing high-performance power electronic and sensor systems, particularly in the post-CMOS process environment [2][5] - Silvaco's Victory Design of Experiments™ (DOE) solution will streamline development workflows and support rapid innovation in evaluating novel process modules and emerging device concepts [2] Industry Impact - This collaboration is seen as a significant advancement in strengthening Europe's semiconductor capabilities and advancing the global evolution of GaN devices [3] - The partnership will not only accelerate development efforts at Fraunhofer ISIT but also enhance Silvaco's TCAD tools to meet future device design demands [3] - Fraunhofer ISIT will also train students at local universities on Silvaco's Victory TCAD™ platform, preparing the next generation of semiconductor device engineers [3]

Core Insights - Silvaco Group, Inc. is hosting a tech talk titled "The Diffusion of Innovation: Investing in the Ecosystem Expansion" to discuss its ecosystem expansion for innovative products [1][2][5] - The event will provide insights into Silvaco's Fab Technology Co-Optimization™ (FTCO) solution and include a Q&A session with management [2][5] Event Details - The tech talk is scheduled for June 25, 2025, at 10:00 AM Eastern Time and will be available via live webcast and replay on the company's investor relations website [3][5] - Ian Chan, the Chief Revenue Officer, will be the presenter for the event [5] Company Overview - Silvaco is a provider of TCAD, EDA software, and SIP solutions that facilitate semiconductor design and digital twin modeling through AI [4] - The company's solutions cater to various markets, including display, power devices, automotive, memory, high-performance computing, foundries, photonics, IoT, and 5G/6G mobile markets [4] - Silvaco is headquartered in Santa Clara, California, and has a global presence with offices in North America, Europe, Brazil, China, Japan, Korea, Singapore, and Taiwan [4]

Financial Data and Key Metrics Changes - The company reported a 10% increase in revenue and a 13% growth in bookings for 2024 [6][8] - The annual contract value (ACV) grew by 21% from Q1 2024 to Q1 2025, indicating strong underlying business growth [24][25] - Gross margins are forecasted to be in the range of 83% to 86%, with last year's margin at 86% [26] Business Line Data and Key Metrics Changes - The company operates three main product lines: TCAD, EDA, and silicon-based IP, with TCAD being the foundational business [5][6] - The introduction of FTCO has expanded the total addressable market (TAM) from $3.3 billion to $4.4 billion [20] - The company added nine new customers in AI photonics, contributing to 23% of bookings in Q1 [11] Market Data and Key Metrics Changes - The company is focusing on fast-growing markets, particularly power, photonics, and memory, with significant opportunities in automotive and IoT devices [13][14] - The photonics market is described as being larger than the semiconductor market, with the company positioned to provide solutions for digital twin simulations [40][41] - The company anticipates that 10% to 15% of its revenue will come from China, with potential to exceed this forecast [51] Company Strategy and Development Direction - The company aims to differentiate itself through strategic acquisitions, such as TechX and OPC, to enhance its product offerings and market reach [7][17] - The focus is on expanding in the foundry market and enhancing capabilities in photonics and advanced CMOS technology [32][34] - The company is leveraging AI to improve design processes and manufacturing efficiency, aiming for a future where chip design and manufacturing are integrated through digital twin models [79] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's forecasts despite macroeconomic uncertainties [8][9] - The company has been proactive in managing risks associated with the China market, maintaining transparency with regulatory bodies [49][50] - The management highlighted the importance of adapting to market changes and learning from past experiences to mitigate risks [51][52] Other Important Information - The company has achieved ISO 9001 certification, enhancing its credibility in the market [6] - The FTCO product is a patented technology aimed at optimizing fab processes, which is expected to drive significant future revenue [54][61] Q&A Session Summary Question: What are the biggest opportunities in your total addressable market? - The company focuses on fast-growing markets, particularly power, photonics, and memory, with significant potential in the foundry business [30][31] Question: How is the company positioned in the TCAD market? - The company is the number two player in the TCAD market, with a strong focus on expanding its market share through strategic initiatives [36][37] Question: What is the outlook for the China market? - The company expects to derive 10% to 15% of its revenue from China, with plans to close delayed orders in the upcoming quarters [51][52] Question: Can you explain the FTCO product offering? - FTCO is a patented technology aimed at bridging the gap between design and fab processes, enhancing yield and efficiency in chip manufacturing [54][61] Question: How is AI impacting the company's operations? - The company is utilizing AI to enhance design processes and manufacturing efficiency, aiming for a future where all steps in chip manufacturing are integrated [79]

