Silvaco (SVCO, Financial) has revealed its strategic move to acquire Tech-X Corporation, a company specializing in multi-physics simulation software. This acquisition aims to enhance Silvaco's capabilities in areas like photonics, electromagnetics, and plasma dynamics.
SVCO Key Business Developments
Release Date: March 05, 2025
- Gross Bookings (FY 2024): $65.8 million, a 13% increase from 2023.
- Revenue (FY 2024): $59.7 million, a 10% increase from 2023.
- Non-GAAP Gross Margin (FY 2024): 86%, up from 83% in 2023.
- Non-GAAP Operating Income (FY 2024): $5.5 million, compared to $4.4 million in 2023.
- Non-GAAP Net Income Per Share (FY 2024): $0.25, compared to $0.17 in 2023.
- Gross Bookings (Q4 2024): $20.3 million, a 30% increase year-over-year.
- Revenue (Q4 2024): $17.9 million, a 43% increase year-over-year.
- Non-GAAP Operating Expenses (Q4 2024): $12.8 million, up from $11.1 million in Q4 2023.
- Non-GAAP Operating Income (Q4 2024): $3.1 million, up from a loss of $1.3 million in Q4 2023.
- Non-GAAP Net Income (Q4 2024): $4.3 million, compared to a non-GAAP net loss of $1.6 million in Q4 2023.
- Diluted Non-GAAP Net Income Per Share (Q4 2024): $0.15, an improvement from a non-GAAP net loss of $0.08 in Q4 2023.
- Cash, Cash Equivalents, and Marketable Securities (End of Q4 2024): $87.5 million.
- TCAD Bookings (Q4 2024): $14.3 million, up 68% year-over-year.
- EDA Bookings (Q4 2024): $5.5 million, up 31% year-over-year.
- SIP Bookings (Q4 2024): $0.6 million, down 79% year-over-year.
- Non-GAAP Gross Margin (Q4 2024): 89%, up from 79% in Q4 2023.
- Revenue Guidance (FY 2025): $66 million to $72 million, representing an 11% to 21% increase from 2024.
- Non-GAAP Gross Margin Guidance (FY 2025): 84% to 89%.
- Non-GAAP Operating Income Guidance (FY 2025): $2 million to $7 million.
- Non-GAAP Net Income Per Share Guidance (FY 2025): $0.07 to $0.19.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Silvaco Group Inc (SVCO, Financial) reported a 13% increase in gross bookings for fiscal year 2024, reaching $65.8 million.
- Revenue for 2024 increased by 10% to $59.7 million, with a non-GAAP gross margin improvement from 83% to 86%.
- The company achieved a record quarterly revenue of $17.9 million in Q4 2024, marking a 43% year-over-year increase.
- Silvaco expanded its AI-based digital-twin modeling platform and announced a strategic partnership with Micron Global to enhance its market reach.
- The acquisition of Cadence's OPC product line is expected to expand Silvaco's SAM by $357 million, strengthening its position in advanced memory manufacturing and foundry operations.
Negative Points
- Non-GAAP operating income for 2025 is projected to decrease, with a range of $2 million to $7 million compared to $6.7 million in 2024.
- The acquisition of Cadence's OPC product line is expected to have a modest revenue impact in 2025 due to ASC 606 timing complexities.
- SIP bookings decreased by 79% in Q4 2024, reflecting challenges in renewing a key strategic resale agreement and order slowdowns in APAC.
- Operating expenses increased due to higher G&A costs related to being a public company and continued investment in R&D and sales.
- Revenue contribution from the China region is expected to remain flat or slightly decrease in 2025, maintaining the 15% to 20% range.
