Financial Data and Key Metrics Changes - In Q4, the company delivered $18.3 million in bookings, near the high end of the guided range, with strong contributions from IP products and TCAD solutions [14] - Revenue reached $18.3 million in the quarter, above the high end of the guided range, with TCAD and IP revenue growing 34% and almost 3x respectively [14][15] - GAAP gross margin in Q4 was 83.3%, and non-GAAP gross margin was 85.6%, reflecting a sequential increase of roughly five full points [15] - GAAP operating loss improved to a $6.8 million loss, while non-GAAP operating loss was just over $1 million, ahead of expectations [17][18] Business Line Data and Key Metrics Changes - TCAD bookings increased 70% sequentially to $9.2 million, driven by the adoption of the AI-driven FTCO solution [6][14] - The semiconductor IP business delivered record revenue and bookings of over $5 million, significantly boosted by the Mixel acquisition [7][14] - EDA bookings and revenue saw a significant decline in Q4, with bookings just under $4 million and revenue of $4.4 million [9][15] Market Data and Key Metrics Changes - The APAC region contributed significantly to growth, accounting for 57% of total revenue in Q4, driven by the FTCO solution [15] - The MIPI PHY market is valued at over $300 million per year, with the company holding a relatively modest share [7] Company Strategy and Development Direction - The company is focused on accelerating its AI-driven solutions, particularly in semiconductor manufacturing process development, which is expected to be a long-term growth driver [5][12] - The restructuring efforts have led to improved gross margins and increased R&D capacity, with a commitment to reducing annualized non-GAAP operating expenses by at least $20 million [17][19] - The company anticipates steady growth in the IP business, with expectations for significant growth in TCAD as contract renewals increase [11][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the turnaround plan, noting that the execution is ahead of expectations and positioning the company for a faster recovery [4][12] - The company expects to approach operating cash flow breakeven in Q2 and achieve positive operating cash flow in Q3 [18][19] - Management highlighted the importance of AI in transforming semiconductor manufacturing processes and improving operational efficiencies [12][24] Other Important Information - The company has seen a significant increase in interest and adoption of its AI solutions, indicating a positive trend for future growth [5][6] - The company is committed to maintaining financial discipline while focusing on key growth opportunities to set the stage for profitable growth [19] Q&A Session Summary Question: Growth priorities and execution - Management highlighted the need for financial flexibility and successful execution of cost reduction programs, leading to improved morale and focus on new opportunities [22][24] Question: Revenue recognition for FTCO deal - A significant portion of the FTCO revenue was recognized in Q4, with the remainder to be recognized over the contract term [28] Question: Bookings expectations by segment - Continued strength in TCAD is expected in Q1, with IP remaining stable and EDA anticipated to be flat sequentially [36] Question: Acceleration of orders from older customers - The pipeline for TCAD growth is expected to be strong in 2026, with a focus on selling the value of new process development paradigms [42] Question: Growth from Mixel acquisition - The company anticipates double-digit revenue growth in the current calendar year, driven by the Mixel acquisition and strong TCAD performance [51][52]

Financial Data and Key Metrics Changes - In Q4, the company delivered $18.3 million in bookings, near the high end of the guided range, with strong contributions from IP products and TCAD solutions [14] - Revenue reached $18.3 million in the quarter, above the high end of the guided range, with TCAD and IP revenue growing 34% and almost 3x respectively [14][15] - GAAP gross margin in Q4 was 83.3%, and non-GAAP gross margin was 85.6%, reflecting a sequential increase of roughly five full points [15] - GAAP operating loss improved to a $6.8 million loss, while non-GAAP operating loss was just over $1 million, ahead of expectations [17][18] Business Line Data and Key Metrics Changes - TCAD business saw a 70% sequential increase in bookings to $9.2 million and a 34% sequential increase in revenue to $8.7 million, driven by the adoption of the AI-driven FTCO solution [6][14] - The semiconductor IP business delivered record revenue and bookings of over $5 million, significantly boosted by the Mixel acquisition [7][14] - EDA bookings and revenue declined significantly in Q4, with bookings just under $4 million and revenue of $4.4 million, following record numbers in Q3 [9][15] Market Data and Key Metrics Changes - The APAC region contributed significantly to growth, accounting for 57% of total revenue in Q4, driven by the FTCO solution [15] - The MIPI PHY market is valued at over $300 million per year, with the company holding a relatively modest share, indicating potential for growth [7] Company Strategy and Development Direction - The company is focused on accelerating its AI-driven solutions, particularly in semiconductor manufacturing process development, which is expected to be a long-term growth driver [5][12] - The restructuring efforts have improved gross margins and increased R&D capacity, with a commitment to reducing annualized non-GAAP operating expenses by at least $20 million [17][19] - The company anticipates steady growth in the IP business, with expectations for significant growth in TCAD as contract renewals increase [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the turnaround plan, noting that the execution is ahead of expectations and positioning the company for a faster recovery [4][12] - The company expects to approach operating cash flow breakeven in Q2 and to achieve positive operating cash flow in Q3 [18][19] - Management highlighted the importance of AI in transforming semiconductor manufacturing processes, which is expected to enhance yields and throughput [12][24] Other Important Information - The company has executed cost reductions ahead of expectations, leading to a significant decline in the underlying burn rate [18] - The guidance for Q1 2026 includes bookings and revenue expectations of between $15 million and $19 million, with a non-GAAP gross margin around 85% [19] Q&A Session Summary Question: Growth priorities and execution - Management noted the need for financial flexibility and the successful execution of the cost reduction program, which has improved morale and opened new opportunities [22][24] Question: Revenue recognition for FTCO deal - A significant portion of the FTCO revenue was recognized in Q4, with the remainder to be recognized over the contract term [27][28] Question: Adoption process for FTCO - The efficiency in closing and ramping FTCO customers is expected to improve, with a growing pipeline of customers recognizing the value of AI in process development [35] Question: Bookings by segment in Q1 - Continued strength in TCAD is anticipated, with IP expected to remain stable and EDA showing flat performance [36] Question: Growth from Mixel acquisition - The Mixel acquisition is expected to contribute significantly to growth, with double-digit revenue growth anticipated in the current calendar year [46][52]

Financial Data and Key Metrics Changes - In Q4 2025, the company delivered $18.3 million in bookings, near the high end of the guided range, with strong contributions from IP products and TCAD solutions [14] - Revenue reached $18.3 million in Q4, above the high end of the guidance, with TCAD and IP revenue growing 34% and almost 3x respectively [14] - GAAP gross margin in Q4 was 83.3%, and non-GAAP gross margin was 85.6%, reflecting a sequential increase of roughly five full points [15][16] - GAAP operating loss improved to $6.8 million, while non-GAAP operating loss was just over $1 million, ahead of expectations [18][19] - Cash and marketable securities at quarter end was $18.3 million, with expectations to approach operating cash flow breakeven in Q2 and positive operating cash flow in Q3 [19][20] Business Line Data and Key Metrics Changes - TCAD business saw a 70% sequential increase in bookings to $9.2 million and a 34% sequential increase in revenue to $8.7 million, driven by the adoption of the AI-driven FTCO solution [6][14] - The semiconductor IP business delivered record revenue and bookings of over $5 million in Q4, significantly driven by the Mixel acquisition [7][14] - EDA bookings and revenue declined significantly in Q4, with bookings just under $4 million and revenue of $4.4 million, following record performance in Q3 [10][15] Market Data and Key Metrics Changes - The APAC region contributed significantly to growth in Q4, accounting for 57% of total revenue, driven by the FTCO solution [15] - The MIPI PHY market is valued at over $300 million per year, with the company holding a relatively modest share, indicating potential for growth [8] Company Strategy and Development Direction - The company is focused on executing a turnaround plan, with an emphasis on AI-driven solutions and enhancing the TCAD business [4][5] - There is a commitment to reducing annualized non-GAAP operating expenses by at least $20 million, aiming for profitability at flat revenue [18] - The company is prioritizing core products in EDA and leveraging AI tools to improve software development and operational efficiency [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to recover faster than expected, with strong guidance for Q1 2026 [4][20] - The transition to AI-enabled sales