Core Insights - Silvaco Group, Inc. will participate in a fireside chat at the Rosenblatt 5th Annual Technology Summit on June 11, 2025, featuring key executives including CEO Dr. Babak Taheri, Interim CFO Keith Tainsky, and Chief Revenue Officer Ian Chen [1] Company Overview - Silvaco is a provider of TCAD, EDA software, and SIP solutions that facilitate semiconductor design and AI through innovative software [3] - The company's solutions are utilized in various sectors including display, power devices, automotive, memory, high-performance computing, foundries, photonics, IoT, and 5G/6G mobile markets for complex SoC design [3] - Silvaco is headquartered in Santa Clara, California, and has a global presence with offices in North America, Europe, Brazil, China, Japan, Korea, Singapore, and Taiwan [3]

Core Insights - Silvaco Group, Inc. announced that Alps Alpine Co., Ltd. has adopted Jivaro Pro, a solution for integrated circuit development and verification, enhancing productivity and reducing design schedule risk [1][3] - Jivaro Pro accelerates SPICE simulation speeds by up to 15 times while maintaining high accuracy, making it suitable for technologies from 180nm down to 3nm [2][7] - The introduction of Jivaro Pro is expected to significantly improve engineering productivity by reducing post-layout simulation times, with at least a 5X improvement observed at the 40nm and 55nm nodes [4][6] Company Overview - Silvaco is a provider of TCAD, EDA software, and SIP solutions, focusing on semiconductor design and digital twin modeling through AI software and innovation [6] - The company serves various markets including automotive, memory, high-performance computing, and 5G/6G mobile markets, with a global presence [6]

Financial Performance - Silvaco Group, Inc. reported a quarterly loss of $0.07 per share, missing the Zacks Consensus Estimate of $0.01, compared to earnings of $0.12 per share a year ago, representing an earnings surprise of -800% [1] - The company posted revenues of $14.09 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 10.81%, and down from $15.89 million year-over-year [2] - Over the last four quarters, Silvaco has surpassed consensus EPS estimates two times and topped consensus revenue estimates just once [2] Stock Performance - Silvaco Group, Inc. shares have declined approximately 31.4% since the beginning of the year, while the S&P 500 has decreased by 4.7% [3] - The current Zacks Rank for the stock is 3 (Hold), indicating that shares are expected to perform in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.04 on revenues of $17.35 million, and for the current fiscal year, it is $0.15 on revenues of $70.25 million [7] - The outlook for the Electronics - Semiconductors industry, where Silvaco operates, is currently in the top 38% of over 250 Zacks industries, suggesting a favorable environment for performance [8]

Silvaco Group (SVCO) Q1 2025 Earnings Call May 07, 2025 05:00 PM ET Company Participants Gregory McNiff - Managing DirectorBabak Taheri - Director & CEOKeith Tainsky - Interim CFOCraig Ellis - Director of ResearchRobert Mertens - Equity Research Associate Conference Call Participants Blair Abernethy - Managing Director, Sr. Research AnalystChristian Schwab - Senior Research Analyst Operator and welcome to Silvaco's First Quarter Fiscal Year twenty twenty five Conference Call. At this time, all participants ...

Silvaco Group (SVCO) Q1 2025 Earnings Call May 07, 2025 05:00 PM ET Speaker0 and welcome to Silvaco's First Quarter Fiscal Year twenty twenty five Conference Call. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question and answer session. Please note this event is being recorded. I would now like to turn the conference over to Greg McNiff, Investor Relations for SEVARCO. Please go ahead. Speaker1 Thank you. Joining me on the call today are Bhabha ...

