Silvaco Group (NASDAQ:SVCO) Posts Earnings Results

Silvaco Group (NASDAQ:SVCO) announced its quarterly earnings data on Thursday. The company reported ($0.02) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.05) by $0.03, FiscalAI reports. The company had revenue of $17.76 million during the quarter, compared to analysts’ expectations of $17.04 million. Silvaco Group had a negative net margin of 41.65% and a negative return on equity of 21.85%.

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 Stock Down 4.7%

Shares of SVCO traded down $0.57 during trading on Friday, reaching $11.49. The company’s stock had a trading volume of 530,699 shares, compared to its average volume of 363,815. The company has a market cap of $361.25 million, a price-to-earnings ratio of -12.35 and a beta of 0.88. The company has a fifty day moving average of $6.90 and a two-hundred day moving average of $5.34. Silvaco Group has a twelve month low of $3.07 and a twelve month high of $12.81.

Analyst Ratings Changes

Several equities analysts recently weighed in on SVCO shares. Wall Street Zen upgraded shares of Silvaco Group from a “sell” rating to a “hold” rating in a report on Saturday, March 14th. TD Cowen cut their price objective on Silvaco Group from $8.00 to $6.00 and set a “buy” rating on the stock in a research report on Friday, March 13th. Rosenblatt Securities boosted their price objective on Silvaco Group from $9.00 to $14.00 and gave the stock a “buy” rating in a research note on Friday. Needham & Company LLC reaffirmed a “buy” rating and issued a $10.00 target price on shares of Silvaco Group in a research report on Monday, March 16th. Finally, Weiss Ratings upgraded Silvaco Group from a “sell (e+)” rating to a “sell (d-)” rating in a report on Friday, April 24th. One analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $10.00.

Institutional Trading of Silvaco Group

A number of hedge funds and other institutional investors have recently made changes to their positions in SVCO. Jain Global LLC bought a new stake in shares of Silvaco Group in the 4th quarter worth about $63,000. Barclays PLC lifted its position in shares of Silvaco Group by 53.1% during the fourth quarter. Barclays PLC now owns 16,908 shares of the company’s stock worth $68,000 after purchasing an additional 5,867 shares during the last quarter. Dimensional Fund Advisors LP acquired a new position in Silvaco Group in the fourth quarter worth about $101,000. Bridgeway Capital Management LLC acquired a new position in Silvaco Group in the second quarter worth about $118,000. Finally, Bank of America Corp DE increased its holdings in Silvaco Group by 60.5% in the second quarter. Bank of America Corp DE now owns 26,988 shares of the company’s stock valued at $127,000 after buying an additional 10,174 shares during the last quarter.

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.