Financial Data and Key Metrics Changes - Total first quarter revenue was $4.3 million, approximately $300,000 above the midpoint of guidance, but down 28% from Q1 2024 and down 24% compared to Q4 2024 [30] - New product revenue in Q1 was $3.8 million, down 23% from Q1 2024 and down 19% compared to Q4 2024 [30] - Non-GAAP gross margin in Q1 was 45.7%, significantly lower than 71.3% in Q1 2024 and 62.9% in Q4 2024 [31] - Non-GAAP net loss was $1.1 million or $0.07 per diluted share, compared to a net income of $1.7 million or $0.12 per diluted share in Q1 2024 [32] Business Line Data and Key Metrics Changes - Mature product revenue was $600,000, down from $1.1 million in Q1 2024 and $1 million in Q4 2024 [30] - The decrease in total revenue and new product revenue was primarily due to the timing of large eFPGA IP contracts [31] Market Data and Key Metrics Changes - The defense industrial base is increasingly interested in using Intel ETNA for new designs, indicating strong market demand for eFPGA hard IP [14] - The total market for discrete FPGA devices is approximately $1.5 billion, with significant interest from the defense sector [14] Company Strategy and Development Direction - The company aims to capitalize on its unique position as the first available source for eFPGA hard IP for Intel 18A technology, focusing on integration to drive growth [10][14] - The partnership with Faraday is expected to generate production eFPGA Hard IP license revenue beginning in the second half of 2025 [16] - The company is exploring storefront opportunities and has engaged in discussions regarding potential sales of SensiML [28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving solid revenue growth, non-GAAP profitability, and positive cash flow for the full year 2025 despite a slower start [45] - The company anticipates a revenue rebound beginning in Q3, with a full-year non-GAAP gross profit margin expected to be in the low 60% range [37] Other Important Information - The company raised approximately $1.5 million from institutional investors and $1.2 million net from an ATM offering [35] - The strategic RadHard FPGA government contract is valued at approximately $6.6 million, with additional funding modifications expected [18] Q&A Session Summary Question: Can you walk us through the ramp of Intel 18A and its revenue stream? - Management indicated that the revenue stream will include both licensing and royalties, with significant interest from both defense and commercial markets [48][54] Question: What are the key drivers of revenue ramp through the year? - Key drivers include ongoing Anafuse FPGA business, the strategic RadHard contract, and new IP contracts, particularly in the second half of the year [58][60] Question: Can you provide insights on storefront opportunities? - Management highlighted several opportunities in the funnel, including government RFPs and interest from the Intel chiplet ecosystem [66] Question: How does the company plan to address the $1.5 billion FPGA market? - The company aims to reduce verification costs and integrate eFPGA into ASICs, which could lower overall costs for defense applications [70][72] Question: Are opportunities with Faraday limited to the announced node? - Management expressed interest in exploring smaller nodes, indicating potential for future collaborations beyond the current 22nm node [75]

Core Insights - Ansys has announced thermal and multiphysics signoff tool certifications for designs using Intel's 18A process technology, enhancing the reliability of advanced semiconductor systems for AI, GPUs, and HPC applications [2][8] - The collaboration between Ansys and Intel Foundry includes a comprehensive multiphysics signoff analysis flow for Intel's EMIB technology, facilitating the development of multi-die 3D integrated circuit systems [2][4] Group 1: Certification and Tools - Ansys RedHawk-SC and Totem are recognized for their speed, accuracy, and capacity in analyzing power integrity and reliability of Intel's 18A RibbonFET GAA transistors with PowerVia backside power delivery [3][8] - HFSS-IC Pro, a new addition to the HFSS-IC product family, is introduced for scalable electromagnetic analysis, certified for on-chip electromagnetic integrity in various telecommunication applications [3][8] - The qualification process for RedHawk-SC, Totem, and HFSS-IC Pro is ongoing for the Intel 18A high-performance process node, with customers able to request the latest Intel PDK for early design work [5][8] Group 2: Collaboration and Ecosystem - Ansys is joining the Intel Foundry Chiplet Alliance to develop a secure ecosystem for designing and manufacturing interoperable chiplets, enhancing multi-die assembly efficiency [6][7] - The collaboration aims to advance chiplet technology and improve the performance and integration of advanced computing systems through the EMIB-T technology, which will include through-silicon vias [4][7] - Ansys emphasizes the importance of precise tools for ensuring reliability in semiconductor systems, reinforcing its commitment to providing open-source and interoperable technology [7][8]