[PART I. Financial Information](index=3&type=section&id=PART%20I.%20Financial%20Information) This section presents the unaudited condensed consolidated financial statements, management's discussion and analysis, and related disclosures [Financial Statements (unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20%28unaudited%29) This section presents the unaudited condensed consolidated financial statements for Silvaco Group, Inc. as of March 31, 2025, and for the three-month periods ended March 31, 2025 and 2024 [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to **$138.1 million** from **$142.3 million**, while total liabilities increased to **$54.5 million** from **$42.3 million**, leading to a decline in stockholders' equity Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total current assets** | $99,922 | $107,280 | | **Total assets** | $138,135 | $142,345 | | **Total current liabilities** | $46,744 | $34,488 | | **Total liabilities** | $54,542 | $42,262 | | **Total stockholders' equity** | $83,593 | $100,083 | - Goodwill increased from **$9.0 million** to **$14.3 million**, and Intangible assets increased from **$4.4 million** to **$10.0 million**, reflecting the recent acquisition[6](index=6&type=chunk) - Accrued expenses and other current liabilities rose significantly from **$19.8 million** to **$32.4 million**, largely due to the accrued litigation claim[6](index=6&type=chunk) [Condensed Consolidated Statements of (Loss) Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20%28Loss%29%20Income) For the three months ended March 31, 2025, the company reported a net loss of **$19.3 million**, a stark contrast to the **$1.4 million** net income in the same period of 2024, driven by decreased revenue and a substantial litigation claim Q1 2025 vs. Q1 2024 Income Statement (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total revenue | $14,092 | $15,889 | | Gross profit | $11,076 | $13,916 | | Total operating expenses | $30,708 | $11,528 | | Operating (loss) income | $(19,632) | $2,388 | | Net (loss) income | $(19,273) | $1,378 | | Basic and diluted EPS | $(0.67) | $0.07 | - A significant charge of **$13.1 million** for an 'Estimated litigation claim' was recorded in Q1 2025, which was the primary driver of the operating loss[9](index=9&type=chunk) [Condensed Consolidated Statements of Comprehensive (Loss) Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20%28Loss%29%20Income) The company reported a comprehensive loss of **$19.1 million** for Q1 2025, primarily due to the net loss, slightly offset by foreign currency translation adjustments Q1 2025 vs. Q1 2024 Comprehensive (Loss) Income (in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net (loss) income | $(19,273) | $1,378 | | Other comprehensive income (loss) | $206 | $(185) | | Comprehensive (loss) income | $(19,067) | $1,193 | [Consolidated Statements of Stockholders' Equity](index=6&type=section&id=Consolidated%20Statements%20of%20Stockholders%27%20Equity) Total stockholders' equity decreased from **$100.1 million** to **$83.6 million** due to the net loss of **$19.3 million**, partially offset by stock-based compensation expense - The accumulated deficit increased from **$(28.0) million** to **$(47.3) million** due to the net loss of **$19.3 million** in Q1 2025[14](index=14&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities was **$1.1 million**, while investing activities provided **$11.4 million**, primarily from marketable securities maturities offsetting acquisition costs, leading to a **$9.9 million** increase in cash Q1 2025 vs. Q1 2024 Cash Flows (in thousands) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(1,135) | $(2,572) | | Net cash provided by (used in) investing activities | $11,404 | $(10) | | Net cash (used in) provided by financing activities | $(503) | $3,873 | | Net increase in cash and cash equivalents | $9,883 | $1,318 | - A non-cash charge of **$13.1 million** for the estimated litigation claim was a major adjustment reconciling net loss to operating cash flow[17](index=17&type=chunk) - Investing activities were dominated by **$23.0 million** in maturities of marketable securities and a **$11.5 million** cash payment for the acquisition of Process Proximity Compensation[17](index=17&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) The notes detail accounting policies, the **$11.5 million** acquisition of Cadence's OPC tool suite, a **$13.1 million** litigation claim, revenue recognition, and the subsequent acquisition of Tech-X Corporation - On March 4, 2025, the company acquired Cadence's Process Proximity Compensation (OPC) product line for **$11.5 million** in cash, resulting in **$5.3 million** of goodwill and **$6.0 million** of intangible assets[44](index=44&type=chunk)[45](index=45&type=chunk)[47](index=47&type=chunk) - The company recorded an additional charge of **$13.1 million** for an estimated litigation claim related to the Nangate lawsuit, bringing the total probable loss estimate to **$24.4 million** based on a preliminary settlement agreement[78](index=78&type=chunk) - As of March 31, 2025, the company had **$33.7 million** in remaining performance obligations, with approximately **45%** expected to be recognized as revenue over the next 12 months[41](index=41&type=chunk) - Subsequent to the quarter end, on April 29, 2025, the company acquired Tech-X Corporation for **$5.0 million** in cash and stock, plus up to **$2.0 million** in contingent consideration[83](index=83&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=20&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the **11%** year-over-year revenue decline to softening demand and economic challenges, with the significant net loss primarily driven by a **$13.1 million** litigation charge, while strategic acquisitions enhance product offerings and liquidity remains strong Q1 2025 vs. Q1 2024 Results of Operations (in thousands) | Metric | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Total revenue | $14,092 | $15,889 | (11)% | | Gross profit | $11,076 | $13,916 | (20)% | | Operating (loss) income | $(19,632) | $2,388 | (922)% | | Net (loss) income | $(19,273) | $1,378 | (1,499)% | - Bookings decreased to **$13.7 million** in Q1 2025 from **$16.1 million** in Q1 2024, reflecting a decline in orders from Asia due to economic challenges and U.S.