Core Insights - Silvaco Group, Inc. reported gross bookings of $13.7 million and revenue of $14.1 million for Q1 2025, reflecting a year-over-year decline of 15% in gross bookings and an 11% decrease in revenue [1][8] - The company signed 9 new customers and expanded relationships with existing clients in key markets such as AI, Photonics, and IoT [1][4] - Silvaco completed the acquisition of Tech-X Corporation, enhancing its product portfolio and expanding its addressable market by an estimated $600 million [1][4] Financial Performance - Revenue of $14.1 million in Q1 2025, down 11% year-over-year and down 21% quarter-over-quarter [8] - TCAD revenue was $7.9 million, a 26% decrease year-over-year, while EDA revenue increased by 8% to $5.1 million, including $1.9 million from the PPC product line [8] - SIP revenue surged by 89% year-over-year to $1.1 million, driven by new bookings in automotive and IoT sectors [8] Customer Acquisition and Market Expansion - The company acquired 9 new customers, with approximately 23% of gross bookings coming from AI infrastructure, Photonics, and IoT markets [4] - Existing customers contributed to 38% of gross bookings, indicating strong retention and expansion opportunities [4] - Partnerships with notable entities, such as Excelliance MOS and Kyung Hee University, were established to advance next-generation technologies [4] Strategic Initiatives - Silvaco's CEO emphasized the importance of innovation and solid fundamentals to sustain customer momentum and drive growth in EDA and TCAD product lines through 2025 [2] - The company is committed to defending shareholder value through performance, transparency, and responsible capital management [2] - A new performance metric, Annual Contract Value (ACV), was introduced to provide additional insight into customer commitments and business momentum [4][22] Financial Outlook - For Q2 2025, Silvaco expects gross bookings in the range of $14.0 million to $18.0 million and revenue between $12.0 million and $16.0 million [12] - Full-year 2025 guidance includes projected revenue of $64.0 million to $70.0 million, representing a 7% to 17% increase from 2024 [12] - Non-GAAP gross margin is anticipated to be between 80% and 83%, compared to 86% in the second quarter of 2024 [12]

Core Insights - Silvaco Group, Inc. announced that Excelliance MOS has adopted its DTCO flow, which includes Victory TCAD™ and UTMOST IV™, to enhance the development of next-generation Silicon Carbide (SiC) power devices [1][2] Company Overview - Silvaco is a leading provider of TCAD, EDA software, and SIP solutions that facilitate semiconductor design and digital twin modeling through AI software and innovation [5] - The company offers solutions applicable across various sectors, including power, memory, photonics, CMOS, and display technologies [4] Technology and Solutions - The DTCO platform from Silvaco streamlines research and development for SiC technology, providing realistic process and accurate device simulation [2] - Silvaco's tools, including Victory Process™ and Victory Device™, support SiC-specific phenomena, enabling precise modeling of next-generation devices [2][3] - The integration of Victory DoE allows for rapid exploration of process variations, while UTMOST IV automates electrical measurements and SPICE model extraction [3] Market Position - Silvaco's simulation solutions are technology-agnostic and designed to empower engineers to innovate with greater speed and accuracy [4] - The company has a global presence with offices in North America, Europe, Brazil, China, Japan, Korea, Singapore, and Taiwan, catering to various markets including automotive, high-performance computing, and 5G/6G mobile [5]

Core Viewpoint - Silvaco Group, Inc. has announced a strategic partnership with Kyung Hee University to advance display technology through AI-driven Digital Twin modeling and FTCO integration [1][2][4] Partnership Details - The collaboration is a four-year initiative that began on February 1, 2025, focusing on Micro-LED and OLED technologies [1][2] - Silvaco will fund Ph.D. students at KHU and work closely with Professor Jin Jang's team to provide high-quality measurement data [2] Technological Integration - The partnership aims to combine experimental data with Silvaco's simulation tools and FTCO solution to create a comprehensive Digital Twin for display technology [2][3] - Silvaco will utilize its Victory TCAD™ simulators along with SmartSpice™ and UTMOST IV™ EDA tools to run simulations and develop a complete FTCO flow [3] Goals and Expectations - The collaboration seeks to demonstrate how FTCO and AI-enabled Digital Twins can enhance the development and production of advanced display technologies [3] - The integration of physical experimentation with virtual modeling is expected to improve decision-making speed and accuracy in manufacturing environments [3][4] Industry Impact - This partnership is seen as a significant advancement in optimizing next-generation display technologies, aiming to unlock new efficiencies in process optimization and yield improvement [4] - Silvaco's expertise in semiconductor design and digital twin modeling positions it well to lead innovations in display manufacturing and related fields [5]

