Financial Data and Key Metrics Changes - The company reported a 10% increase in revenue and a 13% growth in bookings for 2024 [6][8] - The annual contract value (ACV) grew by 21% from Q1 2024 to Q1 2025, indicating strong underlying business growth [24][25] - Gross margins are forecasted to be in the range of 83% to 86%, with last year's margin at 86% [26] Business Line Data and Key Metrics Changes - The company operates three main product lines: TCAD, EDA, and silicon-based IP, with TCAD being the foundational business [5][6] - The introduction of FTCO has expanded the total addressable market (TAM) from $3.3 billion to $4.4 billion [20] - The company added nine new customers in AI photonics, contributing to 23% of bookings in Q1 [11] Market Data and Key Metrics Changes - The company is focusing on fast-growing markets, particularly power, photonics, and memory, with significant opportunities in automotive and IoT devices [13][14] - The photonics market is described as being larger than the semiconductor market, with the company positioned to provide solutions for digital twin simulations [40][41] - The company anticipates that 10% to 15% of its revenue will come from China, with potential to exceed this forecast [51] Company Strategy and Development Direction - The company aims to differentiate itself through strategic acquisitions, such as TechX and OPC, to enhance its product offerings and market reach [7][17] - The focus is on expanding in the foundry market and enhancing capabilities in photonics and advanced CMOS technology [32][34] - The company is leveraging AI to improve design processes and manufacturing efficiency, aiming for a future where chip design and manufacturing are integrated through digital twin models [79] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's forecasts despite macroeconomic uncertainties [8][9] - The company has been proactive in managing risks associated with the China market, maintaining transparency with regulatory bodies [49][50] - The management highlighted the importance of adapting to market changes and learning from past experiences to mitigate risks [51][52] Other Important Information - The company has achieved ISO 9001 certification, enhancing its credibility in the market [6] - The FTCO product is a patented technology aimed at optimizing fab processes, which is expected to drive significant future revenue [54][61] Q&A Session Summary Question: What are the biggest opportunities in your total addressable market? - The company focuses on fast-growing markets, particularly power, photonics, and memory, with significant potential in the foundry business [30][31] Question: How is the company positioned in the TCAD market? - The company is the number two player in the TCAD market, with a strong focus on expanding its market share through strategic initiatives [36][37] Question: What is the outlook for the China market? - The company expects to derive 10% to 15% of its revenue from China, with plans to close delayed orders in the upcoming quarters [51][52] Question: Can you explain the FTCO product offering? - FTCO is a patented technology aimed at bridging the gap between design and fab processes, enhancing yield and efficiency in chip manufacturing [54][61] Question: How is AI impacting the company's operations? - The company is utilizing AI to enhance design processes and manufacturing efficiency, aiming for a future where all steps in chip manufacturing are integrated [79]
Silvaco Group, Inc.(SVCO) - 2025 FY - Earnings Call Transcript