Silvaco Group (NASDAQ:SVCO) Issues Earnings Results

Key Points

• Silvaco Group beat earnings expectations for the quarter, reporting an adjusted EPS of ($0.02) versus estimates of ($0.05), and revenue of $17.76 million versus the $17.04 million consensus.
• Management expects a return to non-GAAP operating profitability in Q2, with guidance for about $18 million in revenue, roughly 88% non-GAAP gross margin, and operating expenses near $15.5 million.
• Growth in FTCO, TCAD, and IP is helping offset EDA weakness: the company added a second new FTCO customer, TCAD bookings rose 49% year over year, and IP demand improved, while management said EDA should stabilize before returning to growth.

Silvaco Group (NASDAQ:SVCO - Get Free Report) posted its earnings results on Thursday. The company reported ($0.02) EPS for the quarter, beating analysts' consensus estimates of ($0.05) by $0.03, FiscalAI reports. Silvaco Group had a negative net margin of 41.65% and a negative return on equity of 21.85%. The business had revenue of $17.76 million for the quarter, compared to the consensus estimate of $17.04 million.

Here are the key takeaways from Silvaco Group's conference call:

• Company expects non-GAAP operating profitability in Q2 (first time since Q4 2024) with guidance of roughly $18M revenue, ~88% non-GAAP gross margin, and non-GAAP OpEx around $15.5M ±5%.
• FTCO (AI-driven manufacturing) momentum — secured a second new FTCO customer in consecutive quarters, received an upsell from an existing customer, and sees a pipeline across governments, equipment makers, and power customers with another close expected in Q2.
• Improving financials and liquidity — Q1 revenue and bookings grew 26% YoY, non-GAAP operating loss fell to $0.47M, unrestricted cash increased sequentially (cash & equivalents $10.9M), and management expects positive operating cash flow by Q3 after adjusting for a one-time $8.3M litigation payment and severance.
• Product-line strength — TCAD and IP — TCAD bookings were $10.5M (+49% YoY) driven by FTCO; IP grew strongly year-over-year due to the Mixel acquisition, pipeline has roughly doubled year-over-year and is expected to accelerate sequentially into Q2.
• EDA softness and restructuring — EDA bookings/revenue declined in Q1; management is reallocating resources to core EDA products (Jivaro, Utmost) and rolling out AI-driven improvements (Utmost ~10x runtime gains) with the expectation of short-term stability then a return to growth.

Silvaco Group Price Performance

NASDAQ:SVCO traded down $0.57 during trading hours on Friday, hitting $11.49. 530,699 shares of the company were exchanged, compared to its average volume of 363,815. The stock has a market capitalization of $361.25 million, a price-to-earnings ratio of -12.35 and a beta of 0.88. Silvaco Group has a 52-week low of $3.07 and a 52-week high of $12.81. The company's 50 day moving average price is $6.90 and its 200-day moving average price is $5.34.

Institutional Trading of Silvaco Group

Several large investors have recently made changes to their positions in SVCO. Jain Global LLC acquired a new position in shares of Silvaco Group in the 4th quarter valued at $63,000. Barclays PLC lifted its stake in shares of Silvaco Group by 53.1% in the 4th quarter. Barclays PLC now owns 16,908 shares of the company's stock valued at $68,000 after purchasing an additional 5,867 shares during the period. Dimensional Fund Advisors LP acquired a new position in shares of Silvaco Group in the 4th quarter valued at $101,000. Bridgeway Capital Management LLC acquired a new position in shares of Silvaco Group in the 2nd quarter valued at $118,000. Finally, Bank of America Corp DE lifted its stake in shares of Silvaco Group by 60.5% in the 2nd quarter. Bank of America Corp DE now owns 26,988 shares of the company's stock valued at $127,000 after purchasing an additional 10,174 shares during the period.

Analyst Ratings Changes

A number of analysts have recently weighed in on SVCO shares. Weiss Ratings upgraded shares of Silvaco Group from a "sell (e+)" rating to a "sell (d-)" rating in a report on Friday, April 24th. TD Cowen lowered their price target on shares of Silvaco Group from $8.00 to $6.00 and set a "buy" rating on the stock in a report on Friday, March 13th. Wall Street Zen upgraded shares of Silvaco Group from a "sell" rating to a "hold" rating in a report on Saturday, March 14th. Rosenblatt Securities raised their price objective on Silvaco Group from $9.00 to $14.00 and gave the stock a "buy" rating in a research report on Friday. Finally, Needham & Company LLC reissued a "buy" rating and issued a $10.00 price objective on shares of Silvaco Group in a research report on Monday, March 16th. One investment analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $10.00.

Silvaco Group Company Profile

Silvaco Group, Inc is a provider of electronic design automation (EDA) software and semiconductor intellectual property (IP) solutions. Founded in 1984 and headquartered in Santa Clara, California, the company offers a suite of tools for process and device simulation, circuit design, verification, and physical implementation. Silvaco's core product lines include technology computer-aided design (TCAD) for process modeling, SPICE circuit simulators for analog and digital analysis, and layout and parasitic extraction tools for physical verification.

In addition to its EDA software, Silvaco delivers semiconductor IP in areas such as memory compilers, interface IP (including USB, PCI Express and DDR), and embedded analog/mixed-signal cores.

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