is expected to be a long-term tailwind for the business, with significant opportunities identified in the semiconductor manufacturing process [5][13] - Management acknowledged the need for continued focus on execution and the importance of customer support while enhancing product development [11][12] Other Important Information - The company has seen a meaningful inflection in the semiconductor IP business, with expectations for steady growth in this area as they ramp MIPI PRO products [9] - The restructuring efforts have led to improved gross margins and increased R&D capacity, positioning the company for future growth [11][16] Q&A Session Summary Question: Growth priorities and execution - Management highlighted the need for financial flexibility and the successful execution of cost reduction programs, leading to improved morale and focus on new opportunities [22][25] Question: Revenue recognition for FTCO deal - A significant portion of the FTCO revenue was recognized in Q4, with the remainder to be recognized over the contract term [28][29] Question: Adoption process for FTCO - The efficiency in closing and ramping FTCO customers is expected to improve, with a growing pipeline of potential customers [35][36] Question: Segment bookings expectations for Q1 - Continued strength in TCAD is anticipated, with IP expected to remain stable and EDA to be flat sequentially [36] Question: Growth expectations from Mixel acquisition - The Mixel acquisition is expected to contribute to double-digit revenue growth, particularly in the second half of the year [46][51] Question: Performance expectations for business segments in 2026 - The fastest growth is expected in the IP segment, followed by TCAD, while EDA is anticipated to remain stable [55]

Financial Data and Key Metrics Changes - Silvaco reported record quarterly revenue of $18.7 million, up 70% year over year, with bookings increasing 131% to $22.8 million [17][18] - GAAP gross margin improved to 77.9%, up 326 basis points year over year, while non-GAAP gross margin was 81.5%, up 179 basis points [17][18] - GAAP net loss was $5.3 million, an improvement from a $6.6 million loss in the same period last year [18] Business Line Data and Key Metrics Changes - EDA business saw the most growth sequentially in Q3, while TCAD and IP trended down slightly [17] - 74% of revenue came from license revenue, with the remaining 26% from maintenance and service [17] Market Data and Key Metrics Changes - The Americas contributed 55% of total revenue, while APAC represented 40% and EMEA remained flat at 5% [17] Company Strategy and Development Direction - The company aims to focus on key products that are differentiated and to reduce attention on mature products [5][6] - Silvaco plans to strengthen financials by reversing the trend of expenses growing faster than revenue [6][11] - The acquisition of Mixel is expected to drive rapid growth in the IP business, leveraging synergies with Silvaco's existing sales force [8][9] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that financial performance has been disappointing since the IPO, with a focus on achieving profitability at current revenue levels [11][15] - There is optimism regarding the contributions of recent acquisitions, particularly Mixel and Tech-X, expected to drive growth in 2026 [13][20] Other Important Information - A significant cost reduction program has been initiated, targeting an annualized reduction of at least $15 million [19][20] - The company expects to see improvements in gross margins and a flat to down trend in operating expenses [15][20] Q&A Session Summary Question: Transition from board to CEO role and revenue mix-out - Management confirmed that there is substantial opportunity ahead and that they will focus on freeing up resources for key growth areas [22][23] Question: Timeline for cost reductions and forecasting reliability - Most cost reductions are expected to be realized by the end of the fiscal year, with benefits seen in Q1 2026 [25][26] Question: Potential for Silvaco products to become industry standards - Management highlighted the importance of focused markets and customer bases to develop industry-leading products [29][30] Question: Performance of Mixel and its impact - Mixel is praised for its high-quality products and execution, with expectations for substantial growth due to the integration with Silvaco's sales force [33][34] Question: Pipeline and FTCO opportunity - The FTCO product is seen as a significant opportunity, although its adoption has been slower than expected [38][39] Question: Revenue guidance and future growth prospects - Management indicated that while Q4 revenue guidance appears lighter, they expect stronger contributions from acquisitions in 2026 [43][44] - Long-term growth targets are set at double-digit rates, with a focus on stabilizing and growing the existing business [52][53]