Core Viewpoint - Silvaco Group, Inc. has announced the strategic acquisition of Tech-X Corporation to enhance its capabilities in multi-physics simulation software, which will accelerate innovation in semiconductor design and digital twin modeling through AI [1][3]. Group 1: Acquisition Details - The acquisition of Tech-X Corporation will integrate its multi-physics simulation tools with Silvaco's Victory TCAD platform, enabling customers to create more accurate digital twin models for various applications [2][3]. - Tech-X's expertise in high-performance, multi-node GPU-based computing will significantly improve simulation speed and accuracy for Silvaco's offerings [2][3]. Group 2: Strategic Implications - The CEO of Silvaco emphasized that this acquisition is a significant step in the company's growth strategy, particularly in expanding into AI applications and enhancing their technology and customer base [3]. - The addition of Professor John Cary, with over 40 years of experience in computational physics, is expected to accelerate innovation and expand Silvaco's presence in the growing photonics market [3]. Group 3: Company Background - Silvaco is a provider of TCAD, EDA software, and SIP solutions, serving various markets including semiconductor, photonics, automotive, and 5G/6G mobile [4]. - The company has a global presence with offices in North America, Europe, Brazil, China, Japan, Korea, Singapore, and Taiwan [4].

Core Insights - Silvaco Group, Inc. will release its financial results for Q1 2025 on May 7, 2025, after market close [1] - A conference call will be held at 5:00 p.m. Eastern time to discuss the results and the full year 2025 outlook [1][3] - Supplemental financial results and an earnings presentation will be available on the company's investor website [2] 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, photonics, IoT, and 5G/6G mobile markets [3] - Silvaco is headquartered in Santa Clara, California, with a global presence across North America, Europe, Brazil, China, Japan, Korea, Singapore, and Taiwan [3]

SANTA CLARA, Calif., April 02, 2025 (GLOBE NEWSWIRE) -- Silvaco Group, Inc. (Nasdaq: SVCO) (“Silvaco” or the “Company”), a provider of TCAD, EDA software and SIP solutions that enable semiconductor design and digital twin modeling through AI software and innovation, today announced that ProMOS Technologies has adopted Silvaco’s Victory TCAD™ simulation solution to accelerate the development of next-generation silicon photonics devices. By leveraging Silvaco’s cutting-edge technology, ProMOS aims to enhance ...

Core Insights - Silvaco Group, Inc. announced that ProMOS Technologies has adopted its Victory TCAD simulation solution to enhance the development of next-generation silicon photonics devices [1][4] - The Victory TCAD solution is designed to provide accurate modeling of semiconductor manufacturing processes, ensuring that simulated outcomes align closely with actual production [2] - The solution supports various applications, including Photonics, CMOS, Power, Memory, and Display technologies, facilitating efficient process optimization and rapid design iteration [3] Company Overview - Silvaco is a provider of TCAD, EDA software, and SIP solutions, focusing on semiconductor design and AI innovation across multiple markets, including automotive, memory, and 5G/6G mobile [5] - The company is headquartered in Santa Clara, California, with a global presence in regions such as North America, Europe, Brazil, China, Japan, Korea, Singapore, and Taiwan [5]

Company Overview - Silvaco Group, Inc. is a provider of TCAD, EDA software, and SIP solutions that facilitate semiconductor design and digital twin modeling through AI software and innovation [10] - 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 [10] Leadership Changes - Chief Financial Officer Ryan Benton has resigned effective April 11, 2025, to pursue a new career opportunity outside the semiconductor design industry [1] - Dr. Babak Taheri, the Chief Executive Officer, will take on the roles of principal financial officer and principal accounting officer on an interim basis following Mr. Benton's departure [2] - Keith Tainsky, who leads the Financial Planning and Analysis function, will report directly to Dr. Taheri as Interim Chief Financial Officer [2] - Sherry Lin, Corporate Controller, will also report directly to Dr. Taheri, having joined Silvaco in November 2023 [2] Transition and Future Guidance - The company has begun the process of engaging a search firm to identify Mr. Benton's replacement [3] - Silvaco has reaffirmed its previously disclosed guidance for the first quarter and full year fiscal 2025, with first quarter results expected to be reported on May 7, 2025 [4]

Financial Data and Key Metrics Changes - For fiscal year 2024, the company reported gross bookings of $65.8 million, reflecting a 13% increase from 2023, and revenue of $59.7 million, representing a 10% increase from 2023 [8][31] - Non-GAAP gross margin improved to 86% from 83% in 2023, while non-GAAP operating income increased to $5.5 million from $4.4 million in 2023 [8][31] - Non-GAAP net income per share rose to $0.25 from $0.17 in 2023, with shares used in the calculation increasing to 26.8 million from 20 million [8][31] Business Line Data and Key Metrics Changes - In Q4 2024, TCAD bookings reached $14.3 million, up 68% year over year, while EDA bookings were $5.5 million, up 31% year over year [27][30] - For the full year 2024, TCAD bookings totaled $46.9 million, a 32% increase, while EDA bookings were $15.4 million [34] Market Data and Key Metrics Changes - In Q4 2024, Asia Pacific revenues were $9.2 million, accounting for 52% of total sales, while the Americas contributed just over $7 million, or 40% of sales [35] - For the full year, Asia Pacific revenues were $31.6 million, representing 53% of sales, with the Americas at $22.5 million, or 38% of sales [35] Company Strategy and Development Direction - The company aims to drive innovation through AI-based semiconductor design, focusing on advanced CMOS geometries and power semiconductors [9][25] - The recent acquisition of Cadence's OPC product line is expected to enhance the company's capabilities in advanced memory manufacturing and foundry operations [17][18] Management's Comments on Operating Environment and Future Outlook - Management expressed excitement about the acquisition of the OPC product line, indicating it will contribute to mid-single-digit revenue by 2026 [18][38] - The company expects gross bookings for 2025 to range between $72 million and $79 million, with revenue projected between $66 million and $72 million [38] Other Important Information - The company added 46 new customers in 2024, with a focus on expanding in power and memory markets [11][92] - The company has a strong cash position, ending December with $87.5 million in cash, cash equivalents, and marketable securities [29] Q&A Session Summary Question: Clarification on the contribution of the acquisition of the Cadence OPC product line - Management indicated that the contribution is expected to be modest for 2025, with more details to be provided in future calls [41][44] Question: Guidance for operating profits and OpEx increase - Management confirmed that the increase in operating expenses is due to both the acquisition and planned growth in R&D and sales [46][47] Question: Customer acquisition and integration with existing products - Management stated that the OPC product will initially be sold as a standalone product but will be integrated into the FTCO platform over the next six to nine months [54][56] Question: Current exposure to China and revenue contribution - Management expects revenue contribution from China to remain flat, around 15% to 20% for 2025 [73] Question: Gross margin guidance and long-term targets - Management explained that gross margin fluctuations are sensitive to revenue changes and that they expect margins to improve as revenue scales [80] Question: Customer acquisition pace and quality - Management anticipates maintaining the pace of customer acquisition but emphasizes that the quality of new customers will be more significant moving forward [88][89]