-China trade tensions[89](index=89&type=chunk)[131](index=131&type=chunk) - Operating expenses increased **166%** YoY, primarily due to a **$13.1 million** estimated litigation claim, **$1.5 million** in stock-based compensation, and a **$0.7 million** increase in acquisition-related legal fees[118](index=118&type=chunk)[125](index=125&type=chunk)[126](index=126&type=chunk) Reconciliation of GAAP to Non-GAAP Operating (Loss) Income (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Operating (loss) income (GAAP)** | **$(19,632)** | **$2,388** | | Acquisition-related estimated litigation claim and legal costs | $13,795 | $594 | | Stock-based compensation expense | $2,277 | $— | | Other adjustments | $1,065 | $336 | | **Non-GAAP operating (loss) income** | **$(2,495)** | **$3,318** | [Quantitative and Qualitative Disclosures About Market Risk](index=32&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a smaller reporting company, Silvaco is exempt from providing quantitative and qualitative disclosures about market risk - As a smaller reporting company, Silvaco is exempt from providing quantitative and qualitative disclosures about market risk[162](index=162&type=chunk) [Controls and Procedures](index=32&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting during the quarter - The CEO concluded that the company's disclosure controls and procedures were effective at the end of the reporting period[163](index=163&type=chunk) - No changes in internal control over financial reporting (ICFR) occurred during the quarter that have materially affected, or are reasonably likely to materially affect, the company's ICFR[164](index=164&type=chunk) [PART II. Other Information](index=33&type=section&id=PART%20II.%20Other%20Information) This section covers legal proceedings, risk factors, equity sales, and other required disclosures [Legal Proceedings](index=33&type=section&id=Item%201.%20Legal%20Proceedings) This section directs readers to Note 11 of the unaudited condensed consolidated financial statements for information regarding the company's current legal proceedings, specifically the Nangate litigation - Information regarding legal proceedings is detailed in Note 11 of the financial statements[166](index=166&type=chunk) [Risk Factors](index=33&type=section&id=Item%201A.%20Risk%20Factors) The company outlines significant risks including intense competition, dependence on the cyclical semiconductor industry, economic downturns, potential litigation, and risks associated with being a 'controlled company' due to majority ownership - The company faces significant competition from larger entities like Synopsys, Cadence, and Siemens EDA, which have greater resources[169](index=169&type=chunk)[170](index=170&type=chunk) - The business is highly dependent on the cyclical semiconductor and photonics industries, and economic downturns, especially in China (which accounted for **14%** of revenue in Q1 2025), can significantly reduce sales[180](index=180&type=chunk)[183](index=183&type=chunk)[187](index=187&type=chunk) - The Nangate litigation poses a significant financial risk, with a potential settlement leading to a **$13.1 million** charge in Q1 2025 and a potential appellate bond of up to **$35.4 million** if a settlement is not finalized[312](index=312&type=chunk) - The company is a 'controlled company' as the Pesic family holds over **50%** of the voting power, exempting it from certain Nasdaq corporate governance requirements, such as having a majority of independent directors[292](index=292&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=65&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company's IPO on May 13, 2024, generated **$114.0 million** in gross proceeds, with net proceeds of **$106.0 million** used for general corporate purposes and debt repayment - The IPO on May 13, 2024, generated gross proceeds of **$114.0 million** and net proceeds of **$106.0 million**[354](index=354&type=chunk) - Proceeds were used for general corporate purposes and to repay **$2.0 million** of the 2022 Credit Line and **$4.3 million** of the East West Bank Loan[355](index=355&type=chunk) [Defaults Upon Senior Securities](index=65&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reports no defaults upon senior securities - The company reports no defaults upon senior securities[356](index=356&type=chunk) [Mine Safety Disclosures](index=65&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) The company reports no mine safety disclosures - The company reports no mine safety disclosures[356](index=356&type=chunk) [Other Information](index=65&type=section&id=Item%205.%20Other%20Information) The company reports no other information under this item - The company reports no other information under this item[356](index=356&type=chunk) [Exhibits](index=66&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including key legal documents and officer certifications - The report includes key legal documents as exhibits, such as the Asset Purchase Agreement for the Cadence OPC acquisition and officer certifications required by the Sarbanes-Oxley Act[357](index=357&type=chunk)