Core Viewpoint - The integration of AI in EDA tools is revolutionizing chip design by enhancing efficiency, quality, and reducing development costs, thereby accelerating time-to-market for products [1][5][13]. Group 1: EDA AI System Features - Siemens EDA emphasizes five key characteristics for its AI tools: verifiability, usability, versatility, robustness, and accuracy, ensuring that AI outputs are reliable and applicable in chip design [2][3]. - The EDA AI System integrates internal data, examples, and customer-authorized data to eliminate data silos and enhance cross-functional collaboration [3][4]. Group 2: AI Applications in Chip Design - The EDA AI System has been deeply integrated into various stages of chip design, including front-end verification, back-end optimization, physical verification, testing, and yield improvement [5]. - Calibre Vision AI significantly accelerates the signoff process by identifying design violations and streamlining the identification and correction of issues, reducing the time required by half [7]. - Solido's IC platform incorporates generative and agent-based AI technologies, simplifying operations in simulation and enhancing productivity across the IC development process [8]. - Questa One redefines IC verification as a self-optimizing intelligent system, reducing manual testing efforts by 10 to 100 times and shortening verification cycles [9]. Group 3: Performance Enhancements - Aprisa AI offers next-generation AI capabilities for design exploration, achieving a 10x increase in design efficiency, a one-third reduction in tape-out cycles, and a 10% optimization in power/performance/area (PPA) metrics [10]. - Tessent employs unsupervised machine learning and statistical diagnostic AI algorithms to enhance yield analysis, quickly identifying root causes of yield loss and accelerating yield improvement for production projects [11].

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]

Core Insights - Siemens Digital Industries Software has announced an agreement to acquire Excellicon, enhancing its EDA portfolio with Excellicon's software for timing constraints management [1][2] - The acquisition aims to improve power, performance, and area (PPA) for System-on-a-Chip (SoC) designers, accelerating design closure and enhancing constraint correctness [1][4] - Excellicon's solutions will complement Siemens' existing EDA offerings, expanding into key market segments and improving overall design processes [4][5] Company Overview - Siemens Digital Industries Software focuses on digital transformation for organizations of all sizes, utilizing software, hardware, and services from the Siemens Xcelerator business platform [6][7] - The company employs around 70,000 people globally and aims to empower customers in their digital and sustainability transformations across the entire value chain [7] - Siemens AG, the parent company, generated revenue of €75.9 billion and net income of €9.0 billion in fiscal 2024, employing approximately 312,000 people worldwide [9]