Financial Data and Key Metrics Changes - For Q1 2025, the company reported gross bookings of $13.7 million, revenue of $14.1 million, and a non-GAAP gross margin of 82% [8][28] - Non-GAAP operating loss was $2.5 million, and non-GAAP net loss was $1.9 million, translating to a net loss per share of $0.07 [9][29] - The company expects Q2 2025 revenue in the range of $12 million to $16 million and full year 2025 revenue between $64 million and $70 million, reflecting a year-over-year increase of up to 17% [9][37] Business Line Data and Key Metrics Changes - TCAD bookings were down 42% year-over-year, while EDA bookings increased by 48% year-over-year, primarily due to the addition of the PPC product line [31] - Revenue from software licenses accounted for 71% of total revenue, while maintenance and services accounted for 29% [32] - The SiP product line saw an increase in revenue of 89% year-over-year [32] Market Data and Key Metrics Changes - Revenue from the Americas decreased by 34% year-over-year, while Asia Pacific was down 5% year-over-year; however, EMEA revenue increased by 8% year-over-year [33] - The company added nine new customers for AI infrastructure in Q1 2025, which accounted for 23% of quarterly bookings [16] Company Strategy and Development Direction - The company launched an acquisition strategy targeting high-growth sectors such as AI, photonics, and IoT, with recent acquisitions expected to add over $600 million in incremental serviceable addressable market (SAM) [6][18] - The introduction of annual contract value (ACV) as a new performance metric aims to provide better insight into recurring revenue and minimize the impact of quarterly order timing [8][36] - The company is focused on driving innovation through advanced R&D and maintaining a disciplined approach to managing operating expenses and cash flow [10][24] Management's Comments on Operating Environment and Future Outlook - Management acknowledged short-term macroeconomic headwinds that resulted in the deferral of certain customer orders, representing less than 10% of annual revenue [7][26] - Despite these challenges, management remains confident in the long-term growth trajectory, supported by strong market demand and strategic expansion [7][10] - The company expects to return to 15% top-line growth once macroeconomic conditions stabilize [39] Other Important Information - The company recognized an incremental $13.1 million charge related to ongoing litigation, impacting operating expenses [26] - The total SAM expanded from $3.8 billion in 2024 to $4.4 billion in 2025 due to recent acquisitions [18] Q&A Session Summary Question: Clarification on acquisition-related revenue in guidance - Management clarified that the PPC acquisition is expected to contribute between $3 million to $5 million for the year, and TechX is expected to add another $1 million [41][43] Question: Impact of conservatism in guidance due to macro conditions - Management estimated that the delays would account for about 10% of total revenue, which has already been factored into the new guidance [44][46] Question: Timing for additional acquisitions - Management indicated that while they are focused on integrating recent acquisitions, they are open to pursuing additional deals, potentially sooner than initially expected [48][50] Question: Progress on FTCO pipeline - Management reported ongoing evaluations with existing customers in memory, advanced CMOS, and power semiconductors, with expectations for production in the second half of the year [56][58] Question: Details on order push-outs - Management noted that the order delays were primarily in Asia and affected TCAD and IP products, with no cancellations but rather delays in customer decision-making [59][60] Question: Expected operating expenses for the year - Management provided an estimate of approximately $5 million in operating expenses related to the recent acquisitions for the remainder of the year [64][66] Question: Long-term growth plans amidst macroeconomic challenges - Management reaffirmed confidence in the fundamental aspects of the business, expecting up to 17% revenue growth for the full year [70][72]