Financial Performance - In 2024, the company generated $65.8 million in bookings and recognized $59.7 million in revenue, resulting in a net loss of $39.4 million and cash flows used in operating activities of $19.8 million[32]. - The company reported a GAAP operating loss of $40.3 million and a non-GAAP operating income of $5.5 million for 2024, compared to a GAAP operating income of $1.1 million and a non-GAAP operating income of $4.4 million in 2023[32]. - Strategic accounts contributed $40.3 million to total bookings in 2024, with a 37% CAGR in bookings from these accounts over the past two years[86]. - Approximately 53% and 60% of the company's revenue was derived from customers in APAC for the years ended December 31, 2024 and 2023, respectively[114]. - 18% and 23% of the company's revenue was derived from customers in China for the years ended December 31, 2024 and 2023, respectively, with ongoing economic slowdown in China posing risks to future revenue[115]. - 63% and 70% of the company's revenue for the years ended December 31, 2024 and 2023, respectively, was derived from international customers[129]. - The company generated $0.4 million and $0.6 million in revenues from the Middle East in 2024 and 2023, respectively[149]. Market Trends and Opportunities - The semiconductor market is experiencing increased complexity due to the demand for advanced manufacturing processes and new materials, leading to higher development costs and longer time-to-market[39]. - The automotive market is rapidly evolving, with increasing semiconductor content driven by electrification and advanced electronic controls, necessitating the adoption of wide bandgap materials like SiC and GaN[53]. - The memory market is expected to grow significantly, driven by demand for dynamic random-access memory and flash memory products, with new technologies like MRAM being explored[48]. - The IoT market is anticipated to grow as it requires complex SoCs for data processing and connectivity, with a focus on ultra-low energy demands[56]. - The shift to 5G/6G mobile communications is expected to increase demand for sophisticated chip designs, with the company providing unique tools for parasitic reduction and analysis[57]. - High-performance computing applications are driving demand for specialized circuit and memory elements, with the company offering solutions to meet performance, power, and latency requirements[59]. - The company focuses on growth industries such as AI, automotive, and high-performance computing, enabling customers' memory and power devices to play crucial roles in these sectors[6]. - The company aims to expand its market share in the growing display, automotive semiconductor, memory device, and IoT markets, leveraging its established position[81]. Research and Development - The company plans to increase R&D expenditures to expand its presence in established market segments, including low-geometry CMOS technology and photonics, with revenue generated from beta customers in 2023 and 2024[81]. - The company plans to continue investing in research and development, focusing on TCAD, analog and custom design, circuit simulation, and SIP[89]. - The company emphasizes the importance of TCAD, EDA, and SIP solutions to accelerate time-to-market and reduce costs in semiconductor design and manufacturing[60]. - The company provides production-ready silicon-proven SIP solutions, which help customers lower development costs and reduce time to market compared to non-silicon-proven alternatives[64]. - The company's TCAD solutions are designed to reduce time and manufacturing cycles in semiconductor technology development, contributing to cost reductions[66]. - The company has delivered more than 50 standard cell libraries and 96 memory compilers, demonstrating maximal density and routing performance across process technology nodes from 0.35nm to 16nm[75]. Customer Base and Sales Strategy - As of December 31, 2024, the company had over 800 customers globally, including over 200 academic institutions, with revenue distribution of 53% from Asia, 38% from North America, and 9% from Europe[84]. - The company gained 13 new customers in the power end-market and eight new customers in the memory end-market in 2024[86]. - The company aims to expand its customer base by increasing marketing and sales resources, particularly in automotive and IoT segments[86]. - The company plans to continue expanding its sales force both domestically and internationally, requiring significant financial and other resource investments[132]. - The company’s sales and marketing team included 30 regional sales representatives as of December 31, 2024, with an average of over 25 years of sales experience[88]. Competitive Landscape - The company may face increased competition from larger firms with greater resources, impacting its ability to maintain market share and pricing[105]. - Consolidation among customers in the semiconductor and photonics industries could lead to reduced demand for the company's software solutions and services[127]. - The introduction of new software solutions is critical, as failure to innovate could materially adversely affect revenues[123]. - The interoperability of the company's software solutions with customers' use cases and competitors' products is essential for success, and any failure in this area could negatively impact market share and demand[180]. Regulatory and Compliance Risks - The company is subject to various regulatory challenges, including anti-corruption and data privacy laws, which could impact its operations and compliance obligations[97]. - The company faces evolving cybersecurity risks due to remote work and reliance on third-party service providers, which could introduce vulnerabilities into its systems[188]. - The company is subject to various data privacy and security laws, which could lead to regulatory investigations, litigation, and significant fines if not complied with[203]. - The California Consumer Privacy Act (CCPA) allows for fines of up to $7,500 per intentional violation, impacting the company's financial condition[206]. - The EU General Data Protection Regulation (GDPR) imposes fines of up to €20 million or 4% of annual global revenue for non-compliance, which could adversely affect the company[208]. Ownership and Governance - The Pesic Family collectively holds approximately 70.7% of the total outstanding common stock, equating to 20,173,590 shares[223]. - Following the IPO in May 2024, the company became a "controlled company" and is exempt from certain corporate governance requirements[222]. - The Pesic Family has the ability to control all matters affecting the company, including business plans, mergers, and financing activities[225]. - The concentration of ownership by the Pesic Family may delay or prevent changes in control that other stockholders might favor[229]. - The interests of the Pesic Family may conflict with those of other stockholders, potentially affecting decision